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D-Box Tech Inc. A J (TSE:DBO)
TSX: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)

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Outperform 76 (OpenAI - 5.2)
Rating:76Outperform
Price Target:
C$1.50
▲(32.74% Upside)
Action:Reiterated
Date:08/17/26
The score is driven primarily by strong financial performance (rapid revenue growth, materially higher margins, and low leverage) supported by constructive earnings-call indicators around recurring revenue and install-base expansion. Valuation is reasonable on a ~13.9 P/E, but the overall score is tempered by mixed near-term technicals and call-out risks including hardware/system-sales lumpiness, limited forward guidance, and elevated share-based compensation.
Positive Factors
Recurring revenue and install-base growth
Growth in rights, rental and maintenance revenue, together with a larger installed base, should improve revenue visibility and create a durable platform for royalties, servicing and future customer expansion.
Negative Factors
Lumpy hardware revenue mix
Dependence on hardware and system deployments creates uneven revenue timing and can weigh on margins when equipment sales weaken, limiting predictability even as recurring revenue becomes a larger part of the business.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue and install-base growth
Growth in rights, rental and maintenance revenue, together with a larger installed base, should improve revenue visibility and create a durable platform for royalties, servicing and future customer expansion.
Read all positive factors

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

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

Company Description
D-BOX Technologies Inc. designs, manufactures, and commercializes haptic motion systems intended for theatrical entertainment, sim racing and simulation, and training business in the United States, Canada, Europe, Asia, South America, Oceania, and...
How the Company Makes Money
D-Box generates revenue primarily by selling and licensing motion and haptic technology into multiple end markets. Key revenue streams include: (1) Hardware and system sales: revenue from selling motion actuators, controller units, seats/platforms...

D-Box Tech Inc. A Earnings Call Summary

Earnings Call Date:Aug 11, 2026
(Q1-2027)
|
% Change Since: |
Next Earnings Date:Nov 17, 2026
Earnings Call Sentiment Positive
The call emphasizes clear progress on strategy execution: recurring royalty revenue growth, margin expansion (59% gross margin, 32% adjusted EBITDA margin), increasing install base (1,233 screens, +17.8% YoY), a healthy cash position ($17.8M) and new major exhibitor partnerships. Offsetting items include a 7% decline in system sales, near‑term softness in simulation OEM demand, higher share‑based compensation, and continued lumpiness/seasonality in hardware sales with limited forward guidance. On balance, the company demonstrated materially improving profitability and recurring revenue traction that outweigh the short‑term hardware variability and select uncertainties.
Positive Updates
Top-line growth driven by recurring revenue
Total revenues of $13.4M, up 3% year‑over‑year, driven by recurring revenues (rights for use, rental and maintenance) reaching a record $5.0M, up 25% YoY and offsetting a 7% decline in system sales.
Negative Updates
System sales decline and hardware lumpiness
System (hardware) sales declined 7% to $8.4M in the quarter; management reiterated that hardware/system sales are inherently lumpy and cyclical, producing quarter‑to‑quarter volatility that can depress margins in hardware‑heavy quarters.
Read all updates
Q1-2027 Updates
Negative
Top-line growth driven by recurring revenue
Total revenues of $13.4M, up 3% year‑over‑year, driven by recurring revenues (rights for use, rental and maintenance) reaching a record $5.0M, up 25% YoY and offsetting a 7% decline in system sales.
Read all positive updates
Company Guidance
Management's guidance emphasized that system sales should "normalize toward historical patterns" even after Q1 system sales dipped 7% to $8.4M, while the strategic priority remains footprint expansion and recurring revenue: total Q1 revenue was $13.4M (+3% YoY), rights/rental/maintenance revenues were $5.0M (+25% YoY), the install base finished at 1,233 active screens (+17.8% YoY, +32 net new this quarter; net additions of 111/83/189 in FY24/FY25/FY26 and management said it is targeting the higher end going forward), and the 3‑year royalty CAGR is 19.6%; they expect this recurring mix to sustain structurally higher margins (Q1 adjusted EBITDA $4.3M, 32% margin; FY26 adj. EBITDA margin 27% vs. 17% in FY25, 8% in FY24, 5% in 2023) while deploying a strong balance sheet (cash $17.8M, total assets $48.3M, shareholders’ equity $37.9M = 78% of the balance sheet, liabilities $10.5M, working capital $27.6M, effectively debt‑free with nil long‑term debt interest) to fund screen growth, selective customer financing (finance lease receivables up $1.3M to $1.7M), and opportunistic buybacks under the NCIB (up to 21M shares; >500k repurchased this quarter); management also noted Q1 share‑based compensation of $943k (vs. $52k a year ago) is expected to represent most of this year's award activity.

