Veritone (VERI) AI Stock Analysis

• Market Cap: $151.44M
• Dividend Yield: N/A
• Average Volume (3M): 2.79M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.53
• Revenue Growth: -31.11%
• EPS Growth: -52.32%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 97
• Industry: Software - Infrastructure
• EPS (TTM): -0.18
• Shares Outstanding: 55,271,810
• 10 Day Avg. Volume: 2,399,868
• 30 Day Avg. Volume: 2,794,335
• 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: 1.08
• Enterprise Value/Revenue: 1.79
• Enterprise Value/Gross Profit: 2.95
• Enterprise Value/Ebitda: -3.18
• 1Y Price Target: $4.00
• Price Target Upside: 52.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 54 Neutral
• Price Target: $3.00 ▲(14.07% Upside)

Veritone's overall stock score reflects significant financial challenges, with persistent losses and high leverage weighing heavily. However, positive technical indicators and strategic growth initiatives, particularly in AI software and public sector contracts, provide some optimism. The company's ability to execute on its strategic plans and improve financial health will be critical for future performance.

Positive Factors

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 Agreements

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

Financial Positioning

The company's need to raise an additional $10.0M through the sale of company stock suggests challenges in maintaining a strong cash balance.

Revenue Miss

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

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc., together with its subsidiaries, provides artificial intelligence (AI) computing solutions in the United States and the United Kingdom. It develops and operates aiWARE platform, an AI operating system that uses machine learning algorithms or AI models, such as perception, prediction, and problem solving and optimization, as well as cognitive processes, including transcription, language translation, face detection and recognition, object detection and recognition, logo recognition, sentiment analysis, text keyword/topic analysis, audio/video fingerprinting, geolocation, visual moderation, and optical character recognition to reveal valuable insights from vast amounts of structured and unstructured data. The company also provides media advertising agency services, including media planning and strategy, media buying and placement, campaign messaging, clearance verification and attribution, and custom analytics directly to advertisers through outbound sales networking, and client and partner referrals, as well as indirectly through advertising agencies or marketing consultants. It serves media and entertainment, government, legal and compliance, energy, and other vertical markets. The company was formerly known as Veritone Delaware, Inc. and changed its name to Veritone, Inc. in July 2014. Veritone, Inc. was incorporated in 2014 and is headquartered in Denver, Colorado.

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's financial performance is concerning, with persistent losses, high leverage, and negative cash flows. The income statement shows declining revenue and profitability issues, the balance sheet reveals high debt and low equity, and cash flow analysis highlights liquidity challenges. These factors result in a low financial performance score.

Income Statement

Veritone's income statement reveals a challenging financial trajectory. The gross profit margin has been relatively stable, but the company struggles with profitability, as evidenced by persistent negative EBIT and net income over the years. Revenue has decreased significantly from previous years, indicating a potential issue in sustaining growth. These factors contribute to a below-average income statement score.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio, which indicates significant leverage and potential financial risk. Equity has been declining, and the equity ratio is low, suggesting limited asset backing for shareholders. The declining stockholders' equity and high total liabilities indicate financial instability, resulting in a low balance sheet score.

Cash Flow

Veritone's cash flow analysis demonstrates severe challenges, with consistently negative operating and free cash flows. The free cash flow to net income ratio is also concerning, reflecting inefficiencies in generating cash relative to earnings. These persistent cash flow deficits highlight liquidity issues and contribute to a low cash flow score.

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: 2.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 2.63 is above the 20-day moving average (MA) of 2.46, above the 50-day MA of 1.87, and above the 200-day MA of 2.45, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 74.10 is Neutral, 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	$36.32B	7.12	-9.36%	1.97%	7.79%	-9.36%
JG	56 Neutral	$54.33M	―	-10.44%	―	16.93%	85.85%
VERI	54 Neutral	$151.44M	―	-600.12%	―	-31.11%	-52.32%
STEM	54 Neutral	$118.53M	―	-6139.13%	―	-56.74%	96.59%
SNCR	52 Neutral	$77.18M	26.79	-53.05%	―	-6.32%	6.80%
REKR	45 Neutral	$131.06M	―	-128.83%	―	7.05%	19.75%
AISP	35 Underperform	$160.50M	―	-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.

The most recent analyst rating on (VERI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Veritone stock, see the VERI Stock Forecast page.

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.

The most recent analyst rating on (VERI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Veritone stock, see the VERI Stock Forecast page.

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.

The most recent analyst rating on (VERI) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on Veritone stock, see the VERI Stock Forecast page.