Veritone completed a $77.5 million debt‑reduction transaction that closed on November 12 2025 and was announced on November 13. The deal paid down the entire $31.8 million senior secured credit facility and repurchased roughly 50 % of its $45.7 million convertible notes, leaving the remaining notes outstanding under the original terms.
The transaction cuts Veritone’s annualized debt‑carrying costs from $14.0 million to $0.8 million, a savings of about $13.0 million per year. It also releases $15 million of previously restricted cash, terminates senior secured debt covenants, and removes liens that had constrained the company’s financial flexibility.
Prior to the transaction, Veritone’s Q3 2025 results showed $29.1 million in revenue, a 32 % year‑over‑year increase, but a GAAP earnings‑per‑share of –$0.41 and total debt of $116.22 million. The company’s negative EBITDA and a “WEAK” financial health rating underscored the need for deleveraging. The debt reduction improves the debt‑to‑equity ratio, reduces interest expense, and aligns with management’s goal of achieving operating profitability by the second half of 2026.
With the freed cash flow and lower interest burden, Veritone can accelerate investment in its aiWARE platform, expand its public‑sector and enterprise offerings, and pursue new customer opportunities. CEO Ryan Steelberg said the company now has a “capital structure free of onerous and restrictive debt, allowing us to more efficiently capture the increasing customer demand for our AI‑enabled solutions.”
Investors welcomed the deleveraging, noting that the reduced risk profile and improved liquidity position the company for sustained growth. The announcement also set the stage for an analyst and investor forum on December 1, where Veritone will outline its strategy and financial outlook.
The transaction strengthens Veritone’s balance sheet, reduces financial risk, and provides the resources needed to support its AI‑driven growth strategy. By eliminating the senior secured facility and cutting convertible debt, the company has positioned itself for a more profitable future.
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