Destiny Media Technologies (DSNY) Q2 2026 earnings summary

Executive summary

• Revenue for the quarter ended February 28, 2026, was $1,003,109, down 1.6% year-over-year, mainly due to a new long-term agreement with a major label customer eliminating short-term premium pricing, partially offset by a 23% increase in Play MPEⓇ customers and higher average spend per customer.

• Total customer base grew by 5.0% year-over-year in Q2 FY2026, with increased diversification among independent customers.

• Net loss for the quarter was $566,310, compared to $302,094 in the prior year period; for the six months, net loss was $482,658 versus $183,954 year-over-year.

• Adjusted EBITDA for the quarter was $(402,641), down from $(116,719) in the prior year, reflecting higher operating expenses and lower gross margin; Q2 FY2026 included a one-time severance cost of $244,000.

• Leadership transition ongoing, with the Board advancing the search for a permanent CEO while focusing on business development and marketing to drive scalable growth.

Financial highlights

• Gross margin for the quarter was 83.2%, down from 85.3% year-over-year, due to higher data hosting and processing costs from new platform features.

• Operating expenses rose 19.3% to $1,405,340, driven by a one-time employee-related charge of $244,125 and lower capitalization of development costs.

• Cash and cash equivalents at February 28, 2026, were $1,151,271, up from $1,117,889 at August 31, 2025.

• Working capital was $1,446,468, down from $1,634,587 at August 31, 2025, primarily due to operating losses.

• GAAP net loss per share was $0.06, compared to a loss of $0.03 in the prior year period.

Outlook and guidance

• Management continues to focus on expanding the addressable market through new product development and enhancements to Play MPEⓇ and MTRTM.

• Leadership is focused on strengthening business development and marketing to support customer acquisition and scalable growth.

• No formal forward-looking financial guidance was provided, but management notes ongoing investment in product development and operational efficiency.