US Market News
3 주 전
Digimarc Reports First Quarter 2026 Financial ResultsMay 12, 2026 4:05 PM
Business Wire Digimarc Corporation (NASDAQ: DMRC) reported financial results for the first quarter ended March 31, 2026. “Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions, positioning ourselves to benefit from the relentless advance of AI," said Riley McCormack, Digimarc CEO. "In Q1 2026, we made significant progress against our strategy of building the trust layer for the modern world while delivering a 9% sequential increase in ending ARR(1) and expanding our subscription gross profit margin(2) 400 basis points year-over year." First Quarter 2026 Financial Results Subscription revenue for the first quarter of 2026 was $4.4 million compared to $5.3 million for the first quarter of 2025. The decrease reflects $1.5 million lower subscription revenue from the expiration of two commercial contracts in 2025, partially offset by an increase from new and existing commercial contracts. Service revenue for the first quarter of 2026 was $3.2 million compared to $4.1 million for the first quarter of 2025. The decrease primarily reflects $0.5 million of lower commercial service revenue from HolyGrail 2.0 recycling projects, as that work was previously completed. Total revenue for the first quarter of 2026 was $7.6 million compared to $9.4 million for the first quarter of 2025. ARR(1) as of March 31, 2026 was $15.0 million compared to $20.0 million as of March 31, 2025. The decrease primarily reflects the expiration of two commercial contracts, one in April 2025 that accounted for a total of $3.7 million of ARR and the other in October 2025 that accounted for $3.1 million of ARR, partially offset by $1.8 million of net increases to ARR from new and existing commercial contracts. Gross profit margin for the first quarter of 2026 was 60% compared to 65% for the first quarter of 2025. Subscription gross profit margin(2) increased to 90% from 86% and service gross profit margin(2) decreased to 57% from 65% for the first quarter of 2026 compared to the first quarter of 2025. Non-GAAP gross profit margin for the first quarter of 2026 was 83% compared to 81% for the first quarter of 2025. Operating expenses for the first quarter of 2026 were $11.7 million compared to $18.2 million for the first quarter of 2025. The decrease primarily reflects $4.2 million of lower cash compensation costs largely due to lower headcount and $3.2 million of lower cash severance costs resulting from the reduction in force in the first quarter of 2025, partially offset by $1.0 million of legal costs associated with the corporate reorganization. Non-GAAP operating expenses for the first quarter of 2026 were $8.1 million compared to $16.5 million for the first quarter of 2025. Net loss for the first quarter of 2026 was $7.0 million or ($0.32) per diluted share compared to $11.7 million or ($0.55) per diluted share for the first quarter of 2025. Non-GAAP net loss for the first quarter of 2026 was $1.6 million or ($0.07) per diluted share compared to $8.5 million or ($0.40) per diluted share for the first quarter of 2025. At March 31, 2026, cash, cash equivalents and marketable securities totaled $10.0 million compared to $12.9 million at December 31, 2025. Free cash flow usage for the first quarter of 2026 was $2.0 million compared to $5.6 million for the first quarter of 2025. ________ (1) Annual Recurring Revenue (ARR) is a company performance metric calculated as the aggregation of annualized subscription fees from all of our commercial contracts as of the measurement date. (2) Cost of revenue, Gross profit and Gross profit margin for Subscription and Service excludes amortization expense on acquired intangible assets. Conference Call Digimarc will hold a conference call today (Tuesday, May 12, 2026) to discuss these financial results and to provide a business update. CEO Riley McCormack and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s prepared remarks. The conference call and investor presentation will be broadcast live and available for replay here and in the investor section of the company’s website. The conference call script and investor presentation will also be posted to the company’s website shortly before the call. For those who wish to call in via telephone to ask a question, please dial the number below at least five minutes before the scheduled start time. We encourage you to also login to the live broadcast so you can follow along with the investor presentation. Toll Free number: 877-407-0832 International number: 201-689-8433 Conference ID number: 13754826 About Digimarc Digimarc Corporation (NASDAQ: DMRC) is building the trust layer for the modern world. As AI accelerates how we produce, share, and interact with the world, the risks of fraud, counterfeiting, and misinformation are growing exponentially. Our innovative, highly scalable, and ultra-secure solutions make it possible for consumers, businesses, and intelligent systems to instantly verify what's real, protect what matters, and transact with confidence. Digimarc's solutions for loss prevention, authentication, and digital are built to counter the speed and sophistication of today's AI-enabled threats. Trusted by the world's central banks to deter the counterfeiting of global currency, we exist to protect truth in every interaction, spanning both the physical and digital worlds. Learn more at Digimarc.com. Forward-Looking Statements Except for historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements identified by terminology such as “will,” “should,” "may," “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company’s Form 10-K for the year ended December 31, 2025, and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release. Non-GAAP Financial Measures This release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP gross profit margin, Non-GAAP operating expenses, Non-GAAP net loss, Non-GAAP net loss per diluted share, and free cash flow. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. These non-GAAP financial measures are an important measure of our operating performance because they allow management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing non-cash and non-recurring activities that affect comparability. