Box-D-BOX Technologies Reports Record Revenues and Net Profit in Second Quarter Fiscal 2025

Core Insights - D-BOX Technologies Inc. reported record total revenues of $12.1 million for Q2 fiscal 2025, representing a 12% increase compared to Q2 2024 [1][3] - The company achieved a record adjusted EBITDA of$ 2.9 million, which is 24% of total revenues, and a net profit of $2.1 million, or 17% of total revenues [1][8] - The company is focusing on three key commercial markets: theatrical, sim racing, and simulation and training, all of which showed revenue growth this quarter [2] Financial Performance - Total revenues for Q2 2025 reached$ 12.1 million, up $1.3 million or 12% from the previous year, with system sales contributing$ 8.9 million (up 3%) and royalties at $3.2 million (up 49%) [3][4] - Gross profit increased to$ 6.4 million, a 32% rise from the prior year, with a gross margin of 53%, up 8 percentage points from 45% [7][14] - Operating income for the quarter was $2.2 million, or 18% of total revenues, compared to$ 0.6 million, or 5% of total revenues in the same quarter last year [8][14] Market Segmentation - System sales in the entertainment markets totaled $6.8 million, with theatrical and sim racing markets generating$ 6 million, up 21% year-over-year [4] - The simulation and training market reported $2.1 million in system sales, reflecting a 3% increase from the previous year [4] - The company exited the direct-to-consumer hardware market, which impacted system sales by$ 1 million [4] Year-to-Date Performance - Year-to-date total revenues for the first half of fiscal 2025 were $20.9 million, down 2% from the prior year, primarily due to a decrease in system sales [10] - The gross margin for the year-to-date period was 53%, an increase of approximately 5 percentage points compared to the previous year [10] - Cash flows from operating activities totaled$ 3.0 million, significantly higher than $0.9 million in the prior year [10][14] Strategic Outlook - The company is encouraged by the positive momentum in the industry and is strategically scaling operations to enhance profitability [2] - D-BOX plans to continue focusing on its key commercial markets to drive future growth [2]