*All dollar amounts are expressed in Canadian currency

MONTREAL, June 02, 2026 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (“D-BOX” or the "Company") (TSX: DBO) today reported financial results for its fourth quarter ended March 31, 2026.

“D-BOX delivered exceptional fourth quarter and fiscal 2026 results, reflecting continued execution across our theatrical focused growth strategy” said Naveen Prasad, CEO of D-BOX. “During the year, we achieved a record expansion of our theatrical footprint by adding 189 net new screens, taking us to 1,201 active theatrical screens globally. This growth reflects increasing recognition from our exhibitor partners that D-BOX is a highly deployable premium experience that can help maximize per-patron yield by delivering a uniquely immersive experience for audiences of all ages.

Our total revenues grew by 35% year-over-year to $57.6 million, while adjusted EBITDA more than doubled to $15.5 million. Net profit before income taxes surged 193% to $11.4 million. These robust results have further strengthened our balance sheet and enhanced our financial flexibility, positioning D-BOX to offer innovative financing solutions and capitalize on strategic opportunities as we move forward.”

Q4 2026 Operating Results

Fourth quarter royalty revenues increased 33% to $3.0 million compared with $2.2 million in the prior year. This year‑over‑year increase was driven primarily by a 24.8%¹ increase in the North American domestic box office, and the 18.7% expansion in our installed footprint. For the second consecutive quarter, the gross domestic box office remained less concentrated across a broader range of films, reflective of the seasonality and composition of the release calendar during the period, rather than being dominated by blockbuster titles, which are typically more favorable for D-BOX. D-BOX-encoded movies themselves delivered strong results among the highest grossing titles of the quarter, including Project Hail Mary, Avatar: Fire and Ash and Hoppers.

System sales to theatrical customers increased 682% to $7.8 million compared with $1.0 million last year. This increase reflects D-BOX’s emergence as a preferred capital allocation priority for it’s exhibitors partners looking to maximize per-patron yield. Seventy four new screens were installed in the quarter, offset by 8 deactivations, compared to 6 net new screens from the same period last year. While this surge highlights the D-BOX brand’s growing market penetration and the impact of high-performing blockbuster content, we continue to maintain a disciplined outlook regarding future hardware cycles. We expect system sales to normalize toward historical patterns of seasonality, as exhibitor capital expenditures typically fluctuate based on our exhibitor partners' positioning for the strength and timing of the global box office slate and their corresponding free cash flow generation.

The Company ended the year with a significantly improved financial position: cash and cash equivalents increased to $17.6 million (up from $7.8 million), working capital rose to $24.7 million, and equity nearly doubled to $34.6 million. These improvements materially strengthen the Company's financial flexibility provide a solid foundation for continued investing in innovation, operational excellence, and strategic exhibitor financing and deployment initiatives. The strengthened balance sheet also supports disciplined capital allocation initiatives focused on creating long term shareholder value, including initiatives such as the Normal Course Issuer Bid (NCIB).

Additionally, the Company recorded a deferred tax asset (DTA) of $6.4 million, relating to the recognition of previously unused tax losses and unused tax credits. This recognition is based on the expectation that future taxable profits will be available to utilize these losses and credits, supported by the Company’s recent history of success and positive outlook for future cash flows and profitability.

Net profit for the quarter reached $1.9 million. Adjusted EBITDA² totaled $3.2 million, representing a 22% Adjusted EBITDA margin², up 105% 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.

FY26 Operating Results

Total revenues increased by 35% year-over-year to $57.6 million, with adjusted EBITDA more than doubling to $15.5 million and net profit before income taxes rising 193% to $11.4 million. The Company’s strong top-line growth was driven primarily by a surge in theatrical system sales (up 133% for the year) and recurring rights for use, rental, and maintenance revenues (up 32%). This performance underscores the effectiveness of D-BOX’s commercial strategy and its ability to scale profitably.

D-BOX continued to outperform the North American domestic box office on an annualized basis, with the box office increasing 7%³ while D-BOX royalties rose 32%. Our base of motion-enabled screens grew by 18.7% year-over-year, reaching 1,201 active screens. D-BOX’s technology is increasingly recognized as a premium upgrade by exhibitors, enabling them to maximize per-patron yield and deliver unique, immersive experiences. The expansion of the installed footprint directly supports high-margin, recurring royalty and maintenance revenues, which have proven resilient and outperformed broader box office trends. This continued outperformance reinforces D-BOX’s growing position within the premium theatrical ecosystem and further supports the long-term scalability of its recurring revenue model.

Although revenues from sim racing and simulation and training system sales declined by 10% and 16% respectively, these segments continue to play a strategically important role within D-BOX’s broader commercial platform and overall profitability profile. Both customer groups utilize the same core motion technology and components as our theatrical clients, which allows D-BOX to leverage economies of scale across its operations. By sharing operating overhead and production resources, these segments help optimize cost efficiency and enhance profitability, even during periods of lower sales. This synergy not only mitigates risk but also improves operating leverage, enhances production scale efficiencies, and preserves D-BOX’s ability to capitalize on growth opportunities across multiple end markets.

Balance Sheet and Liquidity

D-BOX closed the fourth quarter of fiscal 2026 in a position of financial strength, with $17.6 million in cash against total debt of $0.3 million which is non-interest bearing.

