Core Insights - D-BOX Technologies Inc. reported record financial results for Q2 Fiscal 2026, with significant growth in royalties and net profit, driven by an expanding market presence and increased demand for its haptic technology [2][3][4]. Financial Performance - Royalty revenues reached a record $4.5 million, marking a 40% increase year-over-year, while the gross domestic box office declined by 11.1% during the same period [3][9]. - Total revenues for Q2 2026 were $16.1 million, up 33% from the previous year, with theatrical system sales increasing by 62% to $6.4 million [4][12]. - Net profit also hit a record of $4.5 million, despite a $0.4 million restructuring charge, with adjusted EBITDA reaching $5.6 million, reflecting a 93% year-over-year increase [5][9]. Market Expansion - The company achieved a 13.5% year-over-year increase in its screen footprint, totaling 1,084 active screens worldwide [3]. - Theatrical customers accounted for 65% of total revenues in the first half of the fiscal year, compared to 49% in the prior year, indicating a strong shift towards theatrical sales [7]. Operational Efficiency - Gross margin improved from 53% to 56%, attributed to a favorable market mix and increased high-margin royalty revenues [7]. - Operating expenses as a percentage of total revenues decreased from 35% to 27%, showcasing enhanced operational efficiency [12]. Balance Sheet Strength - D-BOX ended Q2 2026 with $10.6 million in cash and only $0.4 million in non-interest-bearing debt, positioning the company favorably for future growth [11].

Core Points - D-BOX Technologies Inc. held its annual and special meeting of shareholders, with 114,410,896 Class A common shares represented, accounting for approximately 51.46% of all issued and outstanding shares [1] - Shareholders voted in favor of all items of business presented at the meeting [1] Election of Directors - All proposed nominees for the Board of Directors were elected, with high approval rates ranging from 99.92% to 99.96% [2][3] - Brigitte Bourque stepped down as Chair of the Board, and Dave McLurg was appointed as the new Chair immediately following the meeting [3] Appointment of Independent Auditors - Ernst & Young LLP was appointed as independent auditors until the next annual meeting, with the Directors authorized to fix their remuneration [4][5] Ratification of Omnibus Incentive Plan - A new omnibus long-term incentive compensation plan was ratified by shareholders, receiving 92.01% approval [6]