Digital watermarking firm Digimarc Q3 revenue misses estimates

Digimarc

30/10/2025 20:30

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

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