Digimarc Corporation (DMRC): Business Model Canvas [Dec-2025 Updated]

You're looking to see how Digimarc Corporation (DMRC) is transforming its business from older licensing models into a modern, sticky revenue machine, right? Honestly, the pivot is clear when you look at the numbers: their Annual Recurring Revenue (ARR) hit $15.8 million by September 30, 2025, driven by the Digimarc Illuminate platform, which brought in $4.6 million in subscription revenue just in Q3 2025. This shift-focusing on building a 'trust layer' for retail loss prevention and brand authentication-is what separates the legacy business from the future, so you need to see how their Key Activities and Partnerships are set up to support this recurring model.

Digimarc Corporation (DMRC) - Canvas Business Model: Key Partnerships

You're looking at the backbone of Digimarc Corporation (DMRC)'s strategy, which relies heavily on deep, integrated partnerships to scale its digital identity and authentication technology across various critical sectors. These alliances are not just marketing agreements; they are essential for embedding the digital watermark technology directly into the physical and digital ecosystems.

The focus on authentication, which management confirmed was supported by work commissioned from consulting partners, centers around three core areas. This validation from external experts helped Digimarc Corporation (DMRC) prioritize resources, especially given the Q3 2025 total revenue was $7.6 million.

For retail security, the partnership with Zebra Technologies Corporation is key for scanner integration and fraud prevention, particularly for gift cards. Zebra Technologies is planning to include the newest version of Digimarc's on-scanner software across its retail scanner portfolio in early 2026. Digimarc's end-to-end solution is over 3x more secure than "card-only" security features. This technology was first rolled out in-store with a grocery retailer that uses Zebra's solutions across all its store locations. To give you context on the need, Zebra's 18th annual Global Shopper Study showed that 78% of associates are concerned their store lacks technology to spot safety threats.

In the fight against currency counterfeiting, Digimarc Corporation (DMRC) maintains a long-standing relationship with a global central banks consortium, specifically the Central Bank Counterfeit Deterrence Group (CBCDG). This partnership, which has spanned nearly 30 years, was recently extended through December 31, 2029. The global counterfeit crisis costs economies over $500 billion annually. For context on the service revenue stream, government service revenue from the Central Banks decreased by $0.7 million in Q3 2025 compared to Q3 2024.

Sustainability solutions are driven by initiatives like HolyGrail 2.0. Industrial trials at the Hündgen Entsorgung material recovery facility in Germany validated the technology for commercial-scale plastic sorting. The trial recorded 5.66 million detections over a 100-day period, covering 5,949 unique SKUs, with an average of 56,000 items detected daily. Detection accuracy consistently surpassed 90%. The technology is declared ready for full commercial deployment, with early adoption starting in Belgium. However, service revenue from HolyGrail 2.0 recycling projects decreased by $0.4 million in Q3 2025 compared to Q3 2024.

The success in expanding existing customer relationships, which is vital as Annual Recurring Revenue (ARR) stood at $15.8 million as of September 30, 2025, shows the value of these deep ties. For example, Digimarc Corporation (DMRC) expanded its product authentication solution with a global tobacco company into a 6th country.

Here's a quick look at the scale and recent financial impact related to these key partner areas:

The company's financial structure reflects this focus; Non-GAAP operating expenses for Q3 2025 were $8.6 million, down from $14.1 million in Q3 2024. Management reiterated it remains on track for positive non-GAAP net income and positive free cash flow in Q4 2025, with cash, cash equivalents and marketable securities totaling $12.6 million at September 30, 2025.

The strategy involves seeding the market through partners who can roll out Digimarc's deploy now, activate later offering on all packaging they produce, which sets up potential future Digimarc Recycle deals. You should watch the Q4 2025 results to see if the expected re-acceleration of ARR in 2026, driven by the gift card solution, materializes.

Digimarc Corporation (DMRC) - Canvas Business Model: Key Activities

You're looking at the core engine of Digimarc Corporation (DMRC) as of late 2025, which is heavily focused on transforming its cost structure while pushing its core identification technology into high-value authentication markets. The key activities reflect a company in transition, prioritizing efficiency while trying to reignite top-line growth from newer offerings.

