Digimarc Corporation Financials
This page shows Digimarc Corporation (DMRC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 17 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Digimarc’s core mechanic is a high-margin revenue base carrying a still-oversized research and operating structure.
The least obvious improvement is that cash burn fell much faster than sales: revenue slipped to$33.9M from$38.4M . Even so, free cash outflow improved to-$12.3M from-$26.8M , which points to a lighter R&D burden and shows the model is constrained more by operating spend choices than by heavy reinvestment needs.
Gross margin stayed high at
Liquidity still looks better than solvency pressure, with a 2.6x current ratio and 0.3x debt-to-equity, so near-term strain is not coming from lenders. But asset shrinkage from
Financial Health Signals
Based on FY2025 annual data, averaged across the last 3 years for performance metrics (most-recent year weighted highest). How this score is calculated →
Health score ≠ stock price. This rates the quality of Digimarc Corporation's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Digimarc Corporation has an operating margin of -97.8%, meaning the company retains $-98 of operating profit per $100 of revenue. This below-average margin results in a low score of 0/100, suggesting thin profitability after operating expenses. This is up from -107.5% the prior year.
Digimarc Corporation's revenue declined 11.7% year-over-year, from $38.4M to $33.9M. This contraction results in a growth score of 31/100.
Digimarc Corporation carries a low D/E ratio of 0.32, meaning only $0.32 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 96/100, indicating a strong balance sheet with room for future borrowing.
Digimarc Corporation's current ratio of 2.56 indicates adequate short-term liquidity, earning a score of 48/100. The company can meet its near-term obligations, though with limited headroom.
While Digimarc Corporation generated -$11.8M in operating cash flow, capex of $570K consumed most of it, leaving -$12.3M in free cash flow. This results in a low score of 0/100, reflecting heavy capital investment rather than weak cash generation.
Digimarc Corporation generates a -80.3% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 0/100. This is down from -63.6% the prior year.
Digimarc Corporation passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Digimarc Corporation generates $0.36 in operating cash flow (-$11.8M OCF vs -$32.3M net income). This low ratio suggests earnings are primarily driven by accounting accruals rather than cash generation, which may not be sustainable.
Key Financial Metrics
Earnings & Revenue
Digimarc Corporation generated $33.9M in revenue in fiscal year 2025. This represents a decrease of 11.7% from the prior year.
Digimarc Corporation's EBITDA was -$30.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 21.2% from the prior year.
Digimarc Corporation reported -$32.3M in net income in fiscal year 2025. This represents an increase of 17.2% from the prior year.
Digimarc Corporation earned $-1.49 per diluted share (EPS) in fiscal year 2025. This represents an increase of 18.6% from the prior year.
Cash & Balance Sheet
Digimarc Corporation generated -$12.3M in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 53.9% from the prior year.
Digimarc Corporation held $9.8M in cash against $0 in long-term debt as of fiscal year 2025.
Digimarc Corporation had 22M shares outstanding in fiscal year 2025. This represents an increase of 1.9% from the prior year.
Margins & Returns
Digimarc Corporation's gross margin was 61.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 1.5 percentage points from the prior year.
Digimarc Corporation's operating margin was -97.8% in fiscal year 2025, reflecting core business profitability. This is up 9.7 percentage points from the prior year.
Digimarc Corporation's net profit margin was -95.3% in fiscal year 2025, showing the share of revenue converted to profit. This is up 6.3 percentage points from the prior year.
Digimarc Corporation's ROE was -80.3% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 16.7 percentage points from the prior year.
Capital Allocation
Digimarc Corporation invested $20.5M in research and development in fiscal year 2025. This represents a decrease of 21.9% from the prior year.
Digimarc Corporation spent $2.9M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 15.7% from the prior year.
Digimarc Corporation invested $570K in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 168.9% from the prior year.
