Slide 1: Investor Presentation Third Quarter 2025
Investor Presentation Third Quarter 2025 October 30, 2025 DIGIMARC
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 ‘Self-Checkout = = Fight Fraud, Preserve Corwenience, and Secure Authertication for Agents in the Field Protect and Verify Digi
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 + Oursolution is more secure, less expensive, and — as the only digital solution — more extensible than existing solutions. This has caught the attention of many ecos
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 Ecosystem Enablers Market Beneficiaries DIGIMARC
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 + Alis creating a vacuum of trust and authenticity, especially acute in the digital world + Content Credentials (C2PA) has created awareness that our technology
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 Co
Slide 10: Financial Update
Financial Update DIGIMARC
Slide 11: Annual Recurring Revenue
Annual Recurring Revenue Q3’25 Ending ARR” was $15.8M vs $18.7M in Q3’24 + ARRwas negatively impacted by chum 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. Despite th
Slide 12: Financial Summary
Financial Summary Q3’25 non-GAAP loss" was ($2.2M), an improvement of $3.9M or 64% from Q3’24 + 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 Q4’
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 + The improvement in free cash flow usage was largely attributable to lower operating expenses. + We ended @3'25 with $12.6M of cash and short-term investments, and no debt. + Internally we use non-GAAP net i
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 Q3'25 vs. Q3'24 Free Cash Flow (FCF) Bridge Seniesa Increase Decrease @ Total soo (10) (320) (0) _ A ------------------- 20 $5! Sn _ (40) ($50) Net$4.2M ($6.0) FCF benefit (79) (se.0) ($20) <=
Slide 15: Concluding Remarks
Concluding Remarks We are real g 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 gift ca
Slide 16: DIGIMARC
DIGIMARC
Slide 17: Footnotes
Footnotes (1). This presentation contains non-GAAP fnancial measures incuding Non-GAAP operating expenses, Non-GAAP net loss, Non-GAAP net loss per share (diuted) and Free cash fow. These fnancial measures are important measures of our operating perfomance because they alow management, investors and