\nBusiness refocused on Anti-Piracy (excluding the XTD product line): $21.3 million<\/p>
\nSolid commercial momentum since the start of the year<\/p>
\nSolid results and a strengthened financial structure<\/p>
\n2026 outlook in line with the 2028 roadmap<\/b><\/p>
\nReturn to revenue growth combined with EBITDA above $3 million<\/p>
AIX-EN-PROVENCE, France & SAN DIEGO--(BUSINESS WIRE)--Regulatory News:<\/p>
\nVERIMATRIX (Euronext Paris: VMX, FR0010291245), a leading provider of user-centric security solutions for a safer connected world, today announces its revenue and results for the first half of fiscal year 2026 (January 1 to June 30).<\/p>
\nFollowing the divestiture of the Extended Threat Defense (XTD) product line in February 2026, the Group presents an analysis of its business refocused on its core Anti-Piracy activity. The consolidated financial statements are provided in the appendix.<\/p>
\nLaurent Dechaux, Chief Executive Officer of VERIMATRIX, commented:<\/b><\/p>
\n\u201cThe first half of 2026 is in line with our roadmap through 2028 and gives us reason for optimism about the future. The 11% decline in Anti-Piracy revenue should be viewed in light of a strong first half of 2025, which benefited from a major license sale contract that was a significant contributor to results. In volume terms, the business is showing early signs of recovery since the start of the year, with sequential growth in Anti-Piracy activity for the third consecutive quarter. This improvement is already reflected in our results, thanks to the cost-reduction measures implemented as part of the Group's refocusing on its core business. The renegotiation of our financial debt is the other key event of this start of the year. With a lighter debt load and more favorable repayment terms, Verimatrix has the resources to continue financing its growth and investments, while once again generating positive free cash flow in the coming months if the recovery in activity is confirmed. In this context, our priorities remain strengthening our leadership in the Anti-Piracy sector and deploying innovative growth drivers in the OTT market.\u201d<\/i><\/p> \nLaurent DECHAUX, Chief Executive Officer, and Jean-Fran\u00e7ois LABADIE, Chief Financial Officer, will host a webcast today at 6:00 p.m. (Paris time) to discuss the revenue and results for the first half of 2026.<\/b><\/p> \n\u00a0<\/b><\/p> \n(in US$ million)<\/p><\/td> \n\u00a0<\/p><\/td> \nQ2 <\/b>2026<\/b><\/p><\/td> \nQ2 <\/b>2025<\/b><\/p><\/td> \nChg.<\/b><\/p><\/td> \nH1 2026<\/b><\/p><\/td> \nH1 2025<\/b><\/p><\/td> \nChg.<\/b><\/p><\/td><\/tr>\n \nRecurring revenue<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n7.4<\/b><\/p><\/td> \n7.4<\/b><\/p><\/td> \n0%<\/b><\/p><\/td> \n14.5<\/b><\/p><\/td> \n14.8<\/b><\/p><\/td> \n-2%<\/b><\/p><\/td><\/tr>\n \nof which subscriptions<\/i><\/p><\/td> \n\u00a0<\/p><\/td> \n4.2<\/i><\/p><\/td> \n3.7<\/i><\/p><\/td> \n+14%<\/i><\/p><\/td> \n8.0<\/i><\/p><\/td> \n7.4<\/i><\/p><\/td> \n+9%<\/i><\/p><\/td><\/tr>\n \nof which