DMRC Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $7.6M-14.9% | $8.9M+16.8% | $7.6M-4.8% | $8.0M-14.5% | $9.4M+8.2% | $8.7M-8.3% | $9.4M-9.0% | $10.4M |
| Cost of Revenue | $3.0M-6.4% | $3.3M+2.2% | $3.2M-3.7% | $3.3M+0.6% | $3.3M-3.2% | $3.4M-4.4% | $3.5M+0.9% | $3.5M |
| Gross Profit | $4.5M-19.8% | $5.7M+27.3% | $4.4M-5.5% | $4.7M-22.6% | $6.1M+15.5% | $5.3M-10.7% | $5.9M-14.1% | $6.9M |
| R&D Expenses | $3.7M-6.3% | $4.0M-7.4% | $4.3M-4.9% | $4.5M-40.6% | $7.6M+20.5% | $6.3M-2.3% | $6.5M-2.3% | $6.6M |
| SG&A Expenses | $5.6M+92.1% | $2.9M-46.0% | $5.4M+5.5% | $5.1M-2.0% | $5.2M+53.4% | $3.4M-30.5% | $4.9M+12.7% | $4.3M |
| Operating Income | -$7.1M-66.2% | -$4.3M+48.7% | -$8.4M+0.7% | -$8.4M+30.2% | -$12.1M-32.8% | -$9.1M+20.0% | -$11.4M-13.9% | -$10.0M |
| Interest Expense | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Income Tax | $1K-50.0% | $2K-60.0% | $5K+25.0% | $4K-80.0% | $20K-9.1% | $22K+1000.0% | $2K-81.8% | $11K |
| Net Income | -$7.0M-65.6% | -$4.2M+48.4% | -$8.2M+0.8% | -$8.2M+29.9% | -$11.7M-35.6% | -$8.6M+19.6% | -$10.8M-16.0% | -$9.3M |
| EPS (Diluted) | $-0.32 | N/A | $-0.380.0% | $-0.38+30.9% | $-0.55 | N/A | $-0.50-16.3% | $-0.43 |
DMRC Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $48.5M-8.4% | $53.0M-4.5% | $55.4M-8.7% | $60.7M-8.7% | $66.5M-12.2% | $75.8M-10.9% | $85.0M-8.9% | $93.4M |
| Current Assets | $19.0M-10.8% | $21.3M-1.9% | $21.8M-13.4% | $25.1M-18.8% | $30.9M-21.4% | $39.3M-12.2% | $44.8M-15.8% | $53.2M |
| Cash & Equivalents | $8.8M-10.2% | $9.8M+7.9% | $9.1M-10.0% | $10.1M+13.6% | $8.9M-28.0% | $12.4M-51.6% | $25.6M-16.5% | $30.6M |
| Inventory | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Accounts Receivable | $7.1M+8.9% | $6.5M+3.0% | $6.3M-0.6% | $6.4M-1.7% | $6.5M+0.9% | $6.4M-7.9% | $7.0M-13.7% | $8.1M |
| Goodwill | $8.9M-1.5% | $9.1M0.0% | $9.1M-1.6% | $9.2M+5.2% | $8.8M+2.6% | $8.5M-5.5% | $9.0M+5.2% | $8.6M |
| Total Liabilities | $14.4M+13.5% | $12.7M-9.4% | $14.0M-1.5% | $14.3M-13.6% | $16.5M+14.5% | $14.4M-3.1% | $14.9M-8.3% | $16.2M |
| Current Liabilities | $10.2M+22.5% | $8.4M-11.5% | $9.4M+0.1% | $9.4M-17.6% | $11.4M+25.2% | $9.1M-2.6% | $9.4M-10.6% | $10.5M |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $34.1M-15.3% | $40.2M-2.8% | $41.4M-11.0% | $46.5M-7.1% | $50.0M-18.5% | $61.4M-12.5% | $70.2M-9.1% | $77.2M |
| Retained Earnings | -$390.1M-1.8% | -$383.1M-1.1% | -$378.9M-2.2% | -$370.7M-2.3% | -$362.5M-3.3% | -$350.8M-2.5% | -$342.1M-3.2% | -$331.4M |
DMRC Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -$1.8M-286.4% | $991K+138.2% | -$2.6M+44.6% | -$4.7M+14.5% | -$5.5M-29.5% | -$4.2M+40.2% | -$7.1M-3.7% | -$6.8M |
| Capital Expenditures | $44K-54.2% | $96K-56.6% | $221K+11.6% | $198K+260.0% | $55K+323.1% | $13K-80.6% | $67K+157.7% | $26K |
| Free Cash Flow | -$1.9M-311.3% | $895K+131.8% | -$2.8M+42.3% | -$4.9M+11.8% | -$5.5M-30.4% | -$4.2M+40.6% | -$7.2M-4.3% | -$6.9M |
| Investing Cash Flow | $1.8M+1269.2% | $130K-93.6% | $2.0M-68.0% | $6.4M+79.0% | $3.6M+142.5% | -$8.4M-428.6% | $2.5M+62.0% | $1.6M |
| Financing Cash Flow | -$888K-115.0% | -$413K+4.4% | -$432K+14.6% | -$506K+67.6% | -$1.6M-195.5% | -$528K+8.2% | -$575K-3.8% | -$554K |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $885K+114.8% | $412K-1.7% | $419K-16.7% | $503K-67.4% | $1.5M+193.7% | $526K-5.7% | $558K+1.3% | $551K |
DMRC Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 59.9%-3.7pp | 63.5%+5.2pp | 58.3%-0.5pp | 58.8%-6.2pp | 65.0%+4.1pp | 60.8%-1.6pp | 62.5%-3.7pp | 66.1% |
| Operating Margin | -94.2%-46.0pp | -48.2%+61.5pp | -109.7%-4.5pp | -105.2%+23.8pp | -128.9%-23.9pp | -105.1%+15.3pp | -120.4%-24.2pp | -96.2% |
| Net Margin | -91.9%-44.7pp | -47.2%+59.7pp | -106.9%-4.3pp | -102.6%+22.6pp | -125.2%-25.3pp | -99.9%+14.0pp | -113.9%-24.6pp | -89.3% |
| Return on Equity | -20.4%-10.0pp | -10.5%+9.2pp | -19.7%-2.0pp | -17.7%+5.8pp | -23.4%-9.4pp | -14.1%+1.2pp | -15.3%-3.3pp | -12.0% |
