Digimarc outlined a go-to-market rebuild under new CEO Paul Carreiro while reporting that its Secure Gift Card pipeline has grown over 30x to more than 31 retailers. CFO Charles Beck said two additional retailers have committed to deploying the Secure Gift Card solution across their stores, with one rolling out beginning later this month and the other scheduled for October. The company reported Q2 ending ARR of $11.6 million, down from prior periods due to a $3.1 million contract expiration in October 2025 and a $2.6 million contract reduction in June 2026, partially offset by $1.5 million in net ARR growth. Beck also revised 2026 ARR growth expectations, stating the company no longer expects to achieve its original target for significant ARR growth by year-end, citing deferred gift card ARR due to partner alignment timing that has now been completed. Q2 total revenue was $7.4 million, with subscription revenue of $3.7 million and service revenue of $3.6 million, and operating expenses of $16.7 million including $5.4 million in stock-based compensation and $700,000 in severance costs related to the former CEO.
Digimarc CorporationQ2 ARR declined, 2026 ARR growth target abandoned, and operating expenses remain high.
