Digimarc Corporation $(DMRC)$ released its financial results for the second quarter of 2025, reporting a decline in total revenue to $8.0 million, down from $10.4 million in the same quarter of 2024. The decrease in revenue is attributed to the expiration of two commercial contracts and a reduction in government service revenue from the Central Banks. The company's subscription revenue fell to $4.6 million from $6.4 million, primarily due to the loss of contracts that contributed $1.9 million in the prior year's quarter. Service revenue also decreased to $3.4 million from $4.0 million, reflecting a $0.5 million reduction in government service revenue. Annual recurring revenue $(ARR)$ as of June 30, 2025, stood at $15.9 million, a drop from $23.9 million as of June 30, 2024. This $8.0 million decline mainly reflects the expiration of two commercial contracts accounting for $9.3 million of ARR, partially offset by new and existing contracts. The gross profit margin for the quarter decreased to 59% from 66% a year earlier. Excluding amortization expenses on acquired intangible assets, the subscription gross profit margin decreased to 85% from 89%, while the service gross profit margin increased slightly to 59% from 58%. Operating expenses were reduced to $13.1 million, down from $16.8 million in the second quarter of 2024. The company reported a decrease in free cash flow usage to $5.0 million from $6.9 million in the prior year, and $4.1 million when excluding previously accrued severance costs. Digimarc continues to focus on building a trust layer for the modern world, with significant progress reported in the second quarter of 2025 towards achieving this goal.