Digimarc (DMRC) Q1 2026 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, May 13, 2026 astatine 10:11 AM CDT 21 min read

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DATE

Tuesday, May 12, 2026 astatine 5 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Riley McCormack

• Chief Financial Officer — Charles Beck

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Full Conference Call Transcript

Riley McCormack: Thank you, Charles, and hello, everyone. On this call, we volition locomotion done Digimarc's Q1 performance, item our strategical advancement crossed merchandise innovation and commercialized execution, stock updates connected fiscal metrics specified arsenic ARR and escaped currency flow, and supply clarity connected wherever we are focused successful 2026. In Q1, we made important advancement successful advancing adoption of our Secure Gift Card solution. As we shared connected our past call, during Q1, we achieved a captious milestone by signing our archetypal commercialized bid covering 6 Closed-Loop and Open-Loop brands.

We besides made headway successful laying the rails for further orders and are presently advancing archetypal rollout plans with 15 North American retailers, including 8 of the 20 largest arsenic measured by sales, an summation from 8 and 4, respectively, since our telephone lone 2 months ago. We secured upsells with 3 existing customers of our Anti-counterfeiting solution. We proceed to execute against a ample accidental successful Digital Trust & Integrity, securing a 6-figure upsell with an existing lawsuit portion progressing a earthy and breathtaking hold of our spot furniture strategy that provides a captious unmet request for scalable agentic AI.

And we proceed to adhd cardinal endowment crossed our company, particularly successful our go-to-market functions, including the caller summation of 2 accomplished income leaders who person deed the crushed running. Touching connected our fiscal highlights successful Q1. We grew ending ARR 9% sequentially, portion besides expanding our subscription gross borderline 400 ground points year-over-year. We ended the 4th with $10 cardinal of currency and investments and nary debt, and we expect to instrumentality our caller firm operation shortly, allowing america to recognize the benefits discussed connected our past call.

As a reminder, our 3 absorption areas are Retail Loss Prevention, Product Authentication, and Digital Trust & Integrity, and we service these markets with the 7 solutions you spot listed connected this slide. In addition, we proceed to selectively prosecute extracurricular our 3 absorption areas erstwhile the opportunities correspond debased distraction gross and/or beforehand our positioning successful longer-term strategical areas. Starting with an update connected Retail Loss Prevention. We proceed to marque advancement towards gaining wide adoption of our Secure Gift Card solution, aided by the industry's hyper-focus connected uncovering an reply to the fraud that is creating an existential menace to their business.