D-BOX Reports Multiple Record Setting Quarter and $4.5 Million Net Profit in Second Quarter Fiscal 2026
Q2 Fiscal 2026 Highlights
- Record royalties of $4.5 million
- Record total revenues of $16.1 million
- Record net profit of $4.5 million after a $0.4 million restructuring charge
- Record adjusted EBITDA1 of $5.6 million
MONTREAL, Nov. 12, 2025 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (“D-BOX” or the "Company") (TSX: DBO) today reported financial results for its second quarter ended September 30, 2025.
“In Q2 2026, D-BOX royalties continued to outpace market benchmarks,” said Naveen Prasad, CEO of D-BOX. “Driven by the continued expansion of our footprint, we have set new quarterly highs in key financial indicators including royalties and net profit. Our ongoing screen expansion, driven by a growing network of exhibitor circuits, underscores the value we contribute through our immersive technology to the theatrical ecosystem. D-BOX is now being rolled out even deeper in complexes due to the demand for our haptic experiences long after opening weekend. We are pleased to see the positive response to our solution, which is the result of our dedicated and loyal customer base.”
Q2 2026 Operating Results
Second quarter royalty revenues reached a second consecutive quarterly record at $4.5 million. This is an increase of 40% year over year and compares extremely favorably to the gross domestic box office which declined 11.1%1 in the same period. D-BOX encoded feature films continue to demonstrate consistent performance across a wide range of content, including Jurassic World: Rebirth, Superman, The Fantastic Four: First Steps and The Conjuring: Last Rites, regardless of box office traction among other formats. D-BOX continued to expand its market presence, achieving a 13.5% year-over-year increase in screen footprint worldwide, bringing total active screens to 1,084.
Theatrical system sales increased 62% year-over-year, to a record $6.4 million. These record results combined with a solid sales pipeline are indicative of the positive traction our brand is currently experiencing, particularly in the U.S., Australian and in Latin American markets. Simulation and training and sim racing customer groups combined were relatively flat, up 3% year-over-year, in the second quarter. Theatrical customers therefore drove the increase in total revenues to a record $16.1 million, up 33% year-over-year.
Net profit reached a record $4.5 million despite a $0.4 million restructuring charge related to the CFO transition announced on August 13, 2025. Adjusted EBITDA2 for the quarter totaled a record $5.6 million, representing a 35% Adjusted EBITDA margin², up 93% year-over-year and demonstrating continued focus on cost control and operational efficiency.
Given the inherent variability and seasonality of quarterly sales, we emphasize the importance of assessing the Company’s performance on a trailing twelve-month basis.
Year-to-date Operating Results
Theatrical customers constituted 65% of total revenues for the first half ended September 30, 2025, compared to 49% in the prior year. The Company's theatrical system sales surged by 132%, while royalties experienced a notable 51% uptick. These combined factors contributed to a record-breaking first half of the year, with net profit reaching $6.5 million, despite a $1.2 million restructuring charge related to the transition of the CEO and CFO roles. Gross margin increased three percentage points, from 53% to 56%. This change can be attributed largely to market mix and the previously mentioned increase in high-margin royalty revenues. The company has successfully paid off all its interest-bearing debt, positioning it well to capitalize on future cash flows from operations.
| Three month quarter ended | YTD quarter ended | |||||||||||
| Fiscal year | 2026 | 2025 | Var. ($) |
Var. (%) |
2026 | 2025 | Var. ($) |
Var. (%) | ||||
| Revenues from | ||||||||||||
| System sales | ||||||||||||
| Theatrical | 6,428 | 3,979 | 2,449 | 62 | % | 10,509 | 4,539 | 5,970 | 132 | % | ||
| Simulation and training | 1,781 | 2,147 | (366 | ) | (17 | )% | 3,960 | 4,241 | (281 | ) | (7) | % |
| Sim racing | 2,612 | 2,120 | 492 | 23 | % | 4,913 | 4,710 | 203 | 4 | % | ||
| Other | 811 | 683 | 128 | 19 | % | 1,294 | 1,765 | (471 | ) | (27) | % | |
| Total system sales | 11,632 | 8,929 | 2,703 | 30 | % | 20,676 | 15,255 | 5,421 | 36 | % | ||
| Rights for use, rental and maintenance ("royalties") |
4,476 | 3,188 | 1,288 | 40 | % | 8,470 | 5,624 | 2,846 | 51 | % | ||
| Total Revenues | 16,108 | 12,117 | 3,991 | 33 | % | 29,146 | 20,879 | 8,267 | 40 | % | ||
Balance Sheet and Liquidity
D-BOX closed the second quarter of fiscal 2026 in a position of financial strength, with $10.6 million in cash against total debt of $0.4 million which is non-interest bearing.
