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BEAVERTON, Ore.--(BUSINESS WIRE)--Digimarc Corporation (NASDAQ: DMRC), a pioneer in digital identity and authentication solutions announced that effective today, July 6, 2026, Paul Carreiro has assumed the role of Chief Executive Officer and President following the Company's previously announced leadership transition. As Chief Executive Officer and President, Carreiro will lead Digimarc's strategy and operations as the Company advances its mission to build the trust layer for the modern world.

Digimarc Corporation (NASDAQ: DMRC), a pioneer in digital identity and authentication solutions, today announced that it is extending its agent-native provenance and verification infrastructure capabilities to the leading platforms used to build and deploy autonomous systems, including LangChain, ServiceNow Action Fabric, Salesforce Agentforce, Google Gemini Enterprise Agent Platform, and Microsoft Copilot Studio. These extensions of the Digimarc platform seamlessly allow any AI agent created in these agentic ecosystems to cryptographically stamp outputs at the moment of creation, establish authenticity of ingested content before taking action via submission to Digimarc’s multi-layered verification engine, and retrieve a complete lineage chain from the Digimarc Lineage Vault for audit, incident response, and compliance reporting.

Enterprise agentic AI deployments are accelerating rapidly across every major platform, yet the artifacts these agents produce and interact with – including documents, decisions, recommendations, data, and media – represent unaddressed security vulnerabilities without a verifiable record of origin, authorization, or integrity. As organizations move AI from experimentation into production workflows, trust, governance, and accountability have become mission critical requirements.

The platform integrations announced today close that security gap by making provenance a first-class, natively available capability on each Agentic AI platform. By bringing provenance and verification directly into the platforms that developers already use, Digimarc is making trusted content and trusted actions native capabilities of modern AI workflows, addressing rapidly growing security and governance concerns.

HOW IT WORKS

Digimarc’s agent-native provenance platform is grounded in three powerful capabilities: a provenance stamping service that applies cryptographic signatures to agentic output; a multi-layered verification engine that goes beyond simple signature checking to cascade through provenance pointer resolution and perceptual watermark detection, returning an actionable trust verdict rather than a binary pass or fail; and the Digimarc Lineage Vault, an immutable record of every artifact’s origin, transformation, and chain of custody that supports audit, incident reconstruction, and regulatory compliance. All three capabilities are exposed through Digimarc’s Model Context Protocol (MCP) server, making them agent-callable on any platform without framework modification. The platform integrations announced today take this a step further and are built to support the way developers already work, so leveraging Digimarc’s capabilities require no new tools, no new frameworks, and no new infrastructure to manage.

The approach is built around a simple insight: the developer who builds an agent is typically the person who selects its tools. By embedding provenance and verification directly into the platforms that developers already use, Digimarc lowers the barrier to adoption while helping organizations establish trust and traceability across increasingly autonomous workflows. By meeting developers where they already work, Digimarc makes provenance the easy choice rather than an additional integration burden.

“AI agents are being deployed into production faster than the security and governance infrastructure to support them. As organizations begin relying on autonomous systems to do more than just create content – such as make recommendations, drive business processes, and take action – the ability to verify what those systems are acting upon has become mission critical. Digimarc’s solution is not just a signing standard, it is a verification service that tells an agent what to do when it receives content it cannot fully trust and a lineage vault that preserves the complete origin story of every artifact an agent touches. Extending our provenance and verification infrastructure to where developers are already building is about making enterprise-grade governance the easy choice, not an additional burden.”

– Ken Sickles, EVP and Chief Product Officer, Digimarc

PLATFORM INTEGRATIONS

Digimarc is extending its agent-native provenance and verification infrastructure to the platforms where enterprise agentic AI is being built and deployed today:

LangChain and LangGraphServiceNow Action FabricSalesforce AgentforceGoogle Gemini Enterprise Agent Platform.Microsoft Copilot StudioAcross all platforms, the integrations expose the same three core operations powered by Digimarc’s Illuminate platform and made available through its MCP Server: cryptographic artifact stamping; multi-tiered verification logic that helps organizations determine whether content can be trusted before downstream action occurs; and full lineage retrieval for audit, incident response, and compliance reporting.

