Veritone (VERI) AI Stock Analysis

• Market Cap: $459.95M
• Dividend Yield: N/A
• Average Volume (3M): 3.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 3.06
• Revenue Growth: -17.50%
• EPS Growth: -51.25%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -0.09
• Shares Outstanding: 91,806,020
• 10 Day Avg. Volume: 3,298,904
• 30 Day Avg. Volume: 3,890,804
• PEG Ratio: 0.09
• Price to Book (P/B): 9.27
• Price to Sales (P/S): 1.35
• P/FCF Ratio: -4.05
• Enterprise Value/Market Cap: 0.85
• Enterprise Value/Revenue: 3.98
• Enterprise Value/Gross Profit: 6.49
• Enterprise Value/Ebitda: -7.37
• 1Y Price Target: $8.33
• Price Target Upside: 93.72% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $5.50 ▲(27.91% Upside)

Veritone's overall stock score reflects significant financial challenges, including persistent losses and high leverage, which are the most impactful factors. The positive outlook from the earnings call, with revenue growth and debt reduction, provides some optimism. However, valuation concerns and mixed technical signals temper the overall score.

Positive Factors

Revenue Growth

The significant revenue growth, particularly in Software Products & Services, indicates strong market demand and effective business strategies, supporting long-term expansion.

Debt Reduction

Reducing debt obligations significantly lowers financial risk and interest expenses, enhancing financial stability and flexibility for future investments.

Strategic Partnership

The partnership with Armada enhances Veritone's technological capabilities and market reach, potentially driving innovation and competitive advantage in AI solutions.

Negative Factors

High Leverage

High leverage indicates financial risk, potentially limiting the company's ability to invest in growth opportunities and increasing vulnerability to economic downturns.

Negative Profit Margins

Persistent negative profit margins highlight ongoing profitability challenges, which could hinder long-term financial health and shareholder returns.

Cash Flow Challenges

Weak cash flow generation limits the company's ability to fund operations and growth initiatives internally, increasing reliance on external financing.

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc. (VERI) is a leading artificial intelligence (AI) technology company that provides a platform for managing and analyzing unstructured data. The company's core product offerings include aiWARE, an operating system for AI that enables organizations to harness the power of AI across various applications, including media, entertainment, and legal sectors. Veritone serves a diverse clientele, including broadcasters, advertisers, and government entities, helping them optimize workflows, enhance decision-making, and drive operational efficiencies through advanced AI-driven solutions.

How the Company Makes Money

Veritone generates revenue primarily through a subscription-based model and usage-based fees associated with its aiWARE platform. The company offers various services, including AI-driven content management, data analytics, and media monitoring, which are monetized through recurring subscription fees and pay-per-use arrangements. Additionally, Veritone has formed strategic partnerships with companies in the media and technology sectors, which help expand its market reach and enhance its service offerings, further contributing to its revenue streams. The company also earns money through tailored solutions and consulting services, providing customized AI implementations for specific client needs.

Veritone Financial Statement Overview

Summary

Veritone faces significant financial challenges with persistent losses and high leverage. Despite some revenue growth and operational efficiency, the company's profitability and cash flow generation remain concerning. The high debt levels and negative equity returns highlight financial risks that need to be addressed for long-term sustainability.

Income Statement

Veritone's income statement shows a challenging financial position with consistent net losses and negative profit margins. The TTM data indicates a slight revenue growth of 7.79%, but the net profit margin remains negative at -42.60%. The gross profit margin is relatively strong at 68.82%, suggesting some operational efficiency, but the negative EBIT and EBITDA margins highlight ongoing profitability issues.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 6.14, indicating significant leverage and potential financial risk. The return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting limited financial stability and a reliance on debt financing.

