Veritone Reports Slight Revenue Decline and Increased Net Loss in Q2 2025

Veritone, Inc. reported its financial results for the second quarter of 2025, revealing a slight decline in revenue compared to the same period last year. The company generated $24.0 million in revenue for the three months ended June 30, 2025, a decrease of 0.2% from $24.1 million in the prior year. For the first half of 2025, revenue totaled $46.5 million, down 3.6% from $48.2 million in the same period of 2024. The decline was attributed to a decrease in Managed Services revenue, which was partially offset by an increase in Software Products & Services revenue, particularly from the company's aiWARE platform.

Operating expenses for the second quarter were $43.3 million, slightly lower than the $44.4 million reported in the same quarter of 2024. The company recorded an operating loss of $19.3 million for the quarter, compared to a loss of $20.3 million in the prior year. Net loss from continuing operations was $26.8 million, compared to a loss of $22.2 million in the same quarter of 2024. The increase in net loss was primarily driven by higher costs associated with revenue generation and increased depreciation expenses.

In terms of strategic developments, Veritone completed the divestiture of its full-service advertising agency, Veritone One, in October 2024, which has allowed the company to focus on its core AI solutions. The divestiture is expected to enhance operational efficiency and improve margins. The company also reported a decrease in its total Software Products & Services customers to 3,067, a decline of 10.8% year-over-year, largely due to a reduction in consumption-based customers.

Veritone's financial position remains a concern, as the company reported cash and cash equivalents of $13.6 million as of June 30, 2025, down from $16.9 million at the end of 2024. The company is currently exploring financing options to improve its liquidity position, as it faces substantial doubt about its ability to continue as a going concern over the next twelve months. The company has also made significant cost reductions, achieving over $50 million in annualized savings since January 2023, and plans to continue these efforts to streamline operations and enhance profitability.

Looking ahead, Veritone aims to leverage its recent product launches, including the Intelligent Digital Evidence Management System (iDEMs) and Veritone Data Refinery (VDR), to drive growth. The company anticipates that these initiatives will contribute to revenue growth in the second half of 2025, despite ongoing macroeconomic challenges. However, the company acknowledges that its future performance will depend on its ability to attract and retain customers, manage costs effectively, and navigate the evolving market landscape.