One-glance verdict
Within fair range
$0.86 our estimate vs market $0.56
Wall Street consensus: $4.50 (422.5% higher than our fair-value estimate)
34% below our estimate
Fundamentals snapshot
Veritone, Inc.
VERI · NGM · Technology · Software - Infrastructure
Current price
$0.56
52-week range
$0.51 - $6.90
Market cap
$57.38M
Balance sheet
Distressed
-7.95x Concerning
Net debt $35.39M. Interest coverage shows how many times profit covers the interest bill.
What stands out
2 Rewards
2 Risks
2 rewards · 2 risks
- Reward Revenue grew 55.5% last year.
- Reward Free cash flow was positive in 2/10 years.
- Risk Return on equity was -547.7% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -25.4% to -72.6% over 3 years.
What this company does
Veritone, Inc.
Veritone sells artificial intelligence (AI) software that helps businesses understand and use their data better, mainly from government and media companies. This is important because it allows these clients to get more value from their information, leading to potential improvements in their operations.
How the company got here
Veritone was founded in 2014 by brothers Chad and Ryan Steelberg with the goal of harnessing the power of artificial intelligence (AI) for businesses. The company went public in May 2017. Initially, Veritone faced significant losses, reporting $59.6 million in losses in its first year as a public company. In April 2020, Veritone received scrutiny for accepting a $6.5 million small business loan under the Paycheck Protection Program, which it later announced it would return, stating it had sufficient financial flexibility. The company has since focused on refining its strategy, shifting towards a platform-led model centered around its aiWARE platform to drive recurring revenue and expand its market reach through partnerships. Veritone has also undertaken cost-reduction initiatives to improve profitability and focus investments on next-generation AI applications.
What it actually does
Veritone provides an AI operating system called aiWARE, which acts like a central brain for artificial intelligence. This platform helps businesses make sense of large amounts of unstructured data, like audio and video recordings, by using various AI models. Think of it as a tool that can automatically transcribe spoken words, identify objects in videos, analyze emotions in audio, and much more. The goal is to turn raw, messy data into useful information that businesses can act on, improving efficiency and decision-making without needing deep AI expertise in-house.
Veritone One (Advertising)
Veritone One is Veritone's full-service advertising agency. It focuses on performance marketing, meaning it aims to directly drive sales or leads for its clients. This segment likely uses Veritone's AI technology to optimize advertising campaigns, perhaps by analyzing ad performance data or identifying the best audiences to target. The revenue generated here comes from clients paying for advertising services and campaign management.
Veritone Digital Media Hub
The Veritone Digital Media Hub is a service that helps organizations manage, search, and distribute their digital content, such as videos and audio files. It uses AI to make this content more accessible and valuable. For example, it can automatically tag content with relevant keywords, making it easier to find specific clips. This service is used by media companies, government agencies, and other organizations that have large archives of digital assets, helping them to monetize their content or use it more effectively.
Veritone aiWARE SaaS Solutions
This is Veritone's core software-as-a-service (SaaS) offering, where customers pay a recurring fee to use the aiWARE platform and its various AI capabilities. Businesses across different industries, like media, government, and legal, subscribe to aiWARE to analyze their data, automate workflows, and gain insights. The platform's flexibility allows it to be deployed in various ways, including in the cloud or on-premises, catering to different customer needs for data processing and AI model integration.
Veritone Data Refinery
Veritone Data Refinery (VDR) is a solution focused on managing and preparing data for AI. It helps organizations organize, refine, and activate their data assets, making them ready for analysis and use in AI models. This is crucial because AI systems perform best when they have clean, well-structured data. VDR likely plays a key role in ensuring the quality and accessibility of data, which is essential for Veritone's other AI solutions and for customers looking to build their own AI applications.