Core R&D and deployment of imperceptible digital watermarking technology

The foundational activity remains the development and deployment of the imperceptible digital watermarking technology. Digimarc Corporation has been the pioneer and global leader in this space for nearly 30 years. The focus has clearly shifted from legacy applications to authentication use cases, which management prioritized in their Go-To-Market efforts. The investment in this area, while being managed for cost, is critical for future revenue streams.

Here are the expense figures for the third quarter of 2025 compared to the prior year:

In the third quarter of 2025, the company reported specific progress points in deployment, including:

• Advancing widespread adoption of its gift card solution.
• Closing multiple upsell opportunities in the product authentication space.
• Expanding to a 6th country with a global tobacco company.
• Signing a pilot with a major pharmaceutical company for a novel application.
• Launching a revolutionary new digitized security label solution.

Sales and marketing focused on retail loss prevention and product authentication

Sales and marketing activity is now tightly coupled with the authentication focus, specifically targeting retail loss prevention and product authentication. This is where the company sees its near-term growth potential, especially as AI fraud risks accelerate. The commercialization of new products is a major focus here.

The spending on this function has been aggressively managed, reflecting the reorganization efforts:

Sales and marketing expenses for the third quarter of 2025 were $2,852 thousand, a significant drop from $5,637 thousand in the third quarter of 2024. That's a stark reduction in spending, showing where the focus has shifted.

Key commercial milestones achieved or in progress related to sales and marketing include:

• First Digimarc-protected gift cards reached store shelves in mid-August 2025.
• Secured a multiyear contract with a large European packaging customer expected to generate nearly $1 million in incremental Annual Recurring Revenue (ARR) starting next year.
• Annual Recurring Revenue (ARR) as of September 30, 2025, stood at $15.8 million.

Securing and defending a vast portfolio of Intellectual Property (IP) and patents

While specific patent counts weren't in the latest filings, the activity of securing and defending the IP portfolio is an inherent, ongoing key activity. Digimarc Corporation's value proposition is fundamentally tied to its nearly 30 years of innovation and intellectual property in digital watermarking. This IP is what underpins their ability to support global industry standards efforts across physical and digital worlds. This activity is less about a direct line item expense and more about the legal and strategic defense of the core technology moat.

Executing corporate reorganization to drive operational efficiencies and cost savings

This is arguably the most impactful activity in the near term, as it directly influences the path to profitability. The reorganization was executed to increase focus on authentication use cases and reduce cash usage. The results of this activity are clear in the expense structure.

The company projected total annualized cost savings from the reorganization to reach $22 million. Management reiterated its goal to achieve both non-GAAP profitability and positive free cash flow by the fourth quarter of fiscal 2025. The company expects to deliver meaningfully positive free cash flow in Fiscal Year 2026 and beyond.

The financial impact on operating expenses and cash flow for Q3 2025 demonstrates this efficiency drive:

The reduction in cash burn is notable; free cash flow usage for Q3 2025 was $3.1 million, a 58% reduction from the $7.3 million used in Q3 2024. This is a direct result of the cost discipline.

Here is a look at the expense reduction across the board for Q3 2025:

• GAAP Operating Expenses: Decreased to $12.8 million from $17.3 million in Q3 2024 (a 26% reduction).
• Non-GAAP Operating Expenses: Decreased to $8.6 million from $14.1 million in Q3 2024.
• General and administrative expenses were $5,355 thousand in Q3 2025, down from $4,861 thousand in Q3 2024, showing some variability despite overall cuts.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Key Resources

The foundation of Digimarc Corporation (DMRC)'s business model rests on its intellectual property and platform infrastructure. You need to understand the tangible and intangible assets that drive their value proposition, especially as they focus on building a trust layer for the modern world.

Proprietary digital watermarking and digital identity technology represents the core asset. For nearly 30 years, Digimarc Corporation innovations in digital watermarking have been deployed at a massive scale for identifying and authenticating physical and digital items. This technology is described as highly copy-resistant and covert, essential for solutions in anti-counterfeiting, provenance & authenticity (C2PA), and digital copyright protection.

The protection around this core technology is significant, evidenced by its extensive patent portfolio. As of November 7, 2025, Digimarc Corporation held 3,639 Total Documents (Applications and Grants) and 1,855 Patent Families. The company secured several new grants in 2025, including patents dated June 3, 2025, June 24, 2025, September 2, 2025, October 7, 2025, and October 28, 2025.

