Destiny Media Technologies (DSNY) Q3 2026 earnings summary

Executive summary

• Revenue for the quarter ended May 31, 2026, was $1.04M, down 8.4% year-over-year, mainly due to a major customer agreement; nine-month revenue was $3.29M, down 2.8% year-over-year.

• Net loss for the quarter was $213,327, compared to $72,288 in the prior year; nine-month net loss was $696K, compared to $256K last year.

• Adjusted EBITDA loss for the quarter was $55,500, versus positive $122,097 last year; nine-month adjusted EBITDA loss was $206K, versus $293K positive last year.

• Revenue decline was mainly due to a long-term agreement with a major label customer and lower revenue from major labels, partially offset by growth in the independent customer segment.

• Announced appointment of Sharath Cherian as new CEO effective July 15, 2026, following a leadership transition period.

Financial highlights

• Gross margin for the quarter was 84.0%, down from 85.7% year-over-year; nine-month gross margin was 84.3%, down from 86.2%.

• Operating expenses for the quarter increased 4.6% to $1.10M, driven by a one-time employee-related charge and lower capitalization of development costs.

• General and administrative expenses rose 66.3% in the quarter, mainly due to higher wages, a one-time charge, and increased consulting costs.

• Cash and cash equivalents at May 31, 2026, were $1,397,098, up from $1,117,889 at August 31, 2025.

• Total customers grew by 5.0% compared to Q3 FY2025.

Outlook and guidance

• Management expects continued growth in the independent customer segment and ongoing development of new products and features to expand the addressable market.

• Incoming CEO aims to drive operational excellence, long-term shareholder value, and a culture of execution and accountability.

• No material changes to risk factors or forward-looking statements since the last annual report.