maintenance<\/i><\/p><\/td> \n\u00a0<\/p><\/td> \n3.2<\/i><\/p><\/td> \n3.7<\/i><\/p><\/td> \n-14%<\/i><\/p><\/td> \n6.5<\/i><\/p><\/td> \n7.5<\/i><\/p><\/td> \n-13%<\/i><\/p><\/td><\/tr>\n \nNon-recurring revenue<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n3.5<\/b><\/p><\/td> \n6.3<\/b><\/p><\/td> \n-44%<\/b><\/p><\/td> \n6.7<\/b><\/p><\/td> \n9.1<\/b><\/p><\/td> \n-26%<\/b><\/p><\/td><\/tr>\n \nAnti-Piracy revenue<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n11.0<\/i><\/b><\/p><\/td> \n13.8<\/i><\/b><\/p><\/td> \n-20%<\/i><\/b><\/p><\/td> \n21.3<\/i><\/b><\/p><\/td> \n23.9<\/i><\/b><\/p><\/td> \n-11%<\/i><\/b><\/p><\/td><\/tr>\n \nXTD (divested in February 2026)<\/i><\/p><\/td> \n\u00a0<\/p><\/td> \n--<\/i><\/p><\/td> \n1.3<\/i><\/p><\/td> \nn\/a<\/i><\/p><\/td> \n0.4<\/i><\/p><\/td> \n2.6<\/i><\/p><\/td> \nn\/a<\/i><\/p><\/td><\/tr>\n \nTotal revenue<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n11.0<\/b><\/p><\/td> \n15.0<\/b><\/p><\/td> \n-27%<\/b><\/p><\/td> \n21.7<\/b><\/p><\/td> \n26.5<\/b><\/p><\/td> \n-18%<\/b><\/p><\/td><\/tr>\n \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAnti-Piracy ARR<\/b><\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n27.5<\/b><\/p><\/td> \n27.6<\/b><\/p><\/td> \n-0%<\/b><\/p><\/td><\/tr>\n \nof which subscriptions<\/i><\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n16.1<\/i><\/p><\/td> \n14.6<\/i><\/p><\/td> \n+11%<\/i><\/p><\/td><\/tr>\n \nof which maintenance<\/i><\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n\u00a0<\/p><\/td> \n11.4<\/i><\/p><\/td> \n13.0<\/i><\/p><\/td> \n-13%<\/i><\/p><\/td><\/tr>\n<\/table> \nRevenue trend by geographic region<\/b><\/p> \nAnti-Piracy revenue was driven by the Asia-Pacific region (+33%) and Latin America (+4%), in particular thanks to the successful upselling of licenses marketed by the Group.<\/p> \nThis trend illustrates Verimatrix's capacity for innovation with its long-standing base of telecom operator customers, particularly in certain geographic regions such as Asia-Pacific.<\/p> \nAnti-Piracy ARR trend<\/b><\/p> \nAt June 30, 2026, ARR (Annual Recurring Revenue) stood at $27.5 million, up 2% compared with December 31, 2025, and virtually stable compared with June 30, 2025.<\/p> \nSubscription ARR reached $16.1 million, up 11% year-on-year (+$1.5 million) and up 4% compared with December 31, 2025 (+$0.6 million), reflecting an improvement in the quarterly growth rate.<\/p> \nAt the same time, maintenance ARR continues to decline, albeit at a slowing pace, illustrating the gradual nature of the transition in the Group's business model.<\/p> \nFirst-half 2026 results (Anti-Piracy proforma)<\/b><\/p> \nIn millions of dollars<\/p> \n(Proforma data \u2013 Anti-Piracy product line)<\/p><\/td> \nH1 2026<\/b><\/p><\/td> \nH1 2025<\/b><\/p><\/td> \nChg.