WHAT ENTERPRISE DEVELOPERS GAIN

The promise of autonomous systems is speed and scale. The challenge is ensuring organizations can trust, audit, and govern the systems within which those agents operate. Digimarc’s agent-native provenance and verification platform allows developers to overcome these challenges without requiring expertise in cryptographic infrastructure or content authenticity technology and standards. Every agent’s output is cryptographically bound to its origin and authorization context at the moment of creation, incoming artifacts are verified using Digimarc’s proprietary multi-layered verification engine before downstream action is taken, and all interactions are recorded in an immutable audit trail.

The integrations announced today represent a critical step forward in making provenance, verification, and trust fully native capabilities of increasingly autonomous digital ecosystems. The result is a more trusted foundation for autonomous systems, enabling organizations to adopt AI at greater scale and with greater confidence by ensuring that what systems create, consume, and act upon can be verified, trusted, and traced.

AVAILABILITY

More information and developer access is available at digimarc.com/solutions/agentic-trust.

About Digimarc

Digimarc (NASDAQ: DMRC) is building the trust layer for the modern world. Our solutions help people, businesses, and intelligent systems verify what’s real, protect what matters, and interact with confidence across physical and digital environments. Learn more at Digimarc.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260616796357/en/

Digimarc Corporation (DMRC) Q4 2025 Earnings Call Prepared Remarks Transcript

Digimarc Corporation is positioned as a speculative buy after a pivotal Q4, driven by its Secure Gift Card solution targeting retail fraud. Q4 marked DMRC's first positive free cash flow and non-GAAP net income in over 12 years, with improved gross margins and sharply reduced operating expenses. DMRC's Secure Gift Card solution, already trialed successfully, is set for rollout with major retailers, addressing a multibillion-dollar fraud market opportunity.

Posted by Defense World Staff on Apr 7th, 2026

G4S (OTCMKTS:GFSZY – Get Free Report) and Digimarc (NASDAQ:DMRC – Get Free Report) are both industrials companies, but which is the superior investment? We will contrast the two companies based on the strength of their earnings, dividends, profitability, institutional ownership, analyst recommendations, risk and valuation.

Valuation and Earnings This table compares G4S and Digimarc”s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio G4S N/A N/A N/A N/A N/A Digimarc $33.91 million 3.99 -$32.31 million ($1.50) -4.08 G4S has higher earnings, but lower revenue than Digimarc.

Analyst Recommendations This is a breakdown of current ratings and price targets for G4S and Digimarc, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score G4S 0 0 0 0 0.00 Digimarc 1 0 1 0 2.00 Digimarc has a consensus price target of $10.00, suggesting a potential upside of 63.40%. Given Digimarc’s stronger consensus rating and higher probable upside, analysts clearly believe Digimarc is more favorable than G4S.

Insider & Institutional Ownership 66.9% of Digimarc shares are held by institutional investors. 19.3% of Digimarc shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Profitability This table compares G4S and Digimarc’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets G4S N/A N/A N/A Digimarc -95.27% -38.41% -29.00% Summary Digimarc beats G4S on 6 of the 9 factors compared between the two stocks.

About G4S (Get Free Report)

G4S plc, together with its subsidiaries, operates as an integrated security company in Africa, the Americas, Asia, Europe, and the Middle East. The company offers software tools, including evidence-based risk assessment, incident management, and travel advisory systems, such as symmetry incident management; and proprietary security systems comprising symmetry connect access control and visitor management systems. It also provides retail technology solutions, comprising of Retail Cash Solutions, CASH360, and South Africa-Deposita; security advice, risk mitigation strategies, secure support, and integrated solutions; and offer custody, detention, rehabilitation, and care services. The company serves corporates, financial institutions, private energy/utilities, retail, leisure and consumers, private energy/utilities, transport, ports, and aviation. G4S plc was founded in 1901 and is headquartered in London, the United Kingdom. G4S plc is a subsidiary of Atlas UK Bidco Limited.

