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

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.