Digimarc Corporation (DMRC) 2026 Q1 法說會逐字稿

Greetings, and welcome to the Digimarc Corporation first-quarter 2026 financial results conference call. (Operator Instructions)

各位好，歡迎參加 Digimarc Corporation 2026 會計年度第一季財務業績電話會議。（接線員指示）

As a reminder this conference is being recorded. It is now my pleasure to introduce Charles Beck. Thank you. You may begin.

提醒各位，本次電話會議將被錄音。現在我很榮幸介紹 Charles Beck。謝謝。您可以開始了。

Welcome, everyone, to our Q1 earnings call. I'm Charles Beck, Digimarc's CFO, and I'm joined today by Riley McCormack, Digimarc's CEO. On the call today, Riley will provide a business update, and I will discuss Q1 2026 financial results. This will be followed by a question-and-answer forum. We have posted our prepared remarks in the Investor Relations section of our website and will archive this webcast there.

各位好，歡迎參加我們的第一季財報電話會議。我是 Digimarc 的財務長 Charles Beck，今天與我一同出席的是 Digimarc 的執行長 Riley McCormack。在今天的電話會議中，Riley 將提供業務最新進展，而我將說明 2026 年第一季的財務結果。接著將進行問答環節。我們已將事先準備的講稿發布於公司網站的投資人關係專區，並將在該處封存本次網路直播。

For those of you dialing in, this is a reminder that we are simulcasting the presentation we will walk through today. If you would like to follow along with the slides, I would encourage you to join our webcast as referenced in our earnings press release shared earlier today.

對於撥入電話的各位，提醒您我們也同步直播今天將逐頁講解的簡報內容。若您希望跟著投影片一起觀看，我建議您依照我們今日稍早發布的財報新聞稿所述，加入我們的網路直播。

Before we begin, let me remind everyone that today's discussion contains forward-looking statements that have risks and uncertainties. Please refer to our press release for more information on the specific risk factors that could cause actual results to differ materially.

在開始之前，提醒各位今天的討論包含前瞻性陳述，並伴隨風險與不確定性。請參閱我們的新聞稿，以取得可能導致實際結果與預期有重大差異之特定風險因素的更多資訊。

Riley will now provide a business update.

接下來由 Riley 提供業務更新。

Thank you, Charles, and hello, everyone. On this call, we will walk through Digimarc's Q1 performance, highlight our strategic progress across product innovation and commercial execution, share updates on financial metrics such as ARR and free cash flow, and provide clarity on where we are focused in 2026.

謝謝你，Charles，各位好。在本次電話會議中，我們將回顧 Digimarc 第一季的表現，重點說明我們在產品創新與商業執行方面的策略進展，分享 ARR 與自由現金流等財務指標的最新情況，並釐清我們在 2026 年的重點聚焦方向。

In Q1, we made significant progress in advancing adoption of our Secure Gift Card solution. As we shared on our last call, during Q1, we achieved a critical milestone by signing our first commercial order covering six Closed-Loop and Open-Loop brands.

第一季，我們在推動 Secure Gift Card（安全禮品卡）解決方案的採用方面取得重大進展。如同我們在上次電話會議中分享的，第一季我們達成一項關鍵里程碑：簽下首筆商業訂單，涵蓋六個封閉式（Closed-Loop）與開放式（Open-Loop）品牌。

We also made headway in laying the rails for additional orders and are currently advancing initial rollout plans with 15 North American retailers, including 8 of the 20 largest as measured by sales, an increase from 8 and 4, respectively, since our call only two months ago. We secured upsells with three existing customers of our Anti-counterfeiting solution. We continue to execute against a large opportunity in Digital Trust and Integrity, securing a six-figure upsell with an existing customer, while progressing a natural and exciting extension of our trust layer strategy that provides a critical unmet need for scalable agentic AI. And we continue to add key talent across our company, especially in our go-to-market functions, including the recent addition of two accomplished sales leaders who have hit the ground running.

我們也在為後續更多訂單鋪設基礎方面取得進展，目前正與 15 家北美零售商推進初期導入計畫，其中包含以銷售額衡量的前 20 大零售商中的 8 家；相較於僅兩個月前的電話會議，分別由 8 家與 4 家提升至目前水準。我們也對三位既有防偽（Anti-counterfeiting）解決方案客戶完成加購。我們持續在「數位信任與完整性」（Digital Trust and Integrity）領域執行一項龐大機會，成功自既有客戶取得一筆六位數金額的加購，同時推進我們信任層策略的一項自然且令人振奮的延伸，該延伸可滿足可擴展的代理式 AI（agentic AI）所面臨的一項關鍵未被滿足需求。此外，我們持續在公司各部門補強關鍵人才，特別是在市場拓展（go-to-market）職能方面；近期新增兩位成績卓著的銷售主管，並已迅速投入並展開工作。

Touching on our financial highlights in Q1. We grew ending ARR 9% sequentially, while also expanding our subscription gross margin 400 basis points year over year. We ended the quarter with $10 million of cash and investments and no debt, and we expect to implement our new corporate structure shortly, allowing us to realize the benefits discussed on our last call.

