Veritone Reports Strong Third Quarter 2025 Results

IRVINE, Calif.--( BUSINESS WIRE)--Veritone, Inc. (NASDAQ: VERI) (“Veritone” or the “Company”), a leader in building human-centered enterprise AI solutions, today announced results for the third quarter ended September 30, 2025.

“In the third quarter, we executed at a high level, growing our core AI software revenue more than 200%, solidifying our liquidity position through two equity offerings, and remaining on track to reach profitability by the latter part of 2026,” said President and Chief Executive Officer, Ryan Steelberg. “Our third quarter results were driven by continued demand for our software products and services underpinned by our accelerating growth in Public Sector and in our Veritone Data Refinery bookings and delivery. These accomplishments are a testament to the strength of the Veritone platform, aiWARE, and the growing demand for our solutions in key, high-growth verticals, including the scaled tokenization of unstructured data.”

Third Quarter 2025 Financial Highlights

About Our Sales Pipeline

Our sales pipeline represents revenue we expect to receive based on the total fees payable during the full contract term for contracts that we believe have a high probability of closing in the next three to twelve months. We include in our sales pipeline fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term and we do not include any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services) and any fees payable after contract renewals or extensions that are at the discretion of our customer. Many of our contracts require us to provide services over more than one year and may include professional fees required to enable our technology in certain environments we do not host or have direct control over. In some cases, our customers may have the ability to terminate our agreements on short notice and our pipeline does not consider the potential impact of any early termination. No assurance can be given that we will ultimately realize our full sales pipeline.

Unaudited

Three Months Ended

Nine Months Ended

(in $000s)

September 30,

2025

September 30,

2024

Change

September 30,

2025

September 30,

2024

Change

Revenue

29,118

21,993

32.4

75,594

70,204

7.7

Operating loss

(15,802

)

(22,492

)

(29.7

(56,754

)

(67,167

)

(15.5

Net loss from continuing operations

(26,880

)

(22,511

)

19.4

(73,553

)

(72,072

)

2.1

Net loss

(26,880

)

(21,746

)

23.6

(73,553

)

(69,175

)

6.3

GAAP gross profit

18,709

14,655

27.7

47,767

47,397

0.8

Non-GAAP gross profit

20,551

15,668

31.2

51,715

50,589

2.2

Non-GAAP net loss from continuing operations

(5,796

)

(11,097

)

(47.8

(25,639

)

(31,139

)

(17.7

Non-GAAP net loss

(5,796

)

(7,113

)

(18.5

(25,639

)

(21,579

)

18.8

Three Months Ended

Nine Months Ended

Unaudited

September 30,

2025

September 30,

2024

Change

September 30,

2025

September 30,

2024

Change

Software Products & Services Revenue (in 000's)

22,847

14,694

55.5

54,799

45,546

20.3

Total Software Products & Services Customers(1)

3,021

3,291

(8.2

3,021

3,291

(8.2

Annual Recurring Revenue (in 000's)(2)

68,832

63,280

8.8

68,832

63,280

8.8

Total New Bookings (in 000's)(3)

21,470

16,471

30.4

21,470

16,471

30.4

Gross Revenue Retention(4)

> 90%

(1)

“Total Software Products & Services Customers” includes Software Products & Services customers as of the end of each respective quarter set forth above with net revenues in excess of $10 during the last month of the quarter and also excludes any customers categorized by us as trial or pilot status. Management uses Total Software Products & Services Customers and we believe Total Software Products & Services Customers are useful to investors because it more accurately reflects our total customers for our Software Products & Services inclusive of Broadbean.

(2)

“Annual Recurring Revenue” is calculated as Annual Recurring Revenue (SaaS), which is an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers, combined with Annual Recurring Revenue (Consumption), which is the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses “Annual Recurring Revenue” and we believe Annual Recurring Revenue is useful to investors because it provides insight into the growth of our revenue.

