D-BOX Reports Record Royalty Revenues and $2.0 Million Net Profit in First Quarter Fiscal 2026

Executive Summary

• D-BOX Technologies Inc. reported financial results for the first quarter ended June 30, 2025 (Q1 Fiscal 2026), highlighting record revenue and profitability metrics.
• Total revenues reached $13.0 million, a 49% year-over-year increase, driven by a surge in theatrical system sales and record royalty income.
• The company reported a net profit of $2.0 million and record adjusted EBITDA of $3.3 million, despite incurring a $0.9 million restructuring charge related to a CEO transition.

Key Details

• Total Revenues: $13.0 million (up 49% year-over-year).
• Net Profit: $2.0 million (after a $0.9 million restructuring charge).
• Adjusted EBITDA: Record $3.3 million (up 23% year-over-year), representing a 26% margin.
• Operating Cash Flow: $2.8 million.
• Royalty Revenues: Record $4.0 million (up 64% year-over-year), accounting for 31% of total revenue mix.
• Theatrical System Sales: $4.1 million (up 629% year-over-year), driven by accelerated fulfillment.
• Simulation and Training Sales: $2.2 million (up 4% year-over-year).
• Sim Racing Sales: $2.3 million (down 11% year-over-year).
• Restructuring Charge: $850,000 provision and $750,000 payment related to the CEO change announced on June 4, 2025.
• Balance Sheet:
  • Cash and cash equivalents: $10.5 million.
  • Total debt: $1.4 million.
  • Available liquidity (undrawn line of credit): $18.5 million.
• Operational Metrics:
  • Active D-BOX screens increased 12% year-over-year to 1,047.
  • Gross margin improved to 56% from 52% in Q1 2025.
  • Operating expenses as % of total revenues decreased to 41% from 55%.

Notable Quotes

• “In Q1 2026, D-BOX delivered robust financial performance with record royalty growth and strong profitability... the Company continues to demonstrate the strength of our royalty-focused model, expanded theatrical footprint and disciplined expense control.” — Naveen Prasad, Interim CEO