VerifyMe | 8-K: FY2025 Q3 Revenue Beats Estimate at USD 5.033 M

Revenue: As of FY2025 Q3, the actual value is USD 5.033 M, beating the estimate of USD 4.696 M.

EPS: As of FY2025 Q3, the actual value is USD -0.26.

EBIT: As of FY2025 Q3, the actual value is USD -3.423 M.

Segment Revenue

• Q3 2025 Revenue: $5.0 million, a decrease from $5.4 million in Q3 2024, primarily due to a $767k decrease from two discontinued customers, partially offset by increases with new and existing customers.

Operational Metrics

• Gross Profit: Increased by 6% to 41% in Q3 2025, compared to 35% in Q3 2024.
• Operating Costs: Reduced by 34% in Q3 2025, excluding impairment charges, compared to Q3 2024.
• Net Loss: $3.3 million, including an impairment charge of $3.9 million.
• Adjusted EBITDA: $832k in Q3 2025, a 378% improvement from $174k in Q3 2024.

Cash Flow

• Cash and Cash Equivalents: $4 million at the end of Q2 2025, with an additional $2 million in short-term note receivable.
• Cash provided by operations was $0.2 million in Q3 2025, compared to $0.0 million in Q3 2024.

Unique Metrics

• Precision Logistics Margin: Increased by 5% from Q2 2025 and 7% from Q3 2024 due to negotiated rate improvements and operating efficiencies.
• The Precision Logistics segment accounted for 99% of the company’s revenues for Q3 2025.

Outlook / Guidance

• The company expects revenue to decline in Q4 2025 and Q1 2026 due to the transition to a new proactive shipping partner. Marketing and business development efforts are resulting in new business, and the company is leveraging partnerships to optimize service offerings. VerifyMe, Inc. is setting the stage for organic revenue growth in 2026, accompanied by a higher margin profile and continued cash generation. The company is also exploring strategic acquisitions to complement its services.