Digimarc (DMRC) Q2 2025 Earnings Call August 14, 2025 05:00 PM ET Speaker0Ladies and gentlemen, greetings and welcome to the Digimarc Corporation Q2 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, George Karamanos.Please go ahead.Speaker1Thank you very much. Welcome, everyone, to our Q2 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-34108 DIGIMARC CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction ...

Financial Performance - Ending ARR at June 30, 2025, was $15.9 million, compared to $23.9 million in Q2 2024[23] - Q2 2025 non-GAAP net loss was $2.3 million, a 54% improvement from Q2 2024[26] - Q2 2025 free cash flow was negative $5.0 million, a 28% improvement from Q2 2024[28] Business Highlights - The first Digimarc-protected gift cards will appear on shelves next week[8] - A new ARR from a European packaging customer signing multi-year committed contract; ARR should be just under seven figures next year[8] - Reduced Q2 operating expenses by 22% and non-GAAP operating expenses by 37%, largely reflecting the impact of cost savings from the Q1 reorganization[8] Future Outlook - The company continues to believe it is likely that it will generate both positive non-GAAP net income and positive free cash flow in Q4 2025[8] - The company expects ARR to trough in Q3 or Q4 2025, and to re-accelerate thereafter into 2026, largely from increasing penetration of its gift card solution[25] - Annualized cash cost savings from the reorganization are expected to be approximately $16.5 million[27]

Exhibit 99.1 Subscription revenue for the second quarter of 2025 decreased to $4.6 million compared to $6.4 million for the second quarter of 2024, primarily reflecting the expiration of two commercial contracts that contributed $1.9 million of subscription revenue during the three months ended June 30, 2024. Service revenue for the second quarter of 2025 decreased to $3.4 million compared to $4.0 million for the second quarter of 2024, primarily reflecting $0.5 million of lower government service revenue f ...

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Digimarc Corporation during the specified class period of the upcoming lead plaintiff deadline for a class action lawsuit [1][2]. Group 1: Class Action Details - The class period for the Digimarc securities is from May 3, 2024, to February 26, 2025 [1]. - Investors may be entitled to compensation without any out-of-pocket fees through a contingency fee arrangement [1]. - A class action lawsuit has already been filed, and interested parties must move the Court to serve as lead plaintiff by July 8, 2025 [2]. Group 2: Law Firm Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest settlement against a Chinese company at the time [3]. - The firm was ranked No. 1 by ISS Securities Class Action Services for the number of settlements in 2017 and has consistently ranked in the top 4 since 2013 [3]. - In 2019, the firm secured over $438 million for investors [3]. Group 3: Case Allegations - The lawsuit alleges that Digimarc made false and misleading statements regarding a large commercial partner's contract renewal and its impact on subscription and annual recurring revenue [4]. - The misleading statements led to investor damages when the true details were revealed [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Digimarc Corporation regarding a class action lawsuit due to alleged misleading statements and omissions that affected the company's stock value during a specified period [1][3]. Summary by Relevant Sections Class Period and Allegations - The class period for the lawsuit is from May 3, 2024, to February 26, 2025 [3]. - Allegations include that Digimarc's management failed to disclose that a significant commercial partner would not renew a large contract on the same terms, leading to a renegotiation that would adversely affect subscription revenue and annual recurring revenue [3]. Next Steps for Shareholders - Shareholders who purchased shares during the class period are encouraged to register for the class action by the deadline of July 7, 2025 [4]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's progress [4]. Law Firm's Commitment - The Gross Law Firm aims to protect investors' rights and seeks recovery for those who suffered losses due to deceitful practices by companies [5].

