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Verb Technology Company Inc (VERB)
NASDAQ:VERB
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Verb Technology Company (VERB) AI Stock Analysis

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VERB

Verb Technology Company

(NASDAQ:VERB)

Rating:50Neutral
Price Target:
$12.50
▲(4.43% Upside)
The overall stock score reflects a company with significant growth potential but facing substantial profitability and valuation challenges. The positive sentiment from recent earnings and strategic corporate events are offset by ongoing financial performance issues. Investors should weigh the strong growth prospects against the risks of negative cash flows and profitability challenges.
Positive Factors
Acquisitions
The company closed its acquisition of AI video commerce platform Lyvecom, enhancing its technology and customer engagement capabilities.
Earnings
Large Q1 revenues upside: Verb recently reported its fiscal Q1 2025 results with revenue of $1.3 million, compared to estimates of $0.8 million.
Partnerships
MARKET.live, Verb's multivendor social shopping platform, has entered into a partnership with TikTok Shop, expanding its reach and potential customer base.
Negative Factors
High Risk
Positive high risks versus rewards: The demand for its marketplace software and services is expected to grow fueled by continued large growth in video e-commerce, presenting high rewards for the risks.
Stock Valuation
Shares trading well below cash value: Shares are selling well below cash value ($11 per share cash value) implying large potential upside in the stock just for the cash.

Verb Technology Company (VERB) vs. SPDR S&P 500 ETF (SPY)

Verb Technology Company Business Overview & Revenue Model

Company DescriptionVerb Technology Company, Inc. develops Software-as-a-Service applications platform in the United States, Japan, and internationally. It offers verbCRM, a customer relationship management (CRM) application; verbTEAMS, a CRM application for small and medium-sized businesses and solopreneurs; verbLEARN, a learning management system application that incorporates clickable in-video technology featured in its verbCRM application; and verbLIVE, a live eCommerce application. The company also provides non-digital services to enterprise clients, such as design and printing services for welcome and starter kits; fulfilment services, which include managing the preparation, handling, and shipping of custom-branded merchandise; and subscription-based application services. It serves large enterprises in the life sciences sector, professional sports franchises, educational institutions, and not-for-profit organizations, as well as clients in the entertainment industry and the burgeoning CBD industry, among other business sectors. The company was formerly known as nFüsz, Inc. and changed its name to Verb Technology Company, Inc. in February 2019. Verb Technology Company, Inc. was founded in 2012 and is based in American Fork, Utah.
How the Company Makes MoneyVerb Technology Company generates revenue primarily through its subscription-based SaaS model, where clients pay for access to its interactive video platform and related services. Key revenue streams include monthly or annual subscription fees from businesses leveraging its technology for sales and marketing purposes. Additionally, the company may earn revenue through professional services, including training and integration support, as well as potential licensing agreements for its proprietary technology. Strategic partnerships with other technology companies and marketing agencies further enhance its market reach and contribute to its earnings by expanding its customer base and providing additional channels for revenue generation.

Verb Technology Company Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2025)
|
% Change Since: |
Next Earnings Date:Nov 17, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong quarter for Verb Technology with significant revenue growth, strategic acquisitions, and financial stability. However, limitations on client announcements and reduced visibility of live streams were noted as potential concerns.
Q1-2025 Updates
Positive Updates
Significant Revenue Growth
In Q1 of 2025, Verb Technology Company reported $1.3 million in revenue, marking an 80% growth over the prior quarter and approximately 46% growth over all four quarters of revenue in 2024 combined.
Strategic Acquisition and Integration
Verb Technology identified and acquired a major AI social commerce technology company for $8.5 million in cash and stock, rapidly integrating their AI technology into Verb's platform.
Funding and Financial Stability
The company secured a $5 million funding deal with non-dilutive preferred stock, maintaining a strong cash position with zero debt and a clean cap table.
Growth in MARKET.live and Other Business Units
Verb's MARKET.live platform continues to sign high-profile clients. Telehealth platforms and the 'Go Fund Yourself' TV show are also experiencing strong growth, with the latter launching its second season on Cheddar.
Negative Updates
Restricted Client Announcements
Many high-profile client deals cannot be publicly announced due to white-labeling contracts, potentially affecting market perception of Verb's success.
Reduced Visibility of Live Streams
There are fewer visible live streams on MARKET.live due to new technology allowing clients to stream directly from their own websites, potentially reducing public engagement on Verb's platform.
Company Guidance
During the first quarter of 2025, Verb Technology Company reported significant financial growth and strategic advancements. The company achieved an 80% revenue increase over the previous quarter, with Q1 2025 revenues reaching $1.3 million, up from $723,000 in Q4 2024, and a remarkable 46% growth over the entire fiscal year of 2024. This growth was supported by the acquisition of a leading AI social commerce company for $8.5 million in cash and stock, with $4.2 million paid in cash. Verb also secured a $5 million non-dilutive preferred stock deal with a 9% annual dividend, strengthening its balance sheet with zero debt. The company anticipates sustaining operations into 2028 and beyond due to robust cash reserves and expanding revenue streams across its business units, including MARKET.live and telehealth platforms like Vanity Prescribed and Good Girl Rx. Additionally, Verb's "Go Fund Yourself" TV show is gaining popularity, leading to increased selectivity and the launch of its second season on Cheddar. CEO Rory J. Cutaia expressed optimism for continued growth in Q2 2025.

