Slide 1: Investor Presentation First Quarter 2026
Investor Presentation First Quarter 2026 May 12, 2026 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: Highlights
Highlights Grew Ending ARR(1) 9% sequentially; advancing Secure Gift Card rollout plans with 15 North American retailers, including 8 of the top 20 largest(2) Business Highlights • Secured our first Secure Gift Card commercial order covering six Closed-Loop and Open-Loop brands. • Advancing rollout
Slide 4: Three Core Focus Areas
Three Core Focus Areas Digimarc is capitalizing on the convergence of key trends driving increased demand for our solutions, positioning ourselves to benefit from the relentless advance of AI Retail Loss Product Digital Trust & Prevention Authentication Integrity Solutions: Solutions: Solutions: • S
Slide 5: Retail Loss Prevention
Retail Loss Prevention Secured first Secure Gift Card commercial order; advancing rollout plans with 15 North American retailers, including 8 of the top 20 largest(2) • Results to date demonstrate the power of our solution – significant fraud-reduction, improved checkout experience, and high scalabi
Slide 6: Product Authentication
Product Authentication ARR from our Anti-counterfeiting solution 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 ac
Slide 7: Digital Trust & Integrity
Digital Trust & Integrity We continue to execute against this large opportunity and are progressing a natural extension of our strategy that provides a critical, unmet need for scalable agentic AI • AI is creating a vacuum of trust and authenticity, especially acute in the digital world. • The work
Slide 8: 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 Belgium end-to-end market Continue to support Netto Marken Continue to suppor
Slide 9: Financial Update
Y Financial Update DIGIMARC
Slide 10: Annual Recurring Revenue
Annual Recurring Revenue Q1’26 Ending ARR was $15.0M vs $20.0M in Q1’25 (1) • ARR was negatively impacted by the previously disclosed loss of two customer contracts in 2025 that are outside of our focus areas. • Excluding these headwinds, ARR grew $1.8 million year-over-year. • ARR grew 9% sequentia
Slide 11: Financial Summary
Financial Summary Q1’26 non-GAAP net loss was $1.6M, an improvement of $6.9M (5) • Subscription revenue was impacted by the previously disclosed loss of two customer contracts in 2025. • Service revenue was impacted by the end of HolyGrail 2.0 recycling projects in 2025. • The reduction in expenses
Slide 12: Free Cash Flow
Free Cash Flow Q1’26 free cash flow was ($2.0M), an improvement of $3.7M from Q1’25 (5) • We ended Q1’26 with $10.0M of cash and short-term investments, and no debt. YoY $ ($’s in 000’s) Q1’26 Q1’25 Improvement Free cash flow generation (usage)(5) ($1,968) ($5,629) $3,661 Non-GAAP net income (loss)(
Slide 13: Free Cash Flow Bridge
Free Cash Flow Bridge $3.7M improvement in free cash flow(5) in Q1’26 vs Q1’25 13
Slide 14: Concluding Remarks
Concluding Remarks We are capitalizing on the convergence of key trends driving increased demand for our solutions positioning ourselves to benefit from the relentless advance of AI • We grew Ending ARR(1) 9% sequentially while expanding our Subscription Gross Margin(3) 400 basis points year- over-y
Slide 15: mre
k 4 mre DIGIMARC DIGIMARC
Slide 16: Footnotes
Footnotes (1) Ending Annual Recurring Revenue (ARR) is a company performance metric calculated as the aggregation of annualized subscription fees from all our commercial contracts as of the measurement date. (2) The references to the Top 20 largest North American retailers was determined based on 20