Verimatrix SA (VMX) AI Stock Analysis

• Market Cap: €14.26M
• Dividend Yield: N/A
• Average Volume (3M): 66.93K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: -14.91%
• EPS Growth: -512.12%
• Country: FR
• Employees: 237
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -1.10
• Shares Outstanding: 87,549,140
• 10 Day Avg. Volume: 51,739
• 30 Day Avg. Volume: 66,927
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.61
• Price to Sales (P/S): 0.43
• P/FCF Ratio: -28.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.07
• Revenue Forecast (FY): €46.30M

• Rating: 41 Neutral
• Price Target: €0.15 ▼(-27.00% Downside)
• Action: Reiterated Date: 03/14/26
• Date: Action: Reiterated 03/14/26

The score is driven primarily by weak financial performance (declining revenue, sustained operating losses, very large 2025 net loss, rising leverage, and negative recent cash flow). Technicals add further pressure with the stock below major moving averages and negative MACD/low RSI. Valuation is not a clear positive because the company is loss-making (negative P/E) and no dividend yield is available.

Positive Factors

Recurring revenue model

Verimatrix's revenue mix—software licenses/subscriptions, maintenance, and managed services—creates durable recurring revenue and customer stickiness. Over 2–6 months this supports predictable revenue baselines and higher lifetime value versus one‑off sales, aiding planning and retention.

High gross margins

Sustained ~63% gross margin indicates scalable software economics and pricing power in content/device security. High gross margins give structural capacity to fund R&D and go‑to‑market investments once top‑line stabilizes, enabling operating leverage over the medium term.

Specialized market position

Specialization in content protection, anti‑piracy and device/application security creates a competitive moat. Long‑term secular growth in streaming and connected devices sustains demand for these capabilities and promotes multi‑year contracts and platform integrations, supporting durable revenue.

Negative Factors

Declining revenue and operating losses

A multi‑year shift from prior operating profits to persistent losses and an -8.5% revenue decline in 2025 signal weakening demand or pricing pressure. Continued losses erode reinvestment capacity, hinder scaling, and raise the likelihood of needing external funding over the medium term.

Rising leverage

The sharp increase in leverage reduces financial flexibility and raises refinancing and solvency risk if performance doesn't recover. Higher leverage increases fixed obligations and limits ability to invest in product and sales initiatives, making the business more vulnerable to downturns.

Weak cash generation

Sustained negative operating and free cash flow constrains organic funding for R&D, sales, and capex, increasing reliance on external capital or dilution. Persistent cash burn shortens runway and elevates execution risk over the next several quarters if revenue and margins don't improve.

Verimatrix SA Business Overview & Revenue Model

Company Description

Verimatrix Société anonyme provides security solutions that protect digital content, applications, and devices worldwide. The company offers security solutions for various markets, including automotive, sports, financial services, healthcare, internet of things, live sports, media and entertainment, and TV, as well as for content owners. The company was formerly known as Inside Secure S.A. and changed its name to Verimatrix Société anonyme in July 2017. Verimatrix Société anonyme was founded in 1995 and is based in Meyreuil, France.

How the Company Makes Money

Verimatrix makes money primarily by selling and licensing cybersecurity software and related services to organizations that need to protect digital content, applications, and connected devices. Key revenue streams include: (1) Software licensing and subscriptions: recurring fees for the right to use Verimatrix security products (commonly structured as term licenses/subscriptions), often tied to customer scale (e.g., number of subscribers, devices, or service footprint) depending on the product and contract. (2) Maintenance and support: ongoing recurring revenue for technical support, updates, and product maintenance associated with deployed software. (3) Professional services: implementation, integration, and consulting services to deploy Verimatrix solutions within customer environments (for example, integrating content protection into a video platform or embedding application shielding into software releases). (4) Managed/monitoring services for anti-piracy and threat intelligence (where applicable): revenue from services that help customers detect, track, and respond to piracy or security threats affecting their content and platforms. Significant factors that can influence earnings include long-term contracts with pay-TV operators, OTT/streaming providers, and technology/platform partners that integrate Verimatrix security into broader video delivery or device ecosystems; however, specific partnership names and commercial terms are null.

