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D-Box Tech Inc. A (TSE:DBO)
:DBO
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D-Box Tech Inc. A (DBO) AI Stock Analysis

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TSE:DBO

D-Box Tech Inc. A

(TSX:DBO)

Rating:80Outperform
Price Target:
C$0.50
▲(66.67%Upside)
D-Box Tech Inc.'s overall stock score is driven by strong financial performance and positive corporate events. The company's strategic expansions and solid financial improvements position it for growth. While technical indicators show bullish trends, caution is advised due to potential overbought conditions.

D-Box Tech Inc. A (DBO) vs. iShares MSCI Canada ETF (EWC)

D-Box Tech Inc. A Business Overview & Revenue Model

Company DescriptionD-Box Tech Inc. A (DBO) is a technology company that specializes in creating motion systems and technologies. These systems are primarily used in the entertainment, simulation, and training markets. The company's core products include motion platforms and software that synchronize movement with visual and audio content, providing an immersive experience. The systems are utilized in a variety of sectors such as cinemas, home entertainment, gaming, and professional simulation.
How the Company Makes MoneyD-Box Tech Inc. generates revenue through the sale and licensing of its motion technology products and solutions. The company sells motion systems and related software to cinemas, gaming centers, and home entertainment sectors, where clients integrate these systems into their venues or products to enhance user experience. In addition to direct sales, D-Box Tech licenses its technology to manufacturers and content creators who embed these motion effects into their products and services. D-Box also benefits from partnerships with key players in the entertainment and simulation industries, which help expand its market reach and drive revenue growth.

D-Box Tech Inc. A Earnings Call Summary

Earnings Call Date:Jun 10, 2025
(Q2-2025)
|
% Change Since: 3.45%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong positive sentiment, emphasizing record-breaking performance, significant revenue and profitability growth, and strategic advancements. While there were some challenges, such as exiting the direct-to-consumer market and board member changes, the highlights significantly outweighed the lowlights.
Q2-2025 Updates
Positive Updates
Record-Breaking Quarter
This quarter marked the best performance in D-BOX's history with growth in every segment, highlighting the effectiveness of the company's strategy.
Significant Revenue Growth
Overall revenue growth of 12% was achieved despite a soft environment and a $1 million impact from exiting the direct-to-consumer hardware market.
EBITDA and Net Income Surge
EBITDA more than tripled, and net income multiplied more than four times, demonstrating significant improvements in profitability.
Commercial Market Expansion
Theatrical and sim racing segments grew by 21%, and simulation and training grew by 3%.
New Board Members with Enhanced Expertise
The appointment of new independent directors has brought fresh perspectives and additional expertise in governance, strategy, finance, marketing, and operations.
Improved Cash Flow from Operations
Generated $3 million year-to-date, providing greater flexibility through recent debt restructuring.
Negative Updates
Exit from Direct-to-Consumer Hardware Market
The decision to exit the direct-to-consumer hardware market resulted in a $1 million impact, though it was part of a strategic pivot to focus on higher-margin segments.
Board Member Resignation
Zrinka Dekic had to step down due to a new appointment, requiring a search for a replacement.
Company Guidance
During the Q2 2025 earnings call for D-BOX (DBO.TO), significant metrics were highlighted, demonstrating the company's exceptional performance. Notably, EBITDA more than tripled, and net income multiplied more than four times compared to prior periods. Year-to-date EBITDA reached 15%, marking a 4% year-over-year increase. Revenues grew by 12%, with theatrical and sim racing segments rising by 21% and simulation and training increasing by 3%, despite exiting the direct-to-consumer hardware market. This growth occurred within a challenging environment and was bolstered by successful box office releases. Additionally, the company generated $3 million year-to-date cash flow from operations, showcasing robust cash generation. The discussion also touched on strategic priorities, including the refreshed board's potential impact, cost discipline, and the exploration of capital allocation strategies to maintain a strong balance sheet and support growth.

D-Box Tech Inc. A Financial Statement Overview

Summary
D-Box Tech Inc. shows strong financial performance with significant improvements in revenue, profitability, and cash flow. The company has improved operational efficiency and cash management, with a solid balance sheet. However, there is room for improvement in return on equity compared to industry standards.
Income Statement
85
Very Positive
D-Box Tech Inc. has demonstrated strong revenue growth with a significant increase from 2024 to 2025, translating into improved profitability. The gross profit margin is robust, and both EBIT and EBITDA margins have improved substantially, reflecting enhanced operational efficiency. The net profit margin has also seen notable improvement, indicating a solid turnaround from prior losses.
Balance Sheet
78
Positive
The company maintains a healthy equity ratio, indicating a strong capital structure. The debt-to-equity ratio is manageable, suggesting a balanced approach to leveraging. Return on equity has improved, showcasing the company's ability to generate returns from shareholder investments, but there is still room for improvement in comparison to the industry standard.
Cash Flow
82
Very Positive
D-Box Tech Inc. has shown remarkable free cash flow growth and improved operating cash flow, which exceeds net income, suggesting high-quality earnings. The free cash flow to net income ratio is favorable, indicating efficient use of cash resources. Overall, the cash flow position supports the company's operational and investment activities well.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue42.79M39.60M34.12M21.31M11.08M
Gross Profit22.33M18.66M16.21M11.15M4.11M
EBITDA6.19M3.42M1.81M510.00K-3.40M
Net Income3.86M1.09M-937.00K-1.87M-6.19M
Balance Sheet
Total Assets28.42M20.94M26.72M22.35M23.74M
Cash, Cash Equivalents and Short-Term Investments7.92M3.13M3.12M3.94M9.13M
Total Debt5.13M2.78M5.58M5.29M5.97M
Total Liabilities12.16M8.81M15.83M10.52M10.21M
Stockholders Equity16.27M12.13M10.89M11.83M13.53M
Cash Flow
Free Cash Flow6.03M2.13M-1.13M-4.70M-794.00K
Operating Cash Flow7.33M3.13M255.00K-3.32M-314.00K
Investing Cash Flow-1.17M-388.00K-1.27M-1.12M-425.00K
Financing Cash Flow-1.41M-2.93M206.00K-744.00K5.71M

