VerifyMe, Inc. reported its financial results for the third quarter and nine months ended September 30, 2025, revealing a decline in revenue and an increase in net loss compared to the same periods in 2024. The company generated net revenue of $5.033 million for the third quarter, a decrease of 7% from $5.435 million in the prior year. For the nine-month period, revenue fell to $14.008 million from $16.546 million, marking a decline of 15%. The gross profit for the third quarter was $2.073 million, up from $1.895 million, while the gross margin improved to 41% from 35%. However, the net loss widened to $3.356 million for the third quarter, compared to a loss of $2.424 million in the same quarter of 2024.
The financial performance reflects significant changes in the company's operations, particularly in its Precision Logistics segment, which accounts for nearly all of VerifyMe's revenue. The decline in revenue was attributed to the discontinuation of services with two customers in the Proactive services line, partially offset by new customer acquisitions. Additionally, the Authentication segment experienced reduced revenue due to the divestiture of the Trust Codes Global business in December 2024. The company recorded impairment charges of $3.850 million for goodwill and intangible assets during the third quarter, which contributed to the increased net loss.
Operationally, VerifyMe's total current assets increased to $7.874 million as of September 30, 2025, from $6.362 million at the end of 2024, driven by higher cash and cash equivalents. The company reported a decrease in accounts receivable, which fell to $1.127 million from $2.636 million, indicating a potential reduction in customer demand. The total liabilities decreased significantly to $2.159 million from $5.853 million, primarily due to the repayment of a term note and other debt obligations. The company’s employee headcount has also been reduced, contributing to lower operating expenses.
Looking ahead, VerifyMe anticipates challenges in its Proactive services due to the loss of FedEx as a preferred shipping partner, which may lead to a material decline in revenues in the upcoming quarters. However, the company has entered into new agreements with an alternative shipping partner to provide similar services, which it expects will help recover revenues in 2026. The company remains focused on expanding its customer base and enhancing its service offerings, particularly in the healthcare and perishable goods sectors, which are seen as significant growth opportunities.
About VerifyMe, Inc.
VerifyMe, Inc. specializes in logistics for time- and temperature-sensitive products, offering predictive analytics, real-time shipment visibility, and last-mile support through its Precision Logistics segment. It also provides brand protection and anti-counterfeit solutions via its Authentication segment. Serving healthcare, food, and consumer industries, the company leverages proprietary technology, strategic partnerships, and tailored services to enhance supply chain efficiency and brand security.
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