VerifyMe (NASDAQ: VRME) Q2 2026 revenue falls 58% as losses widen
Rhea-AI Filing Summary
VerifyMe, Inc. reported Q2 2026 net revenue of $1.9 million, down from $4.5 million in Q2 2025, a 58% decline primarily driven by the loss of ProActive services revenue after a prior carrier agreement was terminated in September 2025. Gross profit fell to $1.0 million from $1.6 million, but gross margin improved to 54% from 35% due to the mix of ProActive and newer Premium services.
Operating loss widened to $0.6 million from $0.3 million, largely from higher legal costs related to a proposed merger and lower gross profit. Net loss increased to $0.5 million, or $(0.04) per diluted share, versus $0.3 million, or $(0.02) per share, a year earlier. Adjusted EBITDA was approximately $0.0 million compared to $0.3 million in Q2 2025. As of June 30, 2026, cash and cash equivalents were $5.1 million with working capital of $4.7 million, total assets of $11.4 million, and total liabilities of $1.4 million. The company is transitioning customers to a new strategic shipping partner, has launched Premium services with that partner, continues developing its Precision Logistics business, and is working toward a previously announced merger; it is not scheduling an earnings call at this time.
Positive
- None.
Negative
- Revenue declined 58% year over year in Q2 2026 to $1.9 million, primarily from the loss of ProActive services revenue tied to the terminated prior carrier agreement.
- Net loss widened to $0.5 million in Q2 2026 from $0.3 million a year earlier, with loss per diluted share increasing to $(0.04) from $(0.02).
- Adjusted EBITDA deteriorated from a positive $0.3 million in Q2 2025 to approximately $0.0 million in Q2 2026, reflecting weaker underlying operating performance.
Filing Explained
The filing adds reported share counts, but does not establish a completed ownership change for existing common holders.
This Form 8-K furnishes VerifyMe’s second-quarter results under Item 2.02; for existing common holders, its structural disclosure is a reported share count rather than a completed ownership transaction.
It reports
The release states that this information, including Exhibit 99.1, is furnished and is not deemed filed under Section 18 or incorporated by reference into another filing.
For a prior balance-sheet reference, the filing reports
8-K Event Classification
Key Figures
Key Terms
Adjusted EBITDA financial
non-GAAP financial measures financial
working capital financial
goodwill financial
contingent consideration financial
Convertible note financial
Earnings Snapshot
FAQ
How did VerifyMe (VRME) Q2 2026 revenue compare to Q2 2025?
What was VerifyMe (VRME) net loss and EPS in Q2 2026?
How did VerifyMe (VRME) gross margin change in Q2 2026?
What was VerifyMe (VRME) Adjusted EBITDA in Q2 2026?
What is VerifyMe (VRME) cash and working capital as of June 30, 2026?
Is VerifyMe (VRME) holding an earnings call for Q2 2026 results?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
| Date of Report (Date of earliest event reported): |
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code:
_____________________
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||
| |
The |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging growth company |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
| Item 2.02 | Results of Operations and Financial Condition. |
On August 14, 2026, VerifyMe, Inc. (the “Company”) issued a press release to report financial results for its three and six months ended June 30, 2026. The Company’s press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
The information furnished pursuant to this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under such section and shall not be deemed to be incorporated by reference into any filing of the Company under the Securities Act of 1933, as amended, or the Exchange Act.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits |
| Exhibit No. | Description | |
| 99.1 | VerifyMe, Inc. Press Release dated August 14, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| VerifyMe, Inc. | ||
| Date: August 14, 2026 |
/s/ Adam Stedham |
|
| Name: | Adam Stedham | |
| Title: | Chief Executive Officer and President | |
Exhibit 99.1
VerifyMe Reports Second Quarter 2026 Financial Results
| · | Quarterly revenue of $1.9 million, compared to $4.5 million in Q2 2025 |
| · | Quarterly gross profit of $1.0 million or 54%, compared to $1.6 million or 35% in Q2 2025 |
| · | Net loss of ($0.5) million, compared to ($0.3) million in Q2 2025 |
| · | Adjusted EBITDA(1) of $0.0 million, compared to $0.3 million in Q2 2025 |
| · | Cash of $5.1 million and working capital of $4.7 million as of June 30, 2026 |
Lake Mary, FL – August 10, 2026 – PRNewswire — VerifyMe, Inc. (NASDAQ: VRME) (“VerifyMe,” “we,” “our,” or the “Company”) provides time and temperature sensitive logistics, and brand protection and enhancement solutions, announced today the Company’s financial results for its second quarter ended June 30, 2026 (“Q2 2026”).
