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1. Company Snapshot

1.a. Company Description

VerifyMe, Inc., a technology solutions provider, provides products to connect brands with consumers in the United States.The company offers VerifyMe Engage services that provides the ability for the brand owner to gather business intelligence and engage with the consumer using authentication test as the initial contact with the consumer.It also offers VerifyMe Authenticate services that provide an assortment of tools through its patented products comprising VerifyInk, a patented invisible ink; VerifyAuthenticator technology, a device used with a smartphone and the VerifyMe app to authenticate and decode VerifyInk codes; VerifyLabel, a tamper proof labels; and VerifyChecker, a handheld device that is tuned to authenticate the unique frequency of VerifyInk invisible ink.


In addition, the company provides VerifyMe Track & Trace, a supply chain serialization, track and trace technology utilizing overt dynamic codes, such as VerifyCode, which is tied to cloud-based authentication and track and trace system.Further, it offers VerifyMe Online that includes technologies and services that enable customers to tackle counterfeit websites, domains and e-commerce platforms, and social media sites offering or promoting counterfeit products.VerifyMe, Inc.


has a strategic partnership with INX International Ink Company.The company was formerly known as LaserLock Technologies, Inc.and changed its name to VerifyMe, Inc.


in July 2015.VerifyMe, Inc.was incorporated in 1999 and is headquartered in Rochester, New York.

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1.b. Last Insights on VRME

VerifyMe, Inc.'s recent performance was negatively impacted by declining revenue, which fell 16.7% year-over-year to $4.5 million in Q2 2025. The company's gross profit margin also decreased to 35% from 39% in the same period. Although VerifyMe reported a quarterly net loss of $0.29 million, which was narrower than the prior year's loss of $0.34 million. Cash provided by operations increased to $0.7 million. The company's adjusted EBITDA grew to $0.3 million. A recent earnings report showed a quarterly loss of $0.02 per share.

1.c. Company Highlights

2. Transitioning to Growth

The company's Q3 2025 financial performance was marked by a revenue decline of $0.4 million to $5.0 million, compared to Q3 2024, primarily due to contract losses and changes associated with the transition from the previous Proactive shipping partner. However, gross profit increased by $0.2 million to $2.1 million, with a gross margin expansion to 41% from 35% in Q3 2024. The actual EPS of -$0.02 beat estimates of -$0.04, indicating a better-than-expected performance. Operating expenses, excluding a one-time non-cash impairment expense, decreased by $0.8 million to $1.7 million.

Publication Date: Nov -19

📋 Highlights
  • Revenue Decline:: Q3 2025 revenue fell to $5.0M, down $0.4M from Q3 2024, driven by contract losses and Proactive shipping transition.
  • Gross Margin Improvement:: Gross profit rose to $2.1M (+$0.2M) with a 41% margin, up from 35% in Q3 2024.
  • Operating Expense Reduction:: Operating expenses dropped $0.8M to $1.7M, excluding a $3.9M non-cash impairment from PeriShip.
  • Transition Impact:: New Proactive shipping partner expected to influence Q4 2025 and Q1 2026 revenues, with long-term growth potential.
  • Trust Codes Expense:: $500K of Q3 2024 operating expenses tied to the Trust Codes business, now discontinued.

Operational Challenges and Opportunities

Adam Stedham, CEO, highlighted that the company is undergoing a transition to a new Proactive shipping partner, which is expected to have a material impact on Q4 2025 and Q1 2026 revenues. However, he emphasized that this new partnership is believed to provide a better platform for sustained organic growth over the long term. As Adam Stedham mentioned, "the company believes the new shipping partner relationship will provide a better platform for sustained organic growth over the long term," indicating a positive outlook on the transition.

Valuation and Growth Expectations

Analysts estimate next year's revenue growth at 5.9%, indicating a recovery from the current year's challenges. With a current P/S Ratio of 0.43 and EV/EBITDA of -5.85, the market seems to be pricing in the difficulties the company is facing. The ROE of -37.45% and ROIC of -14.96% reflect the current operational challenges, but the Free Cash Flow Yield of 10.09% suggests potential for future growth. The market's expectations and the company's efforts to improve its operational efficiency will be crucial in determining the stock's performance.

Future Prospects and M&A Activities

The company is having significant ongoing conversations about potential M&A activities, although the timing is difficult to predict. As the transition to the new shipping partner progresses, the company's focus on sales and marketing efforts is expected to drive growth. With the current valuation metrics and expected revenue growth, the stock's potential can be reassessed in the context of its improving operational performance and strategic initiatives.

