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

• Market Cap: C$164.82M
• Dividend Yield: N/A
• Average Volume (3M): 402.94K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 0.73
• Revenue Growth: 30.46%
• EPS Growth: 321.98%
• Country: CA
• Employees: 96
• Sector: Technology
• Sector Strength: 88
• Industry: Consumer Electronics
• EPS (TTM): 0.04
• Shares Outstanding: 222,731,570
• 10 Day Avg. Volume: 306,958
• 30 Day Avg. Volume: 402,937
• PEG Ratio: -0.08
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.47
• P/FCF Ratio: 8.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: C$0.74 ▼(-14.30% Downside)
• Action: Upgraded Date: 02/18/26
• Date: Action: Upgraded 02/18/26

Score is driven primarily by materially improved TTM profitability/cash flow and low leverage, tempered by sustainability risk given the large margin jump versus the latest annual period. Technicals are currently weak-to-neutral (below 20/50-day averages with slightly negative MACD), while valuation looks reasonable with a low-teens P/E.

Positive Factors

Improved cash generation

Sustained positive operating and free cash flow (TTM) provides durable internal funding for R&D, installations, and service expansion. Strong FCF reduces reliance on external financing, supports reinvestment in products and partners, and improves resilience through cycles.

Conservative balance sheet

Low debt-to-equity and a materially expanded equity base give the company financial flexibility to fund deployments and absorb demand variability. A conservative capital structure lowers refinancing risk and supports multi-period investments in partnerships and product development.

Diverse revenue model & markets

Multiple revenue streams across hardware, licensing/royalties, integration services, and content enablement reduce single-market dependency. Presence in cinema, simulation, and professional markets plus partner channels supports cross-selling and recurring income from services and royalties.

Negative Factors

Margin sustainability risk

A large jump in net margin over a short period suggests some gains may be non-recurring or timing-driven. If margins revert toward historical levels, free cash flow and profitability could decline materially, weakening the firm's ability to fund expansion and maintain recent returns.

Historic cash/ROE volatility

Past negative ROE and volatile cash flow indicate earnings and cash are lumpy and sensitive to cycle or project timing. This makes multi-period planning harder, can constrain capex or working capital in downturns, and raises execution risk for scaling recurring revenue streams.

Dependence on partner adoption

Revenue growth and conversion to recurring royalties rely heavily on partner distribution and venue adoption. Long partner sales cycles, OEM economics, and operator decisions can slow scaling and make revenue realization uneven, concentrating execution risk outside direct control.

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

Company Description

D-BOX Technologies Inc. designs, manufactures, and commercializes motion systems intended for the entertainment and simulation, and training markets worldwide. The company produces haptic effects programmed for visual content, which are sent to a haptic system integrated within a platform, a seat, or various other products. It sells or leases D-BOX hardware, including haptic seats, haptic controllers, and electronic interfaces or servers, as well as haptic bases that are integrated into recliners or seats; licenses D-BOX Haptic Code in commercial theatres and entertainment centers equipped with the D-BOX haptic systems to play content encoded by D-BOX; and sells actuators to resellers, integrators, and equipment or seating manufacturers. The company also provides video game peripherals, such as video gaming chairs, video game controllers, and sim racing peripherals and accessories; virtual reality systems; and seating furniture. In addition, it offers products for automobile, defense, flight, heavy equipment, wellness, and virtual reality industries; and location-based entertainment, theme parks, arcades, museums, planetariums, and commercial theaters. The company was founded in 1998 and is headquartered in Longueuil, Canada.

How the Company Makes Money

D-BOX makes money primarily by selling and licensing its motion/haptic technology and related products to business customers and, in some cases, end consumers. Key revenue streams typically include: (1) Product sales: revenue from selling motion/haptic hardware (e.g., integrated seating solutions, actuators, controllers, and related components) either directly or through partners and distributors; (2) Licensing and royalties: revenue from licensing D-BOX technology and/or content-activation formats to original equipment manufacturers (OEMs), integrators, and venue operators, which can include per-unit royalties or other licensing fees when D-BOX-enabled products (such as motion seats) are sold or deployed; (3) Systems, integration, and services: revenue associated with designing, configuring, installing, and supporting D-BOX motion solutions for commercial venues and professional/simulation customers, which may include maintenance, service contracts, and upgrades; and (4) Content enablement/experience ecosystem: to the extent applicable, revenue tied to enabling motion effects for specific content or platforms and expanding the installed base that drives follow-on sales and recurring licensing/service income. Partnerships with cinema operators, seating/OEM partners, and integrators are important because they expand distribution, accelerate adoption in venues and products, and can convert deployments into recurring royalty/service opportunities. If more granular breakdowns (e.g., exact percentages by segment, named active contracts, or specific fee structures) are required, null.

D-Box Tech Inc. A Financial Statement Overview

Summary

Strong TTM profitability and cash generation with a conservative balance sheet (low debt-to-equity). Main risk is sustainability: the sharp jump from the latest annual net margin (~3%) to TTM (~17%) suggests potential one-time benefits or an unusually strong period.