談到第一季的財務亮點：期末 ARR 較前一季成長 9%，同時訂閱毛利率年增 400 個基點。我們在季末持有 1,000 萬美元的現金與投資，且無負債；我們預期將在近期實施新的公司架構，以實現我們在上次電話會議中所討論的效益。

As a reminder, our three focus areas are retail loss prevention, product authentication, and digital trust and integrity, and we serve these markets with the seven solutions you see listed on this slide. In addition, we continue to selectively engage outside our three focus areas when the opportunities represent low distraction revenue and/or advance our positioning in longer-term strategic areas.

提醒各位，我們的三大聚焦領域為零售損失防範、產品驗證，以及數位信任與完整性；我們以投影片上列出的七項解決方案服務這些市場。此外，當機會能帶來低干擾的營收，及／或能推進我們在較長期策略領域的定位時，我們也會選擇性地在三大聚焦領域之外進行合作。

Starting with an update on retail loss prevention. We continue to make progress towards gaining widespread adoption of our Secure Gift Card solution, aided by the industry's hyper-focus on finding an answer to the fraud that is creating an existential threat to their business. Results to date demonstrate the power of our solution, significant fraud reduction, improved checkout experience, and high scalability across printers, brands and retailers, all without any adverse impact on sales.

先從零售損失防範的最新進展開始。我們持續朝向 Secure Gift Card 解決方案的廣泛採用邁進，並受惠於產業高度聚焦於尋找能解決詐欺問題的方案，因為該詐欺正對其業務造成生存性的威脅。迄今的成果展現了我們解決方案的威力：顯著降低詐欺、改善結帳體驗，並可在印表機、品牌與零售商之間高度擴展，同時不會對銷售造成任何不利影響。

As a reminder, we have posted a gift card investor supplemental on the Investor Relations section of our website, a hyper link to which can be found on this slide. We appreciate the feedback we have received regarding the benefit the supplemental has provided in helping investors better understand the opportunity ahead. We are experiencing a noticeable uptick in market pull for our solution as the level of retailer brand and gift card network engagement has increased meaningfully, even from our last earnings call just two months ago.

提醒各位，我們已在公司網站的投資人關係專區發布一份禮品卡投資人補充資料，本投影片上可找到其超連結。我們感謝各位回饋，指出該補充資料有助於投資人更好地理解未來的機會。隨著零售商品牌與禮品卡網路的參與度顯著提升，我們正感受到市場對我們解決方案的拉動明顯增加；即使相較於僅兩個月前的上一場財報電話會議，這樣的提升也相當明顯。

Before I provide more details on that increased engagement, I want to provide an update on the two rollouts we shared on our last call.

在我進一步說明這種更高的參與度之前，我想先更新我們在上次電話會議中提到的兩項導入進度。

First, the rollout to all Schnucks locations is underway. Next, the summer rollout with the other retailer mentioned will be more limited than originally planned with the full almost 600 location rollout now targeted for January 2027. As discussed in our March call, the greatest source of timing risk has been the scanner vendors shipping generally available versions of their firmware running our latest software.

首先，Schnucks 全門市的導入正在進行中。其次，與另一家零售商的夏季導入將比原先規劃更為有限；原本接近 600 個據點的全面導入，目前目標改為 2027 年 1 月。如同我們在 3 月電話會議中所討論，時程風險最大的來源在於掃描器供應商是否能在我們當時強調的必要時間範圍內，出貨搭載我們最新軟體之可正式供貨（GA）的韌體版本。

While eight scanner models were GA's in the requisite time frame we highlighted on that call, two were not, including one model critical to this retailer's front end. This delay had nothing to do with our software. Instead, it was related to base functionality key to enabling the retailer to push any firmware update in a scalable fashion leading to the smaller summer launch. The scanner vendor has subsequently shipped the updated firmware, which is currently undergoing normal acceptance testing by the retailer. Importantly, this retailer's commitment to their customers and their belief that our solution will help protect those customers remains unchanged. We look forward to partnering with them in the months and years ahead.

雖然有八款掃描器機型在我們於該次電話會議所提及的必要時間範圍內達到 GA，但其中兩款沒有，包括一款對該零售商前端（front end）至關重要的機型。此延遲與我們的軟體無關；而是與一項基礎功能相關，該功能對於讓零售商能以可擴展的方式推送任何韌體更新至關重要，因此導致夏季上線規模縮小。該掃描器供應商其後已出貨更新後的韌體，目前正由零售商進行正常的驗收測試。重要的是，該零售商對其顧客的承諾，以及其相信我們的解決方案能協助保護顧客的信念，仍維持不變。我們期待在未來數月與數年持續與其合作。

April is a busy month in the gift card industry as both large gift card networks, host summits, enabling their ecosystems to coordinate ahead of the holiday season. As a result of these summits as well as many other meetings, including an event at our headquarters attended by representatives from two very large retailers and a leading program manager, we are now advancing rollout plans with 15 North American retailers, including 8 of the 20 largest as measured by sales. This represents a meaningful increase in both metrics since our Q4 call only two months ago.

