VerifyMe reported third‑quarter 2025 results with revenue of $5.0 million, a 7.4 % decline from $5.4 million in the same period last year. The decline was largely driven by the loss of two Proactive services customers, while the Precision Logistics segment—accounting for 99 % of revenue—expanded, lifting total revenue from $4.5 million in Q2 2025 to $5.0 million in Q3 2025.
Gross profit rose to $2.1 million, giving a 41 % gross margin that improved from 35 % in Q3 2024. Adjusted EBITDA turned positive at $0.8 million, up from $0.2 million in Q3 2024, a result of tighter cost control and the higher‑margin profile of the logistics platform. Net loss widened to $3.4 million, largely due to a $3.9 million goodwill and intangible asset impairment in the Precision Logistics segment, which offsets the operational gains reflected in adjusted EBITDA.
The revenue decline was offset by growth in Precision Logistics, which grew 11 % sequentially and 8 % year‑over‑year, driven by new and existing customers in the time‑ and temperature‑sensitive market. The loss of the two Proactive services customers was attributed to contract terminations that were announced earlier in the year, illustrating a shift in the company’s customer mix toward higher‑margin logistics services.
Management highlighted the strategic partnership with a major parcel carrier, expanding VerifyMe’s network beyond its existing carrier relationships. CEO Adam Stedham said, “We are pleased with our year‑to‑date adjusted EBITDA growth over 2024, our positive cash generation in Q3 2025, and our new partnership with the other major parcel carrier in the US. We continue to look for strategic acquisitions to complement our services.” The company reiterated its intent to pursue acquisitions that complement its Precision Logistics offering, underscoring a focus on scaling the high‑margin segment.
Analysts had expected revenue of $4.7 million and an earnings per share of a $0.05 loss. VerifyMe beat revenue expectations by $0.3 million (7 % above consensus) but missed EPS by $0.21, reporting a $0.26 loss per share. The market reacted positively, with analysts noting the revenue beat and margin improvement as key drivers of the favorable reception.
Looking ahead, VerifyMe maintains confidence in its operational model. The company’s focus on cost discipline, the expansion of its carrier network, and the pursuit of strategic acquisitions are positioned to accelerate market share gains in the precision logistics space. Headwinds include the ongoing goodwill impairment and the loss of legacy Proactive services customers, while tailwinds stem from the high‑margin logistics platform and the new carrier partnership. The company’s guidance reflects a cautious but optimistic outlook, emphasizing continued growth in its core logistics segment and disciplined cost management.
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