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

D-Box possesses a pristine looking balance sheet with a current ratio of over 4.5. That consists of $16.2M in cash, $9M of receivables, $8.1M worth of inventory and $700k in other short term assets over top of just $7.5M of liability commitments in the next twelve months (deferred revenue removed). $10.1M of operational cash flow through the first three quarters of their 2026 fiscal year which is 91% greater than the $5.3M generated at this stage last year. Total revenue of $42.9M, a 25.6% increase. Gross margin improvement of 270 basis points to 54.3% generating 32% more GP dollars. YoY flat operational expenses at $14.1M, but this includes a $1.2M restructuring charge this year for CEO and CFO changes. $9.15M of net income before taxes, nearly 3x more than the $3.16M from last year. From a valuation perspective, one has to strip out some of the noise and that includes the big tax birdie which inflated this quarter’s net income to over $9M. To normalize their net income I would also add back the $1.2M in one time restructuring costs. From that and the continued operational improvements we could expect in Q4, I project their NNI for the full year to be somewhere in the $11.5M range. That would give a P/E ratio of around 16.