VerifyMe(US:VRME)2025-11-17 13:00Revenue Performance - Revenue for Q3 2025 was $5.0 million, a decrease of 7.4% from $5.4 million in Q3 2024, primarily due to a $0.8 million decrease from discontinued services[6][8] - Net revenue for the three months ended September 30, 2025, was $5,033 thousand, a decrease of 7.4% compared to $5,435 thousand for the same period in 2024[30] Profitability - Gross profit increased to $2.1 million in Q3 2025, resulting in a gross margin of 41%, up from 35% in Q3 2024[9][13] - Gross profit for the three months ended September 30, 2025, was $2,073 thousand, representing a 9.4% increase from $1,895 thousand in the prior year[30] - Adjusted EBITDA improved to $0.8 million in Q3 2025, compared to $0.2 million in Q3 2024, indicating positive operational performance[11][13] - Adjusted EBITDA for the three months ended September 30, 2025, was $832 thousand, significantly higher than $174 thousand in the same period of 2024[33] Net Loss - Net loss for Q3 2025 was ($3.4) million, compared to a net loss of ($2.4) million in Q3 2024, with loss per share of ($0.26) versus ($0.23) in the prior year[10][13] - The net loss for the three months ended September 30, 2025, was $3,356 thousand, compared to a net loss of $2,424 thousand for the same period in 2024, reflecting a 38.5% increase in losses[30] Expenses - Total operating expenses increased to $5,505 thousand for the three months ended September 30, 2025, up from $4,765 thousand in the same period of 2024, marking a 15.5% rise[30] Cash and Liquidity - Cash balance as of September 30, 2025, was $4.0 million, with cash provided by operations of $0.2 million in Q3 2025, compared to $0.0 million in Q3 2024[12][13] - Working capital as of September 30, 2025, was $5.7 million, reflecting the company's liquidity position[12] Strategic Initiatives - The company is pursuing strategic acquisitions to enhance its service offerings and is preparing for organic revenue growth in 2026[4] - The company has established a new partnership with a major parcel carrier in the US, which is expected to support future growth[4] Segment Performance - The Precision Logistics segment accounted for 99% of total revenues in Q3 2025, highlighting its significance to the company's operations[8] - Goodwill and intangible asset impairments in the Precision Logistics segment amounted to $3.9 million in Q3 2025, contributing to the increased net loss[10] Shareholder Information - The company had 12,734,425 shares issued and 12,252,977 shares outstanding as of September 30, 2025, compared to 10,829,908 shares issued and 10,539,441 shares outstanding as of December 31, 2024[27] Accumulated Deficit and Liabilities - The accumulated deficit as of September 30, 2025, was $(89,891) thousand, an increase from $(85,673) thousand as of December 31, 2024[28] - Total liabilities and stockholders' equity as of September 30, 2025, was $13,263 thousand, down from $16,067 thousand as of December 31, 2024[28] Impairments - Goodwill and intangible asset impairment for the three months ended September 30, 2025, was $3,850 thousand, compared to $2,252 thousand in the same period of 2024[30]