Tiger Brokers

Veritone Clarifies Its Q3 Commentary And Provides Context On Certain Non-Cash And Non-Operational Expenses That Affected Q3 Revenues

Benzinga
Nov 10

The one-time $8.0 million expense recorded in the third quarter of 2025 was a non-operational and non-cash expense reflecting the estimated change in the potential earn-out of the divestiture of Veritone One, from October 2024. The change in the estimated earnout from this transaction which closed over a year ago has no impact on the Company's ongoing operations.

In the third quarter of 2025, net loss from continuing operations was $26.9 million, an increase of $4.4 million, or 20%, as compared to Q3 2024. The change was primarily driven by the aforementioned $8.0 million non-cash adjustment in the estimated fair value of the Veritone One earnout, a business that the Company sold in October of 2024, and a $2.2 million change in the Company's tax provision. These changes were partially offset by a $6.7 million improvement in operating loss.

During the quarter ended September 30, 2025, Veritone reported a non-GAAP net loss from continuing operations of $5.8 million, an improvement of 47.8%, or $5.3 million, from $11.1 million in the third quarter ended September 30, 2024. Using non-GAAP net loss from continuing operations, which excludes certain non-recurring and one time expenses, including the $8.0 million earnout expense in the period, the adjusted loss per share from continuing operations for the quarter ended September 30, 2025 was $(0.09) per share, as compared to $(0.29) per share during the quarter ended September 30, 2024, an improvement of $0.20 per share or 69%. The improvement was principally due to the year over year growth in non-GAAP gross profit, coupled with lower operating losses driven by increased discipline on cost management. The Company believes this adjusted result more accurately reflects the earnings power and sustainable run-rate of its model.

Veritone remains confident in its bottom line outlook, as reflected in the guidance issued in its earnings release on Thursday, November 6:

  • Q4 2025 non-GAAP net loss is projected to be between $1.5 and $5.0 million, compared to $9.7 million in Q4 2024, representing a 66% improvement at the midpoint and a 44% sequential improvement from Q3 2025.
  • Full-Year 2025 non-GAAP net loss is expected to be between $31.6 and $26.0 million, representing a 29% year-over-year improvement at the midpoint. This reflects the timing shifts in revenue recognition and temporary margin compression in VDR, which is expected to improve in 2026.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10