The delivery mechanism for these solutions is The Digimarc Illuminate platform, a SaaS cloud-based solution. This platform connects products to their digital twins, enabling item-level tracking and the collection of product intelligence companywide by integrating data from systems like Product Information Management (PIM) and Enterprise Resource Planning (ERP). Digital watermarks retrieve dynamic data from the Illuminate platform (cloud or edge server) to deliver context-specific information.

The company's financial resources are critical for ongoing operations and development. As of June 30, 2025, Digimarc Corporation reported cash, cash equivalents, and marketable securities totaling $16.1 million. This figure had decreased from $28.7 million at December 31, 2024. By the end of the third quarter, September 30, 2025, this balance stood at $12.6 million.

Here's a quick look at some key operational and financial metrics around the mid-to-late 2025 period:

The technology enables several specific capabilities, which are supported by the Illuminate platform:

• Identity Management: Assigning secure digital identities to products.
• Rules-Based Intelligence: Driving automated business processes based on factors like geo-location or time.
• Ecosystem Connectivity: Seamless integration with ERP, manufacturing, and supply chain systems.
• Blockchain Integration: Templated integrations with various distributed ledger technology providers.

The company's intellectual property supports various solution areas, which are key resources for revenue generation:

• Anti-counterfeiting and product authentication.
• Internal Compliance and Leak Detection.
• Provenance & Authenticity (C2PA).
• Recycling data communication to sorting machines (Digimarc Recycle).

The market values these resources at a specific point in time. As of November 7, 2025, Digimarc Corporation's stock price was $8.30, resulting in a market capitalization of $180M. Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers should choose Digimarc Corporation (DMRC) right now, especially as the company navigates its strategic pivot toward higher-margin recurring revenue streams.

Building the trust layer for the modern world against AI-enabled threats

Digimarc Corporation embeds data invisibly into packaging, audio, or images to combat AI-driven fraud and misinformation. The company has a history as a trusted partner with the world's central banks in deterring digital counterfeiting of global currency.

Retail loss prevention, exemplified by the secure gift card solution

The secure gift card solution targets an industry facing over $4 billion in annual fraud losses in the U.S., as estimated by company management. The first Digimarc-protected gift cards reached shelves in August 2025, featuring major brands like Target, Home Depot, Nordstrom, and Blackhawk Network multi-retailer cards. Management stated that all Key Performance Indicators (KPIs) for this rollout were easily surpassed. Digimarc's end-to-end solution is over three times more secure than "card-only" security features. Furthermore, 78% of retail associates report concern that their store lacks technology to spot safety threats, indicating a clear need this solution addresses. Honeywell has committed to rolling out the newest version of Digimarc software across its handheld retail scanner portfolio by early 2026.

Scalable, covert product authentication and anti-counterfeiting for brands

Digimarc Corporation is expanding its product authentication footprint, including an upsell expansion with a global tobacco company into its sixth country. The company also secured a paid pilot with a major pharmaceutical company for a novel application of its authentication solution. The broader anti-counterfeit packaging market was valued at USD 136.9 Billion in 2024 and is projected to reach USD 328.5 Billion by 2033, growing at a CAGR of 10.12% from 2025-2033. In May 2025, Digimarc launched the Digimarc Validate mobile app for real-time field agent authentication.

The financial context for the business driving these value propositions in Q3 2025 was as follows:

Improved sustainability and regulatory compliance through better recycling

Digimarc Recycle technology has been validated in industrial trials, demonstrating detection accuracy consistently above 90% under real-world conditions. The system recorded 5.66 million detections across 5,949 unique SKUs over 100 days, averaging 56,000 items detected daily in the HolyGrail 2.0 Initiative. The technology is proven to achieve 99% detection for boosting the circularity of products and packaging. Service revenue from HolyGrail 2.0 recycling projects saw a year-over-year decrease of $0.4 million in Q3 2025.

Deterministic digital identity for physical and digital content

The value proposition here is instant verification of what's real, addressing the growing risks of misinformation. In November 2025, Adobe integrated new Content Credentials watermarking into its Firefly AI video generation tools. The U.S. Embassy in Guinea launched a digital content verification tool in partnership with Digimarc in May 2025. Xeal is noted as Digimarc's first customer utilizing this technology for NFTs. The global digital identity solutions market was valued at USD 51 billion in 2025 and is projected to reach $80 billion by 2030.

