DESTINY MEDIA TECHNOLOGIES INC SEC 10-Q Report

Destiny Media Technologies Inc., a leading provider of digital content distribution solutions, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's financial performance and operational developments, focusing on its core business, the Play MPE® online platform, and the newly launched MTR™ (Music Tracking Radar) service.

Financial Highlights

Total Revenue: $1.13 million, a decrease of 1.9% compared to the same period last year due to a reduction in independent label revenue and new customer acquisition.

Gross Margin: $0.97 million, representing 85.7% of revenue, slightly down from 87.0% in the prior year due to infrastructure investments for the MTR™ business.

Income (loss) from operations: $(0.08) million, a decrease from $0.12 million in the prior year, primarily due to increased operating expenses.

Net income (loss): $(0.07) million, compared to a net income of $0.13 million in the prior year, reflecting higher operating expenses and lower gross margin.

Net income (loss) per common share (basic and diluted): $(0.01), compared to $0.01 in the prior year, indicating a decline in profitability per share.

Business Highlights

Revenue Segments: The company's core business is the Play MPE® online platform, which distributes promotional content from record labels and artists to broadcasting professionals. The platform serves a wide range of customers, including small independent artists and major record labels like Universal Music Group, Warner Music Group, and Sony Music Entertainment.

Geographical Performance: During the three and nine months ended May 31, 2025, the company generated 47.0% and 47.1% of total revenue from one customer. Revenue from North America, Europe, Australasia, and Africa was reported, with Europe showing significant growth in revenue compared to the previous year.

New Product Launches: The company launched MTR™ (Music Tracking Radar), a digital tracking service that reports the number and times an individual track is played. This service is expected to grow with additional features to accommodate larger clients.

Product Development: The company is developing additional functionality and complementary services to expand its market and enhance sales activities for Play MPE®. This includes infrastructure investments related to the development of the MTR™ business.

Future Outlook: The company anticipates increasing sales and marketing expenditures to focus on marketing-related initiatives, as upcoming Play MPE® platform enhancements are expected to drive greater customer adoption. The company is also confident in a positive outcome for ongoing litigation, which is expected to conclude soon.

SEC Filing: DESTINY MEDIA TECHNOLOGIES INC [ DSNY ] - 10-Q - Jul. 14, 2025