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 Viewpoint - D-BOX Technologies Inc. announces the resignation of CEO Sébastien Mailhot and the appointment of Naveen Prasad as interim CEO, effective June 10, 2025, aiming for a smooth transition and continued financial progress [1][3][5]. Group 1: Leadership Transition - Sébastien Mailhot is stepping down after achieving significant financial milestones, contributing to revenue growth and improved profitability during his tenure [2][3]. - Naveen Prasad, with over 25 years of experience in media and technology, will take over as interim CEO, bringing a strong background in driving growth and organizational change [4][5]. - The Board expresses confidence in Prasad's ability to strengthen operational effectiveness and guide the next phase of the Corporation's evolution [5]. Group 2: New Board Appointment - Lori Vaudry Tersigni has been appointed as an independent director, bringing extensive operational and leadership experience from her previous roles at Morneau Shepell and CIBC [6]. Group 3: Financial Outlook - D-BOX is expected to release its financial results for the fourth quarter and full fiscal year ended March 31, 2025, on June 10, 2025 [7].