Digimarc Corp. (DMRC)
NASDAQ:DMRC
Earnings Data
Report Date
May 13, 2026After Close (Confirmed)
Period Ending
2026 (Q1)Consensus EPS Forecast
-0.36Last Year’s EPS
-0.55Same Quarter Last Year
Moderate Buy
Based on 2 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presented a mix of meaningful operational and financial progress—positive cash flow, improved margins, major commercialization milestones (first secure gift card order, IP deals, retail rollout plans), and reduced operating expenses—offset by a notable decline in ARR (~31.5%) driven by the loss of two large contracts and ongoing churn and timing risks tied to third-party dependencies. Management emphasized a strong path to ARR growth in 2026 driven by the secure gift card opportunity and other upsells, but near-term execution and contract-duration factors create uncertainty.Company Guidance
First Secure Gift Card Commercial Order
Closed first secure gift card commercial order representing over $500,000 in ARR; initial cards to appear in early spring and ~600 stores of a major U.S. retailer in summer, with plans to expand for holiday 2026.
Retail Rollout Momentum and Ecosystem Commitments
Advancing initial rollout plans with eight North American retailers (including four of the largest) and three major scanner vendors close to shipping GA firmware incorporating Digimarc software (company expects vendor firmware gating risk to be 'weeks' away).
IP Licensing Validation
Signed IP licensing agreements with two leading technology companies; $1.4 million of license fees recognized in Q4 and historical IP licensing totals exceeding $100 million company-wide (IP licensing is lumpy and excluded from ARR).
Revenue and ARR Context
Total Q4 revenue was $8.9 million, up $0.2 million or 3% year-over-year; subscription revenue increased 6% from $5.0M to $5.3M, with subscription revenue comprising 60% of total revenue.
Profitability and Cash Flow Milestones
Achieved positive non-GAAP net income per diluted share of $0.05 (vs non-GAAP loss of $0.22 prior-year Q4) and positive free cash flow of $0.7 million in Q4 (vs negative $4.4M prior-year), representing a $5.1M improvement in free cash flow.
Improved Subscription Gross Margin and Platform Cost Reductions
Subscription gross profit margin was 90%, up 5 percentage points year-over-year, reflecting platform cost reductions of approximately $200,000 per quarter versus start of 2025 and expectation of further reductions in 2026.
Operating Expense Reductions
Operating expenses decreased to $10.0M in Q4, down $4.4M or 31% versus prior-year Q4; non-GAAP operating expenses were $6.5M, down $5.4M or 45% year-over-year, driven by reorganization and non-headcount streamlining.
Product and Pipeline Expansion
Growth and upsells across anti-counterfeiting (tax stamps, pharma expansion, tipping paper print trials), digital trust (exceeded conservative 2025 ARR assumptions), leak detection wins (web and media), recycling demos in Belgium and Germany, and two new digital-space logos.
DMRC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
DMRC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Mar 11, 2026 | $5.62 | $6.64 | +18.15% |
Oct 30, 2025 | $9.34 | $9.73 | +4.18% |
Aug 14, 2025 | $11.03 | $8.81 | -20.13% |
May 05, 2025 | $13.74 | $12.48 | -9.17% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Digimarc Corp. (DMRC) report earnings?
Digimarc Corp. (DMRC) is schdueled to report earning on May 13, 2026, After Close (Confirmed).
What is Digimarc Corp. (DMRC) earnings time?
Digimarc Corp. (DMRC) earnings time is at May 13, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is DMRC EPS forecast?
DMRC EPS forecast for the fiscal quarter 2026 (Q1) is -0.36.