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons. Digimarc believes that providing these non-GAAP financial measures, together with the reconciliation to GAAP, helps management and investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules. These non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of its consolidated historical operating results, investors should examine Digimarc’s non-GAAP financial measures in conjunction with its historical GAAP financial information, and investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results. Digimarc Corporation Consolidated Statements of Operations (in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 Revenue: Subscription $ 4,369 $ 5,314 Service 3,210 4,054 Total revenue 7,579 9,368 Cost of revenue: Subscription (2) 456 744 Service (2) 1,378 1,407 Amortization expense on acquired intangible assets 1,208 1,132 Total cost of revenue 3,042 3,283 Gross profit: Subscription (2) 3,913 4,570 Service (2) 1,832 2,647 Amortization expense on acquired intangible assets (1,208 ) (1,132 ) Total gross profit 4,537 6,085 Gross profit margin: Subscription (2) 90 % 86 % Service (2) 57 % 65 % Total 60 % 65 % Operating expenses: Sales and marketing 2,082 5,078 Research, development and engineering 3,747 7,634 General and administrative 5,555 5,181 Amortization expense on acquired intangible assets 289 271 Total operating expenses 11,673 18,164 Operating loss (7,136 ) (12,079 ) Other income, net 171 369 Loss before income taxes (6,965 ) (11,710 ) Provision for income taxes (1 ) (20 ) Net loss $ (6,966 ) $ (11,730 ) Net loss per share: Net loss per share — basic $ (0.32 ) $ (0.55 ) Net loss per share — diluted $ (0.32 ) $ (0.55 ) Weighted average shares outstanding — basic 22,008 21,521 Weighted average shares outstanding — diluted 22,008 21,521 Digimarc Corporation Reconciliation of GAAP to Non-GAAP Financial Measures (in thousands, except per share amounts) (Unaudited) Three Months Ended March 31, 2026 2025 GAAP gross profit $ 4,537 $ 6,085 Amortization of acquired intangible assets 1,208 1,132 Amortization and write-off of other intangible assets (3) 207 220 Stock-based compensation 347 137 Non-GAAP gross profit $ 6,299 $ 7,574 Non-GAAP gross profit margin 83 % 81 % GAAP operating expenses $ 11,673 $ 18,164 Depreciation and write-off of property and equipment (154 ) (146 ) Amortization of acquired intangible assets (289 ) (271 ) Amortization and write-off of other intangible assets (121 ) (59 ) Amortization of lease right of use assets under operating leases (117 ) (98 ) Stock-based compensation (1,662 ) (1,123 ) Corporate reorganization expenses (1,223 ) — Non-GAAP operating expenses $ 8,107 $ 16,467 GAAP net loss $ (6,966 ) $ (11,730 ) Total adjustments to gross profit 1,762 1,489 Total adjustments to operating expenses 3,566 1,697 Non-GAAP net loss $ (1,638 ) $ (8,544 ) GAAP net loss per diluted share $ (0.32 ) $ (0.55 ) Non-GAAP net loss $ (1,638 ) $ (8,544 ) Non-GAAP net loss per diluted share $ (0.07 ) $ (0.40 ) Free cash flow Cash flows from operating activities $ (1,847 ) $ (5,486 ) Purchase of property and equipment (44 ) (55 ) Capitalized patent costs (77 ) (88 ) Free cash flow $ (1,968 ) $ (5,629 ) ________ (3) In the second quarter of fiscal 2025, management updated its definition of Non-GAAP gross profit to adjust for the amortization of patent maintenance costs. The related amortization expense for the three months ended March 31, 2026 and 2025 is now reflected in “amortization and write-off of other intangible assets” above to calculate Non-GAAP gross profit, Non-GAAP net loss and Non-GAAP net loss per diluted share. Digimarc Corporation Consolidated Balance Sheet Information (in thousands) (Unaudited) March 31, December 31, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 8,818 $ 9,820 Marketable securities 1,145 3,046 Trade accounts receivable, net 7,092 6,513 Other current assets 1,988 1,961 Total current assets 19,043 21,340 Property and equipment, net 989 1,104 Intangibles, net 15,244 17,045 Goodwill 8,923 9,056 Lease right of use assets 3,121 3,238 Other assets 1,190 1,175 Total assets $ 48,510 $ 52,958 LIABILITIES AND SHAREHOLDERS’ EQUITY Current liabilities: Accounts payable and other accrued liabilities $ 6,004 $ 4,359 Deferred revenue 4,227 3,993 Total current liabilities 10,231 8,352 Long-term lease liabilities 4,073 4,314 Other long-term liabilities 140 63 Total liabilities 14,444 12,729 Shareholders’ equity: Preferred stock 50 50 Common stock 22 22 Additional paid-in capital 425,789 424,665 Accumulated deficit (390,053 ) (383,087 ) Accumulated other comprehensive loss (1,742 ) (1,421 ) Total shareholders’ equity 34,066 40,229 Total liabilities and shareholders’ equity $ 48,510 $ 52,958 Digimarc Corporation Consolidated Cash Flow Information (in thousands) (Unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss $ (6,966 ) $ (11,730 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and write-off of property and equipment 154 146 Amortization of acquired intangible assets 1,497 1,403 Amortization and write-off of other intangible assets 328 193 Amortization of lease right of use assets under operating leases 117 98 Stock-based compensation 2,009 1,260 Increase (decrease) in allowance for doubtful accounts 21 — Changes in operating assets and liabilities: Trade accounts receivable (566 ) (149 ) Other current assets (44 ) 1,331 Other assets (44 ) (105 ) Accounts payable and other accrued liabilities 1,624 1,549 Deferred revenue 231 689 Lease liability and other long-term liabilities (208 ) (171 ) Net cash provided by (used in) operating activities (1,847 ) (5,486 ) Cash flows from investing activities: Purchase of property and equipment (44 ) (55 ) Capitalized patent costs (77 ) (88 ) Proceeds from maturities of marketable securities 2,128 6,564 Purchases of marketable securities (227 ) (2,864 ) Net cash provided by (used in) investing activities 1,780 3,557 Cash flows from financing activities: Purchase of common stock (885 ) (1,545 ) Repayment of loans (3 ) (15 ) Net cash provided by (used in) financing activities (888 ) (1,560 ) Effect of exchange rate on cash (47 ) 26 Net increase (decrease) in cash and cash equivalents $ (1,002 ) $ (3,463 ) Cash, cash equivalents and marketable securities at beginning of period $ 12,866 $ 28,730 Cash, cash equivalents and marketable securities at end of period 9,963 21,567 Net increase (decrease) in cash, cash equivalents and marketable securities $ (2,903 ) $ (7,163 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20260512814692/en/ Company Contact:
Charles Beck
Chief Financial Officer
US Market News
3 월 전
Digimarc Reports Fourth Quarter and Fiscal Year 2025 Financial ResultsMarch 11, 2026 4:05 PM
Business Wire
Company achieves non-GAAP net income and positive free cash flow in Q4
Digimarc Corporation (NASDAQ: DMRC) reported financial results for the fourth quarter and fiscal year ended December 31, 2025.
“Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions, positioning ourselves to benefit from - not be the casualty of - the relentless advance of AI," said Riley McCormack, Digimarc CEO. "In Q4 2025, we achieved both positive non-GAAP net income and positive free cash flow. Looking ahead to 2026, we expect to generate significant ARR growth."
Fourth Quarter 2025 Financial Results
Subscription revenue for the fourth quarter of 2025 was $5.3 million compared to $5.0 million for the fourth quarter of 2024. The increase reflects $1.4 million of patent license fees earned during the quarter and higher subscription revenue from new and existing commercial contracts, partially offset by a $1.4 million decrease relating to the expiration of two previously disclosed commercial contracts in 2025.
Service revenue for the fourth quarter of 2025 was $3.6 million compared to $3.6 million for the fourth quarter of 2024.
Total revenue for the fourth quarter of 2025 was $8.9 million compared to $8.7 million for the fourth quarter of 2024.
Annual recurring revenue (ARR1) as of December 31, 2025, was $13.7 million compared to $20.0 million as of December 31, 2024. The decrease reflects the expiration of two previously disclosed commercial contracts, a $3.5 million contract in April 2025 and a $3.1 million contract in October 2025, partially offset by a net increase in ARR from new and existing commercial contracts.
Gross profit margin for the fourth quarter of 2025 was 64% compared to 61% for the fourth quarter of 2024. Excluding amortization expense on acquired intangible assets, subscription gross profit margin for the fourth quarter of 2025 increased to 90% from 85% for the fourth quarter of 2024, while service gross profit margin for the fourth quarter of 2025 decreased to 57% from 59% for the fourth quarter of 2024.
Non-GAAP gross profit margin for the fourth quarter of 2025 was 84% compared to 78% for the fourth quarter of 2024.
Operating expenses for the fourth quarter of 2025 were $10.0 million compared to $14.4 million for the fourth quarter of 2024. The decrease reflects lower cash compensation costs of $4.4 million, largely due to lower headcount, and lower professional services costs of $0.6 million, partially offset by higher stock compensation costs of $0.7 million.
Non-GAAP operating expenses for the fourth quarter of 2025 were $6.5 million compared to $11.9 million for the fourth quarter of 2024.
Net loss for the fourth quarter of 2025 was $4.2 million or ($0.19) per diluted share compared to $8.6 million or ($0.40) per diluted share for the fourth quarter of 2024.
Non-GAAP net income for the fourth quarter of 2025 was $1.0 million or $0.05 per diluted share compared to a non-GAAP net loss of $4.6 million or ($0.22) per diluted share for the fourth quarter of 2024.
At December 31, 2025, cash, cash equivalents, and marketable securities totaled $12.9 million compared to $28.7 million at December 31, 2024. Free cash flow for the fourth quarter of 2025 was positive $0.7 million compared to negative $4.4 million for the fourth quarter of 2024.
Fiscal Year 2025 Financial Results
Subscription revenue for fiscal year 2025 was $19.8 million compared to $22.4 million for fiscal year 2024. The decrease reflects a $4.8 million decrease from the expiration of three previously disclosed commercial contracts, partially offset by higher subscription revenue from new and existing commercial contracts.
Service revenue for fiscal year 2025 was $14.1 million compared to $16.0 million for fiscal year 2024. The decrease reflects a $1.8 million lower budget from the Central Banks for program work in 2025 compared to 2024.
Total revenue for fiscal year 2025 was $33.9 million compared to $38.4 million for fiscal year 2024.
Gross profit margin for fiscal year 2025 was 62% compared to 63% for fiscal year 2024. Excluding amortization expense on acquired intangible assets, subscription gross profit margin and service gross profit margin were largely unchanged from fiscal year 2024 to fiscal year 2025.
Non-GAAP gross profit margin for the fiscal year 2025 was 81% compared to 79% for fiscal year 2024.