Verimatrix SA Financial Statement Overview

Summary

Financials are weak: revenue is declining (2025: -8.5%), operating profitability is negative (2025 EBIT margin: -13.3%), and 2025 shows an extremely large net loss (net margin: -169%). Balance-sheet risk increased sharply with a much higher debt-to-equity (~0.93 in 2025 vs ~0.27–0.32 prior years), and operating/free cash flow have been negative in 2024–2025 despite a slight 2025 OCF improvement versus 2024.

Income Statement

Profitability has deteriorated meaningfully versus earlier years. Revenue has been trending down (2025: -8.5% after a modest decline in 2024), while operating profitability is negative (2025 EBIT margin: -13.3%) despite still-healthy gross margin (2025: ~63%). Net results are very weak in 2025 (net margin: -169%), indicating a large loss that overwhelms the underlying gross profit base. The main positive is that gross margins remain solid for the industry, but the multi-year shift from positive operating profits (2020–2021) to persistent operating losses (2022–2025) drives a low score.

Balance Sheet

Leverage has risen sharply in the most recent period: debt-to-equity moved from ~0.27–0.32 (2022–2024) to ~0.93 in 2025, reflecting a much thinner equity base and reduced balance-sheet cushion. Total debt is fairly stable (~€32M in 2023–2025), but equity has fallen substantially versus prior years, which increases financial risk. Earlier years showed a more conservative profile (debt-to-equity ~0.29 in 2024), but the 2025 step-change in leverage is a notable negative.

Cash Flow

Cash generation is weak and inconsistent. Operating cash flow and free cash flow are negative in 2024 and 2025, following stronger positive cash flow in 2020–2022 (including strong 2021 free cash flow). The latest year shows slight improvement versus 2024 in absolute operating cash flow loss (2025: about -€0.3M vs 2024: -€1.6M), but free cash flow remains negative and volatile. The overall trajectory suggests reduced ability to self-fund operations and investment without external capital.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	48.40M	57.20M	61.63M	61.01M	88.47M
Gross Profit	30.70M	38.90M	42.54M	41.84M	64.99M
EBITDA	-6.45M	-4.80M	96.00K	-1.24M	14.31M
Net Income	-81.80M	-10.30M	-14.29M	-17.61M	3.68M
Balance Sheet
Total Assets	91.41M	171.90M	191.87M	209.91M	239.22M
Cash, Cash Equivalents and Short-Term Investments	7.10M	11.00M	22.63M	30.05M	45.27M
Total Debt	32.10M	32.27M	32.50M	43.50M	56.80M
Total Liabilities	56.91M	60.40M	70.10M	74.04M	87.70M
Stockholders Equity	34.60M	111.50M	121.77M	135.87M	151.53M
Cash Flow
Free Cash Flow	-728.54K	-3.70M	-3.60M	2.67M	12.04M
Operating Cash Flow	-312.23K	-1.60M	-792.00K	2.90M	12.69M
Investing Cash Flow	-2.08M	-2.10M	-2.82M	-3.45M	509.00K
Financing Cash Flow	-1.46M	-8.10M	-3.67M	-14.65M	-16.47M

Verimatrix SA Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:VMX, the sentiment is Negative. The current price of 0.2 is above the 20-day moving average (MA) of 0.19, above the 50-day MA of 0.19, and above the 200-day MA of 0.20, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 33.39 is Neutral, neither overbought nor oversold. The STOCH value of 20.41 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:VMX.

Verimatrix SA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ALHYP	60 Neutral	€32.71M	36.28	3.43%	―	9.77%	-86.18%
ALLIX	53 Neutral	€147.51M	-12.65	-21.69%	―	17.72%	79.71%
VMX	41 Neutral	€14.26M	-0.26	-86.76%	―	-14.91%	-512.12%
ALGEC	41 Neutral	€2.68M	34,926.41	-12.16%	―	-13.72%	-144.02%