VerifyMe (VRME)
NASDAQ:VRME
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VerifyMe
(NASDAQ:VRME)
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Rating:54Neutral
Price Target:
$0.83
▲(19.71% Upside)
Action:ReiteratedDate:04/01/26
The score is primarily driven by improving fundamentals (profitability/cash-flow trajectory and a de-levered balance sheet), but it is held back by sharp revenue contraction and a weak technical setup (price below key moving averages with negative MACD). Corporate developments help (Nasdaq compliance), yet the transformational merger introduces material execution and dilution risk, and valuation signals are not clearly supportive based on the provided P/E and dividend data.
Positive Factors
De-levered balance sheet
Reported elimination of debt by 2025 and a conservative balance-sheet mix materially improve financial flexibility and reduce solvency risk. This durability supports operating continuity, funding for strategic initiatives, and lowers refinancing pressure over the next several quarters.
Negative Factors
Sharp revenue contraction
Top-line has declined materially—Q4 dropped to $2.4M from $7.7M and company-level revenue fell in 2024 and again in 2025—weakening the quality of margin and cash-flow improvements. Continued revenue erosion risks reversing profitability and stresses scalability over coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
De-levered balance sheet
Reported elimination of debt by 2025 and a conservative balance-sheet mix materially improve financial flexibility and reduce solvency risk. This durability supports operating continuity, funding for strategic initiatives, and lowers refinancing pressure over the next several quarters.
Read all positive factors
VerifyMe (VRME) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.88M
Dividend YieldN/A
Average Volume (3M)812.51K
Price to Earnings (P/E)―
Beta (1Y)0.81
Revenue Growth-14.21%
EPS Growth-20.44%
CountryUS
Employees40
SectorIndustrials
Sector Strength72
IndustrySecurity & Protection Services
Share Statistics
EPS (TTM)-0.02
Shares Outstanding13,119,065
10 Day Avg. Volume520,291
30 Day Avg. Volume812,507
Financial Highlights & Ratios
PEG Ratio-0.29
Price to Book (P/B)0.69
Price to Sales (P/S)0.46
P/FCF Ratio-58.32
Enterprise Value/Market Cap0.69
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.19
Enterprise Value/Ebitda-1.94
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.02
Revenue Forecast (FY)$13.12M
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 adv...
How the Company Makes Money
null...
VerifyMe Earnings Call Summary
Earnings Call Date:Nov 17, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted the company's efforts to improve gross margins and reduce operating expenses, resulting in an improved adjusted EBITDA. However, the overall sentiment is overshadowed by revenue declines, a significant one-time impairment expense, and challenges associated with transitioning to a new shipping partner.Positive Updates
Improved Gross Margin
Gross margin increased from 35% in Q3 2024 to 41% in Q3 2025, reflecting improved negotiated rates with a primary supplier.
Negative Updates
Revenue Decline
Third quarter revenue decreased from $5.4 million in 2024 to $5.0 million in 2025, primarily due to discontinued services with two Proactive customers.
Read all updates
Q3-2025 Updates
Positive
Negative
Improved Gross Margin
Gross margin increased from 35% in Q3 2024 to 41% in Q3 2025, reflecting improved negotiated rates with a primary supplier.
Read all positive updates
Company Guidance
During the VerifyMe Third Quarter 2025 earnings call, guidance highlighted several key metrics. The company's revenue for Q3 2025 was $5.0 million, down from $5.4 million in Q3 2024, primarily due to $0.8 million in discontinued services. However, gross profit improved by $0.2 million, reaching $2.1 million, with the gross margin increasing to 41% from 35% in the previous year, thanks to better-negotiated supplier rates. Despite a one-time non-cash impairment expense of $3.9 million, the company saw operating expenses decrease to $1.7 million from $2.5 million in Q3 2024, partly due to the divestiture of Trust Codes. Adjusted EBITDA rose to $0.8 million, up from $0.2 million in the prior year. The company anticipates a transitional revenue impact due to changes in their Proactive shipping partner but expects to remain cash flow positive through 2025 and 2026. They have a cash balance of $4.0 million and no outstanding bank debt, positioning them well for organic and strategic growth. The company plans to provide specific guidance for 2026 in the next earnings call.VerifyMe Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
72
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 16.40M | 24.21M | 25.31M | 19.58M | 867.00K |
| Gross Profit | 5.34M | 8.66M | 8.03M | 6.49M | 599.00K |
| EBITDA | -236.00K | -2.48M | -2.10M | -13.54M | -4.71M |
| Net Income | -4.91M | -3.82M | -3.39M | -14.40M | 3.61M |
Balance Sheet | |||||
| Total Assets | 13.02M | 16.07M | 20.70M | 20.75M | 21.69M |
| Cash, Cash Equivalents and Short-Term Investments | 4.35M | 2.82M | 3.10M | 3.41M | 9.42M |
| Total Debt | 750.00K | 2.22M | 2.95M | 2.35M | 0.00 |
| Total Liabilities | 2.02M | 5.85M | 8.17M | 7.17M | 521.00K |
| Stockholders Equity | 10.99M | 10.21M | 12.53M | 13.59M | 21.17M |
Cash Flow | |||||
| Free Cash Flow | -130.00K | 348.00K | -530.00K | -2.83M | -3.51M |
| Operating Cash Flow | 603.00K | 871.00K | 244.00K | -2.55M | -3.25M |
| Investing Cash Flow | -2.73M | -575.00K | -1.20M | -7.88M | -2.85M |
| Financing Cash Flow | 3.66M | -616.00K | 634.00K | 4.42M | 7.59M |
VerifyMe Technical Analysis
Negative
0.69
Price Trends
0.95
Negative
0.90
Negative
0.91
Negative
Market Momentum
-0.04
Negative
43.37
Neutral
48.33
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 0.85, below the 50-day MA of 0.95, and below the 200-day MA of 0.91, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 43.37 is Neutral, neither overbought nor oversold. The STOCH value of 48.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRME.
VerifyMe Risk Analysis
VerifyMe disclosed 44 risk factors in its most recent earnings report. VerifyMe reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
VerifyMe Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
54 Neutral | $10.88M | -1.55 | -37.45% | ― | -14.21% | -20.44% | |
54 Neutral | $37.59M | 15.14 | 15.61% | ― | ― | ― | |
44 Neutral | $6.14M | -0.52 | -65.36% | ― | -1.19% | 86.72% | |
44 Neutral | $9.30M | -2.57 | -18.85% | ― | 4.38% | 74.69% |
* Industrials Sector Average
VRME
VerifyMe
0.83
0.17
26.18%
SPCB
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8.45
2.37
38.98%
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0.57
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-22.36%
IVDA
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0.26
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-89.80%
GFAI
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0.44
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VerifyMe Corporate Events
Business Operations and StrategyExecutive/Board ChangesM&A TransactionsRegulatory Filings and Compliance
VerifyMe Announces Transformational Merger with Open World
Positive
Feb 12, 2026
On February 11, 2026, VerifyMe agreed to merge its wholly owned VRME Subsidiary Corp. with Open World Ltd., a Cayman Islands-based blockchain infrastructure and real-world asset tokenization platform, in a stock transaction that will leave existin...
Delistings and Listing ChangesRegulatory Filings and Compliance
VerifyMe Regains Nasdaq Compliance, Stabilizing Listing Status
Positive
Feb 2, 2026
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 comp...
Business Operations and StrategyDividendsM&A Transactions
VerifyMe Announces Transformative Merger with Open World
Positive
Jan 5, 2026
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 controll...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.