Operating expenses for fiscal year 2025 were $54.1 million compared to $65.5 million for fiscal year 2024. The decrease reflects lower cash compensation costs of $12.6 million, software and hardware costs of $0.9 million, and marketing spend of $0.8 million, partially offset by increased stock compensation costs of $1.5 million and legal expenses of $1.0 million. Fiscal year 2025 operating expenses included $3.2 million of cash severance costs related to the corporate reorganization in February 2025.
Non-GAAP operating expenses for fiscal year 2025 were $40.5 million compared to $53.8 million for fiscal year 2024.
Net loss for fiscal year 2025 was $32.3 million or ($1.49) per diluted share compared to $39.0 million or ($1.83) per diluted share for fiscal year 2024.
Non-GAAP net loss for fiscal year 2025 was $12.1 million or ($0.56) per diluted share compared to $21.1 million or ($0.99) per diluted share for fiscal year 2024.
____________________
(1)
Annual Recurring Revenue (ARR) is a company performance metric calculated as the aggregation of annualized subscription fees from all of our commercial contracts as of the measurement date.
Conference Call
Digimarc will hold a conference call and investor presentation today (Wednesday, March 11, 2026) to discuss these financial results and to provide a business update. CEO Riley McCormack and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s prepared remarks.
The conference call and investor presentation will be broadcast live and available for replay here and in the investor section of the company’s website. The conference call script will also be posted to the company’s website shortly before the call.
For those who wish to call in via telephone to ask a question, please dial the number below at least five minutes before the scheduled start time. We encourage you to also login to the live broadcast so you can follow along with the investor presentation.
Toll-Free number: 877-407-0832
International number: 201-689-8433
Conference ID number: 13754822
About Digimarc
Digimarc (NASDAQ: DMRC) is building the trust layer for the modern world. As AI accelerates how we produce, share, and interact with the world, the risks of fraud, counterfeiting, and misinformation are growing exponentially. Our innovative, highly scalable, and ultra-secure solutions make it possible for consumers, businesses, and intelligent systems to instantly verify what's real, protect what matters, and transact with confidence. Digimarc's solutions for loss prevention, authentication, and digital are built to counter the speed and sophistication of today's AI-enabled threats. Trusted by the world's central banks to deter counterfeiting of global currency, we exist to protect truth in every interaction, spanning both the physical and digital worlds. Learn more at Digimarc.com.
Forward-Looking Statements
Except for historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements identified by terminology such as “will,” “should,” “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company’s Form 10-K for the year ended December 31, 2025, and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Non-GAAP Financial Measures
This release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP gross profit margin, Non-GAAP operating expenses, Non-GAAP net income (loss), Non-GAAP income (loss) per diluted share, and free cash flow. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. These non-GAAP financial measures are an important measure of our operating performance because they allow management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing non-cash and non-recurring activities that affect comparability. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons.
Digimarc believes that providing these non-GAAP financial measures, together with the reconciliation to GAAP, helps management and investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules. These non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of its consolidated historical operating results, investors should examine Digimarc’s non-GAAP financial measures in conjunction with its historical GAAP financial information, and investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results.
Digimarc Corporation
Consolidated Income Statement Information
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
Revenue:
Subscription
$
5,339
$
5,024
$
19,844
$
22,418
Service
3,569
3,634
14,069
16,000
Total revenue
8,908
8,658
33,913
38,418
Cost of revenue:
Subscription (2)
532
754
2,633
2,959
Service (2)
1,528
1,490
5,648
6,628
Amortization expense on acquired intangible assets
1,190
1,147
4,736
4,592
Total cost of revenue
3,250
3,391
13,017
14,179
Gross profit:
Subscription (2)
4,807
4,270
17,211
19,459
Service (2)
2,041
2,144
8,421
9,372
Amortization expense on acquired intangible assets
(1,190
)
(1,147
)
(4,736
)
(4,592
)
Total gross profit
5,658
5,267
20,896
24,239
Gross profit margin:
Subscription (2)
90
%
85
%
87
%
87
%
Service (2)
57
%
59
%
60
%
59
%
Total
64
%
61
%
62
%
63
%
Operating expenses:
Sales and marketing
2,778
4,378
13,939
21,167
Research, development and engineering
3,997
6,336
20,482
26,209
General and administrative
2,891
3,378
18,505
17,073
Amortization expense on acquired intangible assets
285
274
1,132
1,097
Total operating expenses
9,951
14,366
54,058
65,546
Operating loss
(4,293
)
(9,099
)
(33,162
)
(41,307
)
Other income, net
88
473
884
2,341
Loss before income taxes
(4,205
)
(8,626
)
(32,278
)
(38,966
)
Provision for income taxes
(2
)
(22
)
(31
)
(44
)
Net loss
$
(4,207
)
$
(8,648
)
$
(32,309
)
$
(39,010
)
Loss per share:
Loss per share — basic
$
(0.19
)
$
(0.40
)
$
(1.49
)
$
(1.83
)
Loss per share — diluted
$
(0.19
)
$
(0.40
)
$
(1.49
)
$
(1.83
)
Weighted average shares outstanding — basic
21,809
21,480
21,663
21,261
Weighted average shares outstanding — diluted
21,809
21,480
21,663
21,261
____________________
(2)
Cost of revenue, Gross profit and Gross profit margin for Subscription and Service excludes amortization expense on acquired intangible assets.