Adam Stedham, VerifyMe’s CEO and President stated, “During the second quarter of 2026, we continued transitioning legacy ProActive customers to our new strategic shipping partner while also onboarding new customers. In June, we expanded our offerings by launching Premium services with our new shipping partner. We are finalizing our technology integration with this partner, as well as evaluating emerging technologies that can further enhance margins and operational efficiency. Our Precision Logistics business continues to make progress, as we simultaneously work towards our previously announced merger.”
Key Financial Highlights for Q2 2026:
| · | Quarterly consolidated revenue of $1.9 million in Q2 2026, compared to $4.5 million for the three months ended June 30, 2025 (“Q2 2025”). |
| · | Gross profit of $1.0 million or 54% in Q2 2026, compared to $1.6 million or 35% in Q2 2025. |
| · | Net loss of ($0.5) million or ($0.04) per diluted share in Q2 2026, compared to ($0.3) million or ($0.02) in Q2 2025. |
| · | Adjusted EBITDA(1) of $0.0 million in Q2 2026, compared to $0.3 million in Q2 2025. |
| · | Cash of $5.1 million and working capital of $4.7 million as of June 30, 2026. |
__________
(1) Adjusted EBITDA is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" below for information about this non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, net loss, is included as a schedule to this release.
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Financial Results for the Three Months Ended June 30, 2026:
Revenue in Q2 2026 was $1.9 million, compared to $4.5 million in Q2 2025. Revenue for the quarter decreased by $2.6 million, or 58%. The decrease in revenue is primarily due to the loss of ProActive services revenue, as a result of the September 2025 termination of our agreement with our prior carrier partner resulting in the erosion of our customer base, as previously disclosed.
Gross profit in Q2 2026 was $1.0 million, compared to $1.6 million in Q2 2025, a decline of ($0.6) million, or 36%. The resulting gross margin percentage was 54% for the three months ended June 30, 2026, compared to 35% for the three months ended June 30, 2025. The increase in gross profit percentage results from the mix of ProActive and Premium services provided during the quarter.
Operating loss was ($0.6) million in Q2 2026, compared to ($0.3) million in Q2 2025. The increased loss primarily relates to an increase in legal expenses associated with the Company’s proposed merger recorded in general and administrative expenses, and the decrease in gross profit.
Net loss was ($0.5) million in Q2 2026, compared to ($0.3) million in Q2 2025. The resulting loss per diluted share was ($0.04) in Q2 2026 compared to ($0.02) in Q2 2025.
Adjusted EBITDA(1) in Q2 2026 was $0.0 million, compared to $0.3 in million Q2 2025. Adjusted EBITDA(1) is a non-GAAP financial measure. Please see “Use of Non-GAAP Financial Measures” for a discussion of this non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, net loss is included as a schedule to this release.
At June 30, 2026, we had a $5.1 million cash balance and $4.7 million in working capital.
At June 30, 2026, we had 13,626,076 shares issued and 13,165,196 shares outstanding.
______
(1) Adjusted EBITDA is a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures" below for information about this non-GAAP measure. A reconciliation to the most directly comparable GAAP measure, net loss, is included as a schedule to this release.
Earnings Call
The company is not scheduling an earnings call at this time.
About VerifyMe, Inc.
VerifyMe, Inc. (NASDAQ: VRME), provides specialized logistics for time and temperature sensitive products, as well as brand protection and enhancement solutions. To learn more, visit www.verifyme.com.
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Cautionary Note Regarding Forward-Looking Statements
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “continue,” “may,” “should,” "will," “finalize”, “intend”, “can”, and similar expressions, as they relate to us, are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs. Important factors that could cause actual results to differ from those in the forward-looking statements include our engagement in future acquisitions or strategic partnerships that increase our capital requirements or cause us to incur debt or assume contingent liabilities, our reliance on one key strategic partner for shipping services, competition including by our key strategic partner, seasonal trends in our business, severe climate conditions, the highly competitive nature of the industry in which we operate, our brand image and corporate reputation, impairments related to our goodwill and other intangible assets, economic and other factors such as recessions, downturns in the economy, inflation, global uncertainty and instability, the effects of pandemics, changes in United States social, political, and regulatory conditions and/or a disruption of financial markets, reduced freight volumes due to economic conditions, reduced discretionary spending in a recessionary environment, global supply-chain delays or shortages, fluctuations in labor costs, raw materials, and changes in the availability of key suppliers, our history of losses, our ability to use our net operating losses to offset future taxable income, the confusion of our name brand with other brands, the ability of our technology to work as anticipated and to successfully provide analytics logistics management, our ability to continue to invest in the development and commercialization of our product and service offerings, the ability of our strategic partners to integrate our solutions into their product offerings, our ability to manage our growth effectively, our ability to successfully develop and expand our sales and marketing capabilities, risks related to doing business outside of the U.S., intellectual property litigation, our ability to successfully develop, implement, maintain, upgrade, enhance, and protect our information technology systems, our reliance on third-party information technology service providers, our ability to respond to evolving laws related to information technology such as privacy laws, our ability to attract, retain and develop successors for management, our ability to work with partners in selling our technologies to businesses, production difficulties, our inability to enter into contracts and arrangements with future partners, our ability to acquire new customers, issues which may affect the reluctance of large companies to change their purchasing of products, acceptance of our technologies and the efficiency of our authenticators in the field, our ability to comply with the continued listing standards of the Nasdaq Capital Market, our ability to timely pay amounts due and comply with the covenants under our debt facilities, and our ability to complete the proposed business combination, including due to the failure to obtain approval of the securityholders of the Company, certain regulatory approvals, or satisfying other conditions to closing, in the merger agreement. These risk factors and uncertainties include those more fully described in VerifyMe’s Annual Report and Quarterly Reports filed with the Securities and Exchange Commission, including under the heading entitled “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. Any forward-looking statement made by us herein speaks only as of the date on which it is made. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.