Verb Technology Company Financial Statement Overview

Summary
Verb Technology Company shows signs of revenue growth but continues to struggle with profitability and cash flow management. The company's strong equity position and low debt levels provide some financial stability; however, persistent negative cash flows and declining equity present significant risks. The company needs to address its profitability issues and improve cash flow generation to enhance financial health.
Income Statement
40
Negative
Verb Technology Company has experienced volatile revenue growth, with a notable increase in the most recent TTM period compared to previous years. However, despite the revenue growth, the company maintains negative profit margins, including an EBIT margin of -505.53% and a net profit margin of -430.81% for the TTM. These negative margins indicate ongoing profitability challenges.
Balance Sheet
45
Neutral
The balance sheet shows a relatively high equity ratio of 79.45% in the TTM period, suggesting a strong equity base. However, the debt-to-equity ratio of 0.02 indicates limited reliance on debt financing, which is a positive aspect. Despite this, the company's declining stockholders' equity over recent periods highlights potential financial instability.
Cash Flow
38
Negative
The cash flow statement reflects substantial negative free cash flow, with a TTM free cash flow of -$8.04M, indicating cash burn issues. The operating cash flow to net income ratio of 0.81 suggests that cash flows are not sufficient to cover net income losses, raising concerns about liquidity and operational efficiency.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue4.28M895.00K63.00K9.44M10.52M9.96M
Gross Profit3.13M671.00K44.00K6.12M6.02M5.16M
EBITDA-9.45M-10.57M-11.46M-13.44M-29.68M-22.01M
Net Income-10.09M-10.33M-21.99M-46.47M-34.49M-24.96M
Balance Sheet
Total Assets23.66M20.64M10.84M24.49M34.43M32.54M
Cash, Cash Equivalents and Short-Term Investments4.35M12.53M4.35M2.43M937.00K1.81M
Total Debt282.00K464.00K2.38M9.07M3.81M6.07M
Total Liabilities4.31M4.61M7.71M19.33M21.11M21.80M
Stockholders Equity19.38M16.20M3.13M5.17M13.32M10.74M
Cash Flow
Free Cash Flow-4.92M-9.11M-10.90M-24.16M-28.14M-16.61M
Operating Cash Flow-4.58M-8.77M-10.60M-19.41M-25.86M-16.29M
Investing Cash Flow-5.41M-5.38M4.44M-4.75M-2.26M-88.00K
Financing Cash Flow-43.00K18.29M8.08M25.65M27.25M17.21M

Verb Technology Company Technical Analysis

Technical Analysis Sentiment
Negative
Last Price11.97
Price Trends
50DMA
12.79
Negative
100DMA
9.48
Positive
200DMA
7.79
Positive
Market Momentum
MACD
-0.17
Positive
RSI
36.30
Neutral
STOCH
4.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERB, the sentiment is Negative. The current price of 11.97 is below the 20-day moving average (MA) of 17.55, below the 50-day MA of 12.79, and above the 200-day MA of 7.79, indicating a neutral trend. The MACD of -0.17 indicates Positive momentum. The RSI at 36.30 is Neutral, neither overbought nor oversold. The STOCH value of 4.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VERB.

Verb Technology Company Risk Analysis

Verb Technology Company disclosed 29 risk factors in its most recent earnings report. Verb Technology Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Verb Technology Company Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$35.51B8.11-11.05%1.89%8.55%-8.72%
50
Neutral
$877.81M-51.38%4095.10%93.91%
$7.11M-79.06%
42
Neutral
$15.32M-94.92%-38.89%64.99%
39
Underperform
$9.57M-15.68%1873.85%91.70%
$12.25M-107.30%
$7.91M-62.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
VERB
Verb Technology Company
10.85
-3.35
-23.59%
FTFT
Future FinTech Group
2.06
-1.04
-33.55%
SMSI
Smith Micro Software
0.73
0.18
32.73%
VS
Versus Systems
1.96
0.50
34.25%
AMST
Amesite
2.65
0.41
18.30%
MYSE
Myseum
1.91
0.76
66.09%