Digimarc Corporation
Reconciliation of GAAP to Non-GAAP Financial Measures
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2025
2024
2025
2024
GAAP gross profit
$
5,658
$
5,267
$
20,896
$
24,239
Amortization of acquired intangible assets
1,190
1,147
4,736
4,592
Amortization and write-off of other intangible assets (3)
213
215
873
849
Stock-based compensation
386
143
1,112
706
Non-GAAP gross profit
$
7,447
$
6,772
$
27,617
$
30,386
Non-GAAP gross profit margin
84
%
78
%
81
%
79
%
GAAP operating expenses
$
9,951
$
14,366
$
54,058
$
65,546
Depreciation and write-off of property and equipment
(167
)
(158
)
(597
)
(728
)
Amortization of acquired intangible assets
(285
)
(274
)
(1,132
)
(1,097
)
Amortization and write-off of other intangible assets
(202
)
(35
)
(531
)
(276
)
Amortization of lease right of use assets under operating leases
(112
)
(95
)
(421
)
(358
)
Stock-based compensation
(2,684
)
(1,947
)
(10,854
)
(9,323
)
Non-GAAP operating expenses
$
6,501
$
11,857
$
40,523
$
53,764
GAAP net loss
$
(4,207
)
$
(8,648
)
$
(32,309
)
$
(39,010
)
Total adjustments to gross profit
1,789
1,505
6,721
6,147
Total adjustments to operating expenses
3,450
2,509
13,535
11,782
Non-GAAP net income (loss)
$
1,032
$
(4,634
)
$
(12,053
)
$
(21,081
)
GAAP loss per share (diluted)
$
(0.19
)
$
(0.40
)
$
(1.49
)
$
(1.83
)
Non-GAAP net income (loss)
$
1,032
$
(4,634
)
$
(12,053
)
$
(21,081
)
Non-GAAP income (loss) per diluted share
$
0.05
$
(0.22
)
$
(0.56
)
$
(0.99
)
Free cash flow
Cash flows from operating activities
$
991
$
(4,235
)
$
(11,779
)
$
(26,572
)
Purchase of property and equipment
(96
)
(13
)
(570
)
(212
)
Capitalized patent costs
(189
)
(118
)
(654
)
(431
)
Free cash flow
$
706
$
(4,366
)
$
(13,003
)
$
(27,215
)
____________________
(3)
In the second quarter of fiscal year 2025, management updated its definition of Non-GAAP gross profit to adjust for the amortization of patent maintenance costs. The related amortization expense for the three and twelve months ended December 31, 2025 and 2024 is now reflected in "amortization and write-off of other intangible assets" above to calculate Non-GAAP gross profit, Non-GAAP net income (loss), and Non-GAAP income (loss) per diluted share.
Digimarc Corporation
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
December 31,
December 31,
2025
2024
ASSETS
Current assets:
Cash and cash equivalents
$
9,820
$
12,365
Marketable securities
3,046
16,365
Trade accounts receivable, net
6,513
6,412
Other current assets
1,961
4,189
Total current assets
21,340
39,331
Property and equipment, net
1,104
1,040
Intangibles, net
17,045
22,191
Goodwill
9,056
8,532
Lease right of use assets
3,238
3,659
Other assets
1,175
1,013
Total assets
$
52,958
$
75,766
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable and other accrued liabilities
$
4,359
$
5,118
Deferred revenue
3,993
4,020
Total current liabilities
8,352
9,138
Long-term lease liabilities
4,314
5,213
Other long-term liabilities
63
56
Total liabilities
12,729
14,407
Shareholders’ equity:
Preferred stock
50
50
Common stock
22
21
Additional paid-in capital
424,665
415,049
Accumulated deficit
(383,087
)
(350,778
)
Accumulated other comprehensive loss
(1,421
)
(2,983
)
Total shareholders’ equity
40,229
61,359
Total liabilities and shareholders’ equity
$
52,958
$
75,766
Digimarc Corporation
Consolidated Cash Flow Information
(in thousands)
(Unaudited)
Twelve Months Ended
December 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(32,309
)
$
(39,010
)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and write-off of property and equipment
597
728
Amortization of acquired intangible assets
5,868
5,689
Amortization and write-off of other intangible assets
1,404
820
Amortization of lease right of use assets under operating leases
421
358
Stock-based compensation
11,966
10,029
Increase (decrease) in allowance for doubtful accounts
567
17
Changes in operating assets and liabilities:
Trade accounts receivable
(718
)
(687
)
Other current assets
1,951
(128
)
Other assets
(257
)
(156
)
Accounts payable and other accrued liabilities
(434
)
(1,608
)
Deferred revenue
28
(1,838
)
Lease liability and other long-term liabilities
(863
)
(786
)
Net cash provided by (used in) operating activities
(11,779
)
(26,572
)
Cash flows from investing activities:
Purchase of property and equipment
(570
)
(212
)
Capitalized patent costs
(654
)
(431
)
Proceeds from maturities of marketable securities
20,197
22,555
Purchases of marketable securities
(6,878
)
(33,194
)
Net cash provided by (used in) investing activities
12,095
(11,282
)
Cash flows from financing activities:
Issuance of common stock, net of issuance costs
—
32,218
Purchase of common stock
(2,879
)
(3,416
)
Repayment of loans
(32
)
(37
)
Net cash provided by (used in) financing activities
(2,911
)
28,765
Effect of exchange rate on cash
50
(2
)
Net increase (decrease) in cash and cash equivalents
$
(2,545
)
$
(9,091
)
Cash, cash equivalents and marketable securities at beginning of period
$
28,730
$
27,182
Cash, cash equivalents and marketable securities at end of period
12,866
28,730
Net increase (decrease) in cash, cash equivalents and marketable securities
$
(15,864
)
$
1,548
View source version on businesswire.com: https://www.businesswire.com/news/home/20260311360054/en/
Company Contact:
Charles Beck
Chief Financial Officer
Charles.Beck@digimarc.com
+1 503-469-4721
Original: Digimarc Reports Fourth Quarter and Fiscal Year 2025 Financial Results
nlightn
9 년 전
Digimarc: The Revenue Begins
Jul. 6, 2017
Watermarked products are on shelves at Wal-Mart.
