Veritone (NASDAQ:VERI) Releases Quarterly Earnings Results, Misses Estimates By $0.13 EPS

Veritone (NASDAQ:VERI) announced its quarterly earnings data on Thursday. The company reported ($0.24) EPS for the quarter, missing the consensus estimate of ($0.11) by ($0.13), FiscalAI reports. Veritone had a negative net margin of 117.88% and a negative return on equity of 198.79%. The company had revenue of $24.26 million during the quarter, compared to analysts’ expectations of $28.29 million.

Here are the key takeaways from Veritone’s conference call:

• Fiscal 2026 guidance was reduced: Revenue is now expected at $100 million–$150 million, while public-sector growth will be more modest and Broadbean revenue is expected to decline amid a difficult hiring market. Management cited delayed Department of Defense funding and slower timing for certain VDR deals.
• Veritone Data Refinery remains the primary growth catalyst: The company reported more than $65 million in near-term VDR pipeline, including over $15 million that could close in Q3 or Q4, with individual orders potentially reaching the high six figures to millions of dollars.
• Cost reductions are progressing: Veritone has implemented approximately $11.3 million in annualized savings and is targeting $15 million–$20 million by year-end 2026, supporting a goal of non-GAAP operating break-even in the first half of 2027 if revenue reaches roughly $125 million–$130 million.
• Profitability and liquidity remain pressured: Q2 revenue rose 5% year over year to $24.3 million, but non-GAAP net loss widened to $9.95 million and cash declined to $12.7 million at quarter-end. The company also has approximately $45 million of debt and is negotiating a potential restructuring with debt holders.
• Public-sector and commercial wins expanded the opportunity: Veritone secured contracts including a multi-year California Highway Patrol redaction agreement and continued international and federal expansion, while commercial enterprise executed 232 agreements and Broadbean closed 76 new business wins in Q2.

Veritone Trading Down 23.2%

Shares of NASDAQ VERI traded down $0.34 during midday trading on Friday, reaching $1.15. 8,280,597 shares of the stock were exchanged, compared to its average volume of 2,626,967. The stock has a 50 day moving average price of $1.29 and a 200-day moving average price of $2.11. The company has a market capitalization of $106.43 million, a P/E ratio of -2.49 and a beta of 2.29. Veritone has a 52-week low of $0.98 and a 52-week high of $9.42.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of VERI. Cooper Creek Partners Management LLC acquired a new position in Veritone in the third quarter valued at $11,718,000. Marshall Wace LLP lifted its stake in shares of Veritone by 16,314.3% in the 3rd quarter. Marshall Wace LLP now owns 1,676,397 shares of the company’s stock valued at $8,080,000 after purchasing an additional 1,666,184 shares in the last quarter. Vanguard Group Inc. grew its holdings in shares of Veritone by 63.1% during the 3rd quarter. Vanguard Group Inc. now owns 2,754,165 shares of the company’s stock worth $13,275,000 after purchasing an additional 1,065,460 shares during the period. Two Sigma Investments LP acquired a new stake in Veritone during the 3rd quarter worth approximately $2,233,000. Finally, Geode Capital Management LLC raised its holdings in Veritone by 81.4% in the fourth quarter. Geode Capital Management LLC now owns 984,749 shares of the company’s stock valued at $4,581,000 after buying an additional 441,875 shares during the period. Institutional investors and hedge funds own 39.18% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on VERI. Weiss Ratings raised shares of Veritone from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday. Wall Street Zen upgraded Veritone from a “strong sell” rating to a “sell” rating in a research note on Saturday, August 1st. Needham & Company LLC lowered their price target on Veritone to $5.00 and set a “buy” rating for the company in a research report on Friday. Finally, UBS Group started coverage on Veritone in a research note on Monday, June 1st. They set a “neutral” rating and a $2.50 price target on the stock. Three analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of “Hold” and an average price target of $6.12.

Veritone Company Profile

Veritone, Inc (NASDAQ: VERI) is a technology company specializing in artificial intelligence solutions for media, legal, government and enterprise applications. Its flagship offering, aiWARE™, is a cloud-based operating system that orchestrates and automates an ecosystem of machine learning models to transform unstructured data—such as audio, video and text—into actionable intelligence. By providing a modular AI environment, Veritone enables organizations to deploy, manage and scale cognitive engines that address diverse use cases from transcription and translation to sentiment analysis and facial recognition.

Through aiWARE and its suite of purpose-built applications, the company delivers turnkey solutions for content licensing, media monitoring, eDiscovery, compliance and public safety.