SUPPLEMENTAL FINANCIAL DATA - UNAUDITED
| Three month quarter ended | YTD quarter ended | |||||||||||
| Fiscal year | 2026 | 2025 | Var. (%) | 2026 | 2025 | Var. (%) | ||||||
| Total Revenues | 16,108 | 12,117 | 33 | % | 29,146 | 20,879 | 40 | % | ||||
| Gross profit | 8,898 | 6,428 | 38 | % | 16,214 | 10,979 | 48 | % | ||||
| Operating expensesi | 4,316 | 4,252 | 2 | % | 9,655 | 9,076 | 6 | % | ||||
| Operating incomei | 4,582 | 2,176 | 111 | % | 6,559 | 1,903 | 245 | % | ||||
| Adjusted EBITDA2,i | 5,594 | 2,905 | 93 | % | 8,922 | 3,168 | 182 | % | ||||
| Financial expenses | 36 | 150 | (76) | % | 61 | 286 | (79) | % | ||||
| Net profit (loss)i | 4,526 | 2,026 | 123 | % | 6,478 | 1,607 | 303 | % | ||||
| Basic and diluted EPS | 0.020 | 0.009 | 121 | % | 0.029 | 0.007 | 300 | % | ||||
| Gross margini | 55 | % | 53 | % | 2 p.p. | 56 | % | 53 | % | 3 p.p. | ||
| Operating expenses as % of total revenues2,i | 27 | % | 35 | % | (8) p.p. | 33 | % | 43 | % | (10) p.p. | ||
| Operating margin2,i | 28 | % | 18 | % | 10 p.p. | 23 | % | 9 | % | 13 p.p. | ||
| Adjusted EBITDA margin2,i | 35 | % | 24 | % | 11 p.p. | 31 | % | 15 | % | 15 p.p. | ||
| Cash flows provided by operating activitiesi | 1,344 | 4,462 | (70) | % | 4,110 | 3,001 | 37 | % | ||||
| As at (in thousands of Canadian dollars) | September 30, 2025 | March 31, 2025 | ||||||||||
| Total debt2 | 411 | 1,221 | ||||||||||
| Cash and cash equivalents | 10,606 | 7,812 | ||||||||||
| Net cash (net debt)2 | 10,195 | 6,591 | ||||||||||
| Adjusted EBITDA (LTM)2 | 13,065 | 7,311 | ||||||||||
i) Included in Q2 FY2026 and H1 FY2026 is a restructuring charge of $357 and $1,207 respectively, related to a change in CFO and CEO
This release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements and the Management’s Discussion and Analysis dated November 12, 2025. These documents are available at www.sedarplus.ca.