Virtually all major retailers have expressed interest.
Amazon's Whole Foods acquisition will speed adoption.
About two years ago, with Digimarc (DMRC) trading around $40 per share and Wal-Mart (NYSE:WMT) dropping hints about collaborating with the company, I concluded an article by writing, "a move from $40 to $200 is still good whether it happens in a matter of months or after several years."
Today, shares are trading around $40 per share again, but Wal-Mart is no longer being so coy. You can go to a store right now and scan some of their Great Value brand items using the Digimarc Discover app to observe Digimarc technology at work.
For people new to this story, what you see in the above video is the most salient application for Digimarc's patented watermarking technology. Those packages, while still carrying a traditional barcode, have been imperceptibly modified so that they are scannable in their entirety. This saves time at checkout, creates efficiencies throughout the supply chain, and creates an opportunity for effortless consumer engagement.
These time savings represent billions to retailers, and to answer a common question: No, the benefits don't accrue only after a critical mass of watermarking is achieved. Even if a cashier or warehouse worker is oblivious to the technology they are working with, the items will still scan faster as workers reorient them in search of the visible bar code.
The benefit to brands is harder to quantify, but Digimarc management has expressed surprise at the rate at which they've been approached by consumer packaged good (CPG) companies who are not waiting to feel pressured by retailers to make their move.
Solidifying the appeal of the solution is the pricing. Digimarc will be charging all but the largest companies a recurring $50 per shop keeping unit (SKU), which for the benefits gained, should create a great return on investment.
In fact, Digimarc has something of a Goldilocks solution. RFID can do something similar, but companies incur a higher cost to implement that solution since each item produced comes with an incremental expense. Wrapping a product in visible barcodes can get around the cost issue, but companies are not keen on having their brand crisscrossed with long black stripes.
Evidence for industry interest in Digimarc's technology comes directly from management who mentioned during their Q4 conference call, "We have some level of engagement with all of the top 10 retailers in the world and six of the top 10 CPGs. These relationships range from discussion of pilots to contract small volume production." These are in addition to ongoing fully operational roll outs with smaller grocers Wegman's and New Seasons.
When exactly Digimarc will begin converting talks and pilots into dollars is not totally clear, but the most recent call provided some encouraging color. Management disclosed, "This is the second master services agreement we have entered into with a top 10 retailer. The other relationship is further along and involves lots of moving parts and is taking some time to mature." In other words, talks haven't stalled with the big retailers. Signatures have been placed on the dotted line and now Digimarc just has to hit certain milestones.
Independent of this information, Digimarc has been disclosing bookings for a few quarters and finished 2016 with $1.8 million-a number that is symbolically, if not statistically significant.
If there was any doubt as to whether Wal-Mart was one of the two initial signers of the master services agreements, one need to look no further than Digimarc's jobs page:
So what are these master services agreements worth? From a few hundred thousand per year up to maybe a million? It's hard to say, but it's also not terribly important. Digimarc is not poised to succeed on have a couple of monstrous contracts but rather a bounty of small and medium sized ones. The list of supermarket chains alone, many of which have their own store brand, is enormous. This is to say nothing of CPG companies which could have one or tens of thousands of SKUs. Having the biggest names in the business on board is important mostly in terms of putting the smaller players in the industry on notice and creating a fast followers effect.
Once the reactive players begin to adopt, there is the potential for rapid acceleration. Management is fond of pointing out that the total addressable market in terms of SKUs is in the hundreds of millions. Obviously, Digimarc will never capture 100% of that, and capturing the first few percentage points will take time, but even so.... the opportunity relative to the company's current market cap of around $400 million is significant. Two million SKUs at $50 per year is $100 million of high margin and recurring revenue, and from there the potential begins to get downright preposterous.
Most recently, management estimated that the number of partners they have who have begun some sort of production using their technology to be, "probably 30 to 50." Significantly, there appear to be several heavy hitters in the bunch besides Wal-Mart with people scanning activated brand labels on grocery store shelves for Dr. Pepper, Smuckers, and Procter & Gamble. In fact, a secondary benefit to owning shares of DMRC may be that trips to the grocery store become Easter egg hunts for watermarked items.
Looping back to my quote from two years prior, things have taken awhile and they will most likely continue to creep rather than sprint (whether share price will do the same is another issue.) That being said, management has been learning as things have moved forward and are applying their new knowledge to help speed up the process.
