VerifyMe Q4 revenue falls 69% on carrier partner change

VerifyMe

30/03/2026 22:32

Overview

U.S. logistics and brand protection firm's Q4 revenue fell sharply after loss of prior carrier partner

Gross margin rose to 49% from 32%, helped by service mix and new shipping partner pricing

Company entered merger agreement with Open World, Ltd. and continues client transition to new partner

Outlook

Company says it is continuing to transition customers to its new shipping partner in 2026

VerifyMe says it is in a transition phase and moving clients to direct contracts

Company says it is progressing with its previously announced merger agreement

Result Drivers

CARRIER PARTNER TERMINATION - Co said Q4 revenue decline was mainly due to loss of prior carrier partner, resulting in erosion of customer base

SERVICE MIX & PRICING - Gross margin improvement attributed to mix of ProActive and Premium services, cost reduction efforts and improved pricing under new shipping partner

CLIENT TRANSITION CHALLENGES - Co said Q4 transition to new shipping partner was slowed by industry capacity constraints, as companies are typically hesitant to change partners during the fourth quarter

Company press release: ID:nBw33XqLFa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Miss
$2.4 mln
$5.22 mln (2 Analysts)
Q4 EPS
-$0.05
Q4 Net Income
-$700,000
Q4 Adjusted EBITDA
-$100,000
Q4 Gross Margin
49%
Q4 Gross Profit
$1.2 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for VerifyMe Inc is $1.50, about 86.8% above its March 27 closing price of $0.80

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)