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: -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: 12,323,666
• 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: 0.57
• Enterprise Value/Ebitda: -1.24
• 1Y Price Target: $1.00
• Price Target Upside: 35.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $0.74 ▼(-0.54% Downside)

VerifyMe's overall stock score reflects significant challenges in profitability and technical performance. While there are improvements in cash flow and operational efficiencies, these are offset by declining revenues, a negative P/E ratio, and bearish technical indicators. The company's financial stability is a positive aspect, but the lack of growth and valuation concerns weigh heavily on the score.

Positive Factors

Cash Flow Management

Improved cash flow management enhances VerifyMe's ability to fund operations and strategic initiatives, supporting long-term stability.

Gross Margin Improvement

Higher gross margins indicate better cost management and pricing power, which can enhance profitability over time.

Stable Balance Sheet

A stable balance sheet with low leverage provides VerifyMe with financial flexibility to pursue growth opportunities.

Negative Factors

Revenue Decline

Declining revenue suggests challenges in maintaining market share and could impact long-term growth prospects.

Profitability Challenges

Ongoing profitability challenges may hinder VerifyMe's ability to reinvest in the business and achieve sustainable growth.

Shipping Partner Transition Issues

Disruptions in shipping partner transitions can affect service delivery and customer satisfaction, impacting future revenues.

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: 0.74
• 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 0.74 is below the 20-day moving average (MA) of 0.77, below the 50-day MA of 0.93, and below the 200-day MA of 0.83, indicating a bearish trend. The MACD of -0.07 indicates Negative momentum. The RSI at 40.36 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 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	$40.39M	26.63	―	―	―	―
VRME	48 Neutral	$11.46M	-2.69	-44.14%	―	-14.21%	-20.44%
GFAI	47 Neutral	$17.77M	-1.87	-21.54%	―	4.38%	74.69%
BKYI	44 Neutral	$7.64M	―	-143.60%	―	-1.19%	86.72%
DGLY	41 Neutral	$3.15M	―	-233.66%	―	-9.62%	95.79%

VerifyMe Corporate Events

VerifyMe’s Earnings Call: Mixed Sentiments Amid Challenges

The recent earnings call for VerifyMe reflected a mixed sentiment, as the company reported efforts to enhance gross margins and cut operating expenses, leading to an improved adjusted EBITDA. However, these positive strides were overshadowed by declining revenues, a substantial one-time impairment expense, and challenges linked to transitioning to a new shipping partner.

VerifyMe Reports Q3 2025 Financial Results

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

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.

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.