Digimarc Corporation $(DMRC)$ released its financial results for the second quarter of 2025, reporting a decline in total revenue to $8.0 million, down from $10.4 million in the same quarter of 2024. The decrease in revenue is attributed to the expiration of two commercial contracts and a reduction in government service revenue from the Central Banks. The company's subscription revenue fell to $4.6 million from $6.4 million, primarily due to the loss of contracts that contributed $1.9 million in the prior year's quarter. Service revenue also decreased to $3.4 million from $4.0 million, reflecting a $0.5 million reduction in government service revenue. Annual recurring revenue $(ARR)$ as of June 30, 2025, stood at $15.9 million, a drop from $23.9 million as of June 30, 2024. This $8.0 million decline mainly reflects the expiration of two commercial contracts accounting for $9.3 million of ARR, partially offset by new and existing contracts. The gross profit margin for the quarter decreased to 59% from 66% a year earlier. Excluding amortization expenses on acquired intangible assets, the subscription gross profit margin decreased to 85% from 89%, while the service gross profit margin increased slightly to 59% from 58%. Operating expenses were reduced to $13.1 million, down from $16.8 million in the second quarter of 2024. The company reported a decrease in free cash flow usage to $5.0 million from $6.9 million in the prior year, and $4.1 million when excluding previously accrued severance costs. Digimarc continues to focus on building a trust layer for the modern world, with significant progress reported in the second quarter of 2025 towards achieving this goal.
Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Digimarc Corporation published the original content used to generate this news brief via Business Wire (Ref. ID: 20250814630349) on August 14, 2025, and is solely responsible for the information contained therein.
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