Digimarc Q4 revenue rises 3%

Digimarc

11/03/2026 20:22

Overview

Digital watermarking firm's Q4 revenue rose 3% yr/yr, driven by patent license fees and new contracts

Company posted Q4 non-GAAP net income, reversing a loss in the year-ago period

Annual recurring revenue fell due to expiration of major contracts

Outlook

Digimarc expects significant ARR growth in 2026

Result Drivers

PATENT LICENSE FEES - Q4 subscription revenue benefited from $1.4 mln in patent license fees

COST REDUCTIONS - Operating expenses fell due to lower headcount and reduced professional services costs

CONTRACT EXPIRATIONS - Loss of two major contracts offset gains from new and existing contracts and reduced ARR

Company press release: ID:nBw5K711la

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Beat
$8.91 mln
$8.22 mln (2 Analysts)
Q4 Adjusted EPS
Beat
$0.05
-$0.02 (2 Analysts)
Q4 Net Income
-$4.21 mln
Q4 Adjusted Gross Margin
84.00%
Q4 Gross Profit
$5.66 mln
Q4 Operating Income
-$4.29 mln
Q4 Pretax Profit
-$4.21 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 $15.00, about 184.1% above its March 10 closing price of $5.28

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)