About Digimarc (Get Free Report)

Digimarc Corporation, together with its subsidiaries, provides automatic identification solutions to commercial and government customers in the United States and internationally. The company offers Digimarc Validate protects, a cloud-based record of product authentication information; Digimarc Engage, an interactive communications channel connecting brands and consumers; and Digimarc Recycle. Its solutions are used in various application solutions, such as sorting of consumer-packaged goods in recycling streams. The company offers its solutions through its sales personnel and business partners. Digimarc Corporation was incorporated in 2008 and is based in Beaverton, Oregon.

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BEAVERTON, Ore.--(BUSINESS WIRE)--Digimarc Corporation (NASDAQ: DMRC) reported financial results for the first quarter ended March 31, 2026.

“Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions, positioning ourselves to benefit from the relentless advance of AI," said Riley McCormack, Digimarc CEO. "In Q1 2026, we made significant progress against our strategy of building the trust layer for the modern world while delivering a 9% sequential increase in ending ARR(1) and expanding our subscription gross profit margin(2) 400 basis points year-over year."

First Quarter 2026 Financial Results

Subscription revenue for the first quarter of 2026 was $4.4 million compared to $5.3 million for the first quarter of 2025. The decrease reflects $1.5 million lower subscription revenue from the expiration of two commercial contracts in 2025, partially offset by an increase from new and existing commercial contracts.

Service revenue for the first quarter of 2026 was $3.2 million compared to $4.1 million for the first quarter of 2025. The decrease primarily reflects $0.5 million of lower commercial service revenue from HolyGrail 2.0 recycling projects, as that work was previously completed.

Total revenue for the first quarter of 2026 was $7.6 million compared to $9.4 million for the first quarter of 2025.

ARR(1) as of March 31, 2026 was $15.0 million compared to $20.0 million as of March 31, 2025. The decrease primarily reflects the expiration of two commercial contracts, one in April 2025 that accounted for a total of $3.7 million of ARR and the other in October 2025 that accounted for $3.1 million of ARR, partially offset by $1.8 million of net increases to ARR from new and existing commercial contracts.

Gross profit margin for the first quarter of 2026 was 60% compared to 65% for the first quarter of 2025. Subscription gross profit margin(2) increased to 90% from 86% and service gross profit margin(2) decreased to 57% from 65% for the first quarter of 2026 compared to the first quarter of 2025.

Non-GAAP gross profit margin for the first quarter of 2026 was 83% compared to 81% for the first quarter of 2025.

Operating expenses for the first quarter of 2026 were $11.7 million compared to $18.2 million for the first quarter of 2025. The decrease primarily reflects $4.2 million of lower cash compensation costs largely due to lower headcount and $3.2 million of lower cash severance costs resulting from the reduction in force in the first quarter of 2025, partially offset by $1.0 million of legal costs associated with the corporate reorganization.

Non-GAAP operating expenses for the first quarter of 2026 were $8.1 million compared to $16.5 million for the first quarter of 2025.

Net loss for the first quarter of 2026 was $7.0 million or ($0.32) per diluted share compared to $11.7 million or ($0.55) per diluted share for the first quarter of 2025.

Non-GAAP net loss for the first quarter of 2026 was $1.6 million or ($0.07) per diluted share compared to $8.5 million or ($0.40) per diluted share for the first quarter of 2025.

At March 31, 2026, cash, cash equivalents and marketable securities totaled $10.0 million compared to $12.9 million at December 31, 2025. Free cash flow usage for the first quarter of 2026 was $2.0 million compared to $5.6 million for the first quarter of 2025.

