VerifyMe reported revenue of $5.0 million in Q3 2025, a decrease from $5.4 million in Q3 2024.
Gross profit was $2.1 million, showing an improvement in margin to 41% in Q3 2025 from $1.9 million or 35% in Q3 2024.
Net loss in Q3 2025 was ($3.4) million, including one-time adjustments, compared to ($2.4) million in Q3 2024.
Adjusted EBITDA for Q3 2025 was $0.8 million, a notable increase from $0.2 million in Q3 2024.
Cash balance stood at $4.0 million as of September 30, 2025, with positive cash flow from operations.
Revenue Decline
Q3 2025 revenue decreased by $0.4 million, primarily due to discontinued services for two Proactive customers.
Gross Margin Improvement
Gross margin increased to 41% in Q3 2025, driven by cost reductions in the Precision Logistics segment.
Operational Loss
Operating loss increased to ($3.4) million in Q3 2025, mainly due to impairments in the Precision Logistics segment.
Positive Cash Generation
Cash balance of $4.0 million and $0.2 million provided by operations in Q3 2025, demonstrating financial stability.
Adjusted EBITDA Growth
Q3 2025 showed significant growth in Adjusted EBITDA to $0.8 million, reflecting improved financial performance.
- The decrease in revenue was offset by growth in the Precision Logistics segment, indicating shifting business dynamics.
- Improved gross margin signifies operational efficiency and cost management strategies yielding positive results.
- The one-time adjustments and impairments impacted net loss, highlighting the need for strategic financial planning.
- The growth in Adjusted EBITDA reflects the Company's success in enhancing profitability and financial health.
VerifyMe's third-quarter financial results depict a mixed performance with revenue decline but notable improvements in gross margin and Adjusted EBITDA. The focus on organic revenue growth and strategic acquisitions sets a positive outlook for 2026.