D-Box Tech Inc. A Financial Statement Overview

Summary
Strong turnaround with sharply higher TTM revenue growth (+63%) and materially improved profitability (TTM net margin ~32%, gross margin ~53%). Balance sheet is conservative with low leverage (debt-to-equity ~0.10) and strong equity base; cash flows broadly support earnings (FCF ~93% of net income). Key watch-outs are durability of the unusually strong margin/ROE profile and the noted decline in TTM free-cash-flow growth versus the prior period.
Income Statement
86
Very Positive
Balance Sheet
84
Very Positive
Cash Flow
78
Positive
BreakdownTTMMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue57.95M57.59M42.79M39.60M34.12M21.31M
Gross Profit30.99M29.63M22.33M18.66M16.21M11.15M
EBITDA14.19M14.02M6.19M3.39M1.76M510.00K
Net Income18.41M17.43M3.86M1.09M-937.00K-1.87M
Balance Sheet
Total Assets48.33M46.55M28.42M20.94M26.72M22.35M
Cash, Cash Equivalents and Short-Term Investments17.83M17.59M7.92M3.13M3.12M3.94M
Total Debt3.83M4.00M5.13M2.78M5.58M5.29M
Total Liabilities10.47M11.92M12.16M8.81M15.83M10.52M
Stockholders Equity37.86M34.63M16.27M12.13M10.89M11.83M
Cash Flow
Free Cash Flow9.51M11.05M6.03M2.13M-1.13M-4.70M
Operating Cash Flow10.24M11.88M7.33M3.13M255.00K-3.32M
Investing Cash Flow-1.01M-994.00K-1.17M-388.00K-1.27M-1.12M
Financing Cash Flow-1.99M-1.31M-1.41M-2.93M206.00K-744.00K

D-Box Tech Inc. A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.13
Price Trends
50DMA
1.16
Negative
100DMA
1.04
Positive
200DMA
0.92
Positive
Market Momentum
MACD
-0.02
Positive
RSI
45.80
Neutral
STOCH
36.51
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DBO, the sentiment is Neutral. The current price of 1.13 is below the 20-day moving average (MA) of 1.14, below the 50-day MA of 1.16, and above the 200-day MA of 0.92, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 45.80 is Neutral, neither overbought nor oversold. The STOCH value of 36.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DBO.

D-Box Tech Inc. A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
C$247.08M13.4257.66%23.14%198.92%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
54
Neutral
C$170.39M-19.05-3.18%-11.32%6.86%
47
Neutral
C$134.84M-14.63-60.80%48.65%25.20%
45
Neutral
C$8.38M-72.30-22.87%-16.35%
25
Underperform
C$47.90M-24.0381.87%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:DBO
D-Box Tech Inc. A
1.11
0.68
158.14%
TSE:ISTK
Good Flour Corp
0.38
-1.84
-82.88%
TSE:XTRA
Xtract One
0.54
-0.04
-6.90%
TSE:STC
Sangoma Technologies
5.12
-2.61
-33.76%
TSE:HAPB
Hapbee Technologies
0.03
-0.04
-53.85%

D-Box Tech Inc. A Corporate Events

Business Operations and StrategyFinancial Disclosures
D-BOX Schedules Q1 2027 Results as It Expands Global Haptic Footprint
Positive
Aug 6, 2026
D-BOX Technologies Inc., a Montreal-based specialist in haptic technology, designs patented motion systems that synchronize physical sensations with visual media, serving cinema operators, sim racing enthusiasts, and simulation and training provid...
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: Aug 17, 2026