SUPPLEMENTAL FINANCIAL DATA - UNAUDITED

i)     Included in YTD quarter ended FY2026 is a restructuring charge of $1,207, related to a change in CFO and CEO

This release should be read in conjunction with the Company’s unaudited interim condensed consolidated financial statements and the Management’s Discussion and Analysis dated June 2, 2026. These documents are available at www.sedarplus.ca.

NON-IFRS AND OTHER FINANCIAL PERFORMANCE MEASURES

D-BOX uses the following non-IFRS financial performance measures in its MD&A and other communications. The non-IFRS measures do not have any standardized meaning prescribed by IFRS and are unlikely to be comparable to similarly titled measures reported by other companies. Investors are cautioned that the disclosure of these metrics is meant to add to, and not to replace, the discussion of financial results determined in accordance with IFRS. Management uses both IFRS and non-IFRS measures when planning, monitoring and evaluating the Company’s performance. The non-IFRS performance measures are described as follows:

Adjusted EBITDA

EBITDA represents earnings before interest and financing, income taxes and depreciation and amortization. Adjustments to EBITDA are for items that are not necessarily reflective of the Company’s underlying operating performance. As there is no generally accepted method of calculating EBITDA, this measure is not necessarily comparable to similarly titled measures reported by other issuers. Adjusted EBITDA provides useful and complementary information, which can be used, in particular, to assess profitability and cash flow from operations. Adjusted EBITDA margin is defined as Adjusted EBITDA divided by total revenues. The following table reconciles adjusted EBITDA to net profit:

Total Debt, Net Debt and Total Debt to Adjusted EBITDA

Total debt is defined as the total bank indebtedness, long-term debt (including any current portion), and net debt is calculated as total debt net of cash and cash equivalents. The Company considers total debt and net debt to be important indicators for management and investors to assess the financial position and liquidity of the Company and measure its financial leverage. These measures do not have any standardized meanings prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Total debt to Adjusted EBITDA ratio is calculated as total net debt divided by the last four quarters Adjusted EBITDA. We believe that total debt to Adjusted EBITDA is a useful metric to assess the Company’s ability to manage debt and liquidity.

Supplementary Financial Measures
Gross margin is defined as gross profit divided by total revenues.
Operating expenses as a percentage of sales are defined as operating expenses divided by total revenues.
Operating margin is defined as operating income divided by net sales.

ABOUT D-BOX

D-BOX Technologies Inc. (TSX: DBO) is a global leader in haptic technology, delivering immersive motion experiences that engage the body and spark the imagination. Our patented systems synchronize motion, vibration, and texture with on-screen content, enhancing storytelling across various platforms. With over 25 years of innovation, D-BOX's solutions are utilized in movie theaters, sim racing, and simulation & training. Headquartered in Montreal, Canada, with offices in Los Angeles, USA, D-BOX continues to redefine how audiences experience media worldwide. Visit https://www.d-box.com/.

FOR FURTHER INFORMATION, PLEASE CONTACT:

David Reid
Chief Financial Officer
D-BOX Technologies Inc.
dreid@d-box.com

D-BOX Media Relations

media@d-box.com 

DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

Certain information included in this press release may constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding the future plans, activities, objectives, operations, strategy, business outlook, and financial performance and condition of the Corporation, or the assumptions underlying any of the foregoing. In this document, words such as “may”, “would”, “could”, “will”, “likely”, “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate” and similar words and the negative form thereof are used to identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at or by which, such future performance will be achieved. Forward-looking information, by its very nature, is subject to numerous risks and uncertainties and is based on several assumptions which give rise to the possibility that actual results could differ materially from the Corporation’s expectations expressed in or implied by such forward-looking information and no assurance can be given that any events anticipated by the forward-looking information will transpire or occur, including but not limited to the future plans, activities, objectives, operations, strategy, business outlook and financial performance and condition of the Corporation.

Forward-looking information is provided in this press release for the purpose of giving information about Management’s current expectations and plans and allowing investors and others to get a better understanding of the Corporation’s operating environment. However, readers are cautioned that it may not be appropriate to use such forward-looking information for any other purpose.

Forward-looking information provided in this document is based on information available at the date hereof and/or management’s good-faith belief with respect to future events and are subject to known or unknown risks, uncertainties, assumptions and other unpredictable factors, many of which are beyond the Corporation’s control.

The risks, uncertainties and assumptions that could cause actual results to differ materially from the Corporation’s expectations expressed in or implied by the forward-looking information include, but are not limited to, the sustainability of net profit driven by continued strength in royalty revenues, the ongoing positive impact of past cost control measures on future profitability, and the sustained strength and value creation driven by its overall business model and operational discipline. These and other risk factors that could cause actual results to differ materially from expectations expressed in or implied by the forward-looking information are discussed under “Risk Factors” in the Corporation’s annual information form for the fiscal year ended March 31, 2026, a copy of which is available on SEDAR+ at www.sedarplus.ca.

Except as may be required by Canadian securities laws, the Corporation does not intend nor does it undertake any obligation to update or revise any forward-looking information contained in this press release to reflect subsequent information, events, circumstances or otherwise.

The Corporation cautions readers that the risks described above are not the only ones that could have an impact on it. Additional risks and uncertainties not currently known to the Corporation or that the Corporation currently deems to be immaterial may also have a material adverse effect on the Corporation’s business, financial condition or results of operations.

¹ According to https://www.boxofficemojo.com/

² Please refer to "non-IFRS and other financial performance measures" in this press release

³ According to https://www.boxofficemojo.com/