10-K · March 11, 2026
Digimarc describes its strategy as building a "trust layer" for physical and digital goods via its Illuminate® SaaS platform, leaning into retail loss prevention, product authentication and digital trust. The company…
Earnings analysis · 10-Q
DMRC earnings analysis
Filed May 13, 2026 · Our reading of the company's report
The latest report
Digimarc Corporation reported Q1 2026 revenue of $7.6 million, which represents a 19% decrease from $9.4 million in Q1 2025. The diluted EPS loss of $0.32 improved to a loss of $0.07, indicating progress in managing…
Read full summary
Digimarc Corporation reported Q1 2026 revenue of $7.6 million, which represents a 19% decrease from $9.4 million in Q1 2025. The diluted EPS loss of $0.32 improved to a loss of $0.07, indicating progress in managing costs, despite the overall revenue decline. Operating expenses reduced by 36% year-over-year, driven by lower cash compensation and consulting costs, but the company continues to face challenges with contract expirations affecting revenue stability.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.07
What stood out
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Improved EPS Performance
Digimarc reported a diluted EPS loss of $0.07, an improvement from a loss of $0.32 in the prior period.
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Revenue Beat Expectations
Actual revenue of $7.6 million was higher than the consensus estimate of $7.03 million, showing a surprise of 7.83%.
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Significant Reduction in Expenses
Total operating expenses decreased by $6.5 million, or 36%, to $11.7 million compared to $18.2 million last year.
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Lower Cash Burn
Net cash used in operating activities decreased to $1.8 million from $5.5 million in Q1 2025, a 66% reduction.
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Increased Non-GAAP Metrics
Non-GAAP net loss improved to $1.64 million from $8.54 million in the prior period.
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Decreased Legal Costs
Legal costs increased by $1.0 million primarily due to corporate reorganization expenses, but were overshadowed by overall operating expense reductions.
What to watch
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Declining Annual Recurring Revenue
ARR decreased by 25%, from $20 million to $15 million, mainly due to expirations of key contracts.
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Cash and Liquidity Concerns
Cash, cash equivalents, and marketable securities decreased from $12.9 million to $10 million, indicating tightening liquidity.
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Ongoing Legal Challenges
The company is facing multiple derivative lawsuits related to alleged misstatements during a past class action, which may impact financial resources.
Management's outlook
Outlook for fiscal 2026 remains cautious due to recent contract expirations impacting revenue.
Earlier filings 4
10-K · February 27, 2025
Digimarc positions itself as a SaaS leader in digital watermarking with a deep IP moat (~820 U.S. and foreign patents as of December 31, 2024) and a product roadmap that added multiple commercial offerings in 2024…
10-Q · November 14, 2024
Digimarc's Q3 2024 report indicates a decline in revenue and earnings, with total revenue at $9.443 million, down from $8.994 million year-over-year. The operating loss expanded to $11.369 million, while diluted EPS was…
10-Q · August 14, 2024
Digimarc reported Q2 revenue of $10,379 (amounts in the filing are stated in thousands), up from $8,730 in Q2 2023 (+$1,649 or +18.9% year-over-year). Gross margin expanded to 66.1% and operating loss narrowed to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.