VerifyMe (VRME) investor relations material

Executive summary

• Q3 2025 revenue declined 7% year-over-year to $5.0 million, mainly due to discontinued Proactive services and customer transitions, including the loss of FedEx as a preferred shipping partner and the divestiture of Trust Codes Global.

• Gross profit increased to $2.1 million, with gross margin rising to 41% from 35% in Q3 2024, reflecting cost reductions and operational efficiencies in Precision Logistics.

• Adjusted EBITDA improved to $0.8 million, up from $0.2 million year-over-year, driven by cost reductions and operational efficiencies.

• Net loss widened to $3.4 million (or $0.26 per share), including a $3.9 million non-cash impairment charge related to goodwill and intangible assets, compared to a $2.4 million loss last year.

• The company remains cash flow positive, with a cash balance of $4.0 million and no bank debt.

Financial highlights

• Q3 2025 revenue: $5.0 million, down from $5.4 million in Q3 2024.

• Gross profit: $2.1 million, gross margin: 41% (up from 35%).

• Net loss: $3.4 million (including $3.9 million impairment), or $0.26 per share, compared to $2.4 million loss, or $0.23 per share, in Q3 2024.

• Adjusted EBITDA: $0.8 million, up from $0.2 million year-over-year.

• Cash and equivalents: $4.0 million as of September 30, 2025.

Outlook and guidance

• Revenue is expected to decline in Q4 2025 and Q1 2026 due to the shipping partner transition, but gross margin percentage is expected to remain stable.

• Management anticipates organic revenue growth and higher margins in 2026 as new and existing customers are transitioned.

• No guidance for 2026 provided yet; expected to be given in the next earnings call.

• Company expects to remain cash flow positive for full year 2025 and into 2026.