Conference Call

Digimarc will hold a conference call today (Tuesday, May 12, 2026) to discuss these financial results and to provide a business update. CEO Riley McCormack and CFO Charles Beck will host the call starting at 5:00 p.m. Eastern time (2:00 p.m. Pacific time). A question and answer session will follow management’s prepared remarks.

The conference call and investor presentation will be broadcast live and available for replay here and in the investor section of the company’s website. The conference call script and investor presentation will also be posted to the company’s website shortly before the call.

For those who wish to call in via telephone to ask a question, please dial the number below at least five minutes before the scheduled start time. We encourage you to also login to the live broadcast so you can follow along with the investor presentation.

Toll Free number: 877-407-0832

International number: 201-689-8433

Conference ID number: 13754826

About Digimarc

Digimarc Corporation (NASDAQ: DMRC) is building the trust layer for the modern world. As AI accelerates how we produce, share, and interact with the world, the risks of fraud, counterfeiting, and misinformation are growing exponentially. Our innovative, highly scalable, and ultra-secure solutions make it possible for consumers, businesses, and intelligent systems to instantly verify what's real, protect what matters, and transact with confidence. Digimarc's solutions for loss prevention, authentication, and digital are built to counter the speed and sophistication of today's AI-enabled threats. Trusted by the world's central banks to deter the counterfeiting of global currency, we exist to protect truth in every interaction, spanning both the physical and digital worlds. Learn more at Digimarc.com.

Forward-Looking Statements

Except for historical information contained in this release, the matters described in this release contain various “forward-looking statements.” These forward-looking statements include statements identified by terminology such as “will,” “should,” "may," “expects,” “estimates,” “predicts” and “continue” or other derivations of these or other comparable terms. These forward-looking statements are statements of management’s opinion and are subject to various assumptions, risks, uncertainties and changes in circumstances. Actual results may vary materially from those expressed or implied from the statements in this release as a result of changes in economic, business and regulatory factors. More detailed information about risk factors that may affect actual results are outlined in the company’s Form 10-K for the year ended December 31, 2025, and in subsequent periodic reports filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this release. Except as required by law, Digimarc undertakes no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that may arise after the date of this release.

Non-GAAP Financial Measures

This release contains the following non-GAAP financial measures: Non-GAAP gross profit, Non-GAAP gross profit margin, Non-GAAP operating expenses, Non-GAAP net loss, Non-GAAP net loss per diluted share, and free cash flow. See below for a reconciliation of each non-GAAP financial measure to the most directly comparable GAAP financial measure. These non-GAAP financial measures are an important measure of our operating performance because they allow management, investors and analysts to evaluate and assess our core operating results from period-to-period after removing non-cash and non-recurring activities that affect comparability. Our management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparisons.

Digimarc believes that providing these non-GAAP financial measures, together with the reconciliation to GAAP, helps management and investors make comparisons between us and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measures and the corresponding GAAP measures provided by each company under applicable SEC rules. These non-GAAP financial measures are not measurements of financial performance or liquidity under GAAP. In order to facilitate a clear understanding of its consolidated historical operating results, investors should examine Digimarc’s non-GAAP financial measures in conjunction with its historical GAAP financial information, and investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternatives to, GAAP financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future results.

