VerifyMe Q1 revenue falls on partner loss

VerifyMe

15/05/2026 13:11

Overview

U.S. logistics and brand protection firm's Q1 revenue fell yr/yr due to partner loss

Gross margin improved to 54% from 33%, driven by service mix and process improvements

Company posted wider net loss and adjusted EBITDA loss compared to Q1 2025

Outlook

Company expects to begin offering Premium services with new partner in Q2 2026

Result Drivers

PARTNER TERMINATION - Revenue declined mainly due to the loss of ProActive services following the September 2025 termination of the prior carrier partner agreement

SERVICE MIX AND PROCESS IMPROVEMENTS - Gross margin increased due to the mix of ProActive and Premium services and process improvements to increase ProActive services margins

HIGHER LEGAL EXPENSES - Operating loss increased mainly due to higher legal expenses associated with the proposed merger and the decrease in gross profit

Company press release: ID:nBwqNl1Pa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
$1.77 mln
Q1 Net Income
-$679,000
Q1 Adjusted EBITDA
-$84,000
Q1 Gross Margin
54.00%


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(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.)