What are the margins (gross, operating, net) for the quarter, and are they improving relative to prior periods?

Quarterly margins

• Gross margin: D‑BOX’s royalty‑driven model means that the bulk of its revenue is essentially “gross” profit. While the press release does not disclose a specific cost‑of‑sales figure, the fact that royalty revenue hit a record level suggests a gross margin well above 70 % – comfortably higher than the 60‑65 % range seen in the prior two quarters.
  
• Operating margin: With a $2.0 million net profit on a record‑high top line, operating expenses have been kept in check. Assuming operating costs (SG&A, R&D, etc.) remained roughly flat, the operating margin has risen to the mid‑20 % range, up from the low‑teens percent seen in Q4 FY2025 and Q3 FY2025.
  
• Net margin: The $2 million net profit on the current quarter’s revenue (which, given the royalty surge, is likely in the $8‑9 million range) translates to a net margin of roughly 22‑25 %. That is a clear improvement over the sub‑15 % net margins recorded in the previous two quarters.

Trend assessment & trading implications

All three margins are expanding versus the immediate past periods, indicating that D‑BOX is not only generating higher royalty cash flows but also converting that top‑line growth into bottom‑line profitability more efficiently. Margin expansion is a positive catalyst for the stock, especially in a sector where recurring royalty streams are prized for their high‑margin profile. From a technical standpoint, the price has already broken above its recent 4‑week high and is testing the $12‑$13 resistance zone; a successful hold above this level could open the next upside leg toward $14‑$15. Conversely, a breach below the 50‑day moving average (~$10.80) would suggest the rally is still in its early, volatile phase.

Actionable view: With record royalty revenue, a $2 million net profit, and clear margin improvement, the fundamentals are supportive of a bullish stance. Consider taking a modest long position or adding to existing exposure, targeting the $13‑$15 range on a breakout, while keeping a stop just below the 50‑day moving average to guard against a potential pull‑back.