VerifyMe (VRME) Q4 2024 earnings summary

Executive summary

• 2024 revenue declined 4% year-over-year, with annual revenue at $24.2 million, mainly due to underperforming investments and the loss of a major contract in Premium services.

• Gross profit for 2024 increased to $8.7 million (36% margin) from $8.0 million (32%) in 2023; adjusted EBITDA for 2024 was $0.95 million, more than double 2023's $0.42 million.

• Net loss for 2024 was $3.8 million, including $1.6 million in one-time adjustments; Q4 2024 net loss was $0.5 million, versus near break-even in Q4 2023.

• The company divested the Trust Codes Global business in December 2024, which had a $1.2 million operating loss in 2024 (excluding impairments).

• The company remains cash flow positive, strengthened its balance sheet, and is focused on optimizing its Precision Logistics segment and expanding its customer base.

Financial highlights

• Q4 2024 revenue was $7.7 million, down from $8.7 million in Q4 2023; Q4 gross profit was $2.4 million (32%), down from $2.9 million (33%) in Q4 2023.

• Full-year gross margin improved to 36% from 32% in 2023.

• Adjusted EBITDA for 2024 was $0.95 million, up from $0.42 million in 2023; Q4 2024 Adjusted EBITDA was $0.5 million.

• Cash as of December 31, 2024, was $2.8 million, up to $5.7 million as of February 28, 2025, after a $4.7 million capital raise.

• Balance sheet at December 31, 2024: total assets $16.1 million, total liabilities $5.9 million, and stockholders' equity $10.2 million.

Outlook and guidance

• No formal guidance for 2025; management expects business to remain stable but with continued top-line pressure in the first half due to the loss of a major customer.

• Management is finalizing a new strategy to maximize shareholder returns, citing improved liquidity and a strengthened financial position.

• Access to low-cost capital and a focus on cost alignment and sales optimization are expected to support future growth.