(3)

“Total New Bookings” represents the total fees payable during the full contract term for new contracts received in the quarter (including fees payable during any cancellable portion and an estimate of license fees that may fluctuate over the term), excluding any variable fees under the contract (e.g., fees for cognitive processing, storage, professional services and other variable services).

(4)

“Gross Revenue Retention” represents a calculation of our dollar-based gross revenue retention rate as of the period end by starting with the revenue from Software Products & Services Customers as of the three months in the prior year quarter to such period, or Prior Year Quarter Revenue. We then deduct from the Prior Year Quarter Revenue any revenue from Software Products & Services Customers who are no longer customers as of the current period end, or Current Period Ending Software Customer Revenue. We then divide the total Current Period Ending Software Customer Revenue by the total Prior Year Quarter Revenue to arrive at our dollar-based gross retention rate, which is the percentage of revenue from all Software Products & Services Customers from our Software Products & Services as of the year prior that is not lost to customer churn.

See tables below for reconciliation of non-GAAP financial measures to directly comparable GAAP measures and for the definitions used for these and additional Software Products & Services Supplemental Financial Information.

Business Highlights

Balance Sheet Highlights

Financial Results for Three Months Ended September 30, 2025

Delivered third quarter revenue of $29.1 million, up $7.1 million from $22.0 million in the third quarter of 2024 driven by an improvement in Software Products & Services revenue from iDEMS and VDR revenues, partially offset by a decline in Managed Services revenue primarily due to lower revenue from representation services. Software Products & Services revenue of $22.8 million increased by $8.2 million, or 55.5%, year over year, principally due to growth from our Commercial Enterprise sector, which grew by $7.8 million driven by VDR, and from our Public Sector, which grew by $0.4 million. Managed Services declined $1.0 million, or 14.1%, year over year principally driven by declines in representation services led by VeriAds as a result of the more challenging macro environment, partially offset by a $0.2 million improvement in content licensing.

GAAP gross profit of $18.7 million increased $4.1 million from $14.7 million in the third quarter of 2024 driven by an increase in revenue compared to the prior year period. GAAP gross margin of 64.3% decreased 238 basis points from 66.6% in the third quarter of 2024 largely for the same reason. Non-GAAP gross margin was 70.6% as compared to 71.2% in the third quarter of 2024, a decrease of 66 basis points.

Operating loss of $15.8 million improved by $6.7 million, or 29.7%, from a loss of $22.5 million in Q3 2024, principally driven by higher GAAP gross profit. Net loss from continuing operations of $26.9 million increased from a net loss of $22.5 million for the third quarter of 2024 principally due to a $8.0 million non-cash charge recorded in Q3 2025 as the result of the change in estimated fair value of an earnout associated with our media divestiture in October 2024. Non-GAAP net loss from continuing operations of $5.8 million improved by 47.8%, or $5.3 million, from a loss of $11.1 million for the third quarter of 2024.

Total Software Product & Services Customers of 3,021 as of September 30, 2025 decreased 8.2% compared to September 30, 2024. This decline was principally due to fewer consumption-based customers across Veritone Hire and the continuing impact of sunsetting legacy Career Builder customers. Annual Recurring Revenue of $68.8 million increased 8.8% year over year, driven by increases in both subscription-based SaaS and consumption-based spending.

Financial Results for Nine Months Ended September 30, 2025

During the nine months ended September 30, 2025, revenue of $75.6 million was up $5.4 million from $70.2 million in the nine months ended September 30, 2024 principally due to a $9.3 million increase in Software Products & Services revenue from iDEMS and VDR revenues, partially offset by a $3.9 million decline in Managed Services revenue primarily due to lower revenue from representation services. The increase in Software Products & Services revenue was driven by growth in our Commercial Enterprise Software Products & Services revenue of $8.0 million, which included growth from our VDR offerings, partially offset by a decline of in consumption based revenue across Veritone Hire, and growth in our Public Sector Software Product & Services revenue of $1.2 million primarily driven by fluctuations in timing and magnitude of spend by public safety and federal customers. The decline in Managed Services was principally driven by a $4.0 million decrease in representation services, including our VeriAds services and live event services as a result of the more challenging macro environment.

