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D - BOX 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 EBITDA¹ at a margin of 32 % Q1 Fiscal 2027 Highlights • Record royalties of $ 5.0 million • • • Total revenues of $ 13.4 million Adjusted EBITDA¹ of $ 4.3 million Net profit of $ 2.9 million MONTREAL , Aug. 11 , 2026 -- 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 , 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 EBITDA¹ 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 : ( in thousands of Canadian dollars ) Fiscal year Revenues from System sales Theatrical Simulation and training Sim racing Other Total system sales Rights for use , rental and maintenance ( " royalties " ) Total Revenues Three month quarter ended Var . Var . 2027 2026 ( $ ) ( % ) 3,697 4,081 ( 384 ) ( 9 ) % 1,757 2,179 ( 422 ) ( 19 ) % 2,323 2,301 22 1 % 647 483 164 34 % 8,424 9,044 ( 620 ) ( 7 ) % 4,978 3,994 984 25 % 13,402 13,038 364 3 % 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 .