Digimarc (NASDAQ:DMRC) Issues Earnings Results

Posted by Stanley Muller on May 14th, 2026

Digimarc (NASDAQ:DMRC – Get Free Report) issued its earnings results on Tuesday. The information technology services provider reported ($0.07) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.36) by $0.29, FiscalAI reports. Digimarc had a negative return on equity of 20.71% and a negative net margin of 85.75%.The firm had revenue of $7.58 million for the quarter, compared to analysts’ expectations of $7.05 million.

Here are the key takeaways from Digimarc’s conference call:

Digimarc said it is seeing strong momentum in its secure gift card business, with its first commercial order signed and rollout plans now advancing with 15 North American retailers, including 8 of the 20 largest by sales.
One planned gift card rollout is being pushed out, with the full nearly 600-location deployment now targeted for January 2027 due to delays in scanner vendor firmware availability.
Ending ARR grew 9% sequentially in Q1, while subscription gross margin improved by 400 basis points year over year to 90%, showing better operating leverage in the subscription business.
The company closed three upsells in its anti-counterfeiting business and also secured a six-figure upsell in digital trust and integrity, suggesting continued customer expansion across multiple solutions.
Digimarc ended the quarter with $10 million in cash and investments and no debt, but still used just under $2 million in free cash flow. Management also said it plans to finalize a new corporate structure soon, which will trigger a CUSIP change.

Digimarc Price Performance

NASDAQ DMRC opened at $10.60 on Thursday. The firm has a market cap of $234.15 million, a P/E ratio of -8.35 and a beta of 1.88. The stock’s 50-day moving average is $6.38 and its 200-day moving average is $6.80. Digimarc has a one year low of $4.07 and a one year high of $14.64.

Institutional Investors Weigh In On Digimarc

A number of hedge funds have recently modified their holdings of DMRC. Invesco Ltd. acquired a new stake in shares of Digimarc during the fourth quarter worth about $78,000. Janney Montgomery Scott LLC raised its position in shares of Digimarc by 25.3% during the fourth quarter. Janney Montgomery Scott LLC now owns 13,866 shares of the information technology services provider’s stock worth $91,000 after purchasing an additional 2,800 shares during the period. Verition Fund Management LLC acquired a new stake in shares of Digimarc during the fourth quarter worth about $96,000. Marshall Wace LLP acquired a new stake in shares of Digimarc during the fourth quarter worth about $114,000. Finally, Quadrature Capital Ltd acquired a new stake in shares of Digimarc during the fourth quarter worth about $116,000. Institutional investors and hedge funds own 66.85% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on DMRC. Wall Street Zen upgraded Digimarc from a “sell” rating to a “hold” rating in a report on Saturday, March 14th. Weiss Ratings restated a “sell (e+)” rating on shares of Digimarc in a report on Monday, April 20th. Finally, Needham & Company LLC reduced their target price on Digimarc from $20.00 to $10.00 and set a “buy” rating on the stock in a report on Monday, March 16th. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $10.00.

Check Out Our Latest Research Report on Digimarc

Digimarc Company Profile

(Get Free Report)

Digimarc Corporation is a technology company specializing in digital identification and authentication solutions. Its core offering centers on embedding imperceptible digital watermarks into images, audio, video and packaging materials. These watermarks carry unique identifiers that enable secure tracking, brand protection and content provenance across print and digital channels.

The company’s product suite includes software development kits and cloud-based services that allow enterprises to integrate digital watermarking into their existing workflows.