DMRC Digimarc CORP

Overview and Growth

Fiscal 2025 results for Digimarc CORP combined $33.91M of revenue with net loss of $32.31M and an operating cash outflow of $11.78M. The $33.91M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. The top line contracted 11.7% from $38.42M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. Diluted earnings per share were -$1.49, translating the period’s attributable earnings into the amount reported for each diluted share. A diluted share base of 21.66M links the aggregate earnings figure to diluted EPS and helps frame the per-share comparison. The company employed $52.96M of total assets, the balance-sheet base supporting its current operating and cash-flow results. Asset turnover was 0.64x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $20.90M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 61.6% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced a $33.16M operating loss before non-operating and tax effects. An operating margin of -97.8% reflected costs exceeding revenue-level gross profit by 97.8% of sales. The bottom-line result was a net loss of $32.31M after operating, financing, tax, and other recognized items. The net loss equaled 95.3% of revenue, showing the bottom-line deficit relative to the company’s sales base. The company reported negative EBITDA of $30.90M, adding a pre-interest, tax, depreciation, and amortization view of the operating shortfall. Before income taxes, the company recorded a loss of $32.28M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 95.2%. The company recognized $31.00K of income tax for the period, completing the transition from pretax income to net income. The net loss equaled 80.3% of period-end equity, showing the deficit relative to book capital. Relative to total assets, the net loss represented 61.0%. The net loss narrowed to $32.31M from $39.01M in fiscal 2024.

Liquidity and Capital Structure

Total assets were $52.96M, supported by $12.73M of liabilities and $40.23M of shareholder equity. At period end, current assets of $21.34M compared with current liabilities of $8.35M, defining the company’s short-term resource position. The current ratio was 2.56x, with current assets exceeding current liabilities and providing a short-term liquidity cushion. Cash and equivalents totaled $9.82M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 117.6% of current liabilities, showing how much near-term coverage came from cash alone. Book equity represented 76.0% of total assets, quantifying the balance-sheet share supported by shareholder capital. The liabilities-to-assets relationship was 24.0%, placing reported obligations against the full positive asset balance. The cash-to-assets relationship was 18.5%, comparing reported cash and equivalents with the full positive asset balance. Compared with $75.77M in fiscal 2024, the current asset base moved 30.1% and finished lower. Book equity was 34.4% lower than fiscal 2024 equity of $61.36M, showing how shareholder capital changed year over year. The reported cash balance changed 20.6% from $12.37M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $11.78M, rather than cash generation from operations. Capital spending of $570.00K added to the period’s operating cash use, reinforcing the overall cash deficit after investment for the year. The company recorded a $12.35M cash deficit after capital spending for the period. The free-cash-flow deficit equaled 36.4% of revenue, showing the post-investment cash shortfall relative to sales. Relative to total assets, the post-investment cash deficit measured 23.3%.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Sep 24, 2026.