You could ask Emotiva (they're pretty responsive, I've found), but from their web site it looks like the ERC-2 is fully differential in the analog domain, but not in the digital domain, like some other players. I think Emotiva did the important part. I have one, and though I use it only as a transport, in my listening tests through a preamp it sounded just as good as my previous Mark Levinson CD player. It is a bargain.