Cash Flow

Cash flow analysis shows negative operating cash flow, indicating challenges in generating cash from core operations. However, the free cash flow to net income ratio is positive at 1.11, suggesting some ability to cover net losses with free cash flow. The free cash flow growth rate is positive, but the overall cash flow position remains weak.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	98.03M	92.64M	99.99M	149.73M	115.31M	57.71M
Gross Profit	60.09M	65.38M	72.22M	122.30M	93.18M	42.05M
EBITDA	-52.93M	-58.78M	-39.52M	5.16M	-52.02M	-41.27M
Net Income	-41.76M	-37.38M	-58.63M	-25.56M	-64.67M	-47.88M
Balance Sheet
Total Assets	200.22M	198.06M	378.86M	424.75M	518.35M	177.65M
Cash, Cash Equivalents and Short-Term Investments	36.23M	16.91M	46.61M	184.42M	254.72M	114.82M
Total Debt	116.22M	119.90M	142.75M	139.88M	195.08M	0.00
Total Liabilities	184.20M	184.61M	340.71M	344.90M	431.85M	89.44M
Stockholders Equity	16.02M	13.45M	38.15M	79.85M	86.50M	88.21M
Cash Flow
Free Cash Flow	-46.16M	-30.82M	-81.54M	-1.03M	6.22M	1.26M
Operating Cash Flow	-41.66M	-24.72M	-76.42M	3.74M	7.23M	1.43M
Investing Cash Flow	-1.81M	-1.61M	-54.88M	-12.10M	-53.84M	-119.00K
Financing Cash Flow	33.71M	-37.06M	26.33M	-61.93M	186.51M	69.44M

Veritone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.30
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 4.3 is below the 20-day moving average (MA) of 5.08, below the 50-day MA of 5.47, and above the 200-day MA of 3.27, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 49.06 is Neutral, neither overbought nor oversold. The STOCH value of 13.44 is Positive, 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	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSAK	55 Neutral	$372.50M	-4.06	-32.28%	―	16.48%	-326.01%
DFDV	52 Neutral	$164.06M	2.24	56.66%	―	313.35%	―
VERI	50 Neutral	$459.95M	-2.24	―	―	-17.50%	-51.25%
GRRR	48 Neutral	$278.38M	―	―	―	―	―
RXT	47 Neutral	$250.90M	-0.97	―	―	-2.98%	69.09%
PDYN	41 Neutral	$185.81M	-2.83	-110.11%	―	-44.07%	25.75%

Veritone Corporate Events

Veritone Announces Full Repayment of Term Loan

On November 6, 2025, Veritone, Inc. announced its intention to repay in full its outstanding Term Loan Facility by November 12, 2025, totaling $36.7 million. This repayment will terminate the company’s obligations under the facility. Additionally, Veritone entered into agreements to repurchase approximately 50% of its outstanding 1.75% Convertible Senior Notes due 2026, amounting to $45.7 million. The repurchase involves cash and the issuance of common stock, potentially impacting the company’s stock market price.

Veritone Announces Direct Offering of Common Stock

Veritone, Inc. announced a registered direct offering of 12,864,494 shares of its common stock to purchasers as per a securities purchase agreement dated October 15, 2025. This offering was conducted under the company’s effective registration statement filed with the SEC in June 2024, potentially impacting its market operations and stakeholder interests.

Veritone Announces $75 Million Stock Offering

On October 15, 2025, Veritone, Inc. announced a registered direct offering of 12,864,494 shares of common stock at $5.83 per share, expected to raise approximately $75 million. The proceeds will be used for working capital and general corporate purposes. The offering is set to close on or about October 17, 2025, subject to customary conditions, and highlights Veritone’s strategic financial maneuvers to support its operations and growth in the AI industry.

Veritone Reports Preliminary Q3 2025 Financial Results

On October 14, 2025, Veritone Inc. announced preliminary, unaudited financial results for the quarter ending September 30, 2025, with expected revenue between $28.5 million to $28.7 million, marking a 30.5% increase from the previous year. Despite the revenue growth, the company anticipates a net loss between $29.3 million to $19.3 million, reflecting a 7.9% increase in losses compared to the same period in 2024. The announcement highlights the company’s ongoing challenges, including managing debt obligations and expanding its AI-based offerings amid fluctuating market conditions and geopolitical tensions.

Veritone Raises $26.8M in Public Offering

On September 10, 2025, Veritone, Inc. entered into an underwriting agreement with Needham & Company, LLC to issue and sell 9,505,705 shares of its common stock in an underwritten public offering at $2.63 per share. The offering closed on September 12, 2025, with net proceeds of approximately $26.8 million. The funds are intended for working capital and general corporate purposes, including debt service and repayment. This move is part of Veritone’s strategy to bolster its financial position and support its operations in the AI solutions industry.