Income Statement

Profitability has improved sharply into TTM (Trailing-Twelve-Months): revenue reached ~$51.5M with strong gross margin (~54%) and solid operating profitability (EBITDA margin ~21%, EBIT margin ~18%). Net income also strengthened materially versus prior annual periods (2023–2024 losses and low profitability in 2025 annual), indicating a meaningful turnaround. Key watch-out: the step-change from the 2025 annual net margin (~3%) to TTM net margin (~17%) suggests results may include one-time benefits or an unusually strong period, so durability of margins is the main risk.

Balance Sheet

Leverage looks conservative with low debt relative to equity in TTM (debt-to-equity ~0.18) and also reasonable in the latest annual period (~0.23), improving from higher leverage levels earlier in the cycle. Equity has expanded materially versus prior years, supporting balance-sheet flexibility. The main caution is that returns on equity swing widely (negative in 2022–2024, then very strong in TTM), which reinforces that recent earnings strength may be less stable than the balance sheet itself.

Cash Flow

Cash generation is now clearly positive: TTM operating cash flow (~$12.1M) and free cash flow (~$10.8M) are both strong, with very large reported free-cash-flow growth. Free cash flow is fairly well supported by earnings in TTM (free cash flow at ~85% of net income), which is generally healthy. Offsetting this, cash conversion remains a bit uneven (operating cash flow is slightly below net income in TTM) and historical cash flow was volatile/negative in earlier years, so consistency through a full cycle is still being proven.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Jun 2020
Income Statement
Total Revenue	51.55M	42.79M	39.60M	34.12M	21.31M	11.08M
Gross Profit	27.96M	22.33M	18.66M	16.21M	11.15M	4.11M
EBITDA	12.06M	6.19M	3.39M	1.76M	510.00K	-3.40M
Net Income	16.06M	3.86M	1.09M	-937.00K	-1.87M	-6.19M
Balance Sheet
Total Assets	47.40M	28.42M	20.94M	26.72M	22.35M	23.74M
Cash, Cash Equivalents and Short-Term Investments	16.18M	7.92M	3.13M	3.12M	3.94M	9.13M
Total Debt	7.46M	5.13M	2.78M	5.58M	5.29M	5.97M
Total Liabilities	15.19M	12.16M	8.81M	15.83M	10.52M	10.21M
Stockholders Equity	32.21M	16.27M	12.13M	10.89M	11.83M	13.53M
Cash Flow
Free Cash Flow	10.85M	6.03M	2.13M	-1.13M	-4.70M	-794.00K
Operating Cash Flow	12.13M	7.33M	3.13M	255.00K	-3.32M	-314.00K
Investing Cash Flow	-1.13M	-1.17M	-388.00K	-1.27M	-1.12M	-425.00K
Financing Cash Flow	-1.31M	-1.41M	-2.93M	206.00K	-744.00K	5.71M

D-Box Tech Inc. A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 0.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 0.86 is above the 20-day moving average (MA) of 0.73, above the 50-day MA of 0.79, and above the 200-day MA of 0.54, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 48.36 is Neutral, neither overbought nor oversold. The STOCH value of 32.20 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DBO	70 Outperform	C$164.82M	5.73	71.47%	―	30.46%	321.98%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
STC	59 Neutral	C$202.29M	-28.58	-2.82%	―	-4.34%	31.52%
WNDR	51 Neutral	C$209.93M	-5.44	-39.04%	―	13.16%	-1375.61%
XTRA	49 Neutral	C$116.84M	-16.83	-100.85%	―	-12.14%	4.41%
HAPB	45 Neutral	C$16.76M	2.89	54.28%	―	127.18%	66.57%
ISTK	25 Underperform	C$79.41M	-5.47	―	―	30.02%	35.29%

D-Box Tech Inc. A Corporate Events

D-BOX Delivers Record Profit as Theatrical Expansion Offsets Box Office Headwinds

D-BOX Technologies Inc. reported a strong third quarter of fiscal 2026, driven by expanding theatrical system sales and a growing global screen base, despite a modest decline in royalty revenues tied to softer North American box office performance and fewer blockbuster releases. Total revenues rose 4% year-over-year to $13.8 million, with theatrical customers accounting for the growth, while simulation and training and sim racing segments declined.

The company achieved record net profit of $9.1 million, aided by the recognition of a $6.4 million deferred tax asset stemming from previously unused tax losses and credits, and posted adjusted EBITDA of $3.4 million with a 24% margin, reflecting tight cost control and operational efficiency. D-BOX ended the quarter with $16.2 million in cash and higher deferred revenues from advance deposits, underpinning financial flexibility, and on a year-to-date basis saw theatrical system sales surge 74% and royalties rise 31%, solidifying its positioning in premium theatrical experiences and supporting expectations of future taxable profitability.

The most recent analyst rating on (TSE:DBO) stock is a Hold with a C$0.95 price target. To see the full list of analyst forecasts on D-Box Tech Inc. A stock, see the TSE:DBO Stock Forecast page.