Digimarc Corporation

Consolidated Statements of Operations

(in thousands, except per share amounts)

(Unaudited)

  Three Months Ended

March 31,

2026

2025

Revenue:

Subscription

$

4,369

$

5,314

Service

3,210

4,054

Total revenue

7,579

9,368

Cost of revenue:

Subscription (2)

456

744

Service (2)

1,378

1,407

Amortization expense on acquired intangible assets

1,208

1,132

Total cost of revenue

3,042

3,283

Gross profit:

Subscription (2)

3,913

4,570

Service (2)

1,832

2,647

Amortization expense on acquired intangible assets

(1,208

)

(1,132

)

Total gross profit

4,537

6,085

Gross profit margin:

Subscription (2)

90

%

86

%

Service (2)

57

%

65

%

Total

60

%

65

%

Operating expenses:

Sales and marketing

2,082

5,078

Research, development and engineering

3,747

7,634

General and administrative

5,555

5,181

Amortization expense on acquired intangible assets

289

271

Total operating expenses

11,673

18,164

Operating loss

(7,136

)

(12,079

)

Other income, net

171

369

Loss before income taxes

(6,965

)

(11,710

)

Provision for income taxes

(1

)

(20

)

Net loss

$

(6,966

)

$

(11,730

)

Net loss per share:

Net loss per share — basic

$

(0.32

)

$

(0.55

)

Net loss per share — diluted

$

(0.32

)

$

(0.55

)

Weighted average shares outstanding — basic

22,008

21,521

Weighted average shares outstanding — diluted

22,008

21,521

Digimarc Corporation

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except per share amounts)

(Unaudited)

  Three Months Ended

March 31,

2026

2025

GAAP gross profit

$

4,537

$

6,085

Amortization of acquired intangible assets

1,208

1,132

Amortization and write-off of other intangible assets (3)

207

220

Stock-based compensation

347

137

Non-GAAP gross profit

$

6,299

$

7,574

Non-GAAP gross profit margin

83

%

81

%

GAAP operating expenses

$

11,673

$

18,164

Depreciation and write-off of property and equipment

(154

)

(146

)

Amortization of acquired intangible assets

(289

)

(271

)

Amortization and write-off of other intangible assets

(121

)

(59

)

Amortization of lease right of use assets under operating leases

(117

)

(98

)

Stock-based compensation

(1,662

)

(1,123

)

Corporate reorganization expenses

(1,223

)

—

Non-GAAP operating expenses

$

8,107

$

16,467

GAAP net loss

$

(6,966

)

$

(11,730

)

Total adjustments to gross profit

1,762

1,489

Total adjustments to operating expenses

3,566

1,697

Non-GAAP net loss

$

(1,638

)

$

(8,544

)

GAAP net loss per diluted share

$

(0.32

)

$

(0.55

)

Non-GAAP net loss

$

(1,638

)

$

(8,544

)

Non-GAAP net loss per diluted share

$

(0.07

)

$

(0.40

)

Free cash flow

Cash flows from operating activities

$

(1,847

)

$

(5,486

)

Purchase of property and equipment

(44

)

(55

)

Capitalized patent costs

(77

)

(88

)

Free cash flow

$

(1,968

)

$

(5,629

)

Digimarc Corporation

Consolidated Balance Sheet Information

(in thousands)

(Unaudited)

  March 31,

December 31,

2026

2025

ASSETS

Current assets:

Cash and cash equivalents

$

8,818

$

9,820

Marketable securities

1,145

3,046

Trade accounts receivable, net

7,092

6,513

Other current assets

1,988

1,961

Total current assets

19,043

21,340

Property and equipment, net

989

1,104

Intangibles, net

15,244

17,045

Goodwill

8,923

9,056

Lease right of use assets

3,121

3,238

Other assets

1,190

1,175

Total assets

$

48,510

$

52,958

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Accounts payable and other accrued liabilities

$

6,004

$

4,359

Deferred revenue

4,227

3,993

Total current liabilities

10,231

8,352

Long-term lease liabilities

4,073

4,314

Other long-term liabilities

140

63

Total liabilities

14,444

12,729

Shareholders’ equity:

Preferred stock

50

50

Common stock

22

22

Additional paid-in capital

425,789

424,665

Accumulated deficit

(390,053

)

(383,087

)

Accumulated other comprehensive loss

(1,742

)

(1,421

)