• The global digital identity market size was valued at USD 43.76 Billion in 2024.
• North America held a market share of over 37.5% in 2024.
• Identity verification leads the market with around 42.5% of market share in 2024.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Customer Relationships

You're looking at how Digimarc Corporation (DMRC) manages its relationships with the enterprises that license its digital watermarking technology, which is heavily weighted toward long-term, deep integration.

Strategic, multi-year committed contracts with large enterprise customers.

Digimarc Corporation has secured significant, long-term commitments that anchor a portion of its revenue base. For instance, a major contract announced in May 2023, involving the protection of high-value items and a national recycling program, was a 5-year agreement valued at more than $32 million, with potential for growth based on optional programs in 2024 and beyond. Furthermore, the relationship with a global group of central banks, focused on deterring currency counterfeiting, has been extended through the end of this decade. However, the reliance on these large contracts also presents near-term risk, as evidenced by the impact of contract expirations on Annual Recurring Revenue (ARR).

Here's a quick look at the recent impact of contract dynamics on ARR:

The company is actively managing this, noting that a renegotiation with a major legacy retailer could impact annual revenue by up to $3 million, though the relationship continues.

High-touch, consultative sales for complex integration projects.

The nature of Digimarc Corporation's technology, which involves embedding digital watermarks into physical goods for applications like product authentication and recycling sortation, necessitates a high-touch approach. The deployment of the Digimarc Illuminate platform for securing precious metals and building materials, for example, represents a complex integration into industrial processes. The CEO noted progress in Q3 2025 with signing a pilot for a novel application of product authentication with a major pharmaceutical company, which suggests deep, consultative engagement is required to move from pilot to full-scale deployment.

Upsell and cross-sell focus to expand solutions within existing customer base.

Growth is being actively pursued within the existing base, which management highlighted as a key commercial success factor. In the third quarter of 2025, Digimarc Corporation closed multiple upsell opportunities specifically in the product authentication space. This included expanding a relationship with a global tobacco company into a 6th country. Similarly, Q2 2025 results mentioned successful upsells with existing customers alongside new contracts with European packaging customers. This focus is critical as ARR declined overall; the increases from new and existing contracts partially offset the revenue lost from expirations.

Dedicated customer success for SaaS platform adoption and value realization.

For the Software-as-a-Service (SaaS) component, centered around the Digimarc Engage offering built on the Digimarc Illuminate platform, customer success is tied to demonstrating omnichannel data insights and value realization. Patagonia, for example, uses the digitization methods to gain real-time data points on consumer engagement, which allows them to shift customer conversations. The platform is designed to provide a unified communications platform for consumer engagement, leveraging GS1 Digital Link to meet emerging regulatory requirements like the Digital Product Passport (DPP) in Europe. The company expects future ARR reacceleration in 2026 to be driven by increasing penetration of their gift card solution and growth in digital authentication, which relies on successful adoption and value realization from current users.

The sales organization structure remained in place as of late 2025, with the full revenue team continuing their work to drive this adoption.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Channels

You're looking at how Digimarc Corporation (DMRC) gets its solutions into the hands of customers as of late 2025. The channels are a mix of direct sales for big deals and leveraging partners for broader distribution of their digital identification and authentication technology.

Direct enterprise sales team for large commercial and government contracts remains a key route, especially for complex deployments. This channel secured expansion with a global tobacco company into its 6th country, indicating successful direct negotiation for large-scale product authentication. Furthermore, the direct sales effort landed a pilot with a major pharmaceutical company for a novel authentication application, which management sees as having wide applicability across the industry. Government contracts, which fall under the Service Revenue stream, have seen a contraction; Service revenue decreased to $3.1 million in Q3 2025 from $4.2 million in Q3 2024, reflecting lower revenue from the consortium of central banks, as expected due to their lower 2025 program budget.

