Digimarc Q1 FY26 non-GAAP net loss narrows 81% to $1.64 million

• Digimarc posted a Q1 2026 net loss of $6.97 million, narrowing from $11.73 million a year earlier.
• Non-GAAP net loss improved to $1.64 million from $8.54 million, while free cash flow usage tightened to $1.97 million from $5.63 million.
• Subscription revenue fell 18% to $4.37 million, while subscription gross margin rose 4 percentage points to 90%.
• Ending ARR climbed 9% sequentially to $15.04 million, despite a year-over-year decline tied to the previously disclosed loss of two customer contracts in 2025.
• First Secure Gift Card commercial order was secured, with rollout plans advancing to 15 North American retailers including 8 of the top 20 largest; cash and investments ended at $10 million with no debt.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Digimarc Corporation published the original content used to generate this news brief on May 12, 2026, and is solely responsible for the information contained therein.