Total shareholders’ equity

34,066

40,229

Total liabilities and shareholders’ equity

$

48,510

$

52,958

Digimarc Corporation

Consolidated Cash Flow Information

(in thousands)

(Unaudited)

  Three Months Ended

March 31,

2026

2025

Cash flows from operating activities:

Net loss

$

(6,966

)

$

(11,730

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and write-off of property and equipment

154

146

Amortization of acquired intangible assets

1,497

1,403

Amortization and write-off of other intangible assets

328

193

Amortization of lease right of use assets under operating leases

117

98

Stock-based compensation

2,009

1,260

Increase (decrease) in allowance for doubtful accounts

21

—

Changes in operating assets and liabilities:

Trade accounts receivable

(566

)

(149

)

Other current assets

(44

)

1,331

Other assets

(44

)

(105

)

Accounts payable and other accrued liabilities

1,624

1,549

Deferred revenue

231

689

Lease liability and other long-term liabilities

(208

)

(171

)

Net cash provided by (used in) operating activities

(1,847

)

(5,486

)

Cash flows from investing activities:

Purchase of property and equipment

(44

)

(55

)

Capitalized patent costs

(77

)

(88

)

Proceeds from maturities of marketable securities

2,128

6,564

Purchases of marketable securities

(227

)

(2,864

)

Net cash provided by (used in) investing activities

1,780

3,557

Cash flows from financing activities:

Purchase of common stock

(885

)

(1,545

)

Repayment of loans

(3

)

(15

)

Net cash provided by (used in) financing activities

(888

)

(1,560

)

Effect of exchange rate on cash

(47

)

26

Net increase (decrease) in cash and cash equivalents

$

(1,002

)

$

(3,463

)

Cash, cash equivalents and marketable securities at beginning of period

$

12,866

$

28,730

Cash, cash equivalents and marketable securities at end of period

9,963

21,567

Net increase (decrease) in cash, cash equivalents and marketable securities

$

(2,903

)

$

(7,163

)

Digimarc NASDAQ: DMRC reported sequential annual recurring revenue growth in the first quarter of 2026 while outlining progress and timing changes in its secure gift card, anti-counterfeiting and digital trust initiatives.

Chief Executive Riley McCormack said the company made “significant progress” in advancing adoption of its secure gift card solution, including the first commercial order for the product and a growing number of retailer discussions. Chief Financial Officer Charles Beck said ending ARR was $15 million in the first quarter, down from $20 million a year earlier but up 9% sequentially.

The year-over-year decline in ARR reflected the previously disclosed loss of two customer contracts in 2025, which accounted for $6.8 million of ARR, Beck said. Excluding those two contracts, ARR increased $1.8 million year over year, including $500,000 of ARR from gift cards in the first quarter.

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Secure Gift Card Rollouts Advance, With One Broader Launch Delayed McCormack said Digimarc closed its first secure gift card commercial order in the quarter, representing more than $500,000 of ARR and covering gift cards from six closed-loop and open-loop brands. The company is now advancing rollout plans with 15 North American retailers, including eight of the 20 largest by sales, up from eight retailers and four of the top 20 at the time of the company’s prior earnings call two months earlier.

McCormack said market engagement has increased across retailers, brands and gift card networks, citing industry summits and meetings with large retailers and a leading program manager. He said some retailers are encouraging major brands to adopt Digimarc’s solution and are engaging with other retailers to create incentives for widely sold brands to move faster.

Digimarc’s rollout with Schnucks is underway, McCormack said. During the question-and-answer portion of the call, he said Schnucks had expanded the cards from 10 stores to 15 stores and is moving toward all of its locations. “They’re very happy with the solution, and we’re really thrilled with them as a wonderful partner,” McCormack said.

