Verimatrix (VMX) H1 2026 earnings summary

Executive summary

• Strategic refocus on anti-piracy core business, highlighted by the sale/divestiture of XTD assets in February 2026 and concentration on video protection markets.

• New contracts and expanded partnerships in key regions, including major telecom and media operators in LATAM, APAC, and EMEA.

• Record utilization and customer satisfaction during the Football World Cup, demonstrating infrastructure reliability.

• Subscription ARR grew 11% to $16.1 million, with recurring subscription revenue up 9% year-over-year.

• EBITDA reached $1.9 million (9% margin), supported by cost reductions and business refocus.

Financial highlights

• H1 2026 consolidated revenue was $21.7M, down 14% year-over-year; anti-piracy revenue at $21.3M, down 11%.

• Recurring revenue accounted for 68% of anti-piracy revenue; subscriptions revenue grew 9% year-over-year to $8.0M.

• Non-recurring revenue declined 26% due to an unfavorable base effect from an exceptional contract in 2025.

• Adjusted EBITDA for H1 2026 was $1.9M, down from $2.8M in H1 2025.

• Adjusted net loss improved to $0.8M from $3.1M in H1 2025.

Outlook and guidance

• Strategic priorities include refocusing on core business, innovating in adjacent areas, and expanding through partnerships.

• 2026 outlook targets a return to revenue growth, EBITDA above $3M, and increased recurring revenue, aligned with the 2028 roadmap.

• Ambition to achieve 80% recurring revenue and become a leading SaaS company by 2028.

• Focus on expanding subscription offerings and leveraging high-potential segments like sports and digital content protection.

• Roadmap targets sustained revenue and EBITDA growth, and positive free cash flow by 2028.