VerifyMe Inc

VerifyMe operates with a capital structure that includes $2.35 million in long-term debt and $2.82 million in cash and equivalents, resulting in a debt-to-equity ratio of 0.19 and a current ratio of 1.87. The company's liquidity position is assessed as low, with negative operating cash flow of $60,000 and free cash flow of -$364,000 in the latest period.

Profitability metrics show a challenging performance, with a net loss of $553,000 and an operating loss of $647,000. Return on equity is -4.46%, and return on assets is -3.09%, both significantly below the industry median for software firms. Gross profit of $2.26 million represents 39.2% of revenue, but this is insufficient to offset operating expenses.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to sector-specific risks and limits growth opportunities.

Growth trajectory is negative, with no disclosed revenue growth in the latest period. Analysts have assigned a mean price target of $1.50, suggesting potential upside from the current market price of $0.695. However, the company's negative earnings and cash flow raise concerns about its ability to sustain operations without external financing.

Risk factors include liquidity constraints and the potential for dilution if the company raises additional capital. No immediate filing-based liquidity or dilution flags were detected, but the company's negative free cash flow and low cash reserves increase the risk of future capital-raising activities.

Recent events include the latest financial filing, which shows continued losses and negative cash flow. No significant corporate actions or strategic announcements were disclosed in the latest period.

Revenue grew at a 108.5% CAGR over four years, demonstrating strong historical top-line expansion capabilities.

The single analyst consensus price target implies 140% upside from the current market price of $0.6251.

Low leverage with a debt-to-equity ratio of 0.19 suggests a conservative capital structure relative to peers.

A current ratio of 3.82 indicates strong short-term liquidity and ability to meet immediate obligations.

Low dilution, liquidity, and credit risk flags suggest minimal immediate structural threats to shareholder value.

Revenue declined 32.3% year-over-year in the latest period, signaling a significant reversal in growth momentum.

Operating margin of -11.2% remains well below the software cohort median of 1.78%, indicating poor profitability.

Net income loss widened to $4.9 million in the latest fiscal year, reflecting expanding operational deficits.

Revenue $2.4M, −68,8% YoY; Operating income −49,7% YoY.

• ▍Revenue $2.4M, −68,8% YoY
• ▍Operating income −49,7% YoY
• ▍Net income −37,1% YoY
• ▍Free cash flow −98,6% YoY
• ▍Net margin -28.7%

Revenue $5.0M, −7,4% YoY; Operating income −19,6% YoY.

• ▍Revenue $5.0M, −7,4% YoY
• ▍Operating income −19,6% YoY
• ▍Net income −38,5% YoY
• ▍Free cash flow −45,4% YoY
• ▍Net margin -66.7%

Revenue $4.5M, −15,6% YoY; Operating income +39,9% YoY.

• ▍Revenue $4.5M, −15,6% YoY
• ▍Operating income +39,9% YoY
• ▍Net income +15,9% YoY
• ▍Free cash flow −37,8% YoY
• ▍Net margin -6.4%

Revenue $4.5M, −22,6% YoY; Operating income +8,3% YoY.

• ▍Revenue $4.5M, −22,6% YoY
• ▍Operating income +8,3% YoY
• ▍Net income −3,2% YoY
• ▍Free cash flow −21,1% YoY
• ▍Net margin -12.8%

Revenue $7.7M; Operating income -$483.0k.

• ▍Revenue $7.7M
• ▍Operating income -$483.0k
• ▍Net margin -6.5%

Revenue $5.4M; Operating income -$2.9M.

• ▍Revenue $5.4M
• ▍Operating income -$2.9M
• ▍Net margin -44.6%

Revenue $5.4M; Operating income -$536.0k.

• ▍Revenue $5.4M
• ▍Operating income -$536.0k
• ▍Net margin -6.5%

Revenue $5.8M; Operating income -$647.0k.

• ▍Revenue $5.8M
• ▍Operating income -$647.0k
• ▍Net margin -9.6%

Revenue $16.4M, −32,3% YoY; Operating income −11,8% YoY.

• ▍Revenue $16.4M, −32,3% YoY
• ▍Operating income −11,8% YoY
• ▍Net income −28,3% YoY
• ▍Free cash flow −48,5% YoY
• ▍Net margin -29.9%

Revenue $24.2M, −4,4% YoY; Operating income −36,3% YoY.

• ▍Revenue $24.2M, −4,4% YoY
• ▍Operating income −36,3% YoY
• ▍Net income −12,8% YoY
• ▍Free cash flow −3,7% YoY
• ▍Net margin -15.8%

Revenue $25.3M, +29,3% YoY; Operating income +2,7% YoY.

• ▍Revenue $25.3M, +29,3% YoY
• ▍Operating income +2,7% YoY
• ▍Net income +76,5% YoY
• ▍Free cash flow +78,3% YoY
• ▍Net margin -13.4%

Revenue $19.6M, +2 157,9% YoY; Operating income +28,1% YoY.

• ▍Revenue $19.6M, +2 157,9% YoY
• ▍Operating income +28,1% YoY
• ▍Net income −498,6% YoY
• ▍Free cash flow −500,6% YoY
• ▍Net margin -73.5%