Company: DMRC
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001437749-25-026996
Chunk: 36

Company: Digimarc CORP
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 36
---

     2,338

     (335
     )

     (14
     )%

     4,650

     4,675

     (25
     )

     (1
     )%

      Amortization expense on acquired intangible assets 

     (1,205
     )

     (1,132
     )

     (73
     )

     (6
     )%

     (2,337
     )

     (2,272
     )

     (65
     )

     (3
     )%

      Total 
      
     $
     4,707

     $
     6,863

     $
     (2,156
     )

     (31
     )%
      
     $
     10,792

     $
     13,075

     $
     (2,283
     )

     (17
     )%

      Gross Profit Margin: 

      Subscription (1) 

     85
     %

     89
     %

     85
     %

     88
     %

      Service (1) 

     59
     %

     58
     %

     63
     %

     57
     %

      Total 

     59
     %

     66
     %

     62
     %

     64
     %

      (1) 
      Gross Profit and Gross Profit Margin for Subscription and Service excludes amortization expense on acquired intangible assets. 

The $2.2 million decrease in total gross profit for the three months ended June 30, 2025, compared to the corresponding three months ended June 30, 2024, primarily reflects $2.4 million of lower revenue, partially offset by $0.3 million of lower cost of service revenue.

The $2.3 million decrease in total gross profit for the six months ended June 30, 2025, compared to the corresponding six months ended June 30, 2024, primarily reflects $2.9 million of lower revenue, partially offset by $0.7 million of lower cost of service revenue.

The decrease in subscription gross profit margin, excluding amortization expense on acquired intangible assets, for the three months ended June 30, 2025, compared to the corresponding three months ended June 30, 2024, primarily reflects lower subscription revenue. 

The