Q3 Fiscal 2026 Highlights
- Total revenues of $13.8 million
- Adjusted EBITDA1 of $3.4 million
- Net profit of $9.1 million, net profit before income taxes of $2.7 million
- Royalties of $3.1 million
MONTREAL, Feb. 10, 2026 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. ("D-BOX" or the "Company") (TSX: DBO) today reported financial results for its third quarter ended December 31, 2025.
"In Q3 2026, D-BOX continued to deliver on its benchmark goal of generating adjusted EBITDA in excess of its royalty revenues," said Naveen Prasad, CEO of D-BOX. "With an all-time high of 86 gross new theatrical installations in the quarter our screen count continues to expand, helping fuel further potential royalty growth. This profitability, also driven in part by our diligent efforts in cost control, resulted in the Company recognizing certain unused tax losses and credits as a Deferred Tax Asset ("DTA") of $6.4 million pushing net profit to $9.1 million in Q3. 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."
Q3 2026 Operating Results
Third quarter royalty revenues decreased 3% to $3.1 million compared with $3.2 million last year. The year over year decline can be attributed to an overall decline of 6.9%1 in the North American domestic box office and specifically fewer large scale blockbuster releases and a higher proportion of titles that generated lower demand for premium theatrical experiences. This lower concentration among tentpole releases reduced the number of titles capable of driving audiences in search of immersive experiences. D-BOX-encoded movies once again delivered strong results among the highest grossing titles, including Avatar: Fire and Ash, Zootopia 2 and Wicked: For Good. D-BOX continued to expand its market presence, achieving a 12.8% year-over-year increase in screen footprint worldwide, bringing total active screens to 1,135.
Theatrical system sales increased 21% year-over-year, to $5.8 million. These 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. The sustained expansion of our screens in the U.S. is a clear indication of market acceptance of our commercial offering. While net new screen installations were equivalent to those for the same period last year, at 51, gross installations reached an all-time high of 86. There were 35 screens outside North America that the Company deactivated as they had been dormant and generating no revenue for the last 3 years, due to geopolitical hurdles in certain international markets.
The Company ended the quarter with $16.2 million in cash, and $4.1 million in deferred revenues, both up over $3 million due to advanced deposits received in December for theatrical orders to be delivered and installed over the coming months. Simulation and training and sim racing customer groups combined were down 8% year-over-year, in the third quarter mainly due to lower demand from simulation and training customers. Theatrical customers drove the increase in total revenues to $13.8 million, up 4% year-over-year.
The Company recorded a DTA of $6.4 million relating to the recognition of previously unused tax losses and unused tax credits. The Company has recognized the DTA based on the expectation that future taxable profit will be available against which the unused tax losses and credits can be utilized. The Company's recent history of success and the positive outlook for its future cash flows and taxable profit projections necessitate the asset be recorded.
Net profit reached a record $9.1 million which includes the recognition of the above mentioned $6.4 million deferred tax benefit. Adjusted EBITDA2 for the quarter totaled $3.4 million, representing a 24% Adjusted EBITDA margin², up 31% year-over-year and demonstrating continued focus on cost control and operational efficiency.
Given the inherent variability and seasonality of quarterly sales, we continue to 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 nine months ended December 31, 2025, compared to 60% in the prior year. The Company's theatrical system sales surged by 74%, while royalties experienced a notable 31% uptick. These combined factors contributed to a record-breaking nine month year-to-date operations, with net profit before income taxes reaching $9.2 million, despite a $1.2 million restructuring charge related to the transition of the CEO and CFO roles. Gross margin increased two percentage points, from 52% to 54%. This change can be attributed largely to market mix and the previously mentioned increase in high-margin royalty revenues. The company has successfully paid off all its interest-bearing debt, positioning it well to capitalize on future cash flows from operations.
