Veritone (VERI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $24.3 million, up 4.6% year-over-year and 20% sequentially, driven by VDR, licensing, and managed services, despite significant cost-cutting and restructuring.

• Launched new AI products and expanded customer adoption, with strong momentum in both commercial and public sector segments, including major contract wins and international expansion.

• Maintained a robust sales pipeline, with over $65 million in near-term VDR opportunities and $200 million in public sector pipeline.

• Rebranded Hire division as Broadbean by Veritone, maintaining high-margin recurring revenue despite macro hiring headwinds.

• Completed first phase of restructuring, achieving $11.3 million in annualized cost reductions, with further reductions targeted for 2026 and 2027.

Financial highlights

• Q2 2026 revenue was $24.3 million (+4.6% YoY, +20% sequentially); ARR at $62 million, with SaaS representing 70%.

• Q2 GAAP gross profit was $14.2 million (58.5% margin), down from $15.7 million (67.5%) in Q2 2025; non-GAAP gross margin was 63.7%.

• Q2 operating loss was $22.1 million, up from $19.0 million YoY, mainly due to $4.5 million in restructuring costs.

• Net loss improved to $22.2 million from $26.5 million in Q2 2025; non-GAAP net loss was $10.0 million (vs. $8.4 million YoY).

• Cash and cash equivalents at June 30, 2026, was $12.4 million; total debt reduced to $45 million from $130 million a year prior.

Outlook and guidance

• FY 2026 revenue guidance is $100–$115 million, with midpoint up 16% year-over-year.

• Q3 2026 revenue expected between $24–$28 million.

• FY 2026 non-GAAP net loss projected at $22–$32 million, a 34% improvement at midpoint.

• Targeting break-even profitability in the first half of 2027, contingent on cost reductions and revenue growth to $125–$130 million.

• Projected GAAP net loss for FY 2026 is $55.3–$68.3 million.