Veritone (VERI) AI Stock Analysis

• Market Cap: $168.58M
• Dividend Yield: N/A
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.47
• Revenue Growth: -31.11%
• EPS Growth: -52.32%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 55,271,810
• 10 Day Avg. Volume: 2,943,208
• 30 Day Avg. Volume: 3,167,571
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: $5.25
• Price Target Upside: 68.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 58 Neutral
• Price Target: $2.50 ▼(-19.61% Downside)

Veritone's overall stock score reflects significant financial challenges, with declining revenues and high leverage being major concerns. However, strong technical indicators and positive earnings call highlights, including growth in AI solutions and strategic contracts, provide some optimism. The valuation remains unattractive due to ongoing losses. Recent corporate events suggest strategic efforts to improve financial stability and growth prospects.

Positive Factors

Financial Position

The company has materially strengthened its financial positioning through cost-cutting initiatives and raising an additional $10.0M of capital.

Revenue Growth

Demand for VDR drives high expectations for revenue growth, with a growing pipeline of over $20.0M, a 33.0% increase from June and a doubling from early May.

Strategic Contracts

Veritone began work on a multi-year agreement with the United States Air Force, which is expected to be a meaningful contributor to revenue for the remainder of 2025 and accelerate in 2026.

Negative Factors

Revenue Miss

The company reported 1Q25 revenue of $22.5M, versus our $25.2M estimate and $24.5M for the Street.

Stock Dilution

The company raised an additional $10.0M through the sale of company stock, suggesting a cash balance above $20.0M.

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc. (VERI) is a leading technology company specializing in artificial intelligence (AI) and machine learning solutions. The company operates primarily in the media and entertainment, legal, and government sectors, providing AI-driven applications that enable clients to manage, analyze, and monetize their data. Veritone's core products include the aiWARE platform, which offers a suite of AI models for tasks such as content recognition, transcription, and sentiment analysis, as well as solutions tailored for specific industries like advertising and compliance.

How the Company Makes Money

Veritone generates revenue through a combination of software-as-a-service (SaaS) subscriptions, usage-based fees, and professional services. The primary revenue stream comes from licensing its aiWARE platform to businesses that utilize its AI capabilities for data analysis and workflow automation. Additionally, Veritone earns revenue from partnerships with media companies and government entities, offering tailored solutions that enhance their operational efficiencies. The company also monetizes its technology through agreements with third-party developers and integrations that expand its application ecosystem, thus driving further adoption and recurring revenue.

Veritone Financial Statement Overview

Summary

Veritone faces substantial financial challenges, with declining revenues and significant losses. High leverage and negative returns on equity highlight balance sheet risks. Cash flow issues further exacerbate the situation, with negative operating and free cash flows. Overall, Veritone needs to address its profitability and leverage to improve its financial health.

Income Statement

Veritone's income statement reflects significant challenges. The company has experienced declining revenue growth, with a negative growth rate of -7.13% in the TTM. Profitability metrics are concerning, with a negative net profit margin of -40.30% and EBIT margin of -92.05%, indicating substantial losses relative to revenue. The gross profit margin remains positive at 60.75%, but overall, the company is struggling to achieve profitability.

