VerifyMe (VRME) AI Stock Analysis

• Market Cap: $9.20M
• Dividend Yield: N/A
• Average Volume (3M): 68.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -9.87%
• EPS Growth: -49.12%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 87
• Industry: Security & Protection Services
• EPS (TTM): -0.04
• Shares Outstanding: 12,420,564
• 10 Day Avg. Volume: 67,212
• 30 Day Avg. Volume: 68,922
• PEG Ratio: <0.01
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -3.47
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 0.09
• Enterprise Value/Gross Profit: 1.11
• Enterprise Value/Ebitda: -1.01
• 1Y Price Target: $1.38
• Price Target Upside: 86.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: $0.50 ▼(-32.43%Downside)

VerifyMe's overall score is impacted primarily by its financial struggles, with negative earnings and declining revenue taking precedence. The technical analysis presents a neutral outlook, while valuation concerns persist due to a negative P/E ratio. Earnings call insights offer some optimism through cost management and growth plans, but the challenges weigh heavily on the overall assessment.

Positive Factors

Cash Flow and Capital

VRME ended 1Q25 with $5.7M cash and minimal debt, with projections for positive cash flow suggesting additional capital is not needed for existing operations.

Debt Reduction

VRME substantially reduced its debt obligations recently, enabling greater flexibility to pursue new strategic growth opportunities.

EBITDA Performance

Adjusted EBITDA of $1.0M, up 128% year-over-year, beat the estimate and aligned with management's guidance for positive improvements.

Negative Factors

Lack of Financial Guidance

Management chose not to provide financial guidance for FY/25 due to unpredictable market conditions in the logistics space.

Logistics Business Challenges

The company's logistics business performance was weak due to the loss of the FedEx direct premium business and a soft industry backdrop.

Revenue Decline

VRME reported 1Q25 revenue of $4.5M, marking a 23% decline year over year, and failing to meet the $5.0M estimate.

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 the sale of its technology solutions and services aimed at brand protection and supply chain security. The company's key revenue streams include licensing fees for its proprietary authentication and serialization technologies, service fees for implementation and maintenance, and subscription fees for ongoing access to its software and analytics platforms. VerifyMe also engages in strategic partnerships with packaging companies and other technology providers to expand its reach and enhance its service offerings, contributing to its earnings by enabling integrated solutions for its clients.

VerifyMe Financial Statement Overview

Summary

VerifyMe's financial performance shows a strong balance sheet with low leverage, but profitability is challenged with negative margins and declining cash flow generation. There is potential for improvement with cost management strategies.

Income Statement

VerifyMe's income statement shows a fluctuating revenue trend. The TTM (Trailing-Twelve-Months) revenue of $22.9M is slightly less than the previous year's $24.2M, indicating a slight decline. Gross profit margin remains positive but has decreased from 35.8% in the previous year to 34.4% TTM. The net profit margin remains negative, highlighting ongoing profitability challenges. Despite a negative EBIT and EBITDA, the company shows resilience in maintaining gross profits, indicating potential for future improvements with cost management.

Balance Sheet

VerifyMe maintains a strong equity position with a stockholders' equity of $14.6M TTM, up from $10.2M the previous year. The debt-to-equity ratio is very low at 0.007, showcasing financial stability and low leverage risk. The equity ratio is robust at 85.6%, indicating a strong reliance on equity over debt. However, total assets have decreased slightly, indicating a need for asset growth to support long-term financial health.

Cash Flow

The cash flow statement reveals mixed performance. Operating cash flow has decreased to $527K TTM from $871K in the previous year, indicating challenges in cash generation from operations. Free cash flow is positive at $114K TTM, but has declined from $348K in the previous year, suggesting reduced capacity for internal funding. The operating cash flow to net income ratio indicates cash flow generation is not yet robust enough to offset net losses.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
22.90M	24.21M	25.31M	19.58M	867.00K	343.00K
	Gross Profit
7.89M	8.66M	9.00M	6.49M	599.00K	281.00K
	EBIT
-2.03M	-2.08M	-2.93M	-3.75M	-4.83M	-3.57M
	EBITDA
-3.09M	-863.00K	-1.79M	-13.54M	-4.71M	-3.49M
	Net Income Common Stockholders
-3.84M	-3.82M	-3.39M	-14.40M	3.61M	-5.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.71M	2.82M	3.10M	3.35M	9.42M	7.94M
	Total Assets
17.09M	16.07M	20.70M	20.75M	21.69M	8.77M
	Total Debt
102.00K	2.22M	2.95M	2.35M	0.00	72.00K
	Net Debt
-5.61M	-601.00K	-143.00K	-1.06M	-9.42M	-7.87M
	Total Liabilities
2.45M	5.85M	8.17M	7.17M	521.00K	455.00K
	Stockholders Equity
14.64M	10.21M	12.53M	13.59M	21.17M	8.32M
Cash Flow		Free Cash Flow
114.00K	348.00K	209.00K	-2.83M	-3.51M	-2.41M
	Operating Cash Flow
527.00K	871.00K	244.00K	-2.55M	-3.25M	-2.28M
	Investing Cash Flow
-621.00K	-575.00K	-1.20M	-7.88M	-2.85M	-125.00K
	Financing Cash Flow
2.93M	-616.00K	634.00K	4.42M	7.59M	10.09M

VerifyMe Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.74
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 0.74 is below the 20-day moving average (MA) of 0.75, above the 50-day MA of 0.71, and below the 200-day MA of 1.09, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 48.14 is Neutral, neither overbought nor oversold. The STOCH value of 33.76 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
SPCB	67 Neutral	$43.64M	28.04	9.92%	―	―	―
Sector *	66 Neutral	$4.47B	12.22	5.40%	3.65%	4.14%	-12.00%
GFAI	58 Neutral	$21.97M	―	-20.57%	―	0.18%	91.18%
VRME	49 Neutral	$9.20M	―	-28.42%	―	-9.87%	-49.12%
DGLY	49 Neutral	$4.27M	―	-118.58%	―	-28.69%	65.07%
BKYI	46 Neutral	$4.72M	―	-116.82%	―	-7.25%	80.12%
IVDA		$5.50M	―	-112.33%	―	―	―

VerifyMe Corporate Events

VerifyMe Reports Q1 2025 Revenue Decline

VerifyMe, Inc. announced its financial results for the first quarter of 2025, reporting a decrease in revenue to $4.5 million from $5.8 million in the same period of 2024, largely due to a discontinued contract with a customer in its Premium services. Despite the revenue decline, the company maintained a net loss of $0.6 million, consistent with the previous year, and reported a cash balance of $5.7 million as of March 31, 2025. The company is focusing on technical improvements and sales and marketing enhancements to create shareholder value amidst challenging macroeconomic conditions.

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 Announces New CFO Appointment

On May 6, 2025, VerifyMe, Inc. announced the upcoming retirement of Nancy Meyers from her role as Executive Vice President and Chief Financial Officer, effective July 7, 2025. Her departure is not due to any disagreements with the company. Jennifer Cola, with extensive experience in public company accounting and finance, will be appointed as the new Chief Financial Officer upon Meyers’ retirement. Cola will initially serve as Vice President of Finance starting May 19, 2025, with a compensation package that includes an annual salary and restricted stock units. The Compensation Committee also approved a bonus structure for the Chief Financial Officer and Chief Executive Officer, with the bonuses tied to the company’s Adjusted EBITDA performance goals.

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.