Revenue has experienced a consistent contraction, plummeting by 60.2% year-over-year in 2026Q1, while operating margins have deteriorated to a concerning -43.3%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Sales/Revenue | 13.71M | 16.4M | 24.21M | 25.31M | 19.58M | 867K | 343K | 245K | 74.88K | 0 | 37.05K | 217.27K | 124.6K | 3.14K | 17.03K | 8.88K | 53.72K | 20K | 60K | 302.19K | 123.1K | 209.16K | 108.19K | 62.12K | 126.3K | 11.8K |
| Revenue Growth % | -40.12% | -32.26% | -4.37% | 29.31% | 2157.9% | 152.77% | 40% | 227.17% | - | -100% | -82.95% | 74.38% | 3868.09% | -81.56% | 91.68% | -83.46% | 168.61% | -66.67% | -80.14% | 145.47% | -41.14% | 93.33% | 74.16% | -50.81% | 970.06% | - |
| Cost of Goods Sold | 8.06M | 11.06M | 15.54M | 17.29M | 13.09M | 268K | 62K | 45K | 28.8K | 43.09K | 24.36K | 65.72K | 113.02K | 2.71K | 4.08K | 373 | 808 | 0 | 20K | 202.64K | 0 | 0 | 0 | 0 | 0 | 0 |
| COGS % of Revenue | - | 67.45% | 64.22% | 68.29% | 66.86% | 30.91% | 18.08% | 18.37% | 38.46% | - | 65.75% | 30.25% | 90.71% | 86.31% | 23.98% | 4.2% | 1.5% | - | 33.33% | 67.06% | - | - | - | - | - | - |
| Gross Profit | 5.66M | 5.34M | 8.66M | 8.03M | 6.49M | 599K | 281K | 200K | 46.08K | -43.09K | 12.69K | 151.54K | 11.57K | 430 | 12.95K | 8.51K | 52.91K | 20K | 40K | 99.55K | 123.1K | 209.16K | 108.19K | 62.12K | 126.3K | 11.8K |
| Gross Margin % | 41.26% | 32.55% | 35.78% | 31.71% | 33.14% | 69.09% | 81.92% | 81.63% | 61.54% | - | 34.25% | 69.75% | 9.29% | 13.69% | 76.02% | 95.8% | 98.5% | 100% | 66.67% | 32.94% | 100% | 100% | 100% | 100% | 100% | 100% |
| Gross Profit Growth % | - | -38.39% | 7.92% | 23.71% | 983.14% | 113.17% | 40.5% | 334.01% | 206.93% | -439.54% | -91.62% | 1209.36% | 2591.63% | -96.68% | 52.11% | -83.92% | 164.57% | -50% | -59.82% | -19.14% | -41.14% | 93.33% | 74.16% | -50.81% | 970.06% | - |
| Operating Expenses | 7.94M | 6.56M | 10.74M | 11.26M | 10.23M | 5.43M | 3.85M | 2.63M | 2.64M | 2.84M | 3.75M | 5.39M | 13.58M | 11.64M | 1.09M | 536.34K | 526.7K | 530K | 570K | 806.81K | 1.42M | 1.48M | 1.52M | 1.15M | 1.18M | 1.39M |
| OpEx % of Revenue | - | 39.99% | 44.35% | 44.5% | 52.28% | 626.3% | 1122.16% | 1074.52% | 3527.97% | - | 10112.08% | 2482.66% | 10896.57% | 370751.56% | 6405.21% | 6037.13% | 980.41% | 2650% | 950% | 266.99% | 1157.36% | 705.67% | 1405.54% | 1845.01% | 933.36% | 11815.53% |
| Selling, General & Admin | 4.39M | 4.38M | 5.21M | 6.06M | 10.15M | 5.38M | 3.83M | 2.63M | 2.45M | 2.71M | 3.5M | 2.98M | 2.99M | 10.99M | 1.09M | 527.26K | 516.14K | 450K | 460K | 783.74K | 1.37M | 1.33M | 1.21M | 1.05M | 1.04M | 1.22M |
| SG&A % of Revenue | - | 26.73% | 21.54% | 23.94% | 51.83% | 620.42% | 1116.62% | 1072.24% | 3277.37% | - | 9436.92% | 1372.13% | 2397.02% | 349864.94% | 6373.38% | 5934.92% | 960.76% | 2250% | 766.67% | 259.36% | 1113.23% | 634.65% | 1118.43% | 1693.73% | 821.13% | 10346.31% |
| Research & Development | 15K | 20K | 70K | 107K | 89K | 51K | 19K | 5K | 187.66K | 128.04K | 250.18K | 2.41M | 10.59M | 655.84K | 5.42K | 9.08K | 10.55K | 20K | 20K | 23.07K | 54.32K | 148.55K | 310.62K | 93.98K | 141.75K | 173.41K |
| R&D % of Revenue | - | 0.12% | 0.29% | 0.42% | 0.45% | 5.88% | 5.54% | 2.04% | 250.59% | - | 675.16% | 1110.53% | 8499.55% | 20886.62% | 31.83% | 102.22% | 19.64% | 100% | 33.33% | 7.63% | 44.12% | 71.02% | 287.11% | 151.28% | 112.23% | 1469.22% |
