VerifyMe (VRME) AI Stock Analysis

• Market Cap: $10.83M
• Dividend Yield: N/A
• Average Volume (3M): 6.88M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: -13.20%
• EPS Growth: -89.43%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 75
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 12,323,666
• 10 Day Avg. Volume: 1,387,496
• 30 Day Avg. Volume: 6,881,014
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.40
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.55
• Enterprise Value/Ebitda: -1.55
• 1Y Price Target: $1.25
• Price Target Upside: 37.36% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $1.00 ▲(9.89% Upside)

VerifyMe's overall stock score reflects a company with significant financial challenges but potential for improvement. The strong balance sheet and strategic initiatives, such as the UPS partnership and loan agreement, are positive factors. However, declining revenue and profitability issues weigh heavily on the score. Technical indicators provide some support, but valuation concerns remain.

Positive Factors

Cost Management

G&A expense was 36.2% of revenue, which was 880-bps better as a percentage of revenue relative to the comparable period result of 45.0% of revenue.

Debt Management

VRME generated $4.7M cash from a warrant inducement, retired its term debt and non-affiliate convertible debt, and announced an ~$15.8M ATM; which enables the company to actively pursue strategic alternatives and new growth initiatives to maximize shareholder return.

Strategic Partnerships

Precision Logistics has commenced a new partnership with another large parcel carrier in the U.S., which is expected to ultimately become a material contributor to results.

Negative Factors

Lack of 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 disappointing logistics business result was primarily attributable to the loss of the FedEx direct premium business and decreased demand across VRME’s base of proactive customers.

Revenue Decline

Total revenue came in at $4.5 million, representing a decline of around 15.6% versus the comparable period a year ago.

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's financial performance is mixed. The income statement shows declining revenue and negative profit margins, indicating profitability challenges. However, the balance sheet is strong with low leverage and high equity, and the cash flow statement shows positive free cash flow despite a decline. Overall, the company has a solid financial foundation but needs to improve profitability and cash generation.

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
EBITDA	-2.78M	-863.00K	-1.79M	-13.54M	-4.71M	-3.47M
Net Income	-3.84M	-3.82M	-3.39M	-14.40M	3.61M	-5.90M
Balance Sheet
Total Assets	17.09M	16.07M	20.70M	20.75M	21.69M	8.77M
Cash, Cash Equivalents and Short-Term Investments	5.71M	2.82M	3.10M	3.41M	9.42M	7.94M
Total Debt	852.00K	2.22M	2.95M	2.35M	0.00	72.00K
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	-42.00K	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: Positive
• Last Price: 0.91
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 0.91 is above the 20-day moving average (MA) of 0.88, above the 50-day MA of 0.80, and below the 200-day MA of 0.97, indicating a neutral trend. The MACD of 0.03 indicates Positive momentum. The RSI at 52.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRME.

VerifyMe Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	63 Neutral	$10.80B	16.70	6.58%	2.07%	2.48%	-16.85%
SPCB	59 Neutral	$43.26M	28.80	9.92%	―	―	―
VRME	55 Neutral	$10.83M	―	-28.37%	―	-13.20%	-89.43%
GFAI	51 Neutral	$24.81M	―	-20.57%	―	0.18%	91.18%
DGLY	47 Neutral	$3.01M	―	-118.58%	―	-28.69%	65.07%
BKYI	43 Neutral	$5.11M	―	-145.28%	―	13.96%	85.22%
IVDA	―	$5.11M	―	-126.65%	―	―	―

VerifyMe Corporate Events

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.

VerifyMe Subsidiary Secures UPS Agreement for Logistics

On July 29, 2025, PeriShip Global, LLC, a subsidiary of VerifyMe, Inc., entered into agreements with UPS to access designated services at promotional rates for managing perishable shipments. These agreements, valid for three years, allow PeriShip to develop interfaces to UPS APIs and enhance its logistics capabilities, potentially strengthening its market position in the logistics industry.

The most recent analyst rating on (VRME) stock is a Buy with a $1.25 price target. To see the full list of analyst forecasts on VerifyMe stock, see the VRME Stock Forecast page.

VerifyMe Appoints New CFO Jennifer Cola

VerifyMe, Inc. has appointed Jennifer Cola as its new Chief Financial Officer effective July 8, 2025. Cola, who previously served as Vice President of Finance, brings extensive experience from her previous roles at GP Strategies and Learning Technologies Group. Her appointment follows the retirement of Nancy Meyers, who will remain in a non-executive role to ensure a smooth transition. Additionally, the company’s Board of Directors approved an amendment to its bylaws, reducing the quorum requirement for stockholder meetings from a majority to 33%, which may impact shareholder engagement and decision-making processes.

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.