Destiny Media Technologies Inc. reported its fiscal 2026 first‑quarter results for the period ended November 30, 2025, on January 14, 2026. The company posted revenue of $1.20 million, a 1.3 % year‑over‑year increase, and net income of $84,000. Adjusted EBITDA for the quarter was $250,000, down from $290,000 in the same period a year earlier, reflecting a modest decline in profitability as the company invested in new product development and technology modernization.
Revenue growth was driven by a 1.5 % increase in the core music promotion platform segment, offset by a 2 % decline in legacy software sales. Gross margin fell to 85.4 % from 87.3 % year‑over‑year, a compression largely attributable to higher cost of goods sold in the legacy segment and the initial cost of migrating customers to the new platform. The margin decline signals the company’s ongoing transition to a higher‑margin, cloud‑based service model.
Net income rose modestly, but adjusted EBITDA contracted, indicating that the company’s cost‑control efforts have not yet fully offset the investment in new products and platform upgrades. The decline in adjusted EBITDA is consistent with the company’s stated focus on scaling its technology stack, which required capital expenditures and higher support costs in the short term. Management noted that the investment is expected to generate higher margins as the new platform matures and customer adoption accelerates.
The earnings release also confirmed the extension of Destiny Media’s multi‑year agreement with Universal Music Group through December 31, 2028. The contract now carries an annual service fee of $1.6 million for 2026, with a 2 % increase each subsequent year. The extension provides the company with predictable revenue and strengthens its relationship with its largest customer, which accounted for a significant portion of the company’s revenue and receivables in Q1 FY2026.
In addition to the UMG extension, Destiny Media announced the launch of two new products: Caster/Caster+, a self‑service promotion platform, and MTR™ (Music Tracking Radar), a data‑driven analytics tool. These launches are part of the company’s broader technology modernization effort completed in fiscal 2025, which included migrating its largest customer to a new platform and sunsetting legacy software. The new products are expected to broaden the company’s market reach and create additional revenue streams.
CEO Fred Vandenberg described the quarter as an “important inflection point,” citing the new product launches, strengthened marketing and sales initiatives, and the UMG agreement extension as key drivers of momentum. He emphasized that the company’s focus on technology modernization and customer expansion positions it for continued growth, while acknowledging the need to manage costs as it scales its platform.
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