4 月是禮品卡產業的繁忙月份，因為兩大禮品卡網路都會舉辦高峰會，讓其生態系能在假期旺季前進行協調。受惠於這些高峰會以及其他多場會議（其中包括在我們總部舉辦、由兩家大型零售商代表與一位領先的計畫管理商出席的活動），我們目前正與 15 家北美零售商推進導入計畫，其中包含以銷售額衡量的前 20 大零售商中的 8 家。相較於僅兩個月前的第四季電話會議，這兩項指標皆有顯著提升。

This momentum is being driven not only by us but also by key industry participants and in the last few weeks alone, we have heard about retailers proactively engaging with major brands to encourage their adoption of our solution, as well as with other retailers to increase incentive for widely sold brands to speed their adoption. Similar momentum building actions are being undertaken by the networks and key brands, and we are focused on orchestrating the multiple moving parts to ensure initial rollouts proceed as quickly and excellently as possible.

這股動能不僅由我們推動，也來自產業關鍵參與者。僅在過去幾週，我們就聽到零售商主動與主要品牌接洽以鼓勵其採用我們的解決方案，並與其他零售商合作，以提高對廣泛銷售品牌加速採用的誘因。網路與關鍵品牌也正在採取類似的動能建立行動；而我們的重點是協調多個同步推進的環節，確保初期導入能以最快速度、並以最佳品質順利進行。

As discussed on our last call, in Q1, we closed our first Secure Gift Card commercial order, representing over $500,000 of ARR. This order included gift cards from six Closed-Loop and Open-Loop brands. Just as we are on the retailer side, we continue to expand our number of brand engagements, including some of the largest Open-Loop and Closed-Loop issuers, comprising both third-party and first-party opportunities.

如同我們在上次電話會議中所提到，第一季我們完成首筆 Secure Gift Card 商業訂單，代表超過 50 萬美元的 ARR。該訂單包含六個封閉式與開放式品牌的禮品卡。正如我們在零售商端的進展一樣，我們也持續擴大品牌端的接觸數量，其中包括一些最大的開放式與封閉式發卡機構，涵蓋第三方與第一方的機會。

In addition to being a large market itself, we have discussed the value we see in Secure Gift Cards opening opportunities in a much larger retail loss prevention market. Lighting up retailers for our gift card solution provides us a key technological footprint as our software will be widely distributed across their front of store scanners. It also creates Digimarc champions in both operations and loss prevention, two teams that often have competing priorities and where we stand out with our ability to deliver value to both.

除了本身就是一個龐大市場之外，我們也曾討論 Secure Gift Card 如何為更大的零售損失防範市場打開機會。讓零售商啟用我們的禮品卡解決方案，將為我們建立關鍵的技術據點，因為我們的軟體將廣泛部署於其店內前端掃描器。同時，這也能在營運與損失防範兩個團隊中建立 Digimarc 的支持者；這兩個團隊往往存在彼此競爭的優先事項，而我們能同時為兩者交付價值，因而格外突出。

This unique position should aid us in cross-selling additional solutions into our retailer customers, as well as provide us differentiated and invaluable voice to market for the advancement of new solution candidates. We are already seeing encouraging signs that provide validation of the strategy. Multiple retailers have expressed an early interest in our Product Swap Prevention solution, including one very large retailer who in addition asked about our ability to solve another problem today and the industry are facing counterfeit coupons.

這一獨特定位應可協助我們向零售商客戶交叉銷售更多解決方案，並為我們在推進新解決方案候選項目時提供差異化且極具價值的市場之聲。我們已看到令人鼓舞的跡象，驗證此一策略。多家零售商已表達對我們「產品調包防範」（Product Swap Prevention）解決方案的早期興趣，其中包括一家非常大型的零售商；該零售商另外也詢問我們是否能解決另一個當前他們與整個產業都面臨的問題：偽造優惠券。

Without losing focus on the opportunity immediately in front of us, we are excited to engage further across all these opportunities, including the expiration of this new potential solution for counterfeit coupons as we believe our work in product authentication provides us a valuable foundation upon which to build.

在不失焦於眼前立即可把握的機會之下，我們也很期待進一步投入並拓展上述所有機會，包括探索這個針對偽造優惠券的新潛在解決方案；我們相信在產品驗證方面的工作，為我們提供了可據以發展的寶貴基礎。

Turning now to Product Authentication. ARR from our Anti-counterfeiting Solution continues to grow, driven by customer upsell and new customer wins. Brands faced rampant counterfeiting and IP theft with bad actors advancing their technology and processes to replicate packaging and security features with alarming accuracy, something made ever easier by the advancement of AI.

接著談產品驗證。我們防偽解決方案的 ARR 持續成長，主要由客戶加購與新客戶得標所帶動。品牌正面臨猖獗的仿冒與智慧財產（IP）竊取，不法分子持續精進其技術與流程，以驚人的精準度複製包裝與安全特徵；而 AI 的進步更使這一切變得更加容易。

Decentralized supply chains and omnichannel sales make counterfeit detection more difficult, putting brands in a reactive position against emerging threats. Many security measures require trained inspectors and specialized tools, limiting accessibility, increasing costs and reducing scalability. Digimarc's secure and scalable, covert and connected proactive solution provides superior results when compared to competing analog solutions such as tags, codes, inks, and labels.

