Slide 1: Investor Presentation Fourth Quarter 2025
Investor Presentation Fourth Quarter 2025 March 11, 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 Digimarc achieves both positive non-GAAP net income and positive free cash flow in Q4’25; expects to deliver significant ARR growth in FY'2026 Business Highlights • Secured our first Secure Gift Card commercial order (signed in Q1) covering 6 Closed-Loop and Open-Loop brands. • Advanced r
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: •
Slide 5: Retail Loss Prevention
Retail Loss Prevention Secured first Secure Gift Card commercial order; advancing initial rollout plans with 8 North American retailers, including 4 of the largest. • Results to date demonstrate the power of our solution -- strong fraud-reduction outcomes, improved checkout experience, and high scal
Slide 6: Gift Card Ecosystem Overview
Gift Card Ecosystem Overview The gift card ecosystem consists of several interdependent constituents, including brands, retailers, card printers, gift card networks, program managers, scanner hardware manufacturers, printer equipment manufacturers, and label providers. Note: Logos shown above are pr
Slide 7: 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 8: Digital Trust & Integrity
Digital Trust & Integrity We exceeded our conservative 2025 ARR assumptions and look to accelerate our traction throughout 2026 • AI is creating a vacuum of trust and authenticity, especially acute in the digital world. • The work of C2PA has created wide awareness that our technology can address ma
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 Belgium end-to-end market Continue to support Netto Marken Continue to suppor
Slide 10: Financial Update
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Slide 11: Annual Recurring Revenue
Annual Recurring Revenue Q4’25 Ending ARR was $13.7M vs $20.0M in Q4’24 (2) • ARR was negatively impacted by the loss of two large customer contracts outside of our focus areas, the $3.5M DRS contract in Q2’25 and the $3.1M retailer contract in Q4’25. • Despite these headwinds, we expect ARR to re-a
Slide 12: Financial Summary
Financial Summary Q4’25 non-GAAP net income was $1.0M, an improvement of $5.7M (1) • The large reduction in expenses reflects lower headcount costs due to the reorganization in Q1’25 as well as lower non- headcount cash costs from our ongoing corporate streamlining efforts. YoY % ($’s in 000’s, exce
Slide 13: Free Cash Flow
Free Cash Flow Q4’25 free cash flow was $0.7M, an improvement of $5.1M from Q4’24 (1) • The improvement in free cash flow usage was largely attributable to lower expenses. • We ended Q4’25 with $12.9M of cash and short-term investments, and no debt. • For Q1’26, we expect a free cash flow usage betw
Slide 14: Free Cash Flow Bridge
Free Cash Flow Bridge Lower expenses are driving the $5.1M improvement in free cash flow in Q4’25 vs. Q4’24 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, positioning ourselves as
Slide 16: mre
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Slide 17: Footnotes
Footnotes (1) This presentation contains non-GAAP financial measures including Non-GAAP operating expenses, Non-GAAP net income (loss), Non-GAAP net income (loss) per diluted share and Free cash flow. These financial measures are important measures of our operating performance because they allow man