3. NewsRoom

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VerifyMe, Inc. (VRME) Q3 2025 Earnings Call Transcript

Nov -17

Source: seekingalpha.com

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VerifyMe Reports Third Quarter 2025 Financial Results

Nov -17

Source: businesswire.com

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VerifyMe, Inc. (VRME) Reports Q3 Loss, Tops Revenue Estimates

Nov -15

Source: zacks.com

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VerifyMe to Report Third Quarter 2025 Financial Results on November 17, 2025

Nov -10

Source: businesswire.com

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VerifyMe Provides Services Update

Sep -11

Source: prnewswire.com

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VerifyMe, Inc. (VRME) Q2 2025 Earnings Call Transcript

Aug -13

Source: seekingalpha.com

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VerifyMe, Inc. (VRME) Reports Q2 Loss, Beats Revenue Estimates

Aug -13

Source: zacks.com

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VerifyMe Reports Second Quarter 2025 Financial Results

Aug -13

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.96%)

6. Segments

Precision Logistics

Expected Growth: 5%

VerifyMe's Precision Logistics growth is driven by increasing demand for secure and trackable supply chain solutions, fueled by e-commerce growth, rising concerns over counterfeit products, and the need for real-time inventory management. Additionally, the company's proprietary technology and strategic partnerships contribute to its rapid expansion.

Authentication

Expected Growth: 4%

VerifyMe, Inc.'s 4-level growth in Authentication is driven by increasing demand for secure online transactions, rising adoption of biometric technologies, and growing concerns over identity theft and fraud. Additionally, the company's innovative solutions, strategic partnerships, and expanding presence in high-growth markets contribute to its rapid growth.

7. Detailed Products

Identity Verification

VerifyMe's Identity Verification product uses AI-powered technology to verify an individual's identity in real-time, providing a secure and efficient way to onboard customers, prevent fraud, and comply with regulations.

Biometric Authentication

VerifyMe's Biometric Authentication product uses facial recognition, fingerprint, and voice recognition to provide secure and convenient authentication for users, eliminating the need for passwords and PINs.

Document Verification

VerifyMe's Document Verification product uses AI-powered technology to verify the authenticity of identification documents, such as passports, driver's licenses, and ID cards, in real-time.

Age Verification

VerifyMe's Age Verification product uses AI-powered technology to verify the age of individuals, ensuring compliance with age-related regulations and preventing underage access to age-restricted products and services.

KYC (Know Your Customer)

VerifyMe's KYC product provides a comprehensive solution for customer due diligence, including identity verification, risk assessment, and ongoing monitoring.

8. VerifyMe, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

VerifyMe, Inc. has a low threat of substitutes due to its unique biometric verification technology, making it difficult for competitors to replicate.

Bargaining Power Of Customers

VerifyMe, Inc. has a medium bargaining power of customers due to the presence of a few large clients, but the company's unique technology and high switching costs mitigate this power.

Bargaining Power Of Suppliers

VerifyMe, Inc. has a low bargaining power of suppliers due to its ability to source components from multiple suppliers, reducing dependence on any one supplier.

Threat Of New Entrants

VerifyMe, Inc. faces a high threat of new entrants due to the growing demand for biometric verification technology and the relatively low barriers to entry in the industry.

Intensity Of Rivalry

VerifyMe, Inc. operates in a moderately competitive industry, with a few established players and some new entrants, leading to a medium intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 17.43%
Debt Cost 5.45%
Equity Weight 82.57%
Equity Cost 6.59%
WACC 6.39%
Leverage 21.11%

11. Quality Control: VerifyMe, Inc. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
NL Industries

A-Score: 6.1/10

Value: 8.3

Growth: 4.8

Quality: 8.4

Yield: 10.0

Momentum: 1.0

Volatility: 4.0

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Napco Security Technologies

A-Score: 5.0/10

Value: 1.2

Growth: 8.8

Quality: 8.6

Yield: 1.0

Momentum: 6.0

Volatility: 4.7

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Arlo Technologies

A-Score: 4.3/10

Value: 4.9

Growth: 5.7

Quality: 3.7

Yield: 0.0

Momentum: 8.5

Volatility: 3.3

1-Year Total Return ->

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Mistras

A-Score: 4.2/10

Value: 6.8

Growth: 4.3

Quality: 5.5

Yield: 0.0

Momentum: 3.5

Volatility: 5.3

1-Year Total Return ->

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GEO Group

A-Score: 4.2/10

Value: 5.1

Growth: 2.3

Quality: 5.0

Yield: 0.0

Momentum: 9.0

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
VerifyMe

A-Score: 2.9/10

Value: 7.4

Growth: 6.4

Quality: 3.2

Yield: 0.0

Momentum: 0.5

Volatility: 0.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

0.75$

Current Price

0.75$

Potential

-0.00%

Expected Cash-Flows