| Other Operating Expenses | 2.91M | 2.15M | 5.45M | 5.1M | 0 | 0 | 0 | 573 | 0 | -331.52K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 60K | 90K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -2.28M | -1.22M | -2.08M | -3.24M | -3.75M | -4.83M | -3.57M | -2.43M | -2.6M | -2.84M | -3.73M | -5.24M | -13.57M | -11.64M | -1.08M | -527.83K | -473.78K | -510K | -520K | -707.26K | -1.3M | -1.27M | -1.41M | -1.08M | -1.05M | -1.38M |
| Operating Margin % | -16.65% | -7.44% | -8.57% | -12.79% | -19.14% | -557.21% | -1040.23% | -992.89% | -3466.43% | - | -10077.82% | -2412.91% | -10887.28% | -370737.87% | -6329.19% | -5941.33% | -881.91% | -2550% | -866.67% | -234.05% | -1057.36% | -605.67% | -1305.54% | -1745.01% | -833.36% | -11715.53% |
| Operating Income Growth % | - | 41.2% | 35.92% | 13.58% | 22.44% | -35.4% | -46.68% | 6.29% | 8.45% | 24.07% | 28.77% | 61.35% | -16.53% | -980.09% | -104.19% | -11.41% | 7.1% | 1.92% | 26.48% | 45.66% | -2.75% | 10.31% | -30.3% | -2.99% | 23.88% | - |
| EBITDA | -1.45M | -236K | -863K | -2.1M | -2.98M | -4.71M | -3.47M | -2.4M | -2.57M | -2.79M | -3.7M | -5.15M | -13.48M | -11.56M | -1.06M | -516.92K | -460.17K | -880K | -1.34M | -550K | -1.04M | -1.25M | -1.4M | -964.32K | -773.54K | -1.35M |
| EBITDA Margin % | -10.6% | -1.44% | -3.57% | -8.31% | -15.21% | -543.71% | -1011.66% | -979.01% | -3438.44% | - | -9996.33% | -2369.59% | -10821.18% | -368128.66% | -6250.08% | -5818.6% | -856.57% | -4400% | -2233.33% | -182.01% | -842.47% | -599.41% | -1296.79% | -1552.32% | -612.47% | -11427.57% |
| EBITDA Growth % | -74.13% | 72.65% | 58.98% | 29.32% | 36.85% | -35.85% | -44.67% | 6.85% | 7.79% | 24.61% | 28.05% | 61.82% | -16.64% | -986.06% | -105.9% | -12.33% | 47.71% | 34.33% | -143.64% | 46.97% | 17.28% | 10.64% | -45.49% | -24.66% | 42.65% | - |
| D&A (Non-Cash Add-back) | 830K | 984K | 1.21M | 1.13M | 770K | 117K | 98K | 34K | 20.96K | 43.09K | 30.2K | 94.12K | 82.36K | 81.93K | 13.47K | 10.9K | 13.61K | -370K | -820K | 157.26K | 264.54K | 13.11K | 9.47K | 119.7K | 278.99K | 33.99K |
| EBIT | -5.07M | -1.22M | -3.69M | -3.23M | -14.31M | -4.83M | -3.57M | -2.41M | -2.6M | -3.17M | -1.63M | -2.24M | -7.72M | -16.26M | -921.69K | -343.53K | -473.76K | -508.48K | -523.1K | -707.26K | -1.3M | -1.27M | -1.41M | -1.08M | -1.05M | -1.38M |
| Net Interest Income | 146K | 214K | -130K | -161K | -88K | 0 | -2.05M | -97K | 6.66K | 0 | -12.87K | -61.44K | -199.36K | -127.83K | -277.37K | -321.53K | -248.06K | 0 | 0 | -257.9K | -304.76K | 5.38K | 5.92K | -27.82K | 1.78K | 20.48K |
| Interest Income | 213K | 214K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 59 | 17 | 0 | 0 | 1.03K | 3.6K | 5.38K | 5.92K | 1.45K | 1.78K | 20.48K |
| Interest Expense | 67K | 0 | 130K | 161K | 88K | 0 | 2.05M | 97K | 6.66K | 218.32K | 12.87K | 61.44K | 199.36K | 127.83K | 277.37K | 321.59K | 248.08K | -190K | -410K | 258.93K | 308.36K | 0 | 0 | 29.27K | 0 | 0 |
| Other Income/Expense | -2.73M | -3.69M | -1.75M | -152K | -10.65M | 8.44M | -2.33M | -74.43K | -336.66K | -549.84K | 2.09M | 2.94M | 5.65M | -4.75M | -121.26K | -137.28K | -248.06K | -180K | -411.34K | -257.9K | -304.76K | 5.38K | 5.92K | -23.1K | 1.78K | 20.48K |
| Pretax Income | -5.01M | -4.91M | -3.82M | -3.39M | -14.4M | 3.61M | -5.9M | -2.51M | -2.93M | -3.39M | -1.65M | -2.3M | -7.92M | -16.39M | -1.2M | -665.11K | -721.84K | -690K | -930K | -965.16K | -1.61M | -1.27M | -1.41M | -1.11M | -1.05M | -1.36M |
