DMRC (Digimarc) Degree of Operating Leverage : 2.20 (As of Mar. 2026)


DMRC Digimarc Corp DMRC
46 GF Score
Price $7.60
GF Value $21.46
Valuation Possible Value Trap
! 6 Warning Signs
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What is Digimarc Degree of Operating Leverage?

Digimarc DMRC +6.52% 46 Degree of Operating Leverage is 2.20 as of Mar. 2026. GuruFocus rates DMRC with a GF Score™ of 46/100 and a GF Value™ of $21.46 (Possible Value Trap). The stock has 6 warning signs investors should review. Among 2,699 Software companies, Digimarc ranks worse than 67.95% on this metric.

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Digimarc's Degree of Operating Leverage for the quarter that ended in Mar. 2026 was 2.20. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Digimarc's Degree of Operating Leverage or its related term are showing as below:

DMRC's Degree of Operating Leverage is ranked worse than
67.95% of 2699 companies
in the Software industry
Industry Median: 0.57 vs DMRC: 2.20

Digimarc  (NAS:DMRC) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Digimarc Degree of Operating Leverage Related Terms


Digimarc Degree of Operating Leverage Historical Data

* Premium members only.

The historical data trend for Digimarc's Degree of Operating Leverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Digimarc Degree of Operating Leverage Chart

Digimarc Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.04 3.58 -1.34 -1.30 1.67

Digimarc Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Degree of Operating Leverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.15 0.51 0.81 1.67 2.20

DMRC vs PERF, TRAK, EGAN: Degree of Operating Leverage Comparison

For the Software - Application subindustry, Digimarc's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Digimarc Degree of Operating Leverage vs Software Industry

For the Software industry and Technology sector, Digimarc's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Digimarc's Degree of Operating Leverage falls into.


DMRC
46GF Score
Digimarc Corp DMRC
Degree of Operating Leverage is just one metric. See GF Score™, valuation, warning signs, and more.
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Digimarc Degree of Operating Leverage Calculation

Digimarc's Degree of Operating Leverage for the quarter that ended in Mar. 2026 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( -28.106 (Mar. 2026) / -42.142 (Mar. 2025) - 1 )/( 32.124 (Mar. 2026) / 37.848 (Mar. 2025) - 1 )
=-0.3331/-0.1512
=2.20***

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

What does a Degree of Operating Leverage of 2.20 mean?
Digimarc (DMRC) has a Degree of Operating Leverage of 2.20 as of Mar. 2026. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Digimarc and its competitors. According to the industry distribution chart, Digimarc ranks #1834 out of 2699 companies in the Software industry, placing it in the top 68%.
Is Digimarc's Degree of Operating Leverage too high?
Digimarc's current Degree of Operating Leverage is 2.20. The Software industry median Degree of Operating Leverage is 0.57. Digimarc's value of 2.20 is 286% above this industry median. Based on the distribution chart, Digimarc ranks #1834 out of 2699 companies in the Software industry, which is below the industry midpoint. Overall, Digimarc has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Digimarc's Degree of Operating Leverage compare to PERF and TRAK?
According to the Software industry distribution chart, Digimarc ranks #1834 out of 2699 companies for Degree of Operating Leverage. This places Digimarc in the lower half of its industry. The industry median Degree of Operating Leverage is 0.57. Digimarc's value of 2.20 is 286% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Degree of Operating Leverage for a Software company?
The median Degree of Operating Leverage among Software companies is 0.57, based on 2,699 companies in the industry. Companies in the top quartile (top 25%) have a Degree of Operating Leverage significantly above this median, while those in the bottom quartile fall well below. However, Degree of Operating Leverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Digimarc's current Degree of Operating Leverage of 2.20 is 286% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Degree of Operating Leverage mean?
A high Degree of Operating Leverage can signal that a stock is expensive relative to its fundamentals. Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. View historical data for Digimarc and its competitors. For the Software industry, the median Degree of Operating Leverage is 0.57 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Digimarc's current Degree of Operating Leverage is 2.20. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Digimarc stock overvalued right now?
Based on GuruFocus' analysis, Digimarc (DMRC) is currently considered Possible Value Trap. The stock's GF Value™ is $21.46, compared to a current price of $7.60 — trading 64.6% below its estimated fair value. The current Degree of Operating Leverage is 2.20 and 286% above the Software industry median of 0.57. Digimarc's overall GF Score™ is 46/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Degree of Operating Leverage calculated?
Degree of Operating Leverage is calculated from a company's financial statements. For Digimarc (DMRC), the current Degree of Operating Leverage is 2.20 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Digimarc (DMRC) Overvalued in 2026?

Based on GuruFocus' analysis, Digimarc stock appears to be undervalued. The current stock price of $7.60 is trading 64.6% below its estimated GF Value™ of $21.46. GuruFocus considers Digimarc to be Possible Value Trap.

Key valuation signals for DMRC:

  • Degree of Operating Leverage: 2.20
  • GF Value™: $21.46 vs. price of $7.60 (64.6% below fair value)
  • GF Score™: 46/100 with 6 warning signs
  • Industry Position: 286% above the Software median (#1834 of 2699)

No single metric tells the full story. See the DMRC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Digimarc Business Description

Address 8500 SW Creekside Place, Beaverton, OR, USA, 97008
Digimarc Corp is a product digitization company delivering business value across industries through identities and cloud-based solutions. Its solutions are Anti-counterfeiting, Internal Compliance, Leak Detection, Piracy Prevention, Product Swap Prevention, Provenance & Authenticity (C2PA), Recycling, and Royalty Monitoring. The group offers services to various industries such as Consumer Packaged Goods, Government, Media, Pharmaceutical, and Retail.
46GF Score

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Degree of Operating Leverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$7.60
Price
$21.46
GF Value