Earnings Releases·Nov 12, 2026, 4:05 PM ET

Digimarc — Third Quarter 2026 Earnings Summary

Total revenue declined 16% year-over-year to $6.4 million in Q3 2026, driven by a $1.4 million drop in subscription revenue due to contract expirations and step-downs, partially offset by a $0.2 million increase in service revenue.
Annual Recurring Revenue (ARR) fell to $10.8 million from $15.8 million in Q3 2025, reflecting $5.7 million in reductions from contract expirations and step-downs that were only partially offset by $0.7 million in net new contract growth.
Net loss narrowed slightly to $8.1 million ($0.36 per share) from $8.2 million ($0.38 per share) in the prior year, while operating expenses decreased to $11.5 million from $12.8 million, though non-GAAP net loss widened to $2.9 million from $2.2 million.
Management targets converting current momentum into recurring revenue growth in 2027, citing new customer commitments in retail and CPG sectors and accelerated conversion of pipeline deals to signed business.
The company ended the quarter with $22.1 million in cash, cash equivalents, and marketable securities, up from $12.9 million at the end of 2025, while free cash flow usage increased to $4.3 million from $3.1 million.