D-Box Technologies ($DBO.TO) FINS Review

Q1 2026 (4 / 5 stars) *upgraded

Aug 14, 2025

D-box Technologies was my first ever mid year Wolf Seal of Approval pick back on February 12th when they reported their Q3 last year. Those acting on that pick would be up a cool 114% since. If you were a believer in the stock prior to that, it is up a very impressive 365% from a year ago today. Even if you waited until my mid June buy zone, you would still have made 38%.

What is even more intriguing is that after a quick review of their Q1 financials which dropped last night, they may be just getting started. D-Box has received back to back 3.75 star reviews.

Let’s take a deeper dive into last night’s numbers, shall we?

Balance Sheet:

With deferred revenues removed from current liabilities, DBO has an impressive and ever strengthening balance sheet with current ratio of over 4 (3.0 six months ago). That consists of $10.5M in cash, $7.4M of receivables, $6M worth of inventory and about $800k in other short term assets against just $6.1M of liability commitments over their next twelve months.

A strong current ratio does not always suggest great liquidity, but with just their cash position easily covering their short term liability commitments, DBO’s liquidity is very strong as well.

D-Box only has $860k worth of debt which expires in 2028 at an extremely attractive 4%.

Excellent start.

Cash Flow:

The company had a great start to the year in terms of cash flow, generating nearly $2.8M in OCF compared to burning $1.5M in the same period a year ago. Aside from that they spent a modest $240k in capex during the quarter and nothing much to speak of within financing activities.

Overall they improved their cash position by more than a third since their year end reported just two months ago.

Am I sensing an upgrade?

Share Capital:

222.3M shares outstanding, just a tick up from where they were at year end with 370k options exercised in the quarter
9.06M options remain outstanding with 5M granted at 24 cents in the quarter and a surprising total of 3.6M that expired unexercised or were cancelled in Q1. The company does not do a great job of providing a table but based on the averages it appears all options are currently ITM which would equate to about 4% dilution
All 5M options awarded in June went to the new President and CEO Naveen Prasad. Not bad for a guy who was just in an interim role back then
11.6% insider ownership and 15% owned by institutions per Yahoo Finance but I believe that tutes ownership is somewhat higher
A mix of buying and selling from insiders over the past two months but when combined are net purchases of about 1M shares.

Income Statement:

A great start to the year with $13M in revenue, a 49% improvement over the same quarter last year and that figure is just shy of their quarterly revenue record set in Q3 of last year. Margin also improved by 420 basis points as their gross profit rate improved to 56.1% compared to 51.9%. Gross profit dollars therefore rose by 61% on 49% more on the top line.

Operating expenses only grew by 11% on those impressive figures above showing excellent conversion and all combines to generate $1.95M in net profits compared to a net loss of $409k in Q1 of last year.

Frequent readers of mine will know that that type of revenue, margin and expense conversion performance all contribute to a…

Overall:

I think this quarter would surpass any expectations even from the biggest D-Box Technology bulls.

Even more impressively is the fact that those income statement numbers include an $850k parachute package for the outgoing CEO. Therefore on a normalized basis their operating expense in the quarter achieved a savings of nearly 7% and generated normalized net income of $2.8M which is 21.5% of their quarterly revenue.

Note that there will be similar restructuring costs next quarter as the company also made changes at the CFO position which were announced last night.

On a TTM basis, the company has now generated $47.1M in total revenue and $6.1M in net income. On their current $69M market cap that equates to an 11.3 P/E and that P/E drops under 10 if you normalize the net income by removing one time restructuring costs.

Many investors would overlook the sector, highly reliant on movie theatres but D-Box does have competitive advantages which should help to continue that growth, and they are continually adding new screens in new theatres across the globe. The great growth within their royalty segment (64% this quarter) should also help to offset the general lumpiness of their traditional system sales and continue to uplift their gross margins. Couple that with their great work on getting leaner and meaner within their opex, and D-Box has all the ingredients to continue on their multi-bagging journey. Look for the stock to hit share price highs not seen since 2017 sometime today.

Get your popcorn ready.

Upgrade to 4 stars.

Disclaimer:

My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from companies I review.

Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.