| Return on Assets | -14.4%-6.4pp | -7.9%+6.8pp | -14.7%-1.2pp | -13.5%+4.1pp | -17.6%-6.2pp | -11.4%+1.2pp | -12.7%-2.7pp | -9.9% |
| Current Ratio | 1.86-0.7 | 2.56+0.2 | 2.31-0.4 | 2.66-0.0 | 2.70-1.6 | 4.30-0.5 | 4.77-0.3 | 5.07 |
| Debt-to-Equity | 0.42+0.1 | 0.32-0.0 | 0.34+0.0 | 0.31-0.0 | 0.33+0.1 | 0.23+0.0 | 0.210.0 | 0.21 |
| FCF Margin | -24.9%-35.0pp | 10.1%+47.0pp | -36.9%+24.1pp | -61.0%-1.8pp | -59.2%-10.1pp | -49.1%+26.7pp | -75.7%-9.7pp | -66.1% |
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Frequently Asked Questions
What is Digimarc Corporation's annual revenue?
Digimarc Corporation (DMRC) reported $33.9M in total revenue for fiscal year 2025. This represents a -11.7% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Digimarc Corporation's revenue growing?
Digimarc Corporation (DMRC) revenue declined by 11.7% year-over-year, from $38.4M to $33.9M in fiscal year 2025.
Is Digimarc Corporation profitable?
No, Digimarc Corporation (DMRC) reported a net income of -$32.3M in fiscal year 2025, with a net profit margin of -95.3%.
What is Digimarc Corporation's EBITDA?
Digimarc Corporation (DMRC) had EBITDA of -$30.9M in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Digimarc Corporation's gross margin?
Digimarc Corporation (DMRC) had a gross margin of 61.6% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Digimarc Corporation's operating margin?
Digimarc Corporation (DMRC) had an operating margin of -97.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Digimarc Corporation's net profit margin?
Digimarc Corporation (DMRC) had a net profit margin of -95.3% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Digimarc Corporation's return on equity (ROE)?
Digimarc Corporation (DMRC) has a return on equity of -80.3% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Digimarc Corporation's free cash flow?
Digimarc Corporation (DMRC) generated -$12.3M in free cash flow during fiscal year 2025. This represents a 53.9% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Digimarc Corporation's operating cash flow?
Digimarc Corporation (DMRC) generated -$11.8M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Digimarc Corporation's total assets?
Digimarc Corporation (DMRC) had $53.0M in total assets as of fiscal year 2025, including both current and long-term assets.
What are Digimarc Corporation's capital expenditures?
Digimarc Corporation (DMRC) invested $570K in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Digimarc Corporation spend on research and development?
Digimarc Corporation (DMRC) invested $20.5M in research and development during fiscal year 2025.
What is Digimarc Corporation's current ratio?
Digimarc Corporation (DMRC) had a current ratio of 2.56 as of fiscal year 2025, which is generally considered healthy.
What is Digimarc Corporation's debt-to-equity ratio?
Digimarc Corporation (DMRC) had a debt-to-equity ratio of 0.32 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Digimarc Corporation's return on assets (ROA)?
Digimarc Corporation (DMRC) had a return on assets of -61.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Digimarc Corporation's cash runway?
Based on fiscal year 2025 data, Digimarc Corporation (DMRC) had $9.8M in cash against an annual operating cash burn of $11.8M. This gives an estimated cash runway of approximately 10 months at the current burn rate. Cash runway measures how long a company can continue operating before running out of cash, assuming no additional funding.
What is Digimarc Corporation's Piotroski F-Score?
Digimarc Corporation (DMRC) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Digimarc Corporation's earnings high quality?
Digimarc Corporation (DMRC) has an earnings quality ratio of 0.36x, considered low quality (accrual-driven). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
How financially healthy is Digimarc Corporation?
Digimarc Corporation (DMRC) scores 29 out of 100 on our Financial Profile, indicating weak overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.