Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 33

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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 a decrease of $3.5 million from the expiration of the commercial contracts in June 2024 and April 2025 referenced above, partially offset by higher commercial subscription revenue from new and existing commercial contracts. Service revenue decreased $1.9 million, reflecting lower government service revenue from the Central Banks. 

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 reduced our cash expenses by approximately $16.5 million on an annualized basis. We also identified a total of approximately $5.5 million of other annualized cash cost savings that have now been implemented but not yet fully realized in the interim operating results for the period ended September 30, 2025.

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Total operating expenses for the three months ended September 30, 2025, decreased $4.5 million, to $12.8 million, compared to $17.3 million for the corresponding three months ended September 30, 2024. The decrease in operating expenses primarily reflects $5.4 million of lower cash compensation costs largely due to lower headcount and $0.3 million of lower software and hardware costs, partially offset by $1.0 million of higher stock compensation costs, $0.3 million of higher other costs, and a $0.3 million lower allocation out of operating expenses primarily due to lower billable service hours.

Total operating expenses for the nine months ended September 30, 2025, decreased $7.1 million, to $44.1 million, compared to $51.2 million for the corresponding nine months ended September 30, 2024. The decrease in operating expenses primarily reflects $8.1 million of lower cash compensation costs and $0.6 million of lower software and hardware costs, partially offset by higher professional service costs of $0.9 million and higher stock compensation expense of $0.8 million. The $8.1 million of lower cash compensation costs primarily reflects $12.1 million of lower compensation costs largely due to lower headcount, partially offset by $3.2 million of higher cash severance costs incurred as a result of the reorganization and a $0.8 million lower allocation out of operating expenses primarily due to lower billable service hours.

Revenue

      Three Months Ended September