| Three month quarter ended | YTD quarter ended | |||||||||||
| Fiscal year | 2026 | 2025 | Var. | 2026 | 2025 | Var. ($) | Var. (%) | |||||
| Revenues from | ||||||||||||
| System sales | ||||||||||||
| Theatrical | 5,838 | 4,831 | 1,007 | 21 % | 16,347 | 9,370 | 6,977 | 74 % | ||||
| Simulation and training | 1,529 | 1,956 | (427) | (22) % | 5,489 | 6,197 | (708) | (11)% | ||||
| Sim racing | 2,668 | 2,629 | 39 | 1 % | 7,581 | 7,339 | 242 | 3 % | ||||
| Other | 673 | 720 | (47) | (7) % | 1,967 | 2,485 | (518) | (21)% | ||||
| Total system sales | 10,708 | 10,136 | 572 | 6 % | 31,384 | 25,391 | 5,993 | 24 % | ||||
| Rights for use, rental and maintenance ("royalties") | 3,083 | 3,163 | (80) | (3) % | 11,553 | 8,787 | 2,766 | 31 % | ||||
| Total Revenues | 13,791 | 13,299 | 492 | 4 % | 42,937 | 34,178 | 8,759 | 26 % | ||||
Balance Sheet and Liquidity
D-BOX closed the third quarter of fiscal 2026 in a position of financial strength, with $16.2 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. | |||||||||
| Total Revenues | 13,791 | 13,299 | 4 % | 42,937 | 34,178 | 26 % | ||||||
| Gross profit | 7,087 | 6,687 | 6 % | 23,301 | 17,666 | 32 % | ||||||
| Operating expenses i | 4,437 | 5,041 | (12) % | 14,092 | 14,117 | - % | ||||||
| Operating income i | 2,650 | 1,646 | 61 % | 9,209 | 3,549 | 159 % | ||||||
| Adjusted EBITDA 2, i | 3,359 | 2,565 | 31 % | 12,146 | 5,733 | 112 % | ||||||
| Financial expenses (income) | (4 | - | 104 | (104) % | 57 | 390 | (85) % | |||||
| Net profit i | 9,061 | 1,531 | 492 % | 15,539 | 3,138 | 395 % | ||||||
| Basic EPS | 0.041 | 0.007 | 487 % | 0.070 | 0.014 | 391 % | ||||||
| Diluted EPS | 0.040 | 0.007 | 470 % | 0.068 | 0.014 | 377% | ||||||
| Gross margin i | 51 - | 50% | 1 p.p. | 54 - | 52 % | 3 p.p. | ||||||
| Operating expenses as % of total revenues 2, i | 32 - | 38% | (6) p.p. | 33 - | 41 % | (8) p.p. | ||||||
| Operating margin 2, i | 19 - | 12% | 7 p.p. | 21 - | 10 % | 11 p.p. | ||||||
| Adjusted EBITDA margin 2, i | 24 - | 19% | 5 p.p. | 28 - | 17 % | 12 p.p. | ||||||
| Cash flows provided by operating activities i | 5,985 | 2,287 | 162 % | 10,095 | 5,288 | 91 % | ||||||
| As at (in thousands of Canadian dollars) | December 31, 2025 | March 31, 2025 | ||||||||||
| Total debt 2 | 367 | 1,221 | ||||||||||
| Cash and cash equivalents | 16,183 | 7,812 | ||||||||||
| Net cash (net debt) 2 | 15,816 | 6,591 | ||||||||||
| Adjusted EBITDA (LTM) 2 | 13,859 | 7,311 | ||||||||||
i) Included in YTD quarter ended FY2026 is a restructuring charge of $1,207, 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 February 10, 2026. 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 | Nine month periods | |||
| 2025 | 2024 | 2025 | 2024 | |
| Net profit | 9,061 | 1,531 | 15,539 | 3,138 |
| Amortization of property and equipment | 298 | 296 | 910 | 897 |
| Amortization of intangible assets | 130 | 134 | 412 | 416 |
| Financial expenses (income) | (4- | 104 | 57 | 390 |
| Income taxes (recoveries) | (6,407- | 11 | (6,387) | 21 |
| Share-based payments | 256 | 19 | 308 | 57 |
| Foreign exchange loss | 25 | 470 | 100 | 409 |
| Restructuring costs | - | - | 1,207 | 405 |
| Adjusted EBITDA | 3,359 | 2,565 | 12,146 | 5,733 |
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