| Pretax Margin % | -36.55% | -29.91% | -15.8% | -13.39% | -73.55% | 416.61% | -1720.7% | -1023.27% | -3916.01% | - | -4442.73% | -1059.47% | -6355.23% | -522002.2% | -7041.26% | -7486.64% | -1343.66% | -3450% | -1550% | -319.39% | -1305.41% | -605.67% | -1300.07% | -1782.2% | -831.96% | -11541.97% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 12.87K | 0 | 0 | 127.83K | 0 | 0 | 17 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 145K | -310K |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -0.78% | 0% | 0% | -0.78% | 0% | 0% | -0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% | -13.8% | 22.76% |
| Net Income | -5.01M | -4.91M | -3.82M | -3.39M | -14.4M | 3.61M | -5.9M | -2.51M | -2.93M | -3.39M | -1.65M | -2.3M | -7.92M | -16.39M | -1.2M | -665.11K | -721.84K | -690K | -930K | -965.16K | -1.61M | -1.27M | -1.41M | -1.11M | -1.2M | -1.05M |
| Net Margin % | -36.55% | -29.91% | -15.8% | -13.39% | -73.55% | 416.61% | -1720.7% | -1023.27% | -3916.01% | - | -4442.73% | -1059.47% | -6355.23% | -522002.2% | -7041.26% | -7486.64% | -1343.66% | -3450% | -1550% | -319.39% | -1305.41% | -605.67% | -1300.07% | -1782.2% | -946.76% | -8915.52% |
| Net Income Growth % | -30.48% | -28.27% | -12.8% | 76.46% | -498.62% | 161.2% | -135.42% | 14.51% | 13.38% | -105.64% | 28.48% | 70.93% | 51.69% | -1266.98% | -80.28% | 7.86% | -4.61% | 25.81% | 3.64% | 39.94% | -26.86% | 9.93% | -27.04% | 7.41% | -13.63% | - |
| Net Income (Continuing) | -5.01M | -4.91M | -3.82M | -3.39M | -14.4M | 3.61M | -5.9M | -2.51M | -2.93M | -3.39M | -1.65M | -2.3M | -7.92M | -16.39M | -1.2M | -665.11K | -721.84K | -690K | -930K | -965.16K | -1.61M | -1.27M | -1.41M | -1.11M | -1.2M | -1.05M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.38 | -0.39 | -0.37 | -0.35 | -1.70 | 0.49 | -1.48 | -1.20 | -1.43 | -3.16 | -9.88 | -19.26 | -109.41 | -278.59 | -33.85 | -19.35 | -22.56 | -0.64 | -1.08 | -55.85 | -99.49 | -88.85 | -111.84 | -167.11 | -276.79 | -317.15 |
| EPS Growth % | -8.06% | -5.41% | -5.71% | 79.41% | -446.94% | 133.11% | -23.33% | 16.08% | 54.75% | 68.02% | 48.7% | 82.4% | 60.73% | -723.01% | -74.94% | 14.23% | -3425% | 40.74% | 98.07% | 43.86% | -11.98% | 20.56% | 33.07% | 39.63% | 12.73% | - |
| EPS (Basic) | - | -0.39 | -0.37 | -0.35 | -1.70 | 0.51 | -1.48 | -1.20 | -1.43 | -3.16 | -9.88 | -19.26 | -111.00 | -280.40 | -33.85 | -19.35 | -22.56 | -0.64 | -1.08 | -55.85 | -99.49 | -88.85 | -111.84 | -167.11 | -276.79 | -317.15 |
| Diluted Shares Outstanding | 13.35M | 12.62M | 10.4M | 9.77M | 8.47M | 7.38M | 3.98M | 2.15M | 2.04M | 1.07M | 166.61K | 119.54K | 72.37K | 58.84K | 35.43K | 34.37K | 31.99K | 1.08M | 860K | 17.28K | 16.15K | 14.26K | 12.58K | 6.63K | 4.32K | 3.32K |
| Basic Shares Outstanding | 13.35M | 12.62M | 10.4M | 9.69M | 8.47M | 7.11M | 3.98M | 2.15M | 2.04M | 1.07M | 166.61K | 119.54K | 71.34K | 58.46K | 35.43K | 34.37K | 31.99K | 1.08M | 860K | 17.28K | 16.15K | 14.26K | 12.58K | 6.63K | 4.32K | 3.32K |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Liquidity and revenue churn
According to the most recent quarterly filings, VerifyMe's revenue has experienced a severe decline, dropping to $1.8 million in 2026Q1 from $8.7 million in 2023Q4, representing a consistent and alarming contraction that suggests the company's core authentication and logistics service offerings are failing to retain market share.
The consistent quarter-over-quarter revenue decay indicates that the company's pivot toward integrated supply chain services has not yet offset the loss of legacy authentication business. Investors should monitor whether this trend reflects a structural loss of competitive relevance or a deliberate exit from low-margin contracts, as the current trajectory suggests a business struggling to find a sustainable growth floor.
