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Jun 30, 2025
Digimarc Q2 2025 Earnings Report
Digimarc reported lower revenue and narrower net loss in Q2 2025, with reduced operating expenses and improved non-GAAP results despite contract expirations.
Key Takeaways
Digimarc's Q2 2025 results reflected contract expirations that reduced revenue, but operational improvements led to significantly reduced expenses and a smaller non-GAAP net loss. Cash burn also improved, though total assets declined.
Revenue declined to $8 million, mainly due to contract expirations
Net loss narrowed to $8.2 million, down from $9.3 million YoY
Operating expenses dropped from $16.8M to $13.1M YoY
Free cash flow improved to -$5 million from -$6.9 million YoY
Revenue by Segment
Forward Guidance
Digimarc expects to strengthen its position in digital watermarking and AI-driven authenticity verification, while continuing cost discipline and navigating contract transitions.
Positive Outlook
- Focus on AI-driven authenticity and trust solutions
- Strong cost control reduced OpEx significantly
- Free cash flow improved sequentially and YoY
- Gross margin remained strong despite revenue decline
- Product and strategy aligned with emerging global needs
Challenges Ahead
- Total revenue declined due to contract expirations
- ARR dropped by $8M YoY from lapsed contracts
- Cash and securities fell to $16.1M from $28.7M in December
- Total assets declined from $75.8M to $60.7M
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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