Use of Non-GAAP Financial Measures
This press release includes both financial measures in accordance with U.S. generally accepted accounting principles (“GAAP”), as well as non-GAAP financial measures. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures should be viewed as supplemental to and should not be considered as alternatives to any other GAAP financial measures. They may not be indicative of the historical operating results of VerifyMe nor are they intended to be predictive of potential future results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.
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VerifyMe’s management uses and relies on EBITDA and Adjusted EBITDA, which are non-GAAP financial measures. The Company believes that both management and shareholders benefit from referring to EBITDA and Adjusted EBITDA in planning, forecasting and analyzing future periods. Additionally, the Company believes Adjusted EBITDA is useful to investors to evaluate its results because it excludes certain items that are not directly related to the Company’s core operating performance. In particular, with regard to our comparison of Adjusted EBITDA for the three months ended June 30, 2026, to the three months ended June 30, 2025, we believe is useful to investors in understanding the results of operations. The Company’s management uses these non-GAAP financial measures in evaluating its financial and operational decision making and as a means to evaluate period-to-period comparison. The Company’s management recognizes that EBITDA and Adjusted EBITDA, as non-GAAP financial measures, have inherent limitations because of the described excluded items.
The Company defines EBITDA as net loss before interest (income) expense, income tax expense (benefit), and depreciation and amortization. Adjusted EBITDA represents EBITDA plus non-cash stock compensation expense, severance expense, gain on derecognized liability, impairments, change in fair value of contingent consideration, and one-time professional expenses for acquisitions and divestiture. VerifyMe believes EBITDA and Adjusted EBITDA are important measures of VerifyMe’s operating performance because they allow management, investors and analysts to evaluate and assess VerifyMe’s core operating results from period-to-period after removing the impact of items of a non-operational nature that affect comparability.
A reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measure, net loss, calculated in accordance with GAAP is included in a schedule to this press release. The Company believes that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between VerifyMe and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to the specific definition being used and to the reconciliation between such measure and the corresponding GAAP measure provided by each company under applicable SEC rules as the presentation here may not be comparable to other similarly titled measures of other companies.
For Other Information Contact:
Company: VerifyMe, Inc.
Email: IR@verifyme.com
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VerifyMe, Inc.
Consolidated Balance Sheets
(In thousands, except share data)
| June 30, 2026 | December 31, 2025 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 5,092 | $ | 4,353 | ||||
| Accounts receivable, net of allowance for credit loss reserve, $21 and $10 as of June 30, 2026 and December 31, 2025, respectively | 558 | 857 | ||||||
| Note receivable, net of allowance for credit loss reserve, $0 and $12 as of June 30, 2026 and December 31, 2025, respectively | - | 1,988 | ||||||
| Unbilled revenue | 290 | 338 | ||||||
| Prepaid expenses and other current assets | 168 | 154 | ||||||
| Inventory | 41 | 37 | ||||||
| TOTAL CURRENT ASSETS | 6,149 | 7,727 | ||||||
| PROPERTY AND EQUIPMENT, NET | $ | 13 | $ | 20 | ||||
| INTANGIBLE ASSETS, NET | 2,304 | 2,345 | ||||||
| GOODWILL | 2,926 | 2,926 | ||||||
| TOTAL ASSETS | $ | 11,392 | $ | 13,018 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Accounts payable | $ | 342 | $ | 745 | ||||
| Other accrued expense | 331 | 530 | ||||||
| Convertible note – related party, current | 400 | 400 | ||||||
| Convertible note, current | 350 | 350 | ||||||
| TOTAL CURRENT LIABILITIES | 1,423 | 2,025 | ||||||
| TOTAL LIABILITIES | $ | 1,423 | $ | 2,025 | ||||
| STOCKHOLDERS' EQUITY | ||||||||
| Series A Convertible Preferred Stock, $0.001 par value, 37,564,767 shares authorized; 0 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | - | - | ||||||
| Series B Convertible Preferred Stock, $0.001 par value; 85 shares authorized; 0.85 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively | - | - | ||||||
| Common stock, $0.001 par value; 675,000,000 shares authorized; 13,626,076 and 13,553,049 shares issued, 13,165,196 and 13,071,601 shares outstanding as of June 30, 2026 and December 31, 2025, respectively | 14 | 14 | ||||||
| Additional paid in capital | 102,192 | 102,059 | ||||||
| Treasury stock at cost; 460,880 and 481,448 shares at June 30, 2026 and December 31, 2025, respectively | (475 | ) | (502 | ) | ||||
| Accumulated deficit | (91,762 | ) | (90,578 | ) | ||||
| STOCKHOLDERS' EQUITY | 9,969 | 10,993 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 11,392 | $ | 13,018 | ||||
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VerifyMe, Inc.