As reported in financial statements, the company's gross margin has fluctuated significantly, peaking at 48.8% in 2025Q4 before retreating to 46.7% in 2026Q1, highlighting the inherent difficulty in maintaining pricing power within the specialized ink and logistics monitoring segments amidst a shrinking top-line environment.
The inability to stabilize gross margins suggests that the company lacks the necessary scale to absorb the fixed costs associated with its proprietary forensic technology. This volatility implies that the cost of goods sold remains highly sensitive to volume fluctuations, leaving the firm vulnerable to further margin erosion if revenue continues to decline.
Based on the provided income statement data, VerifyMe has failed to demonstrate positive operating leverage, as operating losses have persisted despite significant reductions in revenue, with the operating margin reaching a concerning -43.3% in 2026Q1 compared to a brief period of profitability in 2023Q4.
The persistent operating losses indicate that SG&A expenses are not scaling down in proportion to the revenue decline, suggesting a high fixed-cost burden that is increasingly difficult to support. This lack of operating efficiency implies that the current business model may require a fundamental restructuring to achieve break-even status at current revenue levels.
Financial disclosures indicate that net income has remained consistently negative, with the company reporting a net margin of -38.3% in 2026Q1, a figure that underscores the lack of quality in earnings and the ongoing reliance on cash reserves to fund operational deficits.
The recurring net losses, coupled with the absence of meaningful non-operating income, suggest that the company is currently unable to generate sustainable shareholder value. Investors should be wary of the potential for future dilutive financing, as the current earnings profile provides no evidence of a path toward profitability without a significant change in operational performance.
Data from recent filings suggests that the company's current cash position of $4.35 million is rapidly depleting, raising significant questions about the long-term viability of the business model if the current rate of revenue contraction and operating losses continues unabated over the coming fiscal quarters.
While management may argue that the current revenue decline is a strategic transition, the financial data suggests a more concerning narrative of customer churn and operational inefficiency. The lack of a clear inflection point toward profitability warrants extreme caution, as the company appears to be running out of time to prove its value proposition to the market.
Quick answers to the most common questions about buying VRME stock.
For fiscal year 2025, VerifyMe, Inc. (VRME) reported total revenue of $16.4M. This represents a 138830.8% increase compared to $0.0M in 2001.
VerifyMe, Inc. (VRME) reported a net loss of $4.9M for the fiscal year ending 2025.
VerifyMe, Inc. (VRME) reported an operating income of $-1.2M, resulting in an operating profit margin of -7.4%. This margin reflects the operational efficiency of the business before interest and taxes.
VerifyMe, Inc. (VRME) generated $5.3M in gross profit for the year, representing a gross profit margin of 32.5%. This demonstrates the company's core pricing power and production efficiency.