Digital watermarking firm Digimarc Q3 revenue misses estimates

Reuters10-31
Digital watermarking firm Digimarc Q3 revenue misses estimates

Overview

  • Digimarc Q3 2025 revenue decreased to $7.6 mln, missing analyst expectations

  • Net loss for Q3 2025 reduced to $8.2 mln from $10.8 mln in Q3 2024

  • Revenue decline due to contract expiration and lower service revenue

Outlook

  • Digimarc highlights progress in expanding product authentication solutions

  • Company is preparing for market opportunities in 2026 and beyond

Result Drivers

  • EXPANSION - Digimarc expanded its product authentication solutions to a 6th country with a global tobacco company, per CEO Riley McCormack

  • SECURITY LABEL LAUNCH - Digimarc launched a new digitized security label solution to replace low value-add holograms

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Miss

$7.63 mln

$7.75 mln (2 Analysts)

Q3 Net Income

-$8.15 mln

Q3 Adjusted Gross Margin

81%

Q3 Gross Profit

$4.44 mln

Q3 Operating Income

-$8.36 mln

Q3 Pretax Profit

-$8.14 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 1 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the software peer group is "buy"

  • Wall Street's median 12-month price target for Digimarc Corp is $20.00, about 53.1% above its October 29 closing price of $9.39

Press Release: ID:nBw2BpB8Da

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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