Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 34

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 34
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decrease in subscription revenue for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects a decrease of $3.5 million from the expiration of commercial contracts in June 2024 and April 2025, 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 majority of software development contracts are structured as time and materials agreements. Revenue for services is generally recognized as the services are performed. Billing for services rendered generally occurs within one month after the services are provided. Service contracts can range from days to several years in length. Our contract with the Central Banks, which accounts for the majority of our service revenue, has a contract term through December 31, 2029. The contract is subject to work plans that are reviewed and agreed upon quarterly. The contract provides for predetermined billing rates, which are adjusted annually to account for cost of living variables, and provides for the reimbursement of third party costs incurred to support the work plans.

The $1.1 million decrease in service revenue for the three months ended September 30, 2025, compared to the corresponding three months ended September 30, 2024, primarily reflects $0.7 million of lower government service revenue from the Central Banks and $0.4 million of lower commercial service revenue from HolyGrail 2.0 recycling projects.

The $1.9 million decrease in service revenue for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects $1.9 million of lower government service revenue from the Central Banks. 

Revenue by geography

      Three Months Ended September 30, 

      Dollar 

      Percent 

      Nine Months Ended September 30, 

      Dollar 

      Percent 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      2025 

      2024 

      Increase/(Decrease) 

      Increase/(Decrease) 

      Revenue by geography: 

      Domestic 
      
     $
     2,308

     $
     2,004

     $
     304

     15
     %
      
     $
     6,781