Company: DMRC
Filing Date: 2025-11-13
Form Type: 10-Q
Source: 0001437749-25-034816
Chunk: 38

Company: Digimarc CORP
Filing Date: 2025-11-13
Form: 10-Q
Item: Part I, Item 8
Chunk 38
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, 2025, compared to the corresponding three months ended September 30, 2024, primarily reflects $1.8 million of lower revenue, partially offset by $0.3 million of lower cost of service revenue.

The $3.7 million decrease in total gross profit for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects $4.8 million of lower revenue, partially offset by $1.0 million of lower cost of service revenue.

Subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the three months ended September 30, 2025, compared to the corresponding three months ended September 30, 2024, was the same. 

The decrease in subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects lower subscription revenue, partially offset by lower cost of subscription revenue. 

The decrease in service gross profit margin, excluding amortization expense on acquired intangible assets, for the three months ended September 30, 2025, compared to the corresponding three months ended September 30, 2024, primarily reflects a less favorable mix of service revenue.

The increase in service gross profit margin, excluding amortization expense on acquired intangible assets, for the nine months ended September 30, 2025, compared to the corresponding nine months ended September 30, 2024, primarily reflects a more favorable mix of service revenue.

       24

Operating expenses

Sales and marketing

      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) 

      Sales and marketing 
      
     $
     2,852

     $
     5,637

     $
     (2,785
     )

     (49
     )%
      
     $
     11,161

     $
     16,789

     $
     (5,628
     )

     (