What management is betting on now
Veritone's management is focused on scaling its AI applications and driving towards profitability. A key strategy is to expand its recurring revenue streams, particularly through its aiWARE platform and SaaS solutions, by targeting growth in the public sector and media industries. They are also emphasizing the importance of data governance and orchestration, positioning Veritone as a critical layer for AI agents that need trusted inputs and managed outputs. The company is also looking to enhance its data management capabilities with solutions like Veritone Data Refinery, signaling a move towards more scalable, high-margin business models.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$1.83M
FY2024 Q4
$-1.46M
FY2025 Q1
$-18.40M
FY2025 Q2
$-9.19M
FY2025 Q3
$-17.11M
FY2025 Q4
$-13.49M
FY2026 Q1
$-12.03M
FY2026 Q2
$-12.13M
Revenue
$24.26M
Net income
$-22.16M
Diluted EPS
-0.24
Operating cash flow
$-10.63M
Free cash flow
$-12.13M
Fetching…
Sources
Revenue
$20.26M
Net income
$-19.51M
Diluted EPS
-0.21
Operating cash flow
$-11.49M
Free cash flow
$-12.03M
Fetching…
Sources
Revenue
$69.73M
Net income
$-38.18M
Diluted EPS
-1.35
Operating cash flow
$-12.04M
Free cash flow
$-13.49M
Fetching…
Sources
Revenue
$29.12M
Net income
$-26.88M
Diluted EPS
—
Operating cash flow
$-15.89M
Free cash flow
$-17.11M
Fetching…
Sources
Revenue
$24.01M
Net income
$-26.80M
Diluted EPS
-0.54
Operating cash flow
$-8.23M
Free cash flow
$-9.19M
Fetching…
Sources
Revenue
$22.46M
Net income
$-19.88M
Diluted EPS
-0.41
Operating cash flow
$-17.04M
Free cash flow
$-18.40M
Fetching…
Sources
Revenue
$8.02M
Net income
$31.79M
Diluted EPS
0.85
Operating cash flow
$-500.00K
Free cash flow
$-1.46M
Fetching…
Sources
Revenue
$21.99M
Net income
$-21.75M
Diluted EPS
-0.57
Operating cash flow
$3.57M
Free cash flow
$1.83M
Fetching…
Sources
Is it cheap or expensive?
Fair value $0.86 vs current price $0.56
Wall Street consensus is the average analyst price target: $4.50 (422.5% higher than our fair-value estimate).
Our most-likely fair value is $0.86 a share — about 52.5% away from today's price of $0.56, so the stock currently looks fairly priced.
Is it drowning in debt?
Distressed
Net debt $35.4M. Interest coverage -7.9x.
Net debt
$35.39M
Interest coverage
-7.95x
Veritone, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 2 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
VERI
BASELINE
Veritone, Inc.
Total debt $47.82M Interest coverage -7.95x This is the baseline the peer rows are being compared against.
Total debt $22.51M Interest coverage -4.60x Neither company has much profit cushion over interest right now.
Total debt $74.48M Interest coverage 15.62x This peer still has a real interest-payment cushion, while VERI does not.
Total debt $26.55M Interest coverage -11.33x Neither company has much profit cushion over interest right now.
Total debt $187.05M Interest coverage 1.28x This peer still has a real interest-payment cushion, while VERI does not.
Total debt $35.19M Interest coverage 68.36x This peer still has a real interest-payment cushion, while VERI does not.
What you should know
The case for and against VERI
2 Rewards
2 Risks
Rewards
-
Revenue grew 55.5% last year.
-
Free cash flow was positive in 2/10 years.
Risks
-
Return on equity was -547.7% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -25.4% to -72.6% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-4.81x
P/B
1.48x
P/S
0.63x
EV/EBITDA
-1.57x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
66.2%
Operating margin
-72.6%
Net margin
-117.5%
ROE
-547.7%
ROA
-28.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.26x
Current ratio
0.47x
Quick ratio
0.42x
Total debt
$47.82M
Total cash
$12.42M
Growth
How the business has been compounding
Revenue TTM
$143.37M
Revenue 5Y CAGR
-5.4%
EPS TTM
-1.27
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$-50.05M
Free CF TTM
$-58.18M
FCF margin
-40.6%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
—
Last ex-div date
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