Most dramatically, Digimarc has pushed against the idea that companies all need to run their own studies. This has led to national commissions in Germany and Japan where businesses can coordinate their testing and cut down on time to market. Signs point to things going well in these regions, as if one refers back to the job postings earlier in the article, they will see that local sales staff is about to be put in place.
Additionally, during the passage of those two years, stores of all sorts have continued to upgrade their scanning technology from laser based to image based, enabling the recognition of invisible watermarking. This is in accordance with the recommendation of GS1 the independent organization that manages barcoding systems. The shift is not happening because of Digimarc specifically, but the company is a happy beneficiary.
A final catalyst that should shorten the timeline of widespread adoption of digital watermarking is Amazon (NASDAQ:AMZN) acquisition of Whole Foods (NASDAQ:WFM). The conventional wisdom is that retailers who may have been tentative about taking the plunge suddenly see themselves in a more 'adapt or die' type situation as the online retailer brings its ruthless efficiency to their doorstep. Needless to say, there should be some interesting insights regarding sentiment during the Q2 call.
Consumer packaged goods companies may not feel the pressure of Amazon, but they have their own incentive to cross over approaching as new nutritional labeling requirements eventually go into effect. If a company must update their packaging anyway, the logic goes, that's the opportune time to embrace the invisible barcode.
There are other things to like about Digimarc that extend beyond this application or even this technology. They watermark audio, prevent eBook piracy, have a legacy business that protects US currency, and own a host of patents that in the past they have licensed as a means of generating revenue. Close partnerships with HP and Shazam, among a host of others, add major names and demonstrate the breadth of their ecosystem. Finally, an examination of their balance sheet will show they carry no debt, and have a multi year runway of cash on hand.
But the invisible barcode dwarfs these in terms of opportunity and so has been the focus here.
Two years ago Digimarc was a 'not if but when' type play. Now, there are a known two million in bookings that will be hitting the top line soon, and from there the initial master services agreements along with drips and drabs from other retailers and CPGs should begin to snowball. It's no longer about the when, it's about how much. And signals from management and store shelves are indicating that the answer will be a very large number.
Disclosure: I am/we are long DMRC.
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
https://seekingalpha.com/article/4086011-digimarc-wait?app=1&auth_param=f4h1u:1clsa5i:fa9480d69204518c655fa9e7cc7a24fd&uprof=54#alt2
Stockexpertpro
12 년 전
DMRC Revenues Down 30% Loss 3.3 Million Ugly Outlook Company will continue to lose money and be cash flow negative for the forseable futures Revenues of only 7.2 Million Yet the Company has a market cap of 255 Million Dollars... for a company whos revenues just declined 30% and that is losing 3.3 Million a qrt thats 13.2 Million Dollars a year Hmm This stock def looks like a Bubble Short Sell
http://finance.yahoo.com/news/digimarc-reports-first-quarter-2014-200500475.html
Digimarc Reports First Quarter 2014 Financial Results
Marketwired Digimarc Corporation
April 23, 2014 4:05 PM
BEAVERTON, OR--(Marketwired - Apr 23, 2014) - Digimarc Corporation (NASDAQ: DMRC) reported financial results for the first quarter ended March 31, 2014.
First Quarter 2014 Results
Revenue for the first quarter of 2014 totaled $7.2 million compared to $10.2 million in the first quarter of 2013. The decrease was primarily due to the end of the scheduled minimum quarterly license fee payments from Intellectual Ventures (IV) in the second quarter of 2013. The comparative decline was partially offset by increased royalty revenue from other licensees.
Operating loss for the first quarter of 2014 totaled $3.3 million compared to operating income of $1.6 million in the same quarter a year-ago. The operating loss was primarily due to lower revenue and increased investment in the company's ongoing product development and sales growth initiatives, mainly focused around Digimarc Discover and Barcode.
Net loss for the first quarter of 2014 totaled $2.0 million or $(0.29) per diluted share compared to net income of $1.0 million or $0.13 per diluted share in the first quarter of 2013.
At March 31, 2014, cash, cash equivalents and marketable securities totaled $32.3 million compared to $35.0 million at December 31, 2013.
Conference Call
Digimarc will hold a conference call later today (Wednesday, April 23, 2014) to discuss these results. Management will also provide an update on market conditions and execution of strategy. Chairman and CEO Bruce Davis and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management's presentation.
The call will be broadcast live via webcast at www.digimarc.com/investors and available for replay through May 23, 2014. The webcast will be archived and available on Digimarc's website at www.digimarc.com/investors/investor-events-and-webcasts.
For those who wish to listen to the call via telephone, please dial the telephone number below at least five minutes prior to the scheduled start time:
Number: 866-562-9934
Conference ID: 27179676
If you have any difficulty connecting with the conference call, please contact Liolios Group at 949-574-3860.
About Digimarc
Digimarc Corporation (NASDAQ: DMRC), based in Beaverton, Oregon, is a leading innovator and provider of enabling technologies that create digital identities for all forms of media and many everyday objects. The embedded Digimarc IDs are imperceptible to humans, but not to computers, networks and devices like mobile phones, which can now use cameras and microphones as sensory inputs to "see, hear and understand" the world around them within the context of their environment. Digimarc has built an extensive intellectual property portfolio with patents in digital watermarking, content identification and management, media and object discovery to enable ubiquitous computing, and related technologies. Digimarc develops solutions, licenses its intellectual property, and provides development services to business partners across a range of industries. For more information, visit www.digimarc.com.
