Verimatrix (VMX) H2 2025 earnings summary

Executive summary

• 2025 marked a pivotal year with a strategic refocus on core anti-piracy and OTT business and the sale of the XTD business, closing in February 2026.

• Full-year 2025 revenue declined 19% year-over-year to $46.5 million, with recurring revenue comprising 71% of the total.

• Subscription ARR grew 5% to $18.9 million, but overall ARR fell 6% due to declines in maintenance and non-recurring revenue.

• New management led by CEO Laurent Dechaux implemented a roadmap for 2026–2028, emphasizing operational transformation and innovation.

• Adjusted EBITDA was nearly break-even at -$0.2 million, down from $2.8 million in 2024, and net adjusted loss widened to $11.2 million.

Financial highlights

• FY 2025 total revenue: $46.5M, down 19% year-over-year.

• Recurring revenue: $33.1M (-3%), with subscriptions up 8% to $18.8M; non-recurring revenue fell 42%.

• Gross margin: $29.5M (63.5% of revenue), down from 68.3% in 2024.

• Operating expenses reduced by 16.2% to $35.2M.

• Free cash flow generation of $4.2M, with closing cash at $7.1M.

Outlook and guidance

• Strategic plan targets 80% recurring revenue, EBITDA growth, and positive cash flow by 2028.

• Focus on becoming an iconic SaaS company with best-in-class execution and market leadership in anti-piracy, OTT, sports, and IoT security.

• Expansion planned in the US and Asia.