Company: DSNY
Filing Date: 2025-11-24
Form Type: 10-K
Source: 0001062993-25-016994
Chunk: 239

Company: DESTINY MEDIA TECHNOLOGIES INC
Filing Date: 2025-11-24
Form: 10-K
Item: Item 7
Chunk 239
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 response, pricing and product adjustments are being implemented to encourage higher purchase volumes and values.

MTR™ Launch and Strategic Insights

At the end of fiscal 2024, the Company launched MTR™, a radio and digital airplay tracking tool, in the United States and Canada. MTR™ addresses a large and expanding radio tracking market focused on real-time analytics, copyright compliance, and data-driven decision-making within the music industry.

During the year, the Company observed an 89% correlation between Play MPE® downloads and subsequent tracked airplay for our independent label customers, as well as patterns indicating optimal distribution times and engagement-driving activities. These insights are expected to inform future product and marketing strategies.

Currently, MTR™ represents less than 1% of total revenue, with the majority of customers also using Play MPE®. The Company is focused on broadening MTR™ adoption beyond the Play MPE® ecosystem and increasing purchase volumes among both existing and new customers. Notably, 1.4% of Play MPE® sales during the year originated through MTR™ sales, demonstrating early cross-platform synergies and growth potential.

Revenue by Currency

The Company's revenues are denominated predominantly in US Dollars, Euros and Australian Dollars.

                    % of Total Revenue

                    Currency
                    2025
                    2024

                    US Dollar
                    91.8%
                    48.1%

                    Euro
                    1.2%
                    45.0%

                    Australian Dollar
                    3.5%
                    4.3%

                    Other
                    3.5%
                    2.6%

The shift in currency mix year-over-year is primarily attributable to one major customer transitioning its billing arrangement from Euros to U.S. Dollars during the fiscal year.

Cost of Revenue 

Cost of revenue for the year ended August 31, 2025 increased by 12.5% to $686,553 compared to the cost of revenue of $610,527 for the year ended August 31, 2024.

The Company's cost of revenue primarily includes data hosting and processing, third-party transaction costs, and engineering, technical, and customer support expenses. These costs are influenced by transaction volume and the mix between full-service and self-service customers, with self-service users uploading and publishing releases independently and full-service customers supported by internal staff.

                13

Gross Margin

Gross margin for the year ended August 31, 2025 was 84.8% of revenue,