Verimatrix Anti-Piracy revenue climbs 20% to $10.4m in Q3

Verimatrix grew Anti-Piracy revenue 20 per cent year on year to $10.4 million (€9.3 million) in Q3 2026, marking the segment's return to growth after a difficult first half. The company reported the figure on October 27 on an Anti-Piracy scope, following its divestiture of the Extended Threat Defense (XTD) product line in February 2026, with 2025 comparatives restated accordingly.

The quarter's $10.4 million compares with $8.7 million in Q3 2025 — an added $1.7 million in quarterly billings. Growth came from both revenue streams:

• Non-recurring revenue rose 73 per cent to $3.2 million, driven by licence sales of $1.7 million, up from $0.4 million a year earlier.
• Recurring revenue grew 5 per cent to $7.2 million, with subscriptions up 5 per cent and maintenance up 7 per cent.

Latin America and Asia-Pacific grew strongly during the quarter. Over the first nine months of 2026, Anti-Piracy revenue reached $31.6 million, down 3 per cent — a sharp improvement on the 11 per cent decline recorded at the half-year stage.

What did CEO Laurent Dechaux say?

CEO Laurent Dechaux framed the quarter as evidence that the group's transformation plan is working. "Verimatrix delivered a standout third quarter: revenue grew 20 per cent to $10.4 million, with every region contributing and new and existing customers alike adopting more of our solutions," Dechaux said.

He also cited momentum in annual recurring revenue. "Subscription ARR is up 13 per cent year on year to $16.6 million, and total ARR has now grown for three consecutive quarters. We have cut the nine-month gap from -11 per cent at the half-year to just -3 per cent, and we are entering the final quarter with strong momentum," the CEO said.

How has the business mix shifted?

The transformation plan has changed the shape of recurring revenue. Subscriptions represented 54 per cent of recurring revenue in Q3 2026 and 55 per cent over nine months, against 55 per cent and 51 per cent respectively in the 2025 periods. The quarterly share is stable year on year; the nine-month share is up four points.

For practitioners, the licence spike matters as much as the ARR trend. A $1.7 million licence quarter, against $0.4 million a year ago, indicates new deployments rather than pure base retention, though one strong licence quarter does not by itself establish a durable non-recurring pipeline.

Why the scope change?

The February 2026 divestiture of the Extended Threat Defense line removed a non-core business and concentrated Verimatrix on Anti-Piracy — content protection and user-centric security for video operators and streaming platforms. The restated 2025 comparatives mean the 20 per cent growth figure measures the retained business like for like, not an artefact of portfolio shrinkage. The company also credits its partnership with Kaltura and a leaner cost structure for the improved performance, alongside the strategic refocus.

Dechaux confirmed the company maintains its full-year 2026 outlook, and with total ARR growing for three consecutive quarters and the nine-month revenue gap narrowed from minus 11 to minus 3 per cent, Verimatrix enters Q4 needing continued licence traction to convert quarterly growth into a positive full-year result.