D-BOX Delivers Record Royalties as Operating Leverage Drives First Quarter Profitability

Royalties reach a record $5.0 million delivering $4.3 million in Adjusted EBITDA 1 at a margin of 32%

Q1 Fiscal 2027 Highlights

Record royalties of $5.0 million

Total revenues of $13.4 million

Adjusted EBITDA 1 of $4.3 million

Net profit of $2.9 million

MONTREAL, Aug. 11, 2026 (GLOBE NEWSWIRE) -- D-BOX Technologies Inc. (“D-BOX” or the "Company") (TSX: DBO) today reported financial results for its first quarter of fiscal 2027, the three-month period ended June 30, 2026.

The quarter marked favorable improvement in D-BOX's revenue mix as recurring rights for use, rental and maintenance revenues grew 25% to a record $5.0 million. The higher contribution from royalty revenues expanded gross margin by three percentage points and drove 28% growth in Adjusted EBITDA 1 , despite total revenue increasing only 3%.

“This quarter reinforces the strength of our business model. Royalty revenues reached an all-time high, and with our installed base growing nearly 18% over the past year, we're seeing the operating leverage we've been building translate into stronger margins and profitability. Every new screen we add strengthens the foundation that turns box office momentum into high-margin royalties." said Naveen Prasad, CEO of D-BOX.

Our total revenues grew by 3% year-over-year to $13.4 million, while Adjusted EBITDA 1 increased 28% to $4.3 million. Net profit before income taxes surged 51% to $2.9 million. These robust results have further strengthened our balance sheet and enhanced our financial flexibility, positioning D-BOX to support customers with financing solutions and capitalize on strategic opportunities as we move forward.

_______________________ 1 See the "Non-IFRS and Other Financial Performance Measures"

Operating Results

Total revenues for the quarter increased 3% to $13.4 million from $13.0 million a year earlier. Rights for use, rental and maintenance revenues increased 25% to $5.0 million, driven by the combination of an 11.2% 2 increase in the North American domestic box office and a 17.8% increase in the Company's installed footprint, which broadened the base of screens generating recurring licensing and maintenance fees.

System sales revenues decreased 7% to $8.4 million from $9.0 million. By customer group:

Gross profit increased to $7.9 million from $7.3 million, and gross margin improved to 59% from 56%. The improvement reflects a higher proportion of high-margin rights for use, rental and maintenance revenues in the mix, together with a smaller contribution from lower-margin theatrical system sales.

Total operating expenses decreased 6% to $5.0 million, improving to 38% of revenues from 41% in the previous year. Research and development expenses decreased 7% to $1.3 million following a realignment of project priorities toward the highest-impact initiatives. Selling and marketing expenses increased 5% driven principally by higher non-cash share-based compensation; in administration, expenses decreased by 16% as a result of a $0.3 million increase in share-based compensation, offset by a $0.6 million reduction in salaries and benefits.

Net profit for the quarter was $2.9 million, or $0.013 per basic share and $0.012 per diluted share, compared with $2.0 million, or $0.009 per basic and diluted share, a year earlier. The increase was primarily attributable to growth in rights for use, rental and maintenance revenues and the resulting improvement in revenue mix.

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.

_______________________ 2 According to https://www.boxofficemojo.com/

Liquidity and Capital Resources

Cash and cash equivalents were $17.8 million as at June 30, 2026, compared with $17.6 million as at March 31, 2026. Working capital increased $2.9 million to $27.6 million, and equity increased $3.2 million to $37.9 million, primarily reflecting net profit for the period.

Cash flows provided by operating activities were $1.0 million, compared with $2.8 million a year earlier, with the variance driven by working capital movements including higher accounts receivable tied to the timing of late-quarter releases, higher inventories to support expanding demand, and a reduction in accounts payable and accrued liabilities. Cash flows used in investing activities were $0.2 million and cash flows used in financing activities were $0.6 million, the latter reflecting scheduled debt and lease repayments together with the share repurchases described above.

Total finance leases receivable increased $0.4 million to $1.7 million, reflecting growing adoption of D-BOX's financing offerings, which allow exhibitor partners to deploy haptic systems with reduced upfront capital.

Supplemental Financial Data - Unaudited

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 August 11, 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.

*All dollar amounts are expressed in Canadian currency