VerifyMe (VRME) Q4 2025 earnings summary

Executive summary

• Annual revenue declined to $16.4 million in 2025 from $24.2 million in 2024, with Q4 revenue at $2.4 million, down from $7.7 million in Q4 2024.

• Annual net loss increased to $4.9 million in 2025, including $4.3 million in one-time adjustments, compared to a $3.8 million net loss in 2024.

• Transitioned clients to a new strategic shipping partner, impacting revenue and customer base.

• Entered into a merger agreement with Open World, Ltd.

Financial highlights

• Cash balance of $4.4 million and short-term note receivable of $2.0 million as of December 31, 2025.

• Cash flow from operations was $0.6 million for 2025, down from $0.9 million in 2024.

• Gross profit for 2025 was $6.3 million (39% margin), compared to $8.7 million (36%) in 2024; Q4 gross profit was $1.2 million (49% margin), up from 32% in Q4 2024.

• Adjusted EBITDA for 2025 was $1.0 million, up from $0.9 million in 2024; Q4 Adjusted EBITDA was ($0.1) million, down from $0.5 million in Q4 2024.

Outlook and guidance

• Ongoing transition of client contracts to the new shipping partner expected to continue into 2026.

• Management remains focused on operational improvements and progressing the merger agreement.