Verimatrix: Anti-Piracy Revenue Up 20% in Third Quarter, 2026 Targets Confirmed
After a first half decline of 11%, Verimatrix's Anti-Piracy business grew 20% in the third quarter of 2026, reaching $10.4 million compared with $8.7 million a year earlier, according to a statement released on October 26, 2026. The majority of this increase came from non-recurring revenues, which rose from $1.9 million to $3.2 million, while recurring revenues increased by 5%.
The group confirmed its targets for fiscal year 2026, including Anti-Piracy EBITDA exceeding $3 million. Over the first nine months, revenue remained down 3% at $31.6 million, compared with an 11% decline at the end of June.
License Sales Multiplied by More Than Four During the Quarter
License sales reached $1.7 million in the third quarter, compared with $0.4 million a year earlier. Verimatrix sees this as confirmation of commercial momentum with its customers based in India and Latin America. Services and equipment also grew, reaching $0.4 million versus $0.2 million, while royalties declined 7% to $1.1 million. In total, non-recurring revenues increased 73% to $3.2 million.
Recurring revenues stood at $7.2 million, up 5%. Subscriptions grew 5% to $3.9 million, driven primarily by the activation of new contracts in live sports streaming, a segment the company places at the heart of its strategy. The end of the FIFA World Cup contributed, to a lesser extent, to this increase. Maintenance rose 7% to $3.3 million.
This split in growth modified the composition of revenue: recurring revenues represented 69% of Anti-Piracy activity for the quarter, compared with 78% a year earlier. Geographically, the group reported strong growth in Latin America and Asia-Pacific.
Subscription ARR Up 13%, Maintenance ARR Down 13%
As of September 30, 2026, Anti-Piracy annual recurring revenues (ARR) totaled $27.8 million, up 1% year-over-year and slightly higher than June 30 ($27.5 million). This near-stability of the overall figure masks two offsetting movements. Subscription ARR grew 13% to $16.6 million compared with $14.7 million, and approximately $0.5 million compared with June 30, 2026 ($16.1 million). Maintenance ARR declined 13% to $11.2 million, compared with $11.4 million at the end of June, a decline that continues at a slower pace according to the company.
The quarter's growth stemmed from increased subscriptions from a sports content holder offering online broadcasts and a first contract for the Counterspy solution, signed with a long-standing customer based in India. Subscriptions now represent 60% of total ARR, compared with 53% a year earlier. Laurent Dechaux, Chief Executive Officer, noted that total ARR had been growing for three consecutive quarters.
Over nine months, recurring revenues remained stable at $21.7 million, with growth in subscriptions ($11.9 million, +7%) offsetting the decline in maintenance ($9.8 million, -7%). Non-recurring revenues declined 9% to $10.0 million, due to royalties ($3.4 million, -32%), with licenses remaining stable at $5.0 million despite the base effect from a significant contract signed in the second quarter of 2025.
These figures cover the Anti-Piracy segment only, as the Extended Threat Defense (XTD) product line was sold to Belgian company Guardsquare in February 2026. 2025 figures have been restated: the published third quarter 2025, including XTD, was $9.8 million. Consolidated revenue over nine months, incorporating one month of XTD contribution, reached $32.1 million.
2026 Targets Confirmed, Including Anti-Piracy EBITDA Above $3 Million
For fiscal year 2026, Verimatrix confirmed its aim to return to growth in Anti-Piracy revenue, including recurring revenue growth, coupled with Anti-Piracy EBITDA exceeding $3 million. This trajectory aligns with the 2026-2028 roadmap, which targets a return to activity growth, EBITDA expansion, and positive free cash flow by 2028.
On September 3, 2026, the group concluded a strategic partnership with Kaltura, listed on Nasdaq, to strengthen the security of internet television and cloud services. The agreement combines Kaltura's Cloud TV platform with Verimatrix's content protection solutions and provides for a complete migration of customers over the coming months. The Chief Executive Officer cites this partnership, the refocus on Anti-Piracy, and a leaner cost structure among the drivers for the period.
Full year 2026 results will be published on March 11, 2027 after market close. Until then, the most structuring element of the disclosure remains the subscription share, which increased to 60% of total ARR as of September 30, 2026, compared with 53% a year earlier.
