Digimarc CORP Q4 FY2025 earnings call

Riley mentioned significant progress in secured gift card solution with first commercial order and rollout plans with North American retailers. Signed IP licensing agreements with two leading technology companies. Secured upsells for anti-counterfeiting solution including new application for tax stamps. Digital trust and integrity area had exceeded ARR assumptions and detailed leak detection solution. Achieved positive non-GAAP net income and free cash flow in Q4 2025

Retail loss prevention: Secured gift card solution achieved first commercial order, advancing initial rollout plans with eight North American retailers including four largest. Product authentication: ARR from anti-counterfeiting solution continues to grow driven by customer upsells and new customer wins, with upsells to new geographies, brands and new applications like tax stamp authentication. Digital trust and integrity: Exceeded 2025 ARR assumptions, leak detection for web content solution addresses data loss prevention gap, and 2026 expected to accelerate traction

Expect significant ARR growth in 2026, particularly from secured gift card solution with focus on large-scale rollouts in 2026. Q1 expected free cash flow loss of $1 million to $2 million including headcount investments, compliance costs and one-time tax legal costs. New corporate structure expected to bring ongoing cash savings and maximize shareholder value

Technical difficulties with conference call service. Uncertainties related to implementation of new corporate structure including tax and legal costs. Risks associated with AI advance creating trust vacuum

Operator attempted to open question-and-answer session but technical difficulties occurred, no actual question-and-answer exchanges took place