VerifyMe (VRME) AI Stock Analysis

• Market Cap: $12.69M
• Dividend Yield: N/A
• Average Volume (3M): 812.51K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.78
• 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: 0.71
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.19
• Enterprise Value/Ebitda: -2.59
• 1Y Price Target: $1.50
• Price Target Upside: 117.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.02
• Revenue Forecast (FY): $13.12M

• Rating: 58 Neutral
• Price Target: $1.00 ▲(44.93% Upside)
• Action: Reiterated Date: 02/02/26
• Date: Action: Reiterated 02/02/26

The score is held back primarily by weak profitability and negative earnings (including a negative P/E), partially offset by improving cash flow, a low-leverage balance sheet, and a moderately positive technical trend. Earnings-call updates and recent corporate developments are supportive but tempered by revenue decline, transition risks, and merger execution uncertainty.

Positive Factors

Low leverage and cash cushion

VerifyMe's very low leverage and reported $4.0M cash with no bank debt provide durable financial flexibility. This reduces refinancing risk, supports ongoing operations during execution transitions, and allows the company to fund organic initiatives or small acquisitions without immediate external financing pressure.

Improving gross margins and adjusted EBITDA

A sustained jump in gross margin (35% to 41%) and higher adjusted EBITDA reflect better supplier pricing and cost control. Improved unit economics and operating discipline increase the odds that the business can convert incremental revenue to profit long-term, enhancing cash generation if top-line stabilizes.

Proposed merger to add tokenization capabilities

The LOI to combine VerifyMe with Open World represents a structural strategy shift into institutional-grade tokenization and on-chain provenance. If executed, the deal could materially expand product scope and addressable markets by merging VerifyMe’s brand-protection logistics with blockchain compliance infrastructure.

Negative Factors

Persistent unprofitability and negative ROE

Sustained net losses and deeply negative ROE signal fundamental profitability weakness that limits internal capital generation. Over a 2–6 month horizon, this constrains strategic flexibility, increases reliance on cash reserves or financing, and means the company must show consistent margin improvement to reach durable profitability.

Revenue decline and service discontinuations

Declining revenue and the loss of recurring services erode scale and operating leverage. Without replacement contracts or new offerings, top-line shrinkage undermines margin recovery and cash flow sustainability, making it harder to turn improved unit economics into lasting net profit.

Merger execution and control dilution risk

The proposed Open World transaction is structurally transformative but highly conditional. Potential control transfer to Open World shareholders, exclusivity terms, break-up fees and a June 30, 2026 outside date create material execution and governance risk that could disrupt strategy or dilute existing shareholders if the deal closes or fails.

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

Mixed fundamentals: persistent losses and slight revenue decline weigh on the income statement, but the balance sheet has very low leverage and cash flow metrics show meaningful improvement in free cash flow.

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: Neutral
• Last Price: 0.69
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Neutral. The current price of 0.69 is below the 20-day moving average (MA) of 1.07, below the 50-day MA of 0.98, and below the 200-day MA of 0.89, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
VRME	58 Neutral	$12.69M	-2.59	-44.14%	―	-14.21%	-20.44%
SPCB	54 Neutral	$38.88M	25.39	―	―	―	―
BKYI	48 Neutral	$5.98M	-0.61	-143.60%	―	-1.19%	86.72%
GFAI	44 Neutral	$12.62M	-1.29	-21.54%	―	4.38%	74.69%

VerifyMe Corporate Events

VerifyMe Regains Nasdaq Compliance, Stabilizing Listing Status

On February 2, 2026, VerifyMe announced it had regained compliance with Nasdaq’s minimum bid price rule after its common stock closed at or above $1.00 per share for ten consecutive business days from January 13 to January 29, 2026. The company had previously been notified on December 12, 2025, that it was out of compliance due to its share price trading below the $1.00 threshold, but Nasdaq has now confirmed the matter is closed and VerifyMe will remain listed on the Nasdaq Capital Market under the ticker VRME, removing a key overhang for shareholders and stabilizing its market listing status.

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

VerifyMe Announces Transformative Merger with Open World

On January 2, 2026, VerifyMe entered into a letter of intent to merge its wholly owned subsidiary with Open World Ltd., in a transaction that would leave Open World as a wholly owned subsidiary of VerifyMe but with Open World shareholders controlling roughly 90% of the combined public company; the companies announced the LOI in a press release on January 5, 2026. The proposed merger, which is subject to a definitive agreement, board and shareholder approvals, regulatory clearance and other customary closing conditions, is framed as a strategic combination of VerifyMe’s precision logistics and brand protection capabilities with Open World’s blockchain-based tokenization and compliance infrastructure to build an institutional-grade platform for real-world asset tokenization and on-chain identity and provenance, while providing VerifyMe’s existing shareholders with potential upside from a special pre-closing cash dividend and exposing both investor bases to execution risk given the exclusivity terms, break-up fees and the possibility the deal may not close by the June 30, 2026 outside date.

The most recent analyst rating on (VRME) stock is a Hold with a $0.69 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

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.

The most recent analyst rating on (VRME) stock is a Hold with a $0.74 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

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.

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.