Forward-looking Statements
With the exception of historical information contained in this release, the matters described in this release contain various "forward-looking statements." These forward-looking statements include statements and any related inferences regarding increased royalty revenue from other licensees, increased investments in product development and sales growth initiatives, and other statements identified by terminology such as "will," "should," "expects," "estimates," "predicts" and "continue" or other derivations of these or other comparable terms. These forward-looking statements are statements of management's opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and/or regulatory factors. More detailed information about risk factors that may affect actual results will be set forth in the company's Form 10-K for the year ended December 31, 2013 and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.
Digimarc Corporation
Consolidated Income Statement Information
(in thousands, except per share amounts)
(Unaudited)
Three-Month Information
March 31, March 31,
2014 2013
Revenue:
Service $ 2,988 $ 2,929
Subscription 1,412 1,384
License 2,805 5,930
Total revenue 7,205 10,243
Cost of revenue:
Service 1,414 1,403
Subscription 649 635
License 83 96
Total cost of revenue 2,146 2,134
Gross profit:
Service 1,574 1,526
Subscription 763 749
License 2,722 5,834
Total gross profit 5,059 8,109
Gross margin:
Service 53 % 52 %
Subscription 54 % 54 %
License 97 % 98 %
Percentage of gross profit to total revenue 70 % 79 %
Operating expenses:
Sales and marketing 1,879 1,277
Research, development and engineering 3,546 2,725
General and administrative 2,421 2,186
Intellectual property 534 277
Total operating expenses 8,380 6,465
Operating income (loss) (3,321 ) 1,644
Other income, net 27 29
Income (loss) before income taxes (3,294 ) 1,673
(Provision) benefit for income taxes 1,308 (702 )
Net income (loss) $ (1,986 ) $ 971
Earnings (loss) per common share:
Earnings (loss) per common share - basic $ (0.29 ) $ 0.13
Earnings (loss) per common share - diluted $ (0.29 ) $ 0.13
Weighted average common shares outstanding - basic 7,000 6,838
Weighted average common shares outstanding - diluted 7,000 7,058
Cash dividends declared per common share: $ 0.11 $ 0.11
Digimarc Corporation
Consolidated Cash Flow Information
(in thousands)
(Unaudited)
Three-Month Information
March 31, March 31,
2014 2013
Cash flows from operating activities:
Net income (loss) $ (1,986 ) $ 971
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Depreciation and amortization of property and equipment 231 158
Amortization and write-off of intangibles 308 299
Change in allowance for doubtful accounts (7 ) -
Gain on reversal of contingent merger consideration - (190 )
Stock-based compensation 1,259 1,092
Deferred income taxes (509 ) (112 )
Excess tax benefit from stock-based awards (72 ) -
Changes in operating assets and liabilities:
Trade accounts receivable, net 1,809 (228 )
Other current assets (699 ) (44 )
Other assets 84 1
Accounts payable and other accrued liabilities (317 ) (213 )
Income taxes payable 3 778
Deferred revenue (1,484 ) 832
Net cash provided by (used in) operating activities (1,380 ) 3,344
Cash flows from investing activities:
Purchase of property and equipment (117 ) (86 )
Capitalized patent costs (295 ) (228 )
Maturity of marketable securities 11,192 23,116
Purchase of marketable securities (9,266 ) (21,933 )
Net cash provided by investing activities 1,514 869
Cash flows from financing activities:
Issuance of common stock 712 -
Purchase of common stock (850 ) (648 )
Cash dividends paid (824 ) (801 )
Excess tax benefit from stock-based awards 72 -
Net cash used in financing activities (890 ) (1,449 )
Net increase (decrease) in cash and cash equivalents (1) $ (756 ) $ 2,764
Cash, cash equivalents and marketable securities at beginning of period 34,964 39,056
Cash, cash equivalents and marketable securities at end of period 32,282 40,637
(1) Net increase (decrease) in cash, cash equivalents and marketable securities $ (2,682 ) $ 1,581
Digimarc Corporation
Consolidated Balance Sheet Information
(in thousands)
(Unaudited)
March 31, December 31,
2014 2013
Assets
Current assets:
Cash and cash equivalents (2) $ 3,055 $ 3,811
Marketable securities (2) 28,120 25,851
Trade accounts receivable, net 4,036 5,838
Other current assets 2,368 1,658
Total current assets 37,579 37,158
Marketable securities (2) 1,107 5,302
Property and equipment, net 2,326 2,395
Intangibles, net 6,740 6,709
Goodwill 1,114 1,114
Deferred tax assets, net 4,519 3,949
Other assets 486 570
Total assets $ 53,871 $ 57,197
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable and other accrued liabilities $ 1,325 $ 1,560
Deferred revenue 2,690 4,218
Total current liabilities 4,015 5,778
Deferred rent and other long-term liabilities 505 496
Total liabilities 4,520 6,274
Commitments and contingencies
Shareholders' equity:
Preferred stock 50 50
Common stock 8 7
Additional paid-in capital 42,735 41,498
Retained earnings 6,558 9,368
Total shareholders' equity 49,351 50,923
Total liabilities and shareholders' equity $ 53,871 $ 57,197
(2) Aggregate cash, cash equivalents, short- and long-term marketable securities was $32,282 and $34,964 at March 31, 2014 and December 31, 2013, respectively.
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