去中心化的供應鏈與全通路銷售使偽造品偵測更加困難，讓品牌在面對新興威脅時處於被動反應的位置。許多安全措施需要受過訓練的稽查人員與專用工具，限制可及性、提高成本並降低可擴展性。相較於標籤、代碼、油墨與貼紙等競爭性的類比解決方案，Digimarc 安全且可擴展、隱蔽且互聯的主動式解決方案可提供更優異的成果。

We closed three upsell deals with existing customers of our Anti-counterfeiting solution in Q1. These brands represent leading companies from different industries, pharmaceuticals, food and beverage and consumer goods, highlighting the wide applicability of our solution across many different verticals. We are fortunate to have some of the largest and most well-known companies in the world as valued customers. As we have repeatedly stated, when we solve our customers' most challenging problems, we expect to benefit from the further upsell and cross-sell revenue generation for a long time.

我們在第一季與既有的防偽解決方案客戶完成了三筆加購（upsell）交易。這些品牌代表來自不同行業的領先企業，包括製藥、食品飲料與消費品，凸顯我們的解決方案在多個不同垂直領域的廣泛適用性。我們很幸運能擁有全球一些規模最大、最知名的公司作為珍貴客戶。正如我們一再表示，當我們解決客戶最具挑戰性的問題時，我們預期將在很長一段時間內受益於進一步的加購與交叉銷售所帶來的營收成長。

Turning now to Digital Trust and Integrity. We continue to execute against this large and greenfield opportunity. Problems of trust and integrity in the digital domain existed prior to the advent of AI, but AI has created new ones while making prior ones worse and/or harder to solve. The work of C2PA has created wide awareness that our technology addresses many of these problems and our history, our credibility, our expertise, our experience, and our first to market with and co-leadership of the digital watermarking component of the C2PA standard are all coalescing to ensure we are well positioned to surf ever-growing wave.

接下來談數位信任與完整性（Digital Trust and Integrity）。我們持續在這個龐大且仍屬綠地（greenfield）的機會上推進執行。數位領域中的信任與完整性問題在 AI 出現之前就已存在，但 AI 創造了新的問題，同時也讓既有問題更嚴重且／或更難解決。C2PA 的工作已大幅提升外界對我們技術可解決多項此類問題的認知，而我們的歷史、可信度、專業、經驗，以及我們在 C2PA 標準中的數位浮水印組件率先上市並共同領導的地位，正逐步匯聚，確保我們能夠乘上這股持續增長的浪潮。

We secured a six-figure upsell with the global technology company that has adopted the Leak Detection for web content solution we discussed on our last call. We progressed discussions with the important industry trade group we have previously mentioned that is searching for an industry-wide solution to a problem they previously felt unsolvable.

我們與一家全球科技公司完成了一筆六位數的加購交易；該公司已採用我們在上次電話會議中提到的網頁內容外洩偵測（Leak Detection for web content）解決方案。我們也推進了與先前提及的重要產業公會的討論，該公會正在尋找一個全產業的解決方案，以解決他們過去認為無法解決的問題。

As a result, we expect to soon enter direct conversations with the leading companies in this industry regarding our ability to help them solve this and other problems made worse by the advance of AI. And we're seeing engagement with US government innovation programs.

因此，我們預期很快將就我們協助解決此問題以及其他因 AI 進展而惡化的問題之能力，與該產業的領先公司展開直接對話。同時，我們也看到美國政府創新計畫的參與度提升。

Digimarc has been included as a potential participant in the SOFWERX Field-Forward Technology Sprint, an early but tangible sign that our technology is relevant in contested mission-critical environments.

Digimarc 已被列為 SOFWERX Field-Forward Technology Sprint 的潛在參與者，這是一個早期但具體的跡象，顯示我們的技術在具爭奪性、任務關鍵的環境中具有相關性。

Touching quickly on product innovation in the large and rapidly evolving Digital Trust and Integrity space, we are progressing a natural extension of our trust layer strategy that directly aligns with our existing IP and operating history and addresses a critical unmet need for scalable agentic AI. While the ultimate direction in how we attack this opportunity is being shaped by real-time industry engagement, the idea that enterprises will require an ultra-scalable way to verify what is real, authentic, and authorized as AI systems become more autonomous, is gaining widespread acceptance. And providing an ultra-scalable way to verify what is real authentic and authorized is an area we believe we have a unique right to win.

快速談一下在龐大且快速演進的數位信任與完整性領域中的產品創新：我們正在推進信任層（trust layer）策略的一項自然延伸，該延伸與我們既有的智慧財產與營運歷史直接一致，並能滿足可擴展的代理式 AI（agentic AI）的一項關鍵未被滿足需求。雖然我們將如何切入這個機會的最終方向，正由即時的產業互動所塑造，但「隨著 AI 系統變得更自主，企業將需要一種超高可擴展的方式來驗證何者為真、為正宗且已獲授權」的觀點正獲得廣泛認同。而提供一種超高可擴展的方式來驗證何者為真、為正宗且已獲授權，正是我們相信自己具備獨特勝出權利的領域。

Agents act at machine speed, negotiating, transacting and moving information without any human review. This not only increases the attack surface, it makes the agents themselves part of that surface. Existing software security architectures were built on the underlying assumption of human involvement, a premise that is rapidly eroding.