All dollar amounts are expressed in Canadian currency
NON-IFRS AND OTHER FINANCIAL PERFORMANCE MEASURES
D-BOX uses the following non-IFRS financial performance measures in its MD&A and other communications. The non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to similarly titled measures reported by other companies. Investors are cautioned that the disclosure of these metrics is meant to add to, and not to replace, the discussion of financial results determined in accordance with IFRS. Management uses both IFRS and non-IFRS measures when planning, monitoring and evaluating the Company’s performance. The non-IFRS performance measures are described as follows:
Adjusted EBITDA
EBITDA represents earnings before interest and financing, income taxes and depreciation and amortization. Adjustments to EBITDA are for items that are not necessarily reflective of the Company’s underlying operating performance. As there is no generally accepted method of calculating EBITDA, this measure is not necessarily comparable to similarly titled measures reported by other issuers. Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flow from operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues. The following table reconciles adjusted EBITDA to net profit:
| Three month periods | Six month periods | |||||
| 2025 | 2024 | 2025 | 2024 | |||
| Net profit (loss) | 4,526 | 2,026 | 6,478 | 1,607 | ||
| Amortization of property and equipment | 294 | 348 | 612 | 607 | ||
| Amortization of intangible assets | 138 | 140 | 282 | 282 | ||
| Financial expenses | 36 | 150 | 61 | 286 | ||
| Income taxes | 20 | — | 20 | 10 | ||
| Share-based payments | 135 | (31) | 187 | 32 | ||
| Foreign exchange loss (gain) | 88 | (133) | 75 | (61) | ||
| Restructuring costs | 357 | 405 | 1,207 | 405 | ||
| Adjusted EBITDA | 5,594 | 2,905 | 8,922 | 3,168 | ||
Total Debt, Net Debt and Total Debt to Adjusted EBITDA
Total debt is defined as the total bank indebtedness, long-term debt (including any current portion), and net debt is calculated as total debt net of cash and cash equivalents. The Company considers total debt and net debt to be important indicators for management and investors to assess the financial position and liquidity of the Company and measure its financial leverage. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Total debt to Adjusted EBITDA ratio is calculated as total net debt divided by the last four quarters Adjusted EBITDA. We believe that total debt to Adjusted EBITDA is a useful metric to assess the Company’s ability to manage debt and liquidity.
Supplementary Financial Measures
Gross margin is defined as gross profit divided by total revenues.
Operating expenses as a percentage of sales are defined as operating expenses divided by total revenues.
Operating margin is defined as operating income divided by net sales.
ABOUT D-BOX
D-BOX Technologies Inc. (TSX: DBO) is a global leader in haptic technology, delivering immersive motion experiences that engage the body and spark the imagination. Our patented systems synchronize motion, vibration, and texture with on-screen content, enhancing storytelling across various platforms. With over 25 years of innovation, D-BOX's solutions are utilized in movie theaters, sim racing, and simulation & training. Headquartered in Montreal, Canada, with offices in Los Angeles, USA, D-BOX continues to redefine how audiences experience media worldwide. Visit https://www.d-box.com/.
FOR FURTHER INFORMATION, PLEASE CONTACT:
David Reid
Chief Financial Officer
D-BOX Technologies Inc.
dreid@d-box.com
D-BOX Media Relations
media@d-box.com
DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS
Certain information included in this press release may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, business outlook, and financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on several assumptions which give rise to the possibility that actual results could differ materially from the Corporation’s expectations expressed in or implied by such forward-looking information and no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including but not limited to the future plans, activities, objectives, operations, strategy, business outlook and financial performance and condition of the Corporation.
Forward-looking information is provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of the Corporation’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.
Forward-looking information provided in this document is based on information available at the date hereof and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.
The risks, uncertainties and assumptions that could cause actual results to differ materially from the Corporation’s expectations expressed in or implied by the forward-looking information include, but are not limited to, the sustainability of net profit driven by continued strength in royalty revenues, the ongoing positive impact of past cost control measures on future profitability, and the sustained strength and value creation driven by its overall business model and operational discipline. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking information are discussed under “Risk Factors” in the Corporation’s annual information form for the fiscal year ended March 31, 2025, a copy of which is available on SEDAR+ at www.sedarplus.ca.
Except as may be required by Canadian securities laws, the Corporation does not intend nor does it undertake any obligation to update or revise any forward-looking information contained in this press release to reflect subsequent information, events, circumstances or otherwise.
The Corporation cautions readers that the risks described above are not the only ones that could have an impact on it. Additional risks and uncertainties not currently known to the Corporation or that the Corporation currently deems to be immaterial may also have a material adverse effect on the Corporation’s business, financial condition or results of operations.
1 According to https://www.boxofficemojo.com/
2 Please refer to "non-IFRS and other financial performance measures" in this press release
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