<\/b><\/p><\/td><\/tr>\n \nRevenue<\/b><\/p><\/td> \n21.3<\/b><\/p><\/td> \n23.9<\/b><\/p><\/td> \n-11.0%<\/b><\/p><\/td><\/tr>\n \nGross margin<\/b><\/p><\/td> \n13.8<\/b><\/p><\/td> \n15.5<\/b><\/p><\/td> \n-10.8%<\/b><\/p><\/td><\/tr>\n \nAs a % of revenue<\/i><\/p><\/td> \n65.0%<\/i><\/p><\/td> \n64.8%<\/i><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nResearch and development costs<\/p><\/td> \n(5.5)<\/p><\/td> \n(7.1)<\/p><\/td> \n-22.0%<\/p><\/td><\/tr>\n \nSales and marketing expenses<\/p><\/td> \n(4.2)<\/p><\/td> \n(3.8)<\/p><\/td> \n9.9%<\/p><\/td><\/tr>\n \nGeneral and administrative expenses<\/p><\/td> \n(4.0)<\/p><\/td> \n(4.8)<\/p><\/td> \n-16.2%<\/p><\/td><\/tr>\n \nOther operating income\/(expenses), net<\/p><\/td> \n(0.2)<\/p><\/td> \n0.1<\/p><\/td> \n-310.0%<\/p><\/td><\/tr>\n \nTotal adjusted operating expenses<\/b><\/p><\/td> \n(13.9)<\/b><\/p><\/td> \n(15.5)<\/b><\/p><\/td> \n-10.3%<\/b><\/p><\/td><\/tr>\n \nAs a % of revenue<\/i><\/p><\/td> \n-65.6%<\/i><\/p><\/td> \n-65.1%<\/i><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted EBITDA<\/b><\/p><\/td> \n1.9<\/b><\/p><\/td> \n2.8<\/b><\/p><\/td> \n-31.3%<\/b><\/p><\/td><\/tr>\n \nAs a % of revenue<\/i><\/p><\/td> \n9.0%<\/i><\/p><\/td> \n11.6%<\/i><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nAdjusted operating income<\/b><\/p><\/td> \n(0.1)<\/b><\/p><\/td> \n(0.1)<\/b><\/p><\/td> \n118.0%<\/b><\/p><\/td><\/tr>\n \nAs a % of revenue<\/i><\/p><\/td> \n-0.6%<\/i><\/p><\/td> \n-0.2%<\/i><\/p><\/td> \n\u00a0<\/p><\/td><\/tr>\n \nFinancial income\/(loss), net<\/p><\/td> \n(0.0)<\/p><\/td> \n(2.3)<\/p><\/td> \n-99.4%<\/p><\/td><\/tr>\n \nIncome tax expenses<\/p><\/td> \n(0.6)<\/p><\/td> \n(0.7)<\/p><\/td> \n-13.1%<\/p><\/td><\/tr>\n \nAdjusted net income\/(loss)<\/b><\/p><\/td> \n(0.8)<\/b><\/p><\/td> \n(3.1)<\/b><\/p><\/td> \n-75.7%<\/b><\/p><\/td><\/tr>\n<\/table> \nGross margin stood at $13.8 million, compared with $15.5 million a year earlier, representing 65% of revenue (64.8% in 2025). The gradual decline in high-margin perpetual license sales was offset by continued optimization of the cost structure and improved efficiency in our customer support and integration activities.<\/p> \nResearch and development expenses were kept under control and declined by 22%. Sales and marketing expenses increased by 9.9%, in line with the Group's strategy of refocusing on the Anti-Piracy product line and the geographic reorganization of the sales force according to the dynamics of the different regions in which the Group operates.<\/p> \nTotal adjusted operating expenses thus amounted to $13.9 million, down 10.3% compared with the first half of the previous fiscal year, and adjusted EBITDA came to $1.9 million, compared with $2.8 million in 2025.<\/p> \nAfter taking into account the financial result, adjusted net income represented a loss of $0.8 million, compared with an adjusted net loss of $3.1 million in the first half of 2025.<\/p> \nRenegotiation of financial debt<\/b><\/p> \nThe financial debt was partially repaid and its terms renegotiated in line with market conditions.<\/p> \nThe new terms of the private debt are as follows:<\/p> \nThe repayment schedules of the Pr\u00eat Participatif Relance (PPR) loans were also adjusted.