They're like Zebra Technologies, but instead of traditional barcodes, they provide invisible digital watermarks and the scanning technology to identify products for retail, supply chain, and recycling.

Think of them as Cognex, but focused on creating and reading hidden digital identifiers (watermarks) on physical products for automation, quality control, and anti-counterfeiting.

• Digimarc watermarks: A data carrier that provides a digital identity to media objects.
• Digimarc Discover: Software for computing devices and network interfaces that recognize and decode the identity of media.
• Digimarc Verify: A suite of software tools used to inspect and verify the identification and discovery of media.

Riley McCormack, President & Chief Executive Officer

Riley McCormack is the President and CEO of Digimarc. Before leading Digimarc, he founded Tracer Capital Management, a New York-based investment firm that specialized in global technology, media, and telecom hedge funds. He also served as a partner at Coatue Capital and a high-yield research analyst at Morgan Stanley. McCormack also founded and served as Managing Member and CEO of TCM|Strategic, a fund that made a significant investment in Digimarc.

Charles Beck, Executive Vice President, Chief Financial Officer and Treasurer

Charles Beck is Digimarc's Executive Vice President, Chief Financial Officer, and Treasurer. He is responsible for the financial strategy and goals, regulatory compliance, and oversees the Finance, Facilities, and IT functions. Prior to joining Digimarc, Charles was a Senior Manager at KPMG LLP, where he served in various management roles within the firm's technology practice.

Carle Quinn, Executive Vice President, Chief Operating Officer

Carle Quinn serves as Digimarc's Executive Vice President and Chief Operating Officer, leading company-wide business operations. Her diverse background includes impactful roles at global companies such as SAP, Citrix, GE, IBM, and QVC. Before joining Digimarc, she held the position of Chief People Officer at Workato.

Tony Rodriguez, Executive Vice President & Chief Technology Officer

Tony Rodriguez holds the position of Executive Vice President and Chief Technology Officer at Digimarc. He has played a pivotal role in shaping the company's research and development efforts since joining in 1998. His work focuses on advancing Digimarc's digital watermarking technology and leveraging its cloud-based platform.

Ken Sickles, Executive Vice President & Chief Product Officer

Ken Sickles is the Executive Vice President and Chief Product Officer at Digimarc, responsible for developing, delivering, and supporting the company's global technology platform. He previously served as Chief Technology Officer/Chief Product Officer at ThinkTank, which was acquired by Accenture in 2021. His prior experience includes product leadership roles at companies such as 1WorldSync, Dow Jones, and Cognos.

1. Cash Burn and Need for Capital Raise: Digimarc is currently experiencing a high cash burn rate, which presents a significant risk to its financial stability. As of September 2025, the company had a cash runway of approximately eight months based on its cash reserves and burn rate. While management aims for positive non-GAAP net income and positive free cash flow by the fourth quarter of 2025, a failure to meet these targets could necessitate a capital raise in 2026, potentially leading to shareholder dilution.
2. Slow Enterprise Adoption and Revenue Instability: Digimarc faces challenges in the widespread adoption of its digital watermarking and identification solutions by enterprises. The company has experienced a revenue decline due to contract expirations and lower service revenue from key initiatives like HolyGrail 2.0 recycling projects and government contracts. Adoption of solutions for retail loss prevention and gift card fraud is also subject to risks such as complex integration with existing systems, lengthy sales cycles, and competing priorities among potential customers. This slow adoption and revenue transition create instability, requiring the business to diversify its client base.
3. Intellectual Property and Competition Risk: Digimarc's competitive advantage is fundamentally reliant on its portfolio of patents related to digital watermarking technology. There is an inherent risk that key patents could expire or be successfully challenged by competitors. This could erode the company's intellectual property advantage and expose it to increased competition from alternative or cheaper solutions.

The rapid advancement and deployment of computer vision and artificial intelligence technologies for object recognition, authentication, and sorting. These technologies offer alternative means to identify, track, and verify products and media objects based on their visible characteristics and patterns, potentially reducing or eliminating the need for Digimarc's embedded digital watermarks in various applications such as recycling stream sorting, product authentication, quality control, and inventory management.

Digimarc Corporation (DMRC) addresses several significant markets with its automatic identification solutions:

• Secure Gift Cards: The serviceable addressable market (SAM) for Digimarc's secure gift card solution is estimated at 3 billion to 5 billion cards annually in the U.S.. Globally, this SAM expands to an estimated 7.5 billion cards annually. The company's solutions in this area aim to combat over $4 billion in annual gift card fraud losses in the U.S..
• Anti-Counterfeiting and Product Authentication: Digimarc's Digital Security Solution targets a global counterfeit market estimated at $500 billion. These solutions aim to protect physical assets against counterfeit threats and help brands verify authenticity. For instance, in the tobacco industry, an estimated 5 trillion cigarettes are sold each year, representing a sizeable unit total addressable market for anti-counterfeiting solutions.
• Recycling and Plastic Waste Sorting (Digimarc Recycle): Digimarc Recycle is a technology designed to improve the sorting and recycling of plastic waste. While a specific monetary market size is not provided, the technology addresses the challenge of over 2 billion tons of municipal waste generated globally per annum, with plastics accounting for more than 10% of this waste. The solution aims to increase the quality and quantity of recycled materials by enabling precise granular sortation. Licensing for Digimarc Recycle is available for less than $1 per capita per year.

Digimarc (NASDAQ: DMRC) is expected to drive future revenue growth over the next 2-3 years through several key initiatives and market expansions:

1. Secure Gift Card Solution: This is identified as the largest single driver of projected Annual Recurring Revenue (ARR) growth for Digimarc. The company has secured its first commercial orders and is advancing rollout plans with eight North American retailers, including some of the largest, anticipating significant market penetration for holiday 2026 and continued ramp for the spring 2027 refresh cycle.
2. Expansion of Digital Trust and Anti-Counterfeiting Solutions: Digimarc anticipates growth from existing customers through upsells, such as expanding the anti-counterfeiting solution for tax stamps, and adding new digital space logos with global consumer goods and AI-powered content generation companies. The company has also signed IP licensing agreements with two major technology companies, validating the relevance of its inventions in the AI era and historically contributing over $100 million in licensing revenue.
3. Growth in Retail Loss Prevention: Retail loss prevention is a strategic focus area where Digimarc is investing additional resources to accelerate growth. This initiative aligns with the company's solutions for inventory management and planogram compliance, as well as retail point-of-sale transaction processing.
4. New Customer Acquisition and Upsells on Existing Commercial Contracts: Digimarc demonstrated strong performance in Q1 2024, with commercial subscription revenue increasing by 52%. This growth reflects new customer contracts and upsells on existing ones, indicating a continuous effort to expand its client base and deepen engagement with current customers across its various application solutions.

Share Issuance

• Digimarc's shares outstanding increased by 0.3% in Q3 2025 compared to the prior quarter, reaching 22 million shares outstanding.
• The company is implementing a new equity compensation program designed to reduce future dilution and attract and retain talent.
• Shares outstanding have generally increased, from approximately 21.7 million in Q4 2021 to around 22.0 million in Q3 2025.

Capital Expenditures

• Digimarc invested $221,000 in capital expenditures in Q3 2025.
• Capital expenditures consumed $570,000 of operating cash flow in Q3 2025.
• In Q3 2025, capital expenditures consumed most of the company's operating cash flow, resulting in negative free cash flow of $12.3 million.