Verimatrix returns to quarterly growth as licence sales and sports streaming lift revenue
October 27, 2026 10.05 Europe/London By Julian Clover


Verimatrix reported a 20% increase in third-quarter anti-piracy revenue to $10.4 million, driven by higher licence sales and growing subscription demand, particularly in live sports streaming.

The recovery narrowed the company’s nine-month revenue decline to 3%, compared with an 11% fall at the half-year stage. Anti-piracy revenue for the first nine months reached $31.6 million.

The figures exclude the Extended Threat Defense product line, sold to Belgium’s Guardsquare in February 2026, with prior-year comparisons restated accordingly.

Licence sales provided the largest boost to quarterly growth, rising to $1.7 million from $0.4 million a year earlier, supported by customers in India and Latin America. Total non-recurring revenue increased 73% to $3.2 million.

Recurring revenue grew 5% to $7.2 million, including subscription revenue of $3.9 million and maintenance revenue of $3.3 million.

Verimatrix said new contracts in live sports streaming supported subscription growth, with the closing stages of the football World Cup making a smaller contribution through demand for additional anti-piracy protection.

Subscription annual recurring revenue increased 13% to $16.6 million at September 30. Growth included an expanded subscription with a streaming sports rights owner and the first Counterspy contract with a longstanding Indian customer.

However, declining maintenance ARR limited growth in total anti-piracy ARR to 1%, reaching $27.8 million. Subscriptions now account for 60% of total ARR, up from 53% a year earlier.

Laurent Dechaux, Chief Executive of Verimatrix, said: “Our refocus on Anti-Piracy, our partnership with Kaltura and a leaner cost structure are delivering, and we confirm our 2026 outlook.”

The company agreed a strategic partnership with Kaltura in September, combining Kaltura’s Cloud TV platform with Verimatrix’s content protection and anti-piracy technology. Customer migration is planned over the coming months.

Verimatrix maintained its full-year target of a return to anti-piracy revenue growth, including growth in recurring revenue, and anti-piracy EBITDA above $3 million. Its longer-term roadmap targets positive free cash flow by 2028.