Verimatrix (VMX) Q3 2025 TU earnings summary

Executive summary

• Q3 2025 revenue was $9.8 million, a 31% decrease compared to Q3 2024, reflecting a slowdown in activity despite growth in recurring subscription revenue.

• Recurring subscription revenue grew 9% year-over-year to $4.6 million, partially offsetting declines in perpetual license and maintenance sales.

• The transformation to a subscription-based model continues, with recurring revenues now representing a larger share of total revenue.

Financial highlights

• Total Q3 2025 revenue: $9.8 million, down 31% year-over-year.

• Recurring revenue in Q3: $7.7 million, down 8% year-over-year; subscriptions within this grew 9% to $4.6 million.

• Non-recurring revenue in Q3: $2.1 million, down 64% year-over-year.

• Over nine months, total revenue was $36.3 million, down 19% from the prior year.

Outlook and guidance

• The company aims for another year of double-digit growth in subscription ARR for 2025.

• Lower EBITDA is expected for the full year 2025 compared to 2024, given current revenue trends.