VerifyMe, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2025, with total revenue of $16.4 million, a 32% decrease from $24.2 million in 2024. The drop in revenue was primarily attributed to the termination of the company's agreement with its prior carrier partner, which affected its ProActive services. The Precision Logistics segment, which constitutes nearly all of VerifyMe's revenue, saw a decrease from $23.8 million in 2024 to $16.2 million in 2025. Despite this decline, the company noted a 5% increase in Premium services revenue during the fourth quarter of 2025 compared to the same period in 2024.
The company's gross profit also fell to $6.3 million in 2025 from $8.7 million in 2024, although the gross margin improved to 38.5% from 35.8% due to process improvements in the Precision Logistics segment. VerifyMe's net loss widened to $4.9 million in 2025, compared to a loss of $3.8 million in 2024, largely due to the revenue decline and impairment charges related to goodwill and intangible assets. The company recorded impairment charges of $1.1 million for goodwill and $2.8 million for intangible assets in 2025.
In terms of strategic developments, VerifyMe entered into a merger agreement with Open World Ltd. on February 11, 2026, which is expected to close in mid-2026. This merger will result in VerifyMe stockholders retaining approximately 10% of the combined company, while Open World securityholders will hold about 90%. The merger is subject to various closing conditions, including stockholder approvals and regulatory clearances. Additionally, VerifyMe has ceased providing ProActive and Premium services to its previous carrier partner and has begun offering these services to a new strategic partner, with expectations to broaden service offerings in the second quarter of 2026.
Operationally, VerifyMe's employee count stood at approximately 30 as of December 31, 2025, with a focus on enhancing its Precision Logistics segment, particularly in the healthcare and perishable goods sectors. The company has also been working on improving its technology infrastructure, including its proprietary PeriTrack® dashboard, which provides real-time visibility into shipment activities. Despite the challenges faced in 2025, VerifyMe remains optimistic about future growth opportunities, particularly in the pharmaceutical and healthcare industries, as it continues to adapt to market conditions and customer needs.
Looking ahead, VerifyMe anticipates that its ProActive services revenue will recover over the coming quarters as it transitions customers to its new strategic partner. However, the company acknowledges the potential for continued volatility in revenue due to external economic factors, including inflation and changes in consumer spending patterns. The management's outlook emphasizes a commitment to improving operational efficiency and leveraging strategic partnerships to drive future growth.
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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