However, another retailer’s rollout planned for the summer will be more limited than originally expected, with a full rollout to nearly 600 locations now targeted for January 2027. McCormack attributed the delay to scanner vendor firmware timing, saying two scanner models did not become generally available in the required timeframe, including one model critical to the retailer’s front end. He said the issue was not related to Digimarc’s software, but to base functionality needed for the retailer to push firmware updates at scale. The scanner vendor has since shipped updated firmware, which is undergoing the retailer’s normal acceptance testing.

Beck said the timing shift means gift cards are no longer expected to be the largest contributor to ARR growth in 2026, though the company still expects “significant ARR growth” for the year. He said the change reflects timing of initial rollouts rather than a change in Digimarc’s conviction in the opportunity.

Anti-Counterfeiting and Digital Trust Businesses See Upsells Digimarc also reported momentum in its product authentication business. McCormack said ARR from the company’s anti-counterfeiting solution continues to grow, driven by upsells and new customer wins. In the first quarter, Digimarc closed three upsell deals with existing anti-counterfeiting customers in pharmaceuticals, food and beverage, and consumer goods.

Asked what was driving the anti-counterfeiting upsells, McCormack said it varied by customer. “Sometimes it’s adding new brands, sometimes it’s adding new geography, sometimes it’s adding new functionality,” he said.

In digital trust and integrity, McCormack said Digimarc secured a six-figure upsell with a global technology company that adopted its leak detection solution for web content. He also said the company is progressing discussions with an industry trade group seeking an industrywide solution to a problem made worse by advances in artificial intelligence.

McCormack emphasized Digimarc’s positioning around digital watermarking and the Coalition for Content Provenance and Authenticity, or C2PA, standard. He also said the company is developing an extension of its “trust layer” strategy aimed at agentic AI, where autonomous systems may need scalable ways to verify what is real, authentic and authorized.

First-Quarter Revenue Declines, But Loss Narrows Total revenue for the first quarter was $7.6 million, down from $9.4 million in the same quarter last year. Beck said the $1.8 million decline was evenly split between subscription and service revenue.

Subscription revenue was $4.4 million, down from $5.3 million a year earlier. Service revenue was $3.2 million, down from $4.1 million a year earlier. Subscription gross margin was 90%, up 400 basis points year over year. Service gross margin was 57%, compared with 65% a year earlier. Beck said subscription revenue would have increased $600,000 excluding the two lost customer contracts, which contributed $1.5 million of subscription revenue in the prior-year quarter. Service revenue in the year-ago period included $500,000 from HolyGrail 2.0 recycling projects, compared with none in the latest quarter. He said Digimarc does not expect further service revenue from HolyGrail 2.0 because that program has ended.

Operating expenses were $11.7 million, down 36% from $18.2 million a year earlier. Beck said the decline reflected lower cash compensation costs due to reduced headcount, severance costs incurred last year, and lower consulting, software and hardware costs. Those savings were partly offset by $1.2 million in one-time legal and other costs tied to the corporate reorganization, as well as $500,000 in higher stock-based compensation.

Digimarc reported a net loss of $0.32 per diluted share, compared with a loss of $0.55 per diluted share in the prior-year quarter. On a non-GAAP basis, the company reported a loss of $0.07 per diluted share, compared with a loss of $0.40 per diluted share a year earlier.

Cash Position and Corporate Structure Update Digimarc ended the quarter with $10 million in cash and short-term investments and no debt. The company used a little under $2 million in free cash flow and $900,000 to buy back 169,000 shares as part of its employee stock program. Beck said free cash flow usage improved by $3.7 million from the prior-year period despite revenue headwinds and a $3.4 million unfavorable change in working capital and other activity.

Beck also said Digimarc expects to finalize its new corporate structure, which shareholders approved, on or around May 16. The change will result in a new CUSIP, and transfer agent Broadridge will contact investors about exchanging shares.

McCormack said Digimarc remains focused on three core areas: retail loss prevention, product authentication, and digital trust and integrity. He also said the company continues to selectively pursue opportunities outside those focus areas, including recycling, where Belgian and German market demonstrations remain on track.

