DMRC ALERT: Kirby McInerney LLP Announces the Filing of a Securities Class Action on Behalf of Digimarc Corporation Investors

Core Viewpoint - A class action lawsuit has been filed against Digimarc Corporation for failing to disclose significant information regarding its commercial contracts, leading to a substantial drop in its stock price and revenue [1][4]. Financial Performance - Digimarc reported a 10% decrease in quarterly subscription revenue, falling to $5.0 million from $5.6 million year-over-year [3]. - The annual recurring revenue (ARR) decreased to $20.0 million from $22.23 million in the previous year, primarily due to a $5.8 million decline linked to the expiration of a commercial contract in June 2024 [3]. - Following the announcement of these financial results, Digimarc's share price plummeted by $11.65, approximately 43%, from $27.04 to $15.39 per share [3]. Legal Allegations - The lawsuit alleges that Digimarc failed to disclose that a major commercial partner would not renew a significant contract under the same terms, which would lead to renegotiation and negatively impact subscription and annual recurring revenue [4].