代理（agents）以機器速度運作，在沒有任何人工審核的情況下進行協商、交易並傳遞資訊。這不僅增加了攻擊面，也使代理本身成為攻擊面的一部分。既有的軟體安全架構建立在「有人類參與」這一底層假設之上，而這個前提正在迅速瓦解。

As agents shift from content creation for human review to truly autonomous action, technology must replicate human experience and judgment, or agentic utility will remain constrained by limitations placed on the tasks they are entrusted to undertake. While we are focused on our authentication use cases, we continue to support identification use cases that could drive future growth. We are advancing our position in these longer-term strategic areas and are confident in our ability to win when the time is right to pursue them.

當代理從為人類審核而進行內容創作，轉向真正的自主行動時，技術必須複製人類的經驗與判斷，否則代理式效用將仍受限於其被託付任務的限制。雖然我們聚焦於驗證（authentication）使用情境，我們也持續支持可帶動未來成長的識別（identification）使用情境。我們正在推進在這些較長期策略領域中的布局，並對在適當時機追求它們時的勝出能力充滿信心。

The Belgian and German market demonstrations of our recycling solution remain on track, and we are eager for the results. We believe these live cradle-to-rebirth activities will result in the production of new fractions of PCR feedstock that is not possible using current sorting technologies, providing tangible proof of our solutions' ability to, among other things, create new end markets for recycled plastic.

我們在比利時與德國的回收解決方案市場示範仍按計畫進行，我們也非常期待結果。我們相信，這些從源頭到再生（cradle-to-rebirth）的現場活動，將產出使用現有分選技術無法取得的新類別 PCR 原料（post-consumer recycled feedstock），並提供具體證據證明我們的解決方案具備（除其他之外）為再生塑膠創造新的終端市場的能力。

As a reminder, we believe this capability is crucial to the industry's ability to comply with the sunrise of the EU's Packaging and Packaging Waste Regulation. We have also closed two upsell deals with existing Engage customers, one in Q1 and another already in Q2.

提醒一下，我們認為這項能力對產業遵循歐盟《包裝與包裝廢棄物法規》（Packaging and Packaging Waste Regulation）即將上路（sunrise）至關重要。我們也與既有 Engage 客戶完成了兩筆加購交易，一筆在第一季，另一筆已在第二季完成。

I will now turn the call over to Charles to discuss our financial results.

接下來我把電話會議交給 Charles，請他說明我們的財務結果。

Thank you, Riley. Ending ARR for Q1 was $15 million compared to $20 million for Q1 last year. The decrease reflects the previously disclosed loss of two customer contracts in 2025, which accounted for $6.8 million of ARR. Excluding these two items, ARR grew $1.8 million year over year, which included $500,000 of ARR from gift cards in Q1 this year. Sequential ARR growth was 9%. Looking ahead, we still expect to deliver significant ARR growth in 2026 although the composition of that growth has changed.

謝謝你，Riley。第一季期末 ARR 為 1,500 萬美元，去年第一季為 2,000 萬美元。下降反映了先前已揭露的 2025 年流失兩份客戶合約，該兩份合約合計貢獻 680 萬美元 ARR。排除這兩項因素後，ARR 年增 180 萬美元，其中包含今年第一季來自禮品卡的 50 萬美元 ARR。ARR 季增為 9%。展望未來，我們仍預期在 2026 年交付顯著的 ARR 成長，儘管該成長的組成已經改變。

As a result of the scanner delays Riley mentioned, we no longer expect Gift Cards to be the largest contributor. This is purely a result of timing of initial rollouts as opposed to our conviction in the opportunity. There is tangible market pull for our solution and the level of retailer brand and gift card network engagement has meaningfully increased.

由於 Riley 提到的掃描器延遲，我們不再預期禮品卡會是最大的貢獻來源。這純粹是初期導入時程的時間點問題，而非我們對該機會的信念改變。我們的解決方案有明確的市場拉力（market pull），零售商品牌與禮品卡網路的參與程度也已顯著提升。

Total revenue for Q1 was $7.6 million, a decrease of $1.8 million from $9.4 million in Q1 last year, with the change equally split between subscription and service revenue. Subscription revenue, which accounted for 58% of total revenue for the quarter, decreased $900,000 from $5.3 million to $4.4 million.

第一季總營收為 760 萬美元，較去年第一季的 940 萬美元減少 180 萬美元，變動幅度在訂閱與服務營收之間各占一半。訂閱營收占本季總營收的 58%，由 530 萬美元下降 90 萬美元至 440 萬美元。

Excluding the impact of the two contracts I referenced earlier, which accounted for $1.5 million of subscription revenue in Q1 last year, subscription revenue would have increased $600,000.

排除我先前提到的兩份合約影響（該兩份合約在去年第一季貢獻 150 萬美元訂閱營收），訂閱營收本應增加 60 萬美元。

Service revenue decreased $800,000 from $4.1 million to $3.2 million. Service revenue in Q1 last year included $500,000 of revenue from HolyGrail 2.0 recycling projects compared to none this year. We don't expect further service revenue from HolyGrail 2.0 as that program has ended and HolyGrail 2030 is focused on deploying end-to-end market demonstrations.

服務營收由 410 萬美元下降 80 萬美元至 320 萬美元。去年第一季的服務營收包含來自 HolyGrail 2.0 回收專案的 50 萬美元，而今年則沒有。我們預期 HolyGrail 2.0 不會再帶來進一步的服務營收，因為該計畫已結束，而 HolyGrail 2030 著重於部署端到端的市場示範。

Subscription gross profit margin was 90% for the quarter, 4 points higher than Q1 last year, largely reflecting lower subscription platform costs. We continue to drive down our platform costs, which year over year are now down $300,000.

本季訂閱毛利率為 90%，較去年第一季高 4 個百分點，主要反映較低的訂閱平台成本。我們持續降低平台成本，年對年目前已下降 30 萬美元。

Service gross profit margin was 57% for the quarter, down 8 points from 65% in Q1 last year. The decrease was due to an abnormally favorable mix of revenue and cost in Q1 last year. Service gross profit margin has routinely been in the high-50s.

本季服務毛利率為 57%，較去年第一季的 65% 下降 8 個百分點。下降原因是去年第一季的營收與成本組合異常有利。服務毛利率一向多落在接近 60% 的高 50% 區間。

Operating expenses were $11.7 million for the quarter, down $6.5 million or 36% from $18.2 million in Q1 last year. The large decrease reflects $7.4 million in lower cash compensation costs due to lower headcount and $3.2 million in severance costs incurred last year, lower consulting costs of $500,000 and lower software and hardware cost of $300,000.

本季營業費用為 1,170 萬美元，較去年第一季的 1,820 萬美元減少 650 萬美元（或 36%）。大幅下降反映：由於人力規模較小，現金薪酬成本減少 740 萬美元；去年發生的資遣費用 320 萬美元；顧問費用減少 50 萬美元；以及軟硬體成本減少 30 萬美元。

These cost savings were partially offset by higher one-time legal and other costs of $1.2 million related to the corporate reorganization and $500,000 higher stock compensation expense. While we continue to be vigilant pursuing ways to operate more efficiently and effectively to ensure that we are maximizing the return of every dollar we spend, as mentioned on our two prior calls, we are increasing our overall investment in the business to support the growth ahead.

上述成本節省部分被較高的一次性法律及其他費用所抵銷，該費用為 120 萬美元，與公司重組相關；另有以股份為基礎的薪酬費用增加 50 萬美元。雖然我們仍保持警覺，持續尋求更有效率且更有效能的營運方式，以確保我們花出去的每一美元都能獲得最大回報，但如同前兩次電話會議所提到的，我們正在提高對業務的整體投資，以支持未來的成長。

Non-GAAP operating expenses, which exclude non-cash and nonrecurring items, were $8.1 million for the quarter, down $8.4 million or 51% from $16.5 million in Q1 last year. The large decrease reflects aforementioned lower cash compensation, consulting and software and hardware costs.

本季非 GAAP 營業費用（排除非現金與非經常性項目）為 810 萬美元，較去年第一季的 1,650 萬美元減少 840 萬美元（或 51%）。大幅下降反映前述較低的現金薪酬、顧問以及軟硬體成本。

Net loss per diluted share for the quarter was $0.32 versus $0.55 in Q1 last year. Non-GAAP net loss per diluted share for the quarter was $0.07 versus $0.40 in Q1 last year.

本季稀釋後每股淨損為 0.32 美元，去年第一季為 0.55 美元。本季非 GAAP 稀釋後每股淨損為 0.07 美元，去年第一季為 0.40 美元。

Regarding cash flow, we ended the quarter with $10 million in cash and short-term investments with no debt. We used a little under $2 million in free cash flow and $900,000 of buyback stock as part of our employee stock program. The stock buyback of 169,000 shares was higher than in recent quarters as more shares typically vest in Q1 than in any other quarter due to the timing of our annual compensation cycle.

關於現金流，我們在本季末持有1,000萬美元的現金及短期投資，且沒有負債。我們使用了略低於200萬美元的自由現金流，並回購了90萬美元的股票，作為員工持股計畫的一部分。此次回購169,000股的規模高於近幾季，因為由於我們年度薪酬週期的時點安排，通常在第一季（Q1）歸屬的股份多於其他任何季度。

Free cash flow usage grew $3.7 million from Q1 last year. The improvement was despite a headwind to revenue and an unfavorable change in working capital and other activity of $3.4 million year over year. The change in working capital was largely due to the timing amount of cash receipts and payments.

自由現金流使用量較去年第一季增加了370萬美元。儘管營收面臨逆風，且營運資金及其他活動的年對年不利變動達340萬美元，仍出現改善。營運資金的變動主要是由於現金收款與付款的時點與金額所致。

Reiterating what I've shared previously, working capital can swing significantly quarter to quarter based on timing, which is why we believe that non-GAAP net income or loss is a better proxy for normalized free cash flow. Our non-GAAP net loss improved $6.9 million or 81% from $8.5 million in Q1 last year to $1.6 million in Q1 this year.

重申我先前分享的觀點，營運資金可能因時點因素而在各季之間大幅波動，這也是我們認為非GAAP淨利或淨損更能代表常態化自由現金流的原因。我們的非GAAP淨損較去年第一季的850萬美元改善了690萬美元（或81%），今年第一季為160萬美元。

As a reminder, in Q1 each year, we incur roughly $500,000 of costs related to public company year-end expenses. Excluding these costs, our Q1 non-GAAP loss would have been $1.1 million.

提醒一下，每年第一季我們會產生約50萬美元與上市公司年終相關費用有關的成本。若排除這些成本，我們第一季的非GAAP虧損將為110萬美元。

For further discussion of our financial results and risks and prospects for our business, please see our Form 10-Q that will be filed with the SEC. Before I wrap up, I did want to mention that we will be attending two upcoming investor conferences. The first is Needham, which is tomorrow, and the second is Oppenheimer, which is in mid-August. We will keep you all informed of any investor conferences we plan to attend.

如需進一步了解我們的財務結果，以及業務風險與展望，請參閱我們將向美國證券交易委員會（SEC）提交的Form 10-Q。在我結束之前，我也想提到我們將參加兩場即將到來的投資人會議。第一場是Needham，就在明天；第二場是Oppenheimer，於8月中旬舉行。我們會隨時向各位更新我們計畫參加的任何投資人會議。

Also, we expect to finalize our new corporate structure, which was approved by shareholders on or around May 16. The new corporate structure will result in a CUSIP change. Our transfer agent, Broadridge will be contacting investors directly on how to exchange shares. I will now turn the call back over to Riley for final remarks.

此外，我們預期將完成新的公司架構，此架構已於5月16日前後獲股東核准。新的公司架構將導致CUSIP變更。我們的過戶代理機構Broadridge將直接聯繫投資人，說明如何換發股份。現在我將把電話交回給Riley作最後結語。

Thank you, Charles. In the wake of the relentless acceleration of AI models and agents, a vacuum of trust and authenticity is being created. Trust is fast becoming the only currency that matters and the future will belong to companies that make that currency scalable. We believe Digimarc is ideally positioned to lead that charge. We are focused on delivering a future where humans and intelligent systems alike can verify what's real, protect what matters and move forward with confidence, spanning across both the physical and digital worlds.

謝謝你，Charles。在AI模型與代理（agents）持續加速發展之際，信任與真實性的真空正在形成。信任正迅速成為唯一重要的貨幣，而未來將屬於能讓這種貨幣具備可擴展性的公司。我們相信Digimarc具備領先推動這一趨勢的理想定位。我們專注於打造一個未來：人類與智慧系統都能驗證何者為真、保護重要事物，並在橫跨實體與數位世界的情境下，帶著信心向前邁進。

We're building the trust layer for the modern world, a foundation that is needed now more than ever and is emerging as a significant opportunity we were created to lead.

我們正在為現代世界建立信任層（trust layer）——這是一個比以往任何時候都更迫切需要的基礎，也正浮現為一個重大機會，而我們正是為了引領它而誕生。

Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions, positioning ourselves as one of the select software companies to benefit from, not be a casualty of the relentless advance of AI. We grew Ending ARR 9% sequentially, while expanding our subscription gross margin 400 basis points year over year.

Digimarc正把握推動市場對我們解決方案需求上升的關鍵趨勢匯聚，將自身定位為少數能從AI無情推進中受益、而非成為受害者的軟體公司之一。我們的期末ARR較前一季成長9%，同時訂閱毛利率年對年擴張400個基點。

We are advancing our Secure Gift Card solution by aligning key industry partners as we progress towards widespread adoption of our solution. We signed our first commercial order and are progressing initial rollout plans with 15 North American retailers including 8 of the 20 largest as measured by sales, a significant increase in both metrics since our last earnings call only two months ago.

我們正透過結盟關鍵產業夥伴來推進Secure Gift Card（安全禮品卡）解決方案，並朝向廣泛採用邁進。我們簽下第一筆商業訂單，並與15家北美零售商推進初期導入計畫，其中包括以銷售額衡量的前20大零售商中的8家；相較於僅兩個月前上次財報電話會議，這兩項指標皆大幅提升。

ARR from our anticounterfeiting solution continues to grow, driven by customer upsells and new customer wins. In Q1, we secured three upsells from existing customers, representing leading companies from three different verticals. We continue to execute against the large opportunity in the exciting and greenfield Digital Trust and Integrity space, securing a six-figure upsell with a global technology company, advancing engagement with important force multipliers and progressing a natural and exciting extension of our trust layer strategy that directly aligns with our existing IP and operating history and provides a critical unmet need for scalable agentic AI.

我們防偽解決方案的ARR持續成長，主要由客戶加購與新客戶得標所帶動。第一季我們從既有客戶取得三筆加購，分別來自三個不同垂直領域的領先企業。我們持續在令人振奮且仍屬藍海的「數位信任與完整性（Digital Trust and Integrity）」領域執行龐大機會：我們與一家全球科技公司達成一筆六位數金額的加購，推進與重要「力量倍增器」的合作互動，並推動一項自然且令人振奮的信任層策略延伸——該延伸與我們既有的智慧財產（IP）與營運歷史直接一致，並能滿足可擴展的代理式AI（agentic AI）所面臨的關鍵未被滿足需求。

We added key talent across go-to-market functions, including two accomplished sales leaders. We continue to be well positioned to address very large problems outside of our current focus areas when the markets are ripe. We are eager for the results of the two upcoming end-to-end market demonstrations of our recycling solution as we believe they will show our ability to help the industry comply with the sunrise on the EUs PPWR.

