VerifyMe (VRME) AI Stock Analysis

• Market Cap: $11.46M
• Dividend Yield: N/A
• Average Volume (3M): 812.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.31
• Revenue Growth: -13.20%
• EPS Growth: -89.43%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 12,323,666
• 10 Day Avg. Volume: 520,291
• 30 Day Avg. Volume: 812,507
• PEG Ratio: -0.65
• Price to Book (P/B): 1.39
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 40.65
• Enterprise Value/Market Cap: 0.38
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: -1.69
• 1Y Price Target: $1.50
• Price Target Upside: 82.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $1.00 ▲(21.95% Upside)

VerifyMe's overall stock score reflects significant financial challenges, including declining revenues and persistent losses, which weigh heavily on its financial performance score. Technical analysis indicates bearish momentum, while valuation metrics suggest the stock is overvalued given its negative earnings. Despite strategic initiatives for future growth, immediate financial difficulties remain a concern.

Positive Factors

Strategic Partnerships

Building partnerships with major freight carriers positions VerifyMe for future growth, enhancing its market reach and service offerings, which can drive organic revenue growth in the coming years.

Cash Flow Improvement

Improved cash flow from operations indicates better financial health and liquidity, providing VerifyMe with more resources to invest in growth initiatives and manage operational needs effectively.

Cost Management

Significant cost reductions enhance operational efficiency, allowing VerifyMe to improve its financial performance and potentially increase profitability over the long term.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining sales momentum, which could impact VerifyMe's ability to sustain growth and profitability if not addressed.

Gross Profit Margin Decrease

A declining gross profit margin suggests difficulties in cost management or pricing power, which may affect long-term profitability and competitiveness.

PeriShip Revenue Decline

The decline in PeriShip revenue highlights the impact of losing major customers, which could hinder VerifyMe's revenue diversification and growth prospects if not countered by new business.

VerifyMe Business Overview & Revenue Model

Company Description

VerifyMe, Inc., a technology solutions provider, provides products to connect brands with consumers in the United States. The company offers VerifyMe Engage services that provides the ability for the brand owner to gather business intelligence and engage with the consumer using authentication test as the initial contact with the consumer. It also offers VerifyMe Authenticate services that provide an assortment of tools through its patented products comprising VerifyInk, a patented invisible ink; VerifyAuthenticator technology, a device used with a smartphone and the VerifyMe app to authenticate and decode VerifyInk codes; VerifyLabel, a tamper proof labels; and VerifyChecker, a handheld device that is tuned to authenticate the unique frequency of VerifyInk invisible ink. In addition, the company provides VerifyMe Track & Trace, a supply chain serialization, track and trace technology utilizing overt dynamic codes, such as VerifyCode, which is tied to cloud-based authentication and track and trace system. Further, it offers VerifyMe Online that includes technologies and services that enable customers to tackle counterfeit websites, domains and e-commerce platforms, and social media sites offering or promoting counterfeit products. VerifyMe, Inc. has a strategic partnership with INX International Ink Company. The company was formerly known as LaserLock Technologies, Inc. and changed its name to VerifyMe, Inc. in July 2015. VerifyMe, Inc. was incorporated in 1999 and is headquartered in Rochester, New York.

How the Company Makes Money

VerifyMe generates revenue through multiple streams, including the sale of its authentication and tracking solutions to businesses in various sectors, particularly in consumer goods and retail. The company earns income from licensing its technology to partners and clients, which allows them to integrate VerifyMe's solutions into their existing systems. Additionally, recurring revenue is generated from subscription-based services that provide ongoing support and analytics. Strategic partnerships with major brands and industry players further enhance revenue opportunities, as these collaborations often involve co-developing tailored solutions that meet specific market needs.

VerifyMe Financial Statement Overview

Summary

VerifyMe faces significant financial challenges, with declining revenues, persistent losses, and cash flow constraints. While the company maintains a low level of debt, its inability to generate profits and cash flow raises concerns about its financial sustainability. The stable gross profit margin and low leverage provide some stability, but the company needs to address its operational inefficiencies and improve cash generation to enhance its financial health.

Income Statement

VerifyMe's income statement shows a challenging financial position with declining revenues and negative profit margins. The TTM data indicates a revenue decline of 3.63% and a net profit margin of -17.16%, reflecting ongoing losses. The EBIT and EBITDA margins are also negative, indicating operational inefficiencies. Despite these challenges, the gross profit margin remains relatively stable at 33.50%, suggesting some ability to manage cost of goods sold.

Balance Sheet

The balance sheet reveals a relatively low debt-to-equity ratio of 0.058, indicating conservative leverage. However, the return on equity is negative at -30.56%, reflecting the company's inability to generate profits from its equity base. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets, suggesting a stable capital structure.

Cash Flow

Cash flow analysis shows a concerning trend with a significant decline in free cash flow growth of -578.57% in the TTM period. The operating cash flow to net income ratio is 0.45, indicating limited cash generation relative to net losses. The free cash flow to net income ratio is 0.23, highlighting challenges in converting earnings to cash. These metrics suggest liquidity constraints and potential difficulties in funding operations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.07M	24.21M	25.31M	19.58M	867.00K	343.00K
Gross Profit	7.39M	8.66M	8.03M	6.49M	599.00K	281.00K
EBITDA	-2.55M	-863.00K	-1.79M	-13.54M	-4.71M	-3.47M
Net Income	-3.79M	-3.82M	-3.39M	-14.40M	3.61M	-5.90M
Balance Sheet
Total Assets	17.17M	16.07M	20.70M	20.75M	21.69M	8.77M
Cash, Cash Equivalents and Short-Term Investments	6.07M	2.82M	3.10M	3.41M	9.42M	7.94M
Total Debt	844.00K	2.22M	2.95M	2.35M	0.00	72.00K
Total Liabilities	2.73M	5.85M	8.17M	7.17M	521.00K	455.00K
Stockholders Equity	14.44M	10.21M	12.53M	13.59M	21.17M	8.32M
Cash Flow
Free Cash Flow	201.00K	348.00K	209.00K	-2.83M	-3.51M	-2.41M
Operating Cash Flow	865.00K	871.00K	244.00K	-2.55M	-3.25M	-2.28M
Investing Cash Flow	-716.00K	-575.00K	-1.20M	-7.88M	-2.85M	-125.00K
Financing Cash Flow	2.97M	-616.00K	634.00K	4.42M	7.59M	10.09M

