Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 30

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 30
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 the expiration of the two commercial contracts referenced above, partially offset by higher commercial subscription revenue from new and existing commercial contracts. Service revenue decreased $0.7 million, reflecting lower government service revenue from the Central Banks, partially offset by higher commercial service revenue from HolyGrail 2.0 recycling projects. 

We expect our expenses in fiscal 2025 to be significantly lower than fiscal 2024 due to the reorganization we announced on February 26, 2025, which is expected to reduce our cash expenses by approximately $16.5 million on an annualized basis. We have also identified a total of approximately $5.5 million of other annualized cash cost savings that have been implemented or are being implemented later this year.

Total operating expenses for the three months ended June 30, 2025, decreased $3.7 million, to $13.1 million, compared to $16.8 million for the corresponding three months ended June 30, 2024. The decrease in operating expenses primarily reflects $4.9 million of lower cash compensation costs due to lower headcount, partially offset by $1.3 million of higher stock compensation costs.

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Total operating expenses for the six months ended June 30, 2025, decreased $2.6 million, to $31.3 million, compared to $33.9 million for the corresponding six months ended June 30, 2024. The decrease in operating expenses primarily reflects $2.8 million of lower cash compensation costs, $0.3 million of lower software and hardware costs and $0.3 million of lower other expenses, partially offset by higher professional service costs of $1.0 million. The $2.8 million of lower cash compensation costs primarily reflects $6.4 million of lower compensation costs due to lower headcount, partially offset by $3.2 million of higher cash severance costs incurred as a result of the reorganization. 

Revenue

      Three Months Ended June 30, 

      Dollar 

      Percent 

      Six Months Ended June 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease)