Destiny Media (DSNY) investor relations material

Executive summary

• Year-to-date revenue increased 2.5% to $3.38M, with Q3 revenue at $1.13M, down 1.9% year-over-year; customer base grew 1.4% overall and 4.9% in new customers, driven by major label clients and MTR™ service growth.

• Net loss for Q3 was $72K, compared to net income of $134K last year; nine-month net loss was $256K versus net income of $254K prior year.

• Gross margin remained strong at 85.7% for Q3 and 86.2% for nine months, with slight declines due to infrastructure investments.

• Operating expenses rose 18.6% for Q3 and 21% for nine months, mainly from litigation, noncash amortization, and R&D infrastructure.

• EBITDA was slightly positive at $37,000 for the quarter; adjusted EBITDA was $122K for Q3 and $293K for nine months, both down year-over-year.

Financial highlights

• Revenue up 2.5% year-to-date to $3.38M; Q3 revenue was $1.13M, down 1.9% year-over-year.

• Customer count increased 1.4% overall and 4.9% in new customers year-to-date.

• Cash and cash equivalents were $1.26M as of May 31, 2025, up from $0.74M at fiscal year-end.

• Working capital stood at $1.79M, a slight decrease from $1.84M at fiscal year-end.

• Depreciation and amortization rose to $190K for Q3 and $541K for nine months, reflecting software enhancements.

Outlook and guidance

• Management expects continued revenue growth from MTR™ and plans to increase marketing spend as new Play MPE® enhancements launch.

• Investments in analytics, reporting, and platform automation are expected to drive future growth.

• Ongoing evaluation of capital allocation and growth strategy, including engagement of an outside consultant.

• If targeted revenue acceleration is not achieved, alternative strategies to provide shareholder returns will be considered.

• Management is focused on international market expansion and product scalability.