Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 31

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 31
---
      Revenue: 

      Subscription 
      
     $
     4,624

     $
     6,380

     $
     (1,756
     )

     (28
     )%
      
     $
     9,938

     $
     12,142

     $
     (2,204
     )

     (18
     )%

      Service 

     3,386

     3,999

     (613
     )

     (15
     )%

     7,440

     8,175

     (735
     )

     (9
     )%

      Total 
      
     $
     8,010

     $
     10,379

     $
     (2,369
     )

     (23
     )%
      
     $
     17,378

     $
     20,317

     $
     (2,939
     )

     (14
     )%

      Revenue (as % of total revenue): 

      Subscription 

     58
     %

     61
     %

     57
     %

     60
     %

      Service 

     42
     %

     39
     %

     43
     %

     40
     %

      Total 

     100
     %

     100
     %

     100
     %

     100
     %

Subscription

Subscription revenue consists primarily of revenue earned from subscription fees for access to our SaaS platform and products and, to a lesser extent, licensing fees for our software products. The majority of subscription contracts are recurring, paid in advance and recognized over the term of the subscription, which is typically one to three years.

The $1.8 million decrease in subscription revenue for the three months ended June 30, 2025, compared to the corresponding three months ended June 30, 2024, primarily reflects the expiration of two commercial contracts. 

The $2.2 million decrease in subscription revenue for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects the expiration of two commercial contracts, partially offset by higher commercial subscription revenue from new and existing commercial contracts. 

Service

Service revenue consists primarily of revenue earned from the performance of software development services and, to a lesser extent, professional services. The