<\/p> \nFinancial position and cash flow<\/b><\/p> \nNet debt, excluding lease commitments under IFRS 16, stood at $16.8 million at June 30, 2026, compared with $20.2 million at December 31, 2025.<\/p> \nThe debt includes the private debt at a fair value of $13.6 million and the Pr\u00eat Participatif Relance (PPR) loans totaling $8.4 million.<\/p> \n(in millions of dollars)<\/p><\/td> \nH1 2026<\/b><\/p><\/td> \nH1 2025<\/b><\/p><\/td><\/tr>\n \nNet income\/(loss)<\/b><\/p><\/td> \n(2.2)<\/p><\/td> \n(65.0)<\/p><\/td><\/tr>\n \nElimination of non-cash items<\/p><\/td> \n2.4<\/p><\/td> \n6.1<\/p><\/td><\/tr>\n \nElimination of impairment loss \/ goodwill impairment<\/p><\/td> \n-<\/p><\/td> \n60.0<\/p><\/td><\/tr>\n \nCash flow absorbed by working capital requirements<\/p><\/td> \n1.5<\/p><\/td> \n(2.7)<\/p><\/td><\/tr>\n \nCash generated by activities<\/b><\/p><\/td> \n1.7<\/b><\/p><\/td> \n(1.6)<\/b><\/p><\/td><\/tr>\n \nTaxes paid<\/p><\/td> \n(1.4)<\/p><\/td> \n(0.6)<\/p><\/td><\/tr>\n \nInterests paid<\/p><\/td> \n(0.7)<\/p><\/td> \n(1.4)<\/p><\/td><\/tr>\n \nNet cash generated by operating activity<\/b><\/p><\/td> \n(0.4)<\/b><\/p><\/td> \n(3.6)<\/b><\/p><\/td><\/tr>\n \nNet cash flow from investment activities<\/b><\/p><\/td> \n4.4<\/b><\/p><\/td> \n(1.1)<\/b><\/p><\/td><\/tr>\n \nNet cash flow from financing activities<\/b><\/p><\/td> \n(5.8)<\/b><\/p><\/td> \n(0.7)<\/b><\/p><\/td><\/tr>\n \nNet change in cash<\/b><\/p><\/td> \n(1.8)<\/b><\/p><\/td> \n(5.5)<\/b><\/p><\/td><\/tr>\n \nCash and cash equivalents at start of period<\/p><\/td> \n7.1<\/p><\/td> \n11.0<\/p><\/td><\/tr>\n \nForeign exchange effects<\/p><\/td> \n(0.1)<\/p><\/td> \n(0.2)<\/p><\/td><\/tr>\n \nCash and cash equivalents at end of period<\/b><\/p><\/td> \n5.2<\/b><\/p><\/td> \n5.3<\/b><\/p><\/td><\/tr>\n<\/table> \nCash and cash equivalents amounted to $5.2 million at June 30, 2026, a limited decrease of $0.1 million compared with the amount available at the end of June 2025.<\/p> \nThis change in cash position is mainly explained by:<\/p> \nIn addition, financial interest paid amounted to $0.7 million and taxes paid represented $1.4 million.<\/p> \nOutlook: Growth of Anti-Piracy revenue starting in fiscal year 2026, combined with Anti-Piracy EBITDA of minimum $3 million<\/b><\/p> \nIn 2026, VERIMATRIX intends to continue developing its subscription offerings by capitalizing on the depth of its installed base and by forming new partnerships to strengthen its geographic positions.<\/p> \nThe Group will also rely on high-potential segments, particularly sports and new use cases related to digital content protection, to support its commercial development and gradually expand its customer base.<\/p> \nIn this context, with a leaner cost structure, the Group expects to achieve revenue growth starting in 2026, combined with EBITDA of minimum $3 million.<\/b><\/p> \nAs part of its new strategic roadmap, the Group had set itself the objectives of a return to revenue growth, combined with EBITDA growth and positive free cash flow, by 2028.<\/p>\n
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