D-BOX Reports Strong Third Quarter with $2.7 Million Net Profit Before Income Taxes on $3.1 Million of Royalties

Executive Summary

• D‑BOX Technologies reported record net profit of C$9.1 million for Q3 FY2026, driven by a C$6.4 million deferred tax asset and strong theatrical system sales.
• Total revenues rose 4% year‑over‑year to C$13.8 million; adjusted EBITDA reached C$3.4 million (24% margin), up 31% YoY.
• Cash balance increased to C$16.2 million with virtually no interest‑bearing debt, providing ample liquidity for continued expansion.

Key Details

• Revenue Breakdown (Q3 FY2026 vs. Q3 FY2025):
• Theatrical system sales: C$5.8 M (+21%)
• Simulation & training: C$1.5 M (‑22%)
• Sim racing: C$2.7 M (+1%)
• Other: C$0.7 M (‑7%)
• Royalties: C$3.1 M, down 3% YoY due to a 6.9% decline in North American box office and fewer blockbuster releases.
• Screen Footprint: Total active screens grew 12.8% YoY to 1,135; gross new installations hit an all‑time high of 86 (net new = 51).
• Deferred Tax Asset: Recognized DTA of C$6.4 M from unused tax losses/credits, boosting net profit.
• Operating Metrics: Adjusted EBITDA margin improved to 24% (up 5 p.p. YoY); operating margin rose to 19% (up 7 p.p.).
• Liquidity: Cash C$16.2 M; total debt C$0.4 M (non‑interest bearing). Deferred revenues C$4.1 M, up >C$3 M from advance deposits.
• YTD Highlights (9 months):
• Total system sales +74% YoY to C$31.4 M.
• Royalties +31% YoY to C$11.6 M.
• Net profit before tax C$9.2 M (includes C$1.2 M restructuring charge).
• Restructuring Charge: C$1.207 M related to CEO and CFO transitions included in YTD figures.
• Debt Position: All interest‑bearing debt paid off; total debt C$0.4 M, net debt negligible.

Notable Quotes

“In Q3 2026, D‑BOX continued to deliver on its benchmark goal of generating adjusted EBITDA in excess of its royalty revenues… our cash balance of $16.2 million provides the Company with the financial flexibility to continue its mission of expanding its operations and customer base in a strategic and methodical manner.” – Naveen Prasad, CEO

All amounts are expressed in Canadian dollars.