Consolidated Statements of Operations
(Unaudited)
(In thousands, except share data)
| Three Months Ended | Six Months Ended | |||||||||||||||
| June 30, 2026 | June 30, 2025 | June 30, 2026 | June 30, 2025 | |||||||||||||
| NET REVENUE | $ | 1,908 | $ | 4,520 | $ | 3,680 | $ | 8,975 | ||||||||
| COST OF REVENUE | 887 | 2,929 | 1,699 | 5,894 | ||||||||||||
| GROSS PROFIT | 1,021 | 1,591 | 1,981 | 3,081 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Management and Technology(a) | 607 | 920 | 1,177 | 1,846 | ||||||||||||
| General and administrative (a) | 815 | 716 | 1,831 | 1,572 | ||||||||||||
| Research and development | - | 5 | - | 10 | ||||||||||||
| Sales and marketing (a) | 155 | 272 | 296 | 568 | ||||||||||||
| Total Operating expenses | 1,577 | 1,913 | 3,304 | 3,996 | ||||||||||||
| LOSS BEFORE OTHER INCOME (EXPENSE) | (556 | ) | (322 | ) | (1,323 | ) | (915 | ) | ||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest income, net | 51 | 32 | 139 | 54 | ||||||||||||
| Other expense, net | - | (1 | ) | - | (1 | ) | ||||||||||
| TOTAL OTHER INCOME, NET | 51 | 31 | 139 | 53 | ||||||||||||
| NET LOSS | $ | (505 | ) | $ | (291 | ) | $ | (1,184 | ) | $ | (862 | ) | ||||
| LOSS PER SHARE | ||||||||||||||||
| BASIC | (0.04 | ) | (0.02 | ) | (0.09 | ) | (0.07 | ) | ||||||||
| DILUTED | (0.04 | ) | (0.02 | ) | (0.09 | ) | (0.07 | ) | ||||||||
| WEIGHTED AVERAGE COMMON SHARE OUTSTANDING | ||||||||||||||||
| BASIC | 13,359,887 | 12,643,791 | 13,356,338 | 12,469,118 | ||||||||||||
| DILUTED | 13,359,887 | 12,643,791 | 13,356,338 | 12,469,118 | ||||||||||||
| (a) | Includes share-based compensation of $111 thousand and $188 thousand for the three and six months ended June 30, 2026, respectively, and $259 thousand and $592 thousand for the three and six months ended June 30, 2025, respectively. |
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VerifyMe, Inc.
Consolidated EBITDA and Adjusted EBITDA Reconciliation
Table (Unaudited)
(In thousands)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Net Loss (GAAP) | $ | (505 | ) | $ | (291 | ) | $ | (1,184 | ) | $ | (862 | ) | ||||
| Interest income, net | (51 | ) | (32 | ) | (139 | ) | (54 | ) | ||||||||
| Amortization and depreciation | 148 | 286 | 280 | 572 | ||||||||||||
| Total EBITDA (Non-GAAP) | (408 | ) | (37 | ) | (1,043 | ) | (344 | ) | ||||||||
| Adjustments: | ||||||||||||||||
| Stock based compensation | - | 45 | - | 86 | ||||||||||||
| Fair value of restricted stock and restricted stock units issued in exchange for services | 111 | 214 | 188 | 506 | ||||||||||||
| Severance | - | 18 | - | 75 | ||||||||||||
| Gain on derecognized liability | - | - | - | (100 | ) | |||||||||||
| One-time professional expenses for acquisitions/divestiture | 274 | 30 | 748 | 47 | ||||||||||||
| Total Adjusted EBITDA (Non-GAAP) | $ | (23 | ) | $ | 270 | $ | (107 | ) | $ | 270 | ||||||
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