VerifyMe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.82
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRME, the sentiment is Negative. The current price of 0.82 is below the 20-day moving average (MA) of 1.02, below the 50-day MA of 0.99, and below the 200-day MA of 0.86, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 37.66 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRME.

VerifyMe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SPCB	59 Neutral	$46.44M	28.87	―	―	―	―
BKYI	51 Neutral	$4.77M	-0.55	-145.28%	―	13.96%	85.22%
VRME	46 Neutral	$11.46M	-2.69	-28.37%	―	-13.20%	-89.43%
GFAI	41 Neutral	$17.77M	-1.87	-21.54%	―	4.38%	74.69%
DGLY	39 Underperform	$2.72M	―	-191.47%	―	-20.52%	83.27%

VerifyMe Corporate Events

VerifyMe Regains Nasdaq Compliance, Stabilizing Market Position

On October 17, 2025, VerifyMe, Inc. received a notice from Nasdaq confirming that the company has regained compliance with the minimum bid price requirements for continued listing on the Nasdaq Capital Market. This development marks the closure of the compliance issue, potentially stabilizing the company’s market position and reassuring stakeholders.

The most recent analyst rating on (VRME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Announces Key Decisions at Annual Meeting

At the annual meeting of stockholders held on October 8, 2025, VerifyMe, Inc. announced several key decisions. Stockholders elected directors for a one-year term, approved executive compensation, ratified MaloneBailey, LLP as the independent accounting firm, and authorized a potential reverse stock split ranging from 1-for-2 to 1-for-10. These decisions could impact the company’s governance and financial structure.

The most recent analyst rating on (VRME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Announces Board Changes with New Appointment

On September 24, 2025, Dr. Arthur Laffer resigned as a director of VerifyMe, Inc., with no disagreements on company matters. Following this, David Edmonds was appointed to the Audit Committee, effective September 26, 2025.

The most recent analyst rating on (VRME) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Loses FedEx Preferred Shipper Status

On August 26, 2025, VerifyMe, Inc. received notice from FedEx Corporation that it will no longer be an approved FedEx preferred shipper effective September 24, 2025, impacting its Proactive services which comprised a significant portion of its revenue and gross profits. In response, VerifyMe plans to shift focus to its Premium services for FedEx customers and align its Proactive services with a new shipping partner, aiming to maintain service quality and potentially reduce shipping costs for its customers during the peak holiday season.

The most recent analyst rating on (VRME) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Earnings Call: Mixed Outlook with Strategic Growth

The recent earnings call for VerifyMe presented a mixed sentiment, highlighting significant cost reductions and strategic initiatives aimed at future growth, juxtaposed with current declines in revenue and profit margins. While the company is making strides in establishing new partnerships and improving cash flow, it continues to face immediate financial challenges.

VerifyMe Faces Nasdaq Delisting Risk Amid Minimum Bid Price Non-Compliance

VerifyMe is currently facing a significant business risk due to its non-compliance with Nasdaq’s continued listing requirements, specifically the Minimum Bid Price Rule. This non-compliance, stemming from the stock’s prolonged sub-$1.00 bid price, threatens the company’s ability to maintain its Nasdaq listing. If delisted, VerifyMe would likely experience a decline in stock price and liquidity, face challenges in raising capital, and potentially lose the confidence of investors and business partners. Additionally, the stock could be relegated to over-the-counter markets, further diminishing its market presence and attractiveness to institutional investors.

VerifyMe’s Q2 2025 Financial Results Overview

VerifyMe, Inc., a company specializing in logistics for time and temperature-sensitive products and brand protection solutions, has released its financial results for the second quarter of 2025. The company operates primarily in the logistics and brand protection industry, offering unique solutions to enhance brand security and logistics efficiency.

VerifyMe Reports Q2 2025 Financial Results

On August 13, 2025, VerifyMe, Inc. announced its financial results for the second quarter ended June 30, 2025. The company reported a decrease in quarterly revenue to $4.5 million from $5.4 million in Q2 2024, primarily due to a discontinued contract in its Premium services. Despite the revenue decline, VerifyMe achieved a net loss reduction to $0.29 million and an improved adjusted EBITDA of $0.3 million. The company also highlighted its strategic focus on future organic revenue growth and higher margin profiles, supported by a new partnership with a major parcel carrier in the US.

The most recent analyst rating on (VRME) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Secures $2 Million Loan Agreement

On August 11, 2025, VerifyMe, Inc. entered into a Master Loan Agreement with ZenCredit Ventures, LLC, agreeing to loan up to $2 million. The agreement includes a nine-month term with a 16% annual interest rate, and the loan was executed with a $2 million promissory note. This strategic financial move is expected to impact VerifyMe’s financial operations by generating interest income, and it reflects the company’s engagement in financial lending activities.

The most recent analyst rating on (VRME) stock is a Buy with a $4.00 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.