我們在市場推進（go-to-market）相關職能新增了關鍵人才，包括兩位資深且成績卓著的銷售主管。當市場時機成熟時，我們仍具備良好定位，可解決超出目前聚焦領域的重大問題。我們期待兩場即將到來、針對回收解決方案的端到端市場示範結果，因為我們相信這將展現我們協助產業因應歐盟PPWR日出條款（sunrise）的能力。

Stacy, will now open up the call for questions.

Stacy，現在將開放提問。

(Operator Instructions) Jeff Van Rhee, Craig Hallum.

（接線員指示）Jeff Van Rhee，Craig Hallum。

This is Daniel on for Jeff. On the rollout plans with the 15 North American retailers, just to be clear on that, is this at the point where they are vetting the solution? Or are they -- actually so far as to say that they're all planning fully on buying. They're just refining how and when they roll out. Just any color on -- or maybe you can split it up into several buckets in terms of where those prospects typically are, but any color on where those 15 are in the process?

我是代Jeff發言的Daniel。關於與15家北美零售商的導入計畫，為了確認清楚，目前是他們正在審核（vetting）這個解決方案的階段嗎？還是——甚至可以說他們都已經完全打算購買，只是在細化如何以及何時導入？想請你補充一些背景——或許你也可以按通常潛在客戶所處的階段分成幾個類別——但想了解這15家目前在流程中的位置。

Yes, of course, Daniel. So obviously, we're talking to more than 15. The 15 that we mentioned on the call is that we're advancing rollout plans. And it's a mix. It's initial rollout planning to weekly execution calls and on-site visits to even some limited in-store testing.

好的，當然可以，Daniel。很明顯地，我們洽談的對象不只15家。我們在電話會議中提到的15家，是指我們正在推進導入計畫的對象，而且狀態不一。有的在做初期導入規劃，有的已進入每週執行電話會議與到場拜訪，甚至也有一些在進行有限度的店內測試。

And in addition, besides the more direct -- I mentioned we're talking to more than 15. Beyond just these conversations, we're also having -- we're hosting broader industry events, whether they be virtual meetings or events at our headquarters, providing venues for multiple retailers and brands to not just talk to us, but talk to each other about how we really drive fast and light adoption.

此外，除了較直接的——我提到我們洽談的不只15家——除了這些對話之外，我們也在舉辦更廣泛的產業活動，不論是線上會議或在我們總部舉辦的活動，提供一個場域讓多家零售商與品牌不只是與我們交流，也能彼此交流，討論我們如何真正推動快速且輕量的採用。

Okay. That's helpful. That definitely puts some meat on the bones there. And then on the anti-counterfeiting customers, the three that upsold, is there any commonality you can point to in terms of what's driving those upsells, whether that's the level of technology that they're embedding where you're seeing customers coming in and typically embedding more technology or that's sort of natural flow of the life of the customer where they're scaling the deployment up or pricing changes? Just anything you can call out about what's driving that, especially in commonalities in the business?

好的，這很有幫助。這確實讓內容更具體了。接著關於防偽客戶，那三家加購的客戶，在推動加購的因素上是否有任何共通點？例如他們嵌入的技術層級——你是否看到客戶通常會嵌入更多技術——或是這更像是客戶生命週期的自然進程，他們在擴大部署規模，或是價格變動？任何你能指出的驅動因素都可以，特別是業務上的共通性。

Yeah, it's a mix. Sometimes it's adding new brands, sometimes it's adding new geographies, sometimes it's adding new functionality. And so it's a mix across all of those metrics.

是的，這是多種因素的組合。有時是新增品牌，有時是新增地理區域，有時是新增功能。因此在這些指標上都有所混合。

Okay. That's helpful. And then last of all, just in regards to Schnucks, just any additional thoughts on how that rollout is pacing relative to expected? And then just anything else on the feedback you're hearing there?

好的，這很有幫助。最後，關於Schnucks，想請問導入進度相較於預期的節奏如何？以及你們目前聽到的回饋還有什麼可以分享的？

Yes, it's underway. It's all we really want to say at that point, but we truly value them as a partner as our initial retailer partner. Those cards have been in store. So they're expanding to all of their stores, but they've been carrying cards at 15 stores. Initially, it was 10. They added another five stores a couple of months ago, and they're very happy with the solution, and we're really thrilled with them as a wonderful partner.

是的，正在進行中。現階段我們大概就只能說到這裡，但我們確實非常重視他們作為我們最初的零售商合作夥伴。那些卡片已在門市上架。他們正在擴展到所有門市，但目前已在15家門市販售；一開始是10家，幾個月前又新增了5家。他們對這個解決方案非常滿意，我們也很高興能與他們這樣優秀的夥伴合作。

(Operator Instructions) I would like to turn the floor over to Riley for closing remarks.

（接線員指示）我想把時間交給Riley作結語。

Okay. Well, thank you, everyone, for dialing in today's call. We hope you have a wonderful rest of your day, and look forward to seeing some of you tomorrow. Have a great night.

好的。感謝各位撥冗參加今天的電話會議。祝各位今天剩下的時間愉快，也期待明天能見到其中一些朋友。祝各位晚安。

This concludes today's teleconference. You may disconnect your lines at this time, and thank you for your participation.

本日電話會議到此結束。您現在可以掛斷電話線，感謝您的參與。