Verimatrix Q3 Anti-Piracy Revenue Climbs 20% to $10.4 Million as Subscription ARR Gains 13%

Verimatrix reported third-quarter 2026 Anti-Piracy revenue of $10.4 million, up 20% from $8.7 million a year earlier, with subscription ARR rising 13% to $16.6 million. The company said recurring revenue grew 5% to $7.2 million and non-recurring revenue jumped 73% to $3.2 million, and it confirmed its 2026 outlook targeting Anti-Piracy EBITDA above $3 million. The announcement was distributed by Business Wire.

Verimatrix Returns to Growth on License Sales

Verimatrix, a provider of user-centric security solutions for connected devices and content, reported the quarter on an Anti-Piracy scope after selling its Extended Threat Defense product line to the Belgian company Guardsquare in February 2026. The company said 2025 comparatives were restated accordingly.

Non-recurring revenue of $3.2 million was driven by license sales of $1.7 million, compared with $0.4 million in the third quarter of 2025, with the company citing momentum among customers in India and Latin America. Recurring revenue of $7.2 million included subscription revenue of $3.9 million, up 5%, and maintenance revenue of $3.3 million, up 7%. Over nine months, Anti-Piracy revenue was $31.6 million, a decline of 3% from the comparable 2025 period.

"Verimatrix delivered a standout third quarter: revenue grew 20% to $10.4 million, with every region contributing and new and existing customers alike adopting more of our solutions," said Laurent Dechaux, Chief Executive Officer of Verimatrix.

Guardsquare opened its first Asia-Pacific office in Singapore on October 1, 2026, to serve financial services, healthcare, retail, and government sectors, with revenue in the region growing 50% year on year, according to Cfotech.

Verimatrix's Subscription ARR and Divestiture Records

According to akta.pro company records, Verimatrix completed the sale of its Extended Threat Defense product line to Guardsquare in February 2026 as part of its refocus toward Anti-Piracy services and subscription-based offerings. The same records show the divested business generated about 90% of revenue at the time of the December 2025 agreement, and that Verimatrix's full-year 2025 revenue was $46.5 million, a 19% decline from $57.2 million in 2024.

Verimatrix's Kaltura Partnership and First-Half Results

On September 3, 2026, Kaltura and Verimatrix announced a strategic partnership to enhance security for OTT and Cloud TV services, combining Kaltura's Cloud TV platform with Verimatrix's DRM and anti-piracy solutions, according to Stock Titan. Kaltura and Verimatrix also announced a partnership integrating Verimatrix's DRM and security into Kaltura's Cloud TV platform, available via Kaltura's Marketplace, according to Sports Video Group.

In July 2026, Verimatrix reported an 11% decline in first-half anti-piracy revenue, with adjusted EBITDA falling to $1.9 million from $2.8 million a year earlier, reflecting lower license sales after a prior-year contract boost, according to Investing.com. Telecompaper reported that Verimatrix expected full-year EBITDA growth while Q2 revenues dropped 20%.

Verimatrix's Next Reporting Dates

Verimatrix said it will report full-year 2026 revenue and results on March 11, 2027, after market close. First-quarter 2027 revenue is scheduled for April 23, 2027, the Annual General Meeting for June 10, 2027, and first-half 2027 revenue and results for July 23, 2027.