GAAP gross profit of $47.8 million increased $0.4 million from $47.4 million during the nine months ended September 30, 2024 largely driven by an increase in revenue compared to the prior year period. GAAP gross margin of 63.2% decreased 432 basis points from 67.5% in the nine months ended September 30, 2024. Non-GAAP gross margin was 68.4% as compared to 72.1%, a decrease of 365 basis points.

Operating loss of $56.8 million improved by $10.4 million or 15.5% from $67.2 million during the nine months ended September 30, 2024, principally driven by higher GAAP gross profit, improvements made to the operating expense structure over the past two years, and a one-time expense of $1.5 million in Q1 2024 associated with our former CEO. Net loss from continuing operations of $73.6 million increased from a net loss of $72.1 million during the nine months ended September 30, 2024 principally due to a $7.2 million non-cash charge recorded in 2025 as the result of the change in estimated fair value of an earnout associated with our media divestiture in October 2024, partially offset by the improvement in operating loss. Non-GAAP net loss from continuing operations of $25.6 million improved by 17.7%, or $5.5 million, from a loss of $31.1 million for the nine months ended September 30, 2024.

Business Outlook

Fourth Quarter of 2025

Full Year 2025

These updated financial guidance ranges supersede any previously disclosed financial guidance and investors should not rely on any previously disclosed financial guidance.

Conference Call

Veritone will hold a conference call to deliver management’s prepared remarks on November 6, 2025, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to discuss its third quarter 2025 results, provide an update on the business and conduct a question-and-answer session. To participate, please join the conference call or live audio webcast links or use the following dial-in numbers and ask to be connected to the Veritone earnings conference call. To avoid any delays, please join at least fifteen minutes prior to the start of the call.

A replay of the conference call can be accessed one hour after the end of the conference call through November 13, 2025. The full webcast replay will be available through November 6, 2026. To access the earnings webcast replay please visit the Veritone Investor Relations website.

About the Presentation of Supplemental Non-GAAP Financial Information and Key Performance Indicators

In this news release, the Company has supplemented its financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP) with certain non-GAAP financial measures, including Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP net income (loss), Non-GAAP net income (loss) from continuing operations, and Non-GAAP net income from discontinued operations. The Company also provides certain key performance indicators (KPIs), including Total Software Products & Services Customers, Annual Recurring Revenue, Annual Recurring Revenue (SaaS), Annual Recurring Revenue (Consumption), Total New Bookings and Gross Revenue Retention. The Company has posted additional supplemental financial information on its website at investors.veritone.com concurrently with this press release.

Non-GAAP net income (loss) is the Company’s net income (loss), adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, lender consent fees, and non-GAAP net income from discontinued operations. Non-GAAP net income (loss) from continuing operations is net loss from continuing operations adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earnout receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, and lender consent fees. Non-GAAP net income from discontinued operations is net income from discontinued operations adjusted to exclude interest expense, net, income taxes, depreciation and amortization, stock-based compensation, acquisition due diligence costs, and severance and executive transition costs.

Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization related to cost of revenue and stock-based compensation expenses. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue.

Reconciliations of each of these non-GAAP financial measures to the most closely comparable GAAP financial measure, including a breakdown of the excluded items noted above are included following the financial statements attached to this news release. These non-GAAP financial measures are not calculated and presented in accordance with GAAP and should not be considered as an alternative to net income (loss), operating income (loss), net income (loss) from continuing operations, net income (loss) from discontinued operations, gross profit, gross margin or any other financial measures so calculated and presented, nor as an alternative to cash flow from operating activities as a measure of liquidity.

