Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 31

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 31
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 the world’s most extensive patent portfolios in digital watermarking and related fields, with approximately 750 U.S. and foreign patents granted and applications pending as of September 30, 2025. The patents in our portfolio each have a life of approximately 20 years from the patent’s effective filing date.

Critical Accounting Policies and Estimates

Detailed information about our critical accounting policies and estimates is set forth in Part III, Item 15 of our 2024 Annual Report (“Exhibits and Financial Statement Schedules”), in “Note 1: Description of Business and Summary of Significant Accounting Policies,” which is incorporated by reference into this Quarterly Report on Form 10-Q.

Results of Operations

The following table presents Consolidated Statements of Operations data for the periods indicated as a percentage of total revenue. Unless stated otherwise, all references in this Management’s Discussion and Analysis of Financial Condition and Results of Operations relate to the three and nine months ended September 30, 2025, and all changes discussed with respect to such period reflect changes compared to the three and nine months ended September 30, 2024.

      Three Months Ended September 30, 
      
      Nine Months Ended September 30, 

      2025 
      
      2024 
      
      2025 
      
      2024 

      Percentages are percent of total revenue 

      Revenue: 

      Subscription 
      
     60
     %
      
     56
     %
      
     58
     %
      
     58
     %

      Service 
      
     40
     %
      
     44
     %
      
     42
     %
      
     42
     %

      Total revenue 
      
     100
     %
      
     100
     %
      
     100
     %
      
     100
     %

      Cost of revenue: 

      Subscription (1) 
      
     8
     %
      
     8
     %
      
     8
     %
      
     7
     %

      Service (1) 
      
     17
     %
      
     17
     %
      
     16
     %
      
     17
     %

      Amortization expense on acquired intangible assets 
      
     16
     %
      
     12
     %
      
     14
     %