VerifyMe reported a 7% year-over-year decline in Q3 2025 revenue, primarily due to contract losses, while achieving a gross margin improvement to 41%. The company continues to transition to a new Proactive shipping partner with expectations for future revenue growth.
- Q3 2025 revenue was $5.0 million, down from $5.4 million in Q3 2024, affected by prior contract losses.
- Gross profit increased to $2.1 million, with gross margin improving from 35% to 41% year-over-year, marking the third consecutive quarter of gross profit growth.
- A one-time non-cash impairment charge of $3.9 million impacted net loss, which was $3.4 million for the quarter, compared to $2.9 million in the prior year.
- Operating expenses decreased to $1.7 million in Q3 2025, down from $2.5 million in Q3 2024, due to cost-cutting measures.
- Adjusted EBITDA rose to $0.8 million in Q3 2025 versus $0.2 million in Q3 2024, reflecting improved efficiencies and margins.
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