The reseller and brand partner ecosystem is critical for volume adoption, particularly for the gift card protection focus area, which CEO Riley McCormack called the greatest near-term opportunity. The first Digimarc-protected gift cards reached shelves in August 2025 through partnerships with major retailers and networks, including Target, Home Depot, Nordstrom, and Blackhawk Network. The performance of these subscription-based offerings is reflected in the Annual Recurring Revenue (ARR) figures. Subscription revenue, which made up 60% of total revenue in Q3 2025 at $4.6 million, saw a year-over-year decline, partly due to contract expirations. Excluding the impact of one lapsed contract that accounted for $3.5 million of ARR, the underlying ARR actually grew by $600,000 year-over-year as of Q3 2025, suggesting growth in the active partner base despite the overall ARR decline to $15.8 million from $18.7 million year-over-year.

Technology partners who integrate Digimarc software into their hardware (e.g., scanners) and Reseller partners who embed and distribute the Validate and Automate solutions are essential for scaling the underlying technology infrastructure. While specific partner counts aren't public, the success of the gift card rollout implies strong integration through the supply chain and retail point-of-sale systems. The launch of a revolutionary new digitized security label solution also points to channel enablement for brands looking to move away from analog holograms.

Direct access to the Digimarc Illuminate cloud platform serves as the Software as a Service (SaaS) foundation for applying digital watermarks and managing digital connectivity. The entire subscription revenue stream is tied to usage and access to this platform. While the broader cloud market sees 94% of enterprises using some cloud service in 2025, Digimarc's specific platform adoption metrics are embedded within its subscription revenue performance. The company is focused on setting up for reacceleration into 2026, largely from increasing penetration of its gift card solution on the platform.

Here's a quick look at the financial scale reflecting the performance across these channels as of the end of Q3 2025:

The company is actively managing channel risk, as a renegotiated retailer contract is expected to reduce ARR by another $3.1 million in Q4 2025, though management believes ARR will trough in Q4.

• Expansion into a 6th country with a global tobacco company.
• Pilot program initiated with a major pharmaceutical company.
• Key retail partners for gift card solutions include Target, Home Depot, and Nordstrom.
• Government service revenue impacted by lower Central Banks program budget.
• HolyGrail 2.0 recycling projects concluded, resulting in no Q3 2025 service revenue from that source.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Customer Segments

You're looking at the core groups Digimarc Corporation (DMRC) serves right now, late in 2025. Honestly, the customer base is highly specialized, focusing on high-stakes security and efficiency applications. We see the revenue mix shifting, which tells us where the near-term focus is, even with some legacy contract expirations hitting the top line.

Here's a quick look at the overall financial context as of the third quarter of 2025, which frames these customer relationships:

The business model clearly segments its high-value clients based on the security or efficiency problem they are solving with Digimarc's digital watermarking technology.

Global Central Banks and Government entities (for currency security)

This group represents a foundational, albeit currently pressured, service revenue stream. Digimarc Corporation is explicitly trusted by the world's central banks to help stop the counterfeiting of global currency. Still, budget tightening is a real factor affecting near-term service revenue from this segment.

• Service revenue for the third quarter of 2025 reflected $0.7 million of lower government service revenue from the Central Banks.
• Government service revenue was expected to be 12% to 14% lower in 2025 compared to 2024 due to smaller approved budgets.

The commitment remains, but the spending pace for program work has slowed this year.

Large Retailers and Grocers (for loss prevention and checkout efficiency)

Retail is a major focus, especially as the US online grocery market hit an estimated USD 203.0 Billion in 2025. Loss prevention and checkout efficiency are key value props here. You have to note the impact of contract dynamics, though; one large retailer contract renegotiation was expected to cause a $3 million annual revenue reduction. This is the kind of specific financial impact you need to watch for in this segment.

• The share of US households buying groceries online jumped to 61% in February 2025.
• Digimarc Corporation recently partnered with Honeywell to combat gift card fraud and streamline checkout.

The technology is clearly relevant in a market where digital adoption is high.

Consumer Packaged Goods (CPG) companies (for authentication and recycling)

CPG companies are driving growth in product authentication upsells. In Q3 2025, the CEO noted closing multiple upsell opportunities in this space, including an expansion to a 6th country with a global tobacco company. This shows tangible, commercial adoption beyond initial pilots.

• The HolyGrail 2.0 recycling initiative, a European project, contributed to commercial service revenue in Q1 2025.
• BERO Brewing is an example of a CPG brand using connected packaging for loyalty.

