VerifyMe (VRME) AI Stock Analysis

• Market Cap: $8.36M
• Dividend Yield: N/A
• Average Volume (3M): 812.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.67
• Revenue Growth: -14.21%
• EPS Growth: -20.44%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 72
• Industry: Security & Protection Services
• EPS (TTM): 0.05
• Shares Outstanding: 12,443,169
• 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: 0.51
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.57
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: $1.00
• Price Target Upside: 44.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $0.69 ▼(-0.43% Downside)

VerifyMe's overall stock score reflects a company facing significant challenges in profitability and revenue growth, as indicated by its financial performance and valuation. Technical analysis suggests bearish momentum, while recent corporate events provide some stability. The earnings call offers a mixed outlook, with improvements in certain areas but overshadowed by revenue declines.

Positive Factors

Cash Flow Improvement

Improved cash flow indicates better financial management and provides the company with more flexibility for strategic investments and operations.

Gross Margin Increase

Higher gross margins reflect improved cost management and pricing strategies, enhancing profitability potential over the long term.

Nasdaq Compliance Regained

Regaining compliance stabilizes the company's market position, ensuring continued access to capital markets and investor confidence.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining market share and customer retention, which could impact long-term growth prospects.

Net Loss Increase

Increasing net losses highlight ongoing profitability issues, which may hinder the company's ability to invest in growth and innovation.

Shipping Partner Transition Challenges

Disruptions from partner transitions can affect service delivery and customer satisfaction, potentially impacting revenue and market reputation.

VerifyMe Business Overview & Revenue Model

Company Description

VerifyMe (VRME) is a technology company specializing in authentication and anti-counterfeiting solutions. The company operates primarily in the security and identity verification sectors, offering a suite of products and services that leverage advanced technologies such as blockchain and QR codes. VerifyMe's core offerings include digital identity verification, product authentication for brands, and comprehensive tracking solutions that help businesses secure their products against counterfeiting and fraud.

How the Company Makes Money

VerifyMe generates revenue through multiple streams, primarily by providing subscription-based services and licensing its technology to businesses in various industries, including consumer goods, pharmaceuticals, and luxury brands. The company charges clients for the implementation of its authentication solutions, as well as ongoing fees for access to its software and data analytics services. Additionally, VerifyMe may engage in partnerships with manufacturers and distributors to integrate its technology into their supply chains, which can lead to revenue-sharing agreements. The increasing demand for anti-counterfeiting measures and secure digital identity solutions, along with strategic partnerships, significantly contribute to the company's earnings.

VerifyMe Financial Statement Overview

Summary

VerifyMe's financial performance shows mixed results. The company struggles with profitability, as indicated by a negative net profit margin and declining revenue growth. However, the balance sheet is stable with low leverage, and cash flow has improved significantly, suggesting better cash management. Overall, financial stability is a strength, but profitability and growth remain concerns.

Income Statement

VerifyMe's income statement reveals challenges with profitability and revenue growth. The TTM data shows a negative net profit margin of -21.78% and a declining revenue growth rate of -1.82%, indicating struggles in maintaining revenue levels. The gross profit margin is moderate at 34.94%, but the negative EBIT and EBITDA margins highlight operational inefficiencies. Historical data shows fluctuating revenue growth and persistent net losses, suggesting a need for strategic improvements.

Balance Sheet

The balance sheet presents a relatively low debt-to-equity ratio of 0.0075 in the TTM, indicating low leverage and financial stability. However, the return on equity is negative at -37.45%, reflecting ongoing profitability issues. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of stockholders' equity relative to its assets, suggesting a stable capital structure despite profitability challenges.

Cash Flow

Cash flow analysis shows a significant improvement in free cash flow growth at 371.64% in the TTM, indicating better cash management. The operating cash flow to net income ratio of 0.53 suggests some efficiency in converting income to cash. However, the free cash flow to net income ratio of 0.85 highlights that while cash flow is improving, profitability remains a concern. Historical data shows volatility in cash flow metrics, indicating potential risks in cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	21.67M	24.21M	25.31M	19.58M	867.00K	343.00K
Gross Profit	7.57M	8.66M	8.03M	6.49M	599.00K	281.00K
EBITDA	-3.47M	-2.48M	-2.10M	-13.54M	-4.71M	-3.47M
Net Income	-4.72M	-3.82M	-3.39M	-14.40M	3.61M	-5.90M
Balance Sheet
Total Assets	13.26M	16.07M	20.70M	20.75M	21.69M	8.77M
Cash, Cash Equivalents and Short-Term Investments	4.01M	2.82M	3.10M	3.41M	9.42M	7.94M
Total Debt	833.00K	2.22M	2.95M	2.35M	0.00	72.00K
Total Liabilities	2.16M	5.85M	8.17M	7.17M	521.00K	455.00K
Stockholders Equity	11.10M	10.21M	12.53M	13.59M	21.17M	8.32M
Cash Flow
Free Cash Flow	615.00K	348.00K	-530.00K	-2.83M	-3.51M	-2.41M
Operating Cash Flow	1.12M	871.00K	244.00K	-2.55M	-3.25M	-2.28M
Investing Cash Flow	-2.79M	-575.00K	-1.20M	-7.88M	-2.85M	-125.00K
Financing Cash Flow	3.02M	-616.00K	634.00K	4.42M	7.59M	10.09M

VerifyMe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.69
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 0.69 is below the 20-day moving average (MA) of 0.71, below the 50-day MA of 0.85, and below the 200-day MA of 0.82, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 38.39 is Neutral, neither overbought nor oversold. The STOCH value of 37.92 is Neutral, 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	54 Neutral	$43.99M	28.27	―	―	―	―
VRME	50 Neutral	$8.36M	-1.76	-44.14%	―	-14.21%	-20.44%
BKYI	47 Neutral	$6.77M	-0.61	-143.60%	―	-1.19%	86.72%
GFAI	47 Neutral	$14.40M	-1.51	-21.54%	―	4.38%	74.69%
DGLY	39 Underperform	$1.43M	>-0.01	-233.66%	―	-9.62%	95.79%

VerifyMe Corporate Events

VerifyMe Receives Nasdaq Notice Over Minimum Bid Price

On December 12, 2025, VerifyMe, Inc. disclosed that it had received a notice from Nasdaq stating the company no longer met the exchange’s minimum bid price requirement of $1 per share, after its stock closed below that threshold for 30 consecutive business days. The company now has until June 10, 2026, to regain compliance by maintaining a closing bid price of at least $1 for at least 10 consecutive business days, with the possibility of an additional 180-day grace period if certain other listing standards are met; while the notice has no immediate effect on trading of its shares, failure to cure the deficiency could ultimately lead to delisting, appeal proceedings, and strategic actions by management as it monitors the share price and evaluates available options.

VerifyMe Reports Q3 2025 Financial Results

VerifyMe reported its financial results for the third quarter of 2025, showing a revenue of $5.0 million, a decrease from $5.4 million in the same quarter of 2024. Despite the revenue decline, the company achieved a gross profit increase to $2.1 million and improved its adjusted EBITDA to $0.8 million. The net loss widened to $3.4 million, primarily due to goodwill and intangible asset impairments. The company expressed optimism about future growth, highlighting a new partnership with a major parcel carrier and plans for strategic acquisitions to enhance services.

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.

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.

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.