Verb Technology Company Corporate Events

Stock BuybackBusiness Operations and Strategy
Verb Technology Announces $250M Stock Repurchase Program
Positive
Sep 3, 2025

On September 3, 2025, TON Strategy Company announced the approval of a $250 million stock repurchase program, allowing the company to buy back shares of its common stock. This initiative aims to enhance shareholder value by increasing the Net Asset Value per Share (NAV/share) and is part of the company’s broader strategy to leverage its balance sheet effectively. The program’s flexibility allows for repurchases based on market conditions and other financial metrics, without obligating the company to acquire a specific number of shares. This move follows the company’s recent rebranding and ticker change, marking a significant step in its transition towards a digital asset treasury strategy focused on Toncoin.

Delistings and Listing ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Verb Technology Rebrands to TON Strategy Company
Positive
Aug 29, 2025

On August 27, 2025, Verb Technology Company announced a name change to TON Strategy Company, effective September 2, 2025, along with a change in its Nasdaq ticker symbol from VERB to TONX. This rebranding aligns with the company’s strategic focus on the TON blockchain and its native cryptocurrency, Toncoin. The company aims to build a long-term treasury in $TON, leveraging its integration with Telegram’s platform, and will provide periodic updates through a new ‘Chairman’s Message’ series. The company recently closed a $558 million private placement and announced $768 million in treasury assets, marking a significant step in its mission to support the TON ecosystem.

Private Placements and FinancingRegulatory Filings and Compliance
Verb Technology Prepares Resale Shelf Registration Filing
Neutral
Aug 28, 2025

Verb Technology, Inc. has addressed market rumors regarding its financing plans, confirming that it is not currently pursuing a securities offering beyond its existing Controlled Equity OfferingSM Sales Agreement. The company, however, remains open to raising capital in the future. Additionally, Verb Technology is preparing to file a resale shelf registration statement following its $558 million private placement that closed on August 7, 2025, to facilitate resales by investors, though certain securities are subject to lockup restrictions. Verb Technology also emphasizes its use of various channels, including social media, to disseminate potentially material information to investors and the public.

Business Operations and StrategyFinancial Disclosures
Verb Technology Announces $780 Million Treasury Assets
Positive
Aug 21, 2025

On August 21, 2025, Verb Technology Company announced its treasury assets exceeded $780 million, with $713 million in Toncoin and $67 million in cash, marking a significant step in its TON treasury strategy. The company aims to accumulate over 5% of Toncoin’s circulating supply, positioning itself as a major player in the network’s infrastructure, and plans to increase Toncoin holdings per share through reinvestment and capital market activities.

Private Placements and Financing
Verb Technology Announces $1 Billion Equity Offering
Neutral
Aug 8, 2025

On August 8, 2025, Verb Technology Company, Inc. announced a Controlled Equity Offering Sales Agreement with Cantor Fitzgerald & Co. and Cohen & Company Capital Markets. This agreement allows Verb Technology to sell up to $1 billion in common stock through these agents, with Cantor acting as the principal sales agent. The agreement provides flexibility for the company to sell shares at market offerings or other legal methods, potentially impacting its capital structure and market presence.

Executive/Board ChangesPrivate Placements and FinancingBusiness Operations and Strategy
Verb Technology’s $558M Private Placement with Kingsway
Positive
Aug 8, 2025

On August 7, 2025, Verb Technology Company completed a $558 million private placement in partnership with Kingsway Capital, marking a significant step in its strategy to become the first publicly traded treasury reserve of Toncoin, the native cryptocurrency of The Open Network blockchain. The company plans to use the majority of the proceeds to acquire Toncoin, aiming to generate sustainable staking rewards and rebrand as TON Strategy Co. Additionally, the company announced leadership changes, including the appointment of Veronika Kapustina as CEO and Sarah Olsen as CFO and COO, to drive its new digital asset strategy.

Private Placements and FinancingBusiness Operations and Strategy
Verb Technology Announces $558M Toncoin Treasury Strategy
Positive
Aug 4, 2025

On August 3, 2025, Verb Technology Company announced a $558 million private placement to establish a TON treasury strategy, aiming to become the first publicly traded treasury reserve of Toncoin, the native cryptocurrency of The Open Network blockchain. The transaction, expected to close around August 7, 2025, involves institutional investors and will position the company as a significant holder of Toncoin, enhancing its market presence and offering potential staking rewards. The company also redeemed its Series D Preferred Stock on August 1, 2025, as part of its capital optimization efforts.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 04, 2025