Balance Sheet

The balance sheet shows high leverage, with a debt-to-equity ratio of 80.61, indicating significant reliance on debt financing. The return on equity is negative at -34.39%, reflecting losses and poor returns for shareholders. The equity ratio is low, suggesting limited shareholder equity relative to total assets, which poses a risk to financial stability.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow, with a significant decline in free cash flow growth at -56.97% in the TTM. The operating cash flow to net income ratio is negative, indicating cash flow challenges. However, the free cash flow to net income ratio is above 1, suggesting some ability to cover net losses with free cash flow, albeit limited.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	90.94M	92.64M	127.56M	149.73M	115.31M	57.71M
Gross Profit	55.25M	65.38M	99.30M	122.30M	93.18M	42.05M
EBITDA	-51.25M	-58.78M	-31.56M	5.16M	-52.02M	-41.39M
Net Income	-36.65M	-37.38M	-58.63M	-25.56M	-64.67M	-47.88M
Balance Sheet
Total Assets	186.81M	198.06M	375.81M	424.75M	504.75M	177.65M
Cash, Cash Equivalents and Short-Term Investments	13.57M	16.91M	79.44M	184.42M	254.72M	114.82M
Total Debt	98.18M	119.90M	143.05M	141.39M	195.08M	0.00
Total Liabilities	185.59M	184.61M	337.67M	344.58M	424.17M	89.44M
Stockholders Equity	1.22M	13.45M	38.15M	80.17M	80.58M	88.21M
Cash Flow
Free Cash Flow	-27.22M	-30.82M	-81.54M	-1.03M	6.22M	1.26M
Operating Cash Flow	-22.21M	-24.72M	-76.42M	3.74M	7.23M	1.43M
Investing Cash Flow	-2.32M	-1.61M	-54.88M	-12.10M	-53.84M	-119.00K
Financing Cash Flow	-7.84M	-37.06M	26.33M	-61.93M	186.51M	69.44M

Veritone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VERI, the sentiment is Positive. The current price of 3.11 is above the 20-day moving average (MA) of 2.64, above the 50-day MA of 2.17, and above the 200-day MA of 2.40, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 64.49 is Neutral, neither overbought nor oversold. The STOCH value of 81.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VERI.

Veritone Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$35.45B	8.20	-10.60%	1.91%	8.56%	-9.51%
JG	61 Neutral	$62.38M	―	-9.11%	―	18.99%	77.96%
VERI	58 Neutral	$168.58M	―	-600.12%	―	-31.11%	-52.32%
STEM	54 Neutral	$126.47M	―	-6139.13%	―	-56.74%	96.59%
SNCR	45 Neutral	$69.24M	26.79	-53.05%	―	-6.32%	6.80%
REKR	42 Neutral	$141.49M	―	-128.83%	―	7.05%	19.75%
AISP	35 Underperform	$142.63M	―	-98.67%	―	―	―

Veritone Corporate Events

Veritone Announces $10M Direct Offering and Contract

On June 30, 2025, Veritone, Inc. announced a registered direct offering and a private placement, expected to raise approximately $10 million in gross proceeds. The funds will be used for working capital, corporate purposes, and to further develop its AI platform. Additionally, Veritone entered into a contract with the U.S. Air Force Office of Special Investigations to provide AI-powered solutions, reflecting its strategic growth and expanding market presence. The company also announced cost and restructuring initiatives aimed at saving up to $10 million annually, positioning itself for profitability by the second half of 2026.

Veritone Amends Credit Agreement and Increases Equity Plan

On June 13, 2025, Veritone, Inc. amended its Credit and Guaranty Agreement to adjust the minimum Consolidated Liquidity requirements, issuing 253,744 shares of common stock to consenting lenders. This amendment reflects Veritone’s strategic financial adjustments and impacts its liquidity management, potentially affecting stakeholders’ interests. Additionally, Veritone’s Board authorized an increase in the number of shares under its 2023 Equity Incentive Plan, effective after the June 13, 2025 annual meeting, allowing for expanded equity awards to employees and affiliates. This move, along with the approved Charter Amendment to increase authorized shares, positions Veritone for potential growth and enhanced capital structure.

Veritone Stockholders Approve Key Governance Changes

At the annual meeting of stockholders held on June 13, 2025, Veritone, Inc. presented six proposals, with significant outcomes impacting the company’s governance and structure. Key decisions included the election of two directors, the approval of an increase in authorized shares, and amendments to the equity incentive plan, while a proposal regarding officer exculpation was not approved. These decisions reflect strategic adjustments aimed at supporting Veritone’s growth and operational flexibility.