Slide 1: Investor Presentation Second Quarter 2025
Investor Presentation Second Quarter 2025 August 14, 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: Q2 2025 Update
Q2 2025 Update Digimarc made significant progress towards future reacceleration of ARR growth with its newly refocused organization Business Highlights The first Digimaro-protected gift cards will appear on shelves next week; cards are from multiple different issuers, including some of the largest ‘
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 ee = Protect and Verify Digital Footprint Fight Fraud, Preserve Convenience, and Protect Associates at Self-Checkout ~AAAY eA D
Slide 5: Retail Loss Prevention: Gift Cards
Retail Loss Prevention: Gift Cards Is Digimarc’s gift card to have the g! impact on near-term ARR + Estimated 5+ billion gift cards are printed each year in the US alone. Digimare’s solution is more secure, less expensive, and —as the only digital solution — more extensible than existing solutions F
Slide 6: Gift Card Ecosystem
Gift Card Ecosystem igimarc predominantly sells its gift card solution to gift card manufacturers while leveraging our long-term i ips with industry ici to catalyze i Digimarc Customers 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 is
Slide 9: Future Identification Opportunity Areas
Future Identification Opportunity Areas Dig the markets are ripe Digimarc Recycle to Digimarc Retail Experience against large market opportunities when imarc Automate Digimarc Engage Initial packaging Marken positioned for additional ARR in the cl : at their front of store, ay Continue 4] a Have cap
Slide 10: Financial Update
ue Financial Update DIGIMARC
Slide 11: ARR Comparison: Q2 2025 vs Q2 2024
ARR Comparison: Q2 2025 vs Q2 2024 Q2 2025 Ending ARR” was $15.9M vs $23.9M in Q2 2024 + ARR was negatively impacted by chur of the $5.8M retailer contract in 2024 and $3.5M DRS contract in 2025. + ARR as of 6/30/25 is in line with our original 2025 internal budget. + Looking forward, we expect ARR
Slide 12: Q2 2025 Financial Summary
Q2 2025 Financial Summary Q2 2025 non-GAAP loss" was ($2.3M), an improvement of $2.7M or 54% from Q2 2024 + The large reduction in operating expenses primarily reflects lower compensation costs due to the reorganization in Q1 2025; annualized cash cost savings from the reorganization are expected to
Slide 13: Free Cash Flow Comparison: Q2 2025 vs Q2 2024
Free Cash Flow Comparison: Q2 2025 vs Q2 2024 Q2 2025 free cash flow” was ($5.0M), an improvement of $1.9M or 28% from Q2 2024 Excluding $0.9M of one-time severance payments and $0.3M of one-time legal costs®, free cash flow”) would have been (83.8M), an improvement of $3.2M or 45% from Q2 2024 The
Slide 14: Free Cash Flow Bridge: Q2 2025 vs Q2 2024
Free Cash Flow Bridge: Q2 2025 vs Q2 2024 Q2 2025 free cash flow” was ($5.0M), down $1.9M or 28% from Q2 2024. Adjusted free cash flow” was ($3.8M) and continues to improve. dial increase Ml Decrease mi Total s00 10 Primarily related as to headcount reductions 20 — eee Ae eee eee eee x = (s80) ero =
Slide 15: Concluding Remarks
Concluding Remarks We are izing sig icant its from our ision 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 card opportunity
Slide 16: Q&A
Slide 17: Footnotes
Footnotes ) ° financial ‘operating expenses, Non-GAAP net oss, Non-GAAP net loss per share (diluted) and Free Cash Flow. perating ‘assess our core operating results ftom period-to-period after removing non-cash and GAAP financial measures, in evaluating non tog ng P Companies, investors need to be a