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Digimarc’s Q3 2025: Revenue Decline Amid Strategic Expansion

Digimarc’s Q3 2025: Revenue Decline Amid Strategic Expansion

Digimarc ( (DMRC) ) has released its Q3 earnings. Here is a breakdown of the information Digimarc presented to its investors.

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Digimarc Corporation is a technology company specializing in digital watermarking and product authentication solutions, serving industries such as retail, pharmaceuticals, and tobacco. In its third quarter of 2025, Digimarc reported a decrease in total revenue to $7.6 million from $9.4 million in the same period last year, attributed mainly to the expiration of a significant commercial contract. Despite the revenue decline, the company made strides in expanding its product authentication solutions, including a pilot with a major pharmaceutical company and the launch of a new security label solution. Key financial metrics showed a reduction in operating expenses to $12.8 million, down from $17.3 million, and a narrowed net loss of $8.2 million compared to $10.8 million in the previous year. Non-GAAP measures indicated an improved gross profit margin of 81%, up from 79%. Looking ahead, Digimarc is poised to capitalize on its advancements in digital authentication and its growing market pipeline, setting the stage for potential growth in 2026 and beyond.

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