Core Viewpoint - The Gross Law Firm is notifying shareholders of Digimarc Corporation regarding a class action lawsuit due to alleged misleading statements and failure to disclose critical information during a specified class period [1][2]. Group 1: Class Action Details - The class period for the lawsuit is from May 3, 2024, to February 26, 2025 [2]. - Allegations include that Digimarc's management failed to disclose that a significant commercial partner would not renew a major contract on the same terms, leading to a renegotiation that would adversely affect subscription and annual recurring revenue [2]. - The lawsuit claims that the positive statements made by the defendants about the company's business and prospects were materially misleading or lacked a reasonable basis [2]. Group 2: Shareholder Actions - Shareholders are encouraged to register for the class action by the deadline of July 7, 2025, to potentially be appointed as lead plaintiff [3]. - Once registered, shareholders will receive updates through a portfolio monitoring software regarding the case's status [3]. - Participation in the case incurs no cost or obligation for the shareholders [3]. Group 3: Law Firm Background - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights against deceit and illegal business practices [4]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors who suffered losses due to misleading statements or omissions [4].

Core Viewpoint - Rosen Law Firm is reminding investors who purchased securities of Digimarc Corporation during the specified class period of the upcoming lead plaintiff deadline on July 8, 2025, and the potential for compensation without out-of-pocket costs [1][2]. Group 1: Class Action Details - A class action lawsuit has been filed against Digimarc Corporation, and investors who wish to serve as lead plaintiff must act by July 8, 2025 [2]. - The lawsuit alleges that Digimarc made false and misleading statements regarding its business operations, specifically about a large commercial partner not renewing a significant contract, which adversely affected subscription and annual recurring revenue [4]. Group 2: Rosen Law Firm's Credentials - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions, highlighting its own success in recovering hundreds of millions for investors [3]. - The firm has been recognized for its leadership in securities class action settlements, achieving the largest settlement against a Chinese company at the time and ranking in the top four for settlements since 2013 [3].

Core Viewpoint - A class action securities lawsuit has been filed against Digimarc Corporation, alleging securities fraud that negatively impacted investors between May 3, 2024, and February 26, 2025 [1][2]. Group 1: Lawsuit Details - The lawsuit claims that Digimarc's management made false statements regarding a significant commercial partner's contract renewal, which would not occur on the same terms [2]. - It is alleged that due to this non-renewal, Digimarc would need to renegotiate the large commercial contract, adversely affecting the company's subscription revenue and annual recurring revenue [2]. - The complaint asserts that the positive statements made by the defendants about the company's business and prospects were materially misleading or lacked a reasonable basis [2]. Group 2: Next Steps for Investors - Investors who suffered losses during the specified timeframe have until July 7, 2025, to request the Court to appoint them as lead plaintiff, although participation in any recovery does not require serving as a lead plaintiff [3]. - Class members may be entitled to compensation without any out-of-pocket costs or fees, with no obligation to participate [3]. Group 3: Firm Background - Levi & Korsinsky has a history of securing hundreds of millions of dollars for shareholders and has a strong track record in high-stakes securities litigation [4]. - The firm has been recognized in ISS Securities Class Action Services' Top 50 Report for seven consecutive years as one of the leading securities litigation firms in the United States [4].

Core Viewpoint - The Gross Law Firm has issued a notice to shareholders of Digimarc Corporation regarding a class action lawsuit due to alleged misleading statements and omissions that affected the company's stock value during a specified period [1][2]. Summary by Relevant Sections Allegations - The complaint alleges that during the class period from May 3, 2024, to February 26, 2025, Digimarc's defendants made materially false and misleading statements and failed to disclose critical information, including: - A significant commercial partner would not renew a large contract on the same terms [1]. - Digimarc would need to renegotiate this large commercial contract [1]. - The renegotiation would adversely affect the company's subscription revenue and annual recurring revenue [1]. - Consequently, the defendants' positive statements regarding the company's business and prospects were materially misleading or lacked a reasonable basis [1]. Next Steps for Shareholders - Shareholders who purchased shares of DMRC during the specified timeframe are encouraged to register for the class action by July 7, 2025, to potentially become lead plaintiffs [2]. - Registered shareholders will be enrolled in a portfolio monitoring software to receive updates throughout the case lifecycle [2]. Firm's Mission - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting investors' rights who have suffered due to deceit, fraud, and illegal business practices [3]. - The firm aims to ensure companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that led to artificial inflation of stock prices [3].