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

Core Insights - D-BOX Technologies Inc. reported strong financial performance in Q1 2026, with total revenues reaching $13.0 million, a 49% increase year-over-year, driven by theatrical system sales and record royalty performance [2][3][7] Financial Performance - Total revenues for Q1 2026 were $13.0 million, up from $8.8 million in Q1 2025, marking a 49% increase [5][8] - Royalty revenues increased by 64% year-over-year, achieving a record of $4.0 million, supported by a 12% rise in active D-BOX screens to 1,047 [3][7] - Adjusted EBITDA reached a record $3.3 million, representing a 26% margin, up 23% from the previous year [4][8] - Net profit for the quarter was $2.0 million, despite a restructuring charge of $0.9 million related to the CEO transition [4][7] Revenue Breakdown - Theatrical system sales contributed $4.1 million, a significant increase of 629% compared to $0.56 million in Q1 2025 [5] - Simulation and training revenues were $2.2 million, slightly up by 4% year-over-year, while sim racing revenues decreased by 11% to $2.3 million [5][8] - Total system sales amounted to $9.0 million, reflecting a 43% increase from $6.3 million in Q1 2025 [5] Operational Efficiency - Operating expenses increased by 11% to $5.3 million, but the operating margin improved to 15% from a negative margin in the previous year [8] - Gross profit was $7.3 million, resulting in a gross margin of 56%, up from 52% [8] Balance Sheet and Liquidity - D-BOX ended Q1 2026 with $2.8 million in operating cash flow and total debt of $1.4 million, indicating a strong financial position [6][8] - The company had available liquidity of $18.5 million, including an undrawn line of credit [6]