Veritone (VERI) AI Stock Analysis

• Market Cap: $122.05M
• Dividend Yield: N/A
• Average Volume (3M): 1.51M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.37
• Revenue Growth: -24.08%
• EPS Growth: -51.13%
• Country: US
• Employees: 469
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Infrastructure
• EPS (TTM): -0.24
• Shares Outstanding: 54,005,035
• 10 Day Avg. Volume: 1,991,442
• 30 Day Avg. Volume: 1,505,732
• PEG Ratio: -0.10
• Price to Book (P/B): 4.99
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.64
• Enterprise Value/Market Cap: 1.50
• Enterprise Value/Revenue: 0.38
• Enterprise Value/Gross Profit: 2.52
• Enterprise Value/Ebitda: -1.47
• 1Y Price Target: $4.00
• Price Target Upside: 76.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $2.00 ▼(-11.50%Downside)

Veritone's overall stock score reflects significant financial and operational challenges, as highlighted by low financial performance and valuation scores. Technical analysis offers some positive momentum, but overbought conditions and fundamental weaknesses limit upside potential. Corporate events suggest strategic efforts to improve prospects, yet financial stability remains a concern.

Positive Factors

AI and Digital Media

Veritone is well positioned to benefit as both private and public entities look to quickly locate, sort, and analyze the growing volume of digital audio and media files.

Cost Management

The company's cost restructuring initiatives are expected to generate significant expense savings and streamline operations.

Public Sector Demand

The shift to revenue growth is being driven by powerful momentum in the company’s public sector vertical, which added 19 new public and safety and government customers.

Revenue Growth

Recent contract wins and business updates are driving optimism for Veritone's revenue growth.

Negative Factors

Revenue Forecast

The revenue forecast for 2025 has been increased due to new contract announcements and management updates.

Revenue Performance

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

Veritone Business Overview & Revenue Model

Company Description

Veritone, Inc. is a leading provider of artificial intelligence (AI) technology and solutions, primarily catering to the media and entertainment, government, and legal sectors. The company's core offering is its aiWARE platform, which enables users to orchestrate and enhance the processing of data through AI models. Veritone's solutions help organizations unlock insights from large volumes of audio, video, and structured data, improving decision-making and operational efficiency.

How the Company Makes Money

Veritone generates revenue through a combination of software licensing, subscription services, and professional services. The company's primary revenue stream comes from the licensing of its aiWARE platform, which clients subscribe to for accessing AI-driven data analysis and processing capabilities. Veritone also earns money by providing professional services, including custom AI model development and system integration, to tailor solutions for specific client needs. Additionally, strategic partnerships and collaborations with technology and service providers enhance Veritone's market reach and contribute to its revenue growth.

Veritone Financial Statement Overview

Summary

Veritone is facing significant financial challenges. The income statement shows persistent losses and declining revenue, the balance sheet reflects high leverage and financial instability, and the cash flow analysis highlights liquidity issues due to consistently negative cash flows. These factors collectively contribute to 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.64M	127.56M	149.73M	115.31M	57.71M
Gross Profit	65.38M	99.30M	122.30M	93.18M	42.05M
EBITDA	-58.16M	-31.56M	5.16M	-52.02M	-41.39M
Net Income	-37.38M	-58.63M	-25.24M	-70.59M	-47.88M
Balance Sheet
Total Assets	198.06M	375.81M	424.75M	504.75M	177.65M
Cash, Cash Equivalents and Short-Term Investments	16.91M	79.44M	184.42M	254.72M	114.82M
Total Debt	119.90M	143.05M	137.77M	195.08M	0.00
Total Liabilities	184.61M	337.67M	344.58M	424.17M	89.44M
Stockholders Equity	13.45M	38.15M	80.17M	80.58M	88.21M
Cash Flow
Free Cash Flow	-30.82M	-81.54M	-1.03M	6.22M	1.26M
Operating Cash Flow	-24.72M	-76.42M	3.74M	7.23M	1.43M
Investing Cash Flow	-1.61M	-54.88M	-12.10M	-53.84M	-119.00K
Financing Cash Flow	-37.06M	26.33M	-61.93M	186.51M	69.44M

Veritone Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Negative
• 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 2.26 is above the 20-day moving average (MA) of 1.53, above the 50-day MA of 1.60, and below the 200-day MA of 2.59, indicating a neutral trend. The MACD of 0.11 indicates Negative momentum. The RSI at 74.38 is Negative, neither overbought nor oversold. The STOCH value of 88.47 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
JG	62 Neutral	$70.06M	―	-10.44%	―	16.93%	85.85%
SNCR	51 Neutral	$83.36M	26.79	-3.58%	―	-13.46%	95.46%
Sector *	51 Neutral	AU$1.60B	2.35	-31.50%	3.04%	16.21%	-7.40%
VERI	48 Neutral	$122.05M	―	-600.12%	―	-24.08%	-51.13%
REKR	47 Neutral	$158.22M	―	-121.54%	―	17.97%	21.12%
STEM	44 Neutral	$112.73M	―	-6139.13%	―	-63.86%	-364.20%
AISP	35 Underperform	$184.06M	―	-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.

Veritone Releases Preliminary Q1 2025 Financials

On April 24, 2025, Veritone released preliminary, unaudited financial information for the first quarter of 2025, highlighting the company’s ongoing financial closing procedures and potential adjustments. The release also notes the sale of its subsidiary, Veritone One, in October 2024, which has been classified as discontinued operations, impacting historical financial results. The announcement reflects Veritone’s strategic adjustments and the potential implications for its financial performance and market positioning.