Destiny Media Technologies Inc. reported fiscal 2025 results that ended August 31, 2025, showing revenue of $1.12 billion, a 2.3 % year‑over‑year increase that reflects modest growth in its core Play MPE platform and a 20 % quarterly rise in Music Tracking Radar (MTR) revenue. The company posted a net loss of $0.6 million, a reversal from the $111,758 net income reported for fiscal 2024, largely driven by a $0.25 million legal expense that was not present in the prior year.
The 2.3 % revenue gain was driven by a 1.8 % increase in Play MPE subscription revenue, offset by a 0.5 % decline in MTR revenue as the product continues to mature and compete with established air‑play tracking services. Gross margin fell from 86.2 % in fiscal 2024 to 85.7 % in fiscal 2025, reflecting higher infrastructure costs associated with the recent technology stack modernization and the integration of MTR into the Play MPE ecosystem.
Adjusted EBITDA contracted to $0.20 million from $0.57 million in fiscal 2024, a decline largely attributable to the $0.25 million legal expense and increased amortization of newly acquired software assets. Management highlighted that the legal expense was a one‑time charge related to a favorable ruling in ongoing litigation, but the cost still weighed on profitability. The company’s net loss underscores the short‑term impact of heavy investment in product development and platform upgrades, while the modest revenue growth signals that the modernization is beginning to pay off.
The company completed a multi‑year technology modernization that upgraded its core infrastructure, enabling faster data processing and lower operating costs over the long term. In addition, Destiny Media successfully migrated its largest enterprise customer to the new platform in April 2023, a milestone that reduced churn risk and positioned the company for future upsell opportunities. The MTR product, launched in the U.S. on June 27, 2024 and integrated with Play MPE in October 2024, continues to gain traction, with a 20 % quarter‑over‑quarter revenue increase in the most recent period, but it still represents a modest share of total revenue.
CEO Fred Vandenberg emphasized that the modernization effort is a strategic investment that will unlock scalability and improve operational efficiency. He noted that while the company is currently operating at a loss, the focus is on building a more robust platform that will drive profitability in the coming years. Vandenberg also highlighted the company’s commitment to managing legal risks and maintaining a diversified customer base to mitigate concentration risk.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.