VerifyMe (VRME) AI Stock Analysis

• Market Cap: $11.31M
• Dividend Yield: N/A
• Average Volume (3M): 6.93M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.20
• Revenue Growth: -13.20%
• EPS Growth: -89.43%
• Country: US
• Employees: 40
• Sector: Industrials
• Sector Strength: 73
• Industry: Security & Protection Services
• EPS (TTM): -0.02
• Shares Outstanding: 12,323,666
• 10 Day Avg. Volume: 137,291
• 30 Day Avg. Volume: 6,930,789
• 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: 0.38
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 0.58
• Enterprise Value/Ebitda: -1.50
• 1Y Price Target: $1.33
• Price Target Upside: 46.15% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 52 Neutral
• Price Target: $1.00 ▲(9.89% Upside)

VerifyMe's overall stock score reflects significant financial challenges, including declining revenues and cash flow constraints, which weigh heavily on the score. However, recent strategic initiatives and partnerships provide some optimism for future growth. Technical indicators and corporate events offer moderate support, but valuation concerns persist due to ongoing losses.

Positive Factors

Debt Management

VRME substantially reduced its debt obligations recently, and entered an ATM offering agreement to enable the company greater flexibility to pursue new potential strategic growth opportunities.

Financial Performance

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

Strategic Partnerships

VerifyMe's PeriShip enters a 3-year UPS Digital Channel Program Agreement with United Parcel Service, Inc. to provide certain benefits and integrations into the UPS network.

Negative Factors

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.

Market Uncertainty

Management has not introduced 2025 guidance due to uncertainty and industry softness, but continues to identify and pursue expansion opportunities in its Precision Logistics segment.

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 shows a mixed picture. The income statement reveals declining revenue and negative profit margins, indicating ongoing profitability challenges. However, the balance sheet is strong with low leverage and high equity, and cash flow, while reduced, remains positive. Overall, financial stability is present, but profitability needs improvement.

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	22.07M	24.21M	25.31M	19.58M	867.00K	343.00K
Gross Profit	7.39M	8.66M	8.03M	6.49M	599.00K	281.00K
EBITDA	-2.87M	-863.00K	-1.79M	-13.54M	-4.71M	-3.47M
Net Income	-3.79M	-3.82M	-3.39M	-14.40M	3.61M	-5.90M
Balance Sheet
Total Assets	17.17M	16.07M	20.70M	20.75M	21.69M	8.77M
Cash, Cash Equivalents and Short-Term Investments	6.07M	2.82M	3.10M	3.41M	9.42M	7.94M
Total Debt	844.00K	2.22M	2.95M	2.35M	0.00	72.00K
Total Liabilities	2.73M	5.85M	8.17M	7.17M	521.00K	455.00K
Stockholders Equity	14.44M	10.21M	12.53M	13.59M	21.17M	8.32M
Cash Flow
Free Cash Flow	201.00K	348.00K	209.00K	-2.83M	-3.51M	-2.41M
Operating Cash Flow	865.00K	871.00K	244.00K	-2.55M	-3.25M	-2.28M
Investing Cash Flow	-716.00K	-575.00K	-1.20M	-7.88M	-2.85M	-125.00K
Financing Cash Flow	2.97M	-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 0.90, above the 50-day MA of 0.85, and below the 200-day MA of 0.95, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 51.72 is Neutral, neither overbought nor oversold. The STOCH value of 43.87 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 *	64 Neutral	$10.75B	15.58	7.62%	2.01%	2.80%	-14.32%
SPCB	59 Neutral	$43.15M	27.73	9.92%	―	―	―
VRME	52 Neutral	$11.31M	―	-28.37%	―	-13.20%	-89.43%
GFAI	50 Neutral	$22.92M	―	-20.57%	―	0.18%	91.18%
BKYI	47 Neutral	$5.16M	―	-145.28%	―	13.96%	85.22%
DGLY	47 Neutral	$3.06M	―	-191.47%	―	-20.52%	83.27%
IVDA	―	$4.30M	―	-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.

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.

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.

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.