Digimarc(US:DMRC)2025-08-14 21:00Financial Performance - Ending ARR at June 30, 2025, was $15.9 million, compared to $23.9 million in Q2 2024[23] - Q2 2025 non-GAAP net loss was $2.3 million, a 54% improvement from Q2 2024[26] - Q2 2025 free cash flow was negative $5.0 million, a 28% improvement from Q2 2024[28] Business Highlights - The first Digimarc-protected gift cards will appear on shelves next week[8] - A new ARR from a European packaging customer signing multi-year committed contract; ARR should be just under seven figures next year[8] - Reduced Q2 operating expenses by 22% and non-GAAP operating expenses by 37%, largely reflecting the impact of cost savings from the Q1 reorganization[8] Future Outlook - The company continues to believe it is likely that it will generate both positive non-GAAP net income and positive free cash flow in Q4 2025[8] - The company expects ARR to trough in Q3 or Q4 2025, and to re-accelerate thereafter into 2026, largely from increasing penetration of its gift card solution[25] - Annualized cash cost savings from the reorganization are expected to be approximately $16.5 million[27]