The Company has provided these non-GAAP financial measures and KPIs because management believes such information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry. Management also uses this information internally for forecasting, budgeting and measuring annual bonus compensation targets for executive personnel, including the Company’s named executive officers. Non-GAAP net income (loss) provides management and investors consistency and comparability with the Company’s past financial performance and facilitates period-to-period comparisons of operations, as it eliminates the effect of items that are often unrelated to overall operating performance. Non-GAAP gross profit and Non-GAAP gross margin allow investors and management to analyze the Company’s operating performance by excluding expenses that are not directly related to the cost of providing goods and services. Other companies (including the Company’s competitors) may define these non-GAAP financial measures differently. The non-GAAP financial measures may not be indicative of the historical operating results of Veritone or predictive of potential future results. Investors should not consider these non-GAAP financial measures in isolation or as a substitute for analysis of the Company’s results as reported in accordance with GAAP.

In addition, the Company defines the following capitalized terms in this news release as follows:

Software Products & Services consists of revenue generated from the Company’s aiWARE platform and Veritone Hire solutions’ talent acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions.

Managed Services consists of revenues generated from content licensing customers, representation services, and, to a lesser extent, from advertising customers and related services.

About Veritone

Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions. Serving customers in the media, entertainment, public sector and talent acquisition industries, Veritone’s software and services empower individuals at the world’s largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability. Veritone’s leading enterprise AI platform, aiWARE™, orchestrates an ever-growing ecosystem of machine learning models, transforming data sources into actionable intelligence. By blending human expertise with AI technology, Veritone advances human potential to help organizations solve problems and achieve more than ever before, enhancing lives everywhere. To learn more, visit Veritone.com.

Safe Harbor Statement

This news release contains forward-looking statements, including without limitation, statements regarding our expected total revenue and non-GAAP net loss for Q4 2025 and for full year 2025, the performance and function of Veritone Data Refinery, customer acquisition, customer transaction pipelines and the estimated values thereof, our expected completion of the repayment of our term debt and repurchases of convertible notes and our projected cash and cash equivalents and outstanding convertible debt following the expected repayments, and our ability to achieve profitability by the latter part of 2026. In addition, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “intend,” “plan,” “outlook,” “should,” “could,” “estimate,” “confident” or “continue” or the plural, negative or other variations thereof or comparable terminology are intended to identify forward-looking statements, and any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements speak only as of the date hereof, and are based on management’s current assumptions, expectations, beliefs and information. As such, our actual results could differ materially and adversely from those expressed in any forward-looking statement as a result of various factors. Important factors that could cause such differences include, among other things: our requirements for additional capital and liquidity to support our operations, our business growth, service our debt obligations and repay or refinance maturing debt obligations, and the availability of such capital on acceptable terms, if at all; our ability to expand our aiWARE SaaS business; declines or limited growth in the market for AI-based software applications and concerns over the use of AI that may hinder the adoption of AI technologies; our ability to manage, and obtain the benefits from, our cost reduction efforts; our reliance upon a limited number of key customers for a significant portion of our revenue, and the corresponding risk of declines in key customers’ usage of our products and other offerings; our ability to realize the intended benefits of our acquisitions, sales, divestitures and other existing or planned cost-saving measures, including the sale of our full-service advertising agency, Veritone One, LLC, and our ability to successfully integrate our acquisition of Broadbean, Inc. and certain of its affiliates; our identification of existing material weaknesses in our internal control over financial reporting and plans for remediation; fluctuations in our results over time; the impact of seasonality on our business; our ability to manage our growth, including through acquisitions and expansion into international markets; our ability to enhance our existing products and introduce new products that achieve market acceptance and keep pace with technological developments; our expectations with respect to the future performance of our products, such as the Intelligent Digital Evidence Management System and Veritone Data Refinery, including as drivers of future growth; actions by our competitors, partners and others that may block us from using third party technologies in our aiWARE platform, offering it for free to the public or making it cost prohibitive to continue to incorporate such technologies into our platform; interruptions, performance problems or security issues with our technology and infrastructure, or that of third parties with whom we work; the impact of the continuing economic disruption caused by macroeconomic and geopolitical factors, including the Russia-Ukraine conflict, the Israel-Hamas war and conflict in the surrounding regions, financial instability, inflation and the responses by central banking authorities to control inflation, monetary supply shifts, high interest rates, the imposition of tariffs, trade tensions, and global trade disputes, and the threat of recession in the United States and around the world on our business and our existing and potential customers; and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Certain of these judgments and risks are discussed in more detail in our most recently-filed Annual Report on Form 10-K, and our Quarterly Reports on Form 10-Q and other periodic reports filed from time to time with the Securities and Exchange Commission. In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives or plans will be achieved. The forward-looking statements contained herein reflect our beliefs, estimates and predictions as of the date hereof, and we undertake no obligation to revise or update the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events for any reason, except as required by law.

