Digimarc Corporation · NASDAQ:DMRC
Digimarc — Q3 2025 Earnings Presentation
17 slides from Digimarc's earnings presentation, Oct 30, 2025
Slide 1: Investor Presentation Third Quarter 2025
Investor Presentation Third Quarter 2025 October 30, 2025 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, which reflect management’s current view regarding future events and performan
Slide 3: Q3'25 Highlights
Q3’25 Highlights Digimarc continues to make significant progress towards reaccelerating ARR growth with its newly refocused organization Business Highlights • The first Digimarc-protected gift cards reached shelves in August; major brands included Target, Home Depot, Nordstrom, and BHN (Multi-Retail
Slide 4: Three Core Focus Areas
Three Core Focus Areas Digimarc is focused on solving large, urgent problems that deliver immediate ROI Retail Loss Prevention Product Authentication Digital Authentication Fight Fraud, Preserve Convenience, and Secure Authentication for Agents in the Field Protect and Verify Digital Footprint Prote
Slide 5: Retail Loss Prevention
Retail Loss Prevention We expect multiple major retailers to start selling Digimarc-protected gift cards within the next two quarters • Our solution is more secure, less expensive, and – as the only digital solution – more extensible than existing solutions. This has caught the attention of many eco
Slide 6: Gift Card Ecosystem
Gift Card Ecosystem Digimarc predominantly sells its gift card solution to gift card manufacturers while leveraging our long-term relationships with numerous industry participants to catalyze adoption Gift Card Digimarc Customers Manufacturers Program Retailers Managers Ecosystem Enablers Market Ben
Slide 7: Product Authentication
Product Authentication Digimarc Validate ARR continues to grow, driven by customer upsells & new customer wins • Brands face rampant counterfeiting and IP theft, with bad actors advancing their technology and processes to replicate packaging and security features with alarming accuracy, something ma
Slide 8: Digital Authentication
Digital Authentication We have exceeded our conservative 2025 assumptions in this area and look to accelerate our traction throughout 2026 • AI is creating a vacuum of trust and authenticity, especially acute in the digital world. • Content Credentials (C2PA) has created awareness that our technolog
Slide 9: Future Identification Opportunity Areas
Future Identification Opportunity Areas Digimarc remains well-positioned to execute against large market opportunities when the markets are ripe Digimarc Retail Digimarc Recycle Experience Digimarc Automate Digimarc Engage Initial enhancement of packaging for Continue to support Netto Marken Continu
Slide 10: Financial Update
Y Financial Update DIGIMARC
Slide 11: Annual Recurring Revenue
Annual Recurring Revenue Q3’25 Ending ARR was $15.8M vs $18.7M in Q3’24 (2) • ARR was negatively impacted by churn of the $3.5M DRS contract in Q1’25. • Looking forward, ARR will be negatively impacted by $3.1M in Q4'25, reflecting the conclusion of the renegotiation with our retailer customer. • De
Slide 12: Financial Summary
Financial Summary Q3’25 non-GAAP loss was ($2.2M), an improvement of $3.9M or 64% from Q3’24 (1) • The large reduction in operating expenses primarily reflects lower compensation costs due to the reorganization in Q1’25. • Looking forward, we expect a further reduction in our run-rate of expenses in
Slide 13: Free Cash Flow
Free Cash Flow Q3’25 free cash flow was ($3.1M), an improvement of $4.2M or 58% from Q3’24 (1) • The improvement in free cash flow usage was largely attributable to lower operating expenses. • We ended Q3’25 with $12.6M of cash and short-term investments, and no debt. • Internally we use non-GAAP ne
Slide 14: Free Cash Flow Bridge
Free Cash Flow Bridge Lower expenses are driving the $4.2M improvement in free cash flow in Q3’25 vs. Q3’24 14
Slide 15: Concluding Remarks
Concluding Remarks We are realizing significant benefits from our decision to focus on our core authentication use cases as we build the trust layer for the modern world • Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions. • We are advancing the gif
Slide 16: DIGIMARC
16 DIGIMARC
Slide 17: Footnotes
Footnotes (1) This presentation contains non-GAAP financial measures including Non-GAAP operating expenses, Non-GAAP net loss, Non-GAAP net loss per share (diluted) and Free cash flow. These financial measures are important measures of our operating performance because they allow management, investo