Veritone (VERI) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $24.3 million, up 20% sequentially and 4.6% year-over-year, with ARR at $62.0 million and SaaS representing 70% of ARR.

• Achieved $11.3 million in annualized cost reductions through restructuring, targeting 15–20% total operating expense reduction by year-end 2026 and further savings into 2027.

• Secured major commercial and public sector contracts, including multi-year agreements with CHP, U.K. Department for Work and Pensions, and joined DOE's Project Genesis Consortium.

• Maintained strong VDR and public sector pipelines, with over $65 million in near-term VDR and $200 million+ in public sector opportunities.

• Reaffirmed commitment to break-even profitability in H1 2027 through disciplined cost management and targeted growth investments.

Financial highlights

• Q2 2026 revenue was $24.3 million (+4.6% YoY, +20% sequentially); ARR at $62.0 million; SaaS accounted for 70% of ARR.

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

• Q2 operating loss was $22.1 million (up 16% YoY), mainly due to $4.5 million in restructuring costs.

• Net loss improved to $22.2 million from $26.5 million YoY, mainly from lower interest expense.

• Cash and cash equivalents at June 30, 2026, were $12.4 million; total debt reduced to $45 million from $130 million YoY.

Outlook and guidance

• FY 2026 revenue guidance is $100–$115 million, a 16% increase at midpoint over FY 2025.

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

• Break-even profitability targeted for H1 2027, contingent on cost reductions and revenue growth to $125–$130 million.

• Public sector growth revised to modest for 2026, with higher growth expected in 2027 as delayed government contracts resume.

• Substantial doubt exists about ability to continue as a going concern without additional financing or improved cash flows.