Veritone, Inc.

Condensed Consolidated Balance Sheets (unaudited)

(in thousands)

September 30,

2025

December 31,

2024

ASSETS

Current assets:

Cash and cash equivalents

36,233

16,911

Accounts receivable, net

35,165

31,997

Prepaid expenses and other current assets

13,311

10,498

Total current assets

84,709

59,406

Property, equipment, and improvements, net

9,949

10,052

Intangible assets, net

42,328

59,500

Goodwill

53,110

Restricted cash

289

407

Other assets

9,836

15,585

Total assets

200,221

198,060

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Accounts payable

11,462

11,023

Deferred revenue

12,423

12,056

Term Loan, current portion

7,750

Accrued purchase compensation, current portion

1,350

1,200

Accrued expenses and other current liabilities

31,671

28,928

Total current liabilities

64,656

60,957

Convertible Notes

90,575

90,135

Term Loan, non-current portion

17,892

21,316

Accrued purchase compensation, non-current portion

—

900

Other non-current liabilities

11,080

11,300

Total liabilities

184,203

184,608

Commitments and contingencies

Stockholders’ equity:

Common stock

Additional paid-in capital

557,401

480,477

Accumulated other comprehensive income (loss)

(622

)

214

Accumulated deficit

(540,833

)

(467,280

)

Total stockholders’ equity

16,018

13,452

Total liabilities and stockholders’ equity

200,221

198,060

Veritone, Inc.

Condensed Consolidated Statements of Operations (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Revenue

29,118

21,993

75,594

70,204

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization shown separately below)

8,567

6,325

23,879

19,614

Sales and marketing

10,511

10,245

31,712

31,400

Research and development

5,494

6,762

15,632

21,269

General and administrative

12,978

14,001

39,635

43,634

Depreciation and amortization

7,370

7,152

21,490

21,454

Total operating expenses

44,920

44,485

132,348

137,371

Operating loss

(15,802

)

(22,492

)

(56,754

)

(67,167

)

Interest expense, net

2,908

2,987

8,970

8,485

Other expense (income), net

8,453

(393

)

7,554

133

Loss from continuing operations before income taxes

(27,163

)

(25,086

)

(73,278

)

(75,785

)

Income taxes

(283

)

(2,575

)

275

(3,713

)

Net loss from continuing operations

(26,880

)

(22,511

)

(73,553

)

(72,072

)

Net income from discontinued operations, net of income taxes

—

765

—

2,897

Net loss

(26,880

)

(21,746

)

(73,553

)

(69,175

)

Earnings (Loss) per share:

Loss per share from continuing operations, basic and diluted

(0.41

)

(0.59

)

(1.35

)

(1.91

)

Earnings per share from discontinued operations, basic and diluted

—

0.02

—

0.08

Loss per share, basic and diluted

(0.41

)

(0.57

)

(1.35

)

(1.83

)

Weighted-average common shares outstanding used in computing loss per share, basic and diluted

64,947

38,087

54,367

37,753

Veritone, Inc.