They are moving from pilot to broader commercial deployment, which should translate to more stable subscription revenue down the line.

Pharmaceutical and Media companies (for anti-counterfeiting and piracy)

This segment is showing early-stage, high-potential activity. In Q3 2025, Digimarc Corporation signed a pilot with a major pharmaceutical company for a novel application of its product authentication solution. This pilot is significant because, depending on results, it may have wide applicability across other pharmaceutical companies and additional industries. That's defintely where the future growth story is being written.

Media piracy protection is another area, though specific revenue figures tied directly to this segment aren't broken out in the latest reports, the focus on digital authentication is clear.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Cost Structure

You're looking at Digimarc Corporation's cost base as of late 2025, post-reorganization. The focus is clearly on operational efficiency, which is showing up in the expense line items following the Q1 2025 restructuring.

Significant operating expenses for the third quarter of 2025 totaled $12.8 million, a substantial reduction from the $17.3 million reported in Q3 2024. This 26% drop in GAAP operating expenses is the headline story here. The company is aggressively managing its burn rate, aiming to generate positive non-GAAP net income in Q4 2025.

The primary driver for this cost reduction is the restructuring impact on personnel costs. Cash compensation costs were $5.4 million lower year-over-year, directly reflecting the headcount reduction. To be fair, this saving was partially offset by $1.0 million of higher stock compensation costs. The company expects non-GAAP operating expenses to decrease even further in Q4 2025 as not all streamlining benefits were fully realized in Q3.

The cost structure is heavily weighted toward core technology development and market penetration efforts, even with the recent cuts. Here's the quick math on the main components of the $12,810 thousand in total operating expenses for Q3 2025:

Sales and marketing costs were $2,852 thousand for the quarter. This spending is directed toward the focus areas of retail loss prevention, product authentication, and digital authentication. The pressure to generate new Annual Recurring Revenue (ARR) is evident, though ARR itself stood at $15.8 million as of September 30, 2025, down from $18.7 million a year prior, largely due to a contract expiration.

For legal and professional services costs, which cover patent defense and general corporate matters, the specific breakout isn't isolated in the primary Q3 2025 GAAP operating expense table. However, these expenses are captured within the $5,355 thousand reported for General and administrative. In the prior fiscal year 2024, professional services and consulting costs were noted as a component contributing to higher expenses.

The impact of the Q1 2025 reorganization is clear in the compensation figures:

• Lower cash compensation costs: $5.4 million reduction year-over-year.
• Higher stock compensation costs: $1.0 million increase year-over-year.
• Overall impact: Significant net reduction in cash-based operating expenses.

Finance: draft 13-week cash view by Friday.

Digimarc Corporation (DMRC) - Canvas Business Model: Revenue Streams

You're looking at how Digimarc Corporation (DMRC) is bringing in cash as of late 2025, and the picture is clearly centered on recurring software income, even with some recent headwinds. The Total Trailing Twelve Months (TTM) revenue as of late 2025 sits at $35.47 Million USD. This total revenue figure reflects the current mix of business, which is heavily weighted toward platform subscriptions, though service work still contributes a meaningful slice.

Here's a breakdown of the key revenue components based on the third quarter of 2025 performance. We can see the platform revenue is the largest piece of the pie for the quarter.

The core of the forward-looking revenue visibility comes from the Annual Recurring Revenue (ARR) metric. As of September 30, 2025, the Annual Recurring Revenue (ARR) from commercial contracts stood at $15.8 million. Honestly, this number is what investors are watching closely, as it shows the contracted base, even though it saw a year-over-year contraction from $18.7 million as of September 30, 2024.

The streams that make up the total revenue picture include:

• Subscription revenue from the Digimarc Illuminate platform, totaling $4.6 million in Q3 2025.
• Service revenue from professional services and government program work, totaling $3.1 million in Q3 2025.
• Annual Recurring Revenue (ARR) from commercial contracts, which was $15.8 million as of September 30, 2025.
• Patent licensing and royalties (legacy revenue).

To be fair, the service revenue decline in Q3 2025 to $3.1 million was partly due to lower government service revenue from the Central Banks and reduced commercial service revenue from HolyGrail 2.0 recycling projects. The subscription revenue decline to $4.6 million was primarily due to the expiration of one commercial contract. Finance: draft 13-week cash view by Friday.