D-BOX Technologies (DBO) investor relations material

Executive summary

• Q2 revenue fell 25% YoY to CAD 12.1M as system sales declined; record recurring revenue rose 14% to CAD 5.1M, or 42% of revenue.

• Adjusted EBITDA was CAD 4.384M, with a record-high eight-quarter margin of 36.2%; gross margin reached 64%.

• Active screens reached 1,249, up 15.2% YoY, with two new exhibitor partnerships signed during the quarter.

Financial highlights

• Q2 revenue was CAD 12.1M versus CAD 16.1M a year earlier; system sales fell 40% to CAD 7.0M.

• Gross profit was CAD 7.7M, down 13%; net profit was CAD 2.6M and net profit before tax was CAD 2.7M.

• H1 revenue declined 13% to CAD 25.5M; recurring revenue rose 19% to CAD 10.1M and Adjusted EBITDA was CAD 8.6M, down 3%.

• H1 operating cash flow increased 22% to CAD 5.1M; gross profit was CAD 15.6M, down 4%, and net profit fell 14% to CAD 5.6M.

Outlook and guidance

• H2 priorities include expanding the screen base, growing recurring revenue, advancing haptic technology, and maintaining cost discipline and disciplined capital allocation.

• No financial guidance or screen-installation forecast was provided; new exhibitor relationships are expected to take time to scale, with rollout timing tied to customer implementation cycles.

• Management recommends assessing performance on a trailing-12-month basis given seasonality and cyclicality in system sales.