About Digimarc NASDAQ: DMRCDigimarc Corporation is a technology company specializing in digital identification and authentication solutions. Its core offering centers on embedding imperceptible digital watermarks into images, audio, video and packaging materials. These watermarks carry unique identifiers that enable secure tracking, brand protection and content provenance across print and digital channels.

The company's product suite includes software development kits and cloud-based services that allow enterprises to integrate digital watermarking into their existing workflows.

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Digimarc Corporation (NASDAQ: DMRC), a pioneer in digital identity and authentication solutions, today announced the introduction of new provenance and verification infrastructure designed to secure emerging autonomous and AI-enabled workflows.

As enterprises increasingly adopt AI systems capable of generating content, orchestrating workflows, and taking action with minimal human intervention, establishing trusted provenance and verifiable authenticity is becoming mission critical. Digimarc’s new capabilities are designed to help organizations determine whether digital content and artifacts produced or consumed by autonomous AI agents can be trusted before downstream action occurs.

The OWASP Top 10 for Agentic Applications 2026 identifies artifact integrity, supply chain vulnerabilities, and audit non-repudiation among the highest-impact risks facing agentic deployments today. Without cryptographically verifiable records of what agents consumed and produced, and under what authority they acted, organizations cannot confidently audit agent behavior, satisfy emerging regulatory requirements, or defend against the tampering and manipulation scenarios the OWASP framework was created to defeat.

Grounded in the Coalition for Content Provenance and Authenticity (C2PA) standard—the open specification adopted by organizations including Adobe, Google, Microsoft, OpenAI, and others—Digimarc’s approach combines provenance, verification, and audit capabilities into a standards-based trust layer for AI-powered workflows. Digimarc extends C2PA’s output attestation capability with a trust enforcement layer purpose-built for agentic environments. Every provenance seal is policy-gated, issued only when the identity of the agent, the integrity of the artifact, and the timing of the request all satisfy defined trust criteria.

The initial release centers on a new Model Context Protocol (MCP) server that enables systems and orchestration frameworks to stamp, verify, log, audit, and retrieve provenance information through MCP-compatible interfaces. By exposing provenance as a native capability within modern workflow architectures, organizations can introduce trusted verification and traceability directly into content and automation pipelines without requiring systems to manage the underlying cryptographic infrastructure themselves.

The MCP server is backed by Digimarc’s Illuminate platform and the company’s decades of experience in authentication, watermarking, and trusted identification technologies. For workflows requiring additional durability, Digimarc can combine C2PA manifests with its watermarking technology to help maintain provenance continuity even when metadata is altered or removed during processing.

“The agentic AI era is arriving faster than the trust infrastructure to support it,” said Ken Sickles, EVP and Chief Product Officer at Digimarc. “Organizations are deploying autonomous agents that produce, consume, and act on content at machine speed, and most have no reliable way to verify that the content those agents touched is genuine, unaltered, and attributable. Gartner projects that by 2028, 25% of enterprise AI applications will experience multiple security-related incidents annually. We built this solution because provenance cannot be an afterthought bolted on after deployment. It has to be atomic with the agent’s work, enforced by the runtime, and verifiable by anyone downstream.By grounding our approach in open standards like C2PA and exposing these capabilities through our MCP server, we’re helping to make trusted provenance a native capability for modern digital workflows.”

Digimarc is launching the initiative with a select group of early build partners and platform collaborators to help shape real-world use cases and future roadmap priorities. Initial areas of focus include trusted content workflows, provenance verification, and governed traceability across emerging automation ecosystems.

If interested, contact Digimarc or visit https://www.digimarc.com/solutions/agentic-trust.

About Digimarc

Digimarc (NASDAQ: DMRC) is building the trust layer for the modern world. Our solutions help people, businesses, and intelligent systems verify what’s real, protect what matters, and interact with confidence across physical and digital environments. Learn more at Digimarc.com.

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