D-Box Tech Inc. A Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.30
Price Trends
50DMA
0.26
Positive
100DMA
0.21
Positive
200DMA
0.17
Positive
Market Momentum
MACD
0.02
Negative
RSI
64.18
Neutral
STOCH
76.92
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBO, the sentiment is Positive. The current price of 0.3 is above the 20-day moving average (MA) of 0.30, above the 50-day MA of 0.26, and above the 200-day MA of 0.17, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 64.18 is Neutral, neither overbought nor oversold. The STOCH value of 76.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DBO.

D-Box Tech Inc. A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (50)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$70.03M17.4327.17%8.06%250.00%
79
Outperform
C$40.92M17.0226.51%16.47%44.10%
74
Outperform
C$127.17M144.83-12.44%-4.94%-145.86%
50
Neutral
C$3.05B2.51-63.57%2.26%4.49%-6.15%
50
Neutral
C$29.14M-89.38%-25.38%0.98%
35
Underperform
C$25.56M222.10%-56.11%21.51%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DBO
D-Box Tech Inc. A
0.30
0.23
328.57%
TSE:CTZ
NamSys
1.51
0.55
57.29%
TSE:YNV
Ynvisible Interactive Inc
0.20
0.10
100.00%
TSE:GSI
Gatekeeper Systems
1.35
0.76
128.81%
TSE:HAPB
Hapbee Technologies
0.10
-0.04
-26.92%

D-Box Tech Inc. A Corporate Events

Executive/Board ChangesBusiness Operations and Strategy
D-BOX Technologies Announces Senior Executive Departure
Neutral
Jul 8, 2025

D-BOX Technologies Inc. announced the departure of Jean-François Gagnon, Senior Vice President, effective August 15, 2025. This change is part of the company’s strategy to optimize its organizational structure, aiming for greater alignment and focused execution in commercial activities to drive future growth. The sales and marketing teams will temporarily report to Naveen Prasad, Interim CEO, ensuring a seamless transition.

Product-Related AnnouncementsBusiness Operations and Strategy
D-BOX and HOYTS Expand Premium Cinema Experience in Australia and New Zealand
Positive
Jun 17, 2025

D-BOX Technologies Inc. and HOYTS have announced an expansion of their collaboration to enhance premium cinema experiences in Australia and New Zealand by increasing the number of haptic seats by over 70%. This expansion, which will add 539 D-BOX haptic seats across 19 HOYTS auditoriums, aims to meet the growing demand for immersive movie experiences, providing HOYTS with a competitive edge in the entertainment industry and boosting brand awareness, customer satisfaction, and ticket sales.

Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
D-BOX Technologies Achieves Record Fiscal 2025 Revenues and Profitability
Positive
Jun 10, 2025

D-BOX Technologies Inc. reported record revenues and profitability for fiscal 2025, with total revenues reaching $42.8 million, an 8% increase from the previous year. The company’s royalty-driven model contributed significantly to this growth, with royalties up 27% to $11 million. Despite a 15% decline in fourth-quarter revenues due to early fulfillment of theatrical system sales, the company saw strong growth in simulation training and sim racing markets. D-BOX also announced a leadership transition with Naveen Prasad appointed as Interim CEO, positioning the company for its next growth phase. The company closed the fiscal year with strong financial health, including $7.3 million in operating cash flow and $16 million in liquidity.

Executive/Board ChangesBusiness Operations and Strategy
D-BOX Technologies Announces Leadership Changes to Drive Future Growth
Positive
Jun 4, 2025

D-BOX Technologies Inc. announced a leadership change, with Sébastien Mailhot stepping down as CEO and Naveen Prasad taking over as interim CEO. Prasad, a seasoned media and technology executive, brings extensive experience in driving growth and innovation. This transition is seen as a strategic move to build on the financial progress achieved under Mailhot’s leadership and to further unlock D-BOX’s potential. The company also appointed Lori Vaudry Tersigni as an independent director, adding her extensive operational and leadership experience to the board.

Product-Related AnnouncementsBusiness Operations and Strategy
D-BOX Expands Cinemark Partnership with Over 70 New Haptic Screens
Positive
May 8, 2025

D-BOX Technologies Inc. has announced a significant expansion of its partnership with Cinemark Holdings, Inc., adding over 70 new D-BOX haptic-enabled screens across 25 Cinemark theaters in the U.S. This expansion, which represents a nearly 25% increase in D-BOX’s market presence, underscores the company’s commitment to innovation in theatrical entertainment and aims to enhance audience engagement through immersive experiences. The move solidifies Cinemark’s position as the leading exhibitor with the highest D-BOX penetration worldwide, reflecting a growing demand for premium cinematic experiences.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 22, 2025