Condensed Consolidated Statements of Cash Flows (unaudited)

(in thousands)

Nine Months Ended

September 30,

2025

September 30,

2024

Cash flows from operating activities:

Net loss

(73,553

)

(69,175

)

Less: net income from discontinued operations, net of income taxes

—

(2,897

)

Net loss from continuing operations

(73,553

)

(72,072

)

Adjustments to reconcile net loss from continuing operations to net cash used in operating activities from continuing operations:

Depreciation and amortization

21,490

21,454

Stock-based compensation

5,096

5,691

Non-cash interest expense

3,811

4,373

Deferred income taxes

(581

)

(4,968

)

Provision for credit losses

1,325

673

Reduction in carrying amount of operating lease right-of-use assets

756

399

Change in fair value of earnout receivable

7,213

—

Changes in operating assets and liabilities:

Accounts receivable

(4,459

)

(1,289

)

Prepaid expenses and other current assets

(1,321

)

1,965

Other assets

(1,288

)

Accounts payable

(1,442

)

(7,397

)

Deferred revenue

367

Accrued expenses and other current liabilities

1,565

2,465

Other non-current liabilities

(142

)

Net cash used in operating activities from continuing operations

(41,163

)

(48,536

)

Net cash provided by operating activities from discontinued operations

—

24,313

Net cash used in operating activities

(41,163

)

(24,223

)

Cash flows from investing activities:

Capital expenditures

(3,533

)

(4,932

)

Sale of non-marketable equity investment

—

1,800

Net cash used in investing activities from continuing operations

(3,533

)

(3,132

)

Net cash used in investing activities from discontinued operations

—

(202

)

Net cash used in investing activities

(3,533

)

(3,334

)

Cash flows from financing activities:

Repayment of senior secured term loan

(5,813

)

(3,875

)

Proceeds from issuance of stock and pre-funded warrants under registered direct offerings and at-the-market offering, net of offering costs

70,896

—

Debt issuance costs

(114

)

—

Proceeds from issuance of stock under employee stock plans, net

299

433

Taxes paid related to net share settlement of equity awards

(394

)

(653

)

Settlement of deferred consideration for acquisitions

—

(1,800

)

Net cash provided by (used in) financing activities from continuing operations

64,874

(5,895

)

Net cash provided by financing activities from discontinued operations

—

Net cash provided by (used in) financing activities

64,874

(5,895

)

Effect of exchange rates on cash, cash equivalents, and restricted cash

(973

)

—

Net change in cash, cash equivalents, and restricted cash

19,205

(33,452

)

Cash, cash equivalents, and restricted cash, beginning of period

17,318

80,306

Cash, cash equivalents, and restricted cash, end of period

36,523

46,854

Less: cash, cash equivalents, and restricted cash included in discontinued operations

—

(34,496

)

Cash, cash equivalents, and restricted cash included in continuing operations

36,523

12,358

Veritone, Inc.

Revenue Detail (unaudited)

(in thousands)

Three Months Ended

September 30, 2025

September 30, 2024

Commercial Enterprise

Public Sector

Total

Commercial Enterprise

Public Sector

Total

Software Products & Services

20,865

1,982

22,847

13,098

1,596

14,694

Managed Services:

Representation Services

1,484

—

1,484

2,730

—

2,730

Licensing

4,787

—

4,787

4,569

—

4,569

Total Managed Services

6,271

—

6,271

7,299

—

7,299

Total revenue

27,136

1,982

29,118

20,397

1,596

21,993

Nine Months Ended

September 30, 2025

September 30, 2024

Commercial Enterprise

Public Sector

Total

Commercial Enterprise

Public Sector

Total

Software Products & Services

49,348

5,451

54,799

41,310

4,236

45,546

Managed Services:

Representation Services

5,785

—

5,785

9,763

—

9,763

Licensing

15,010

—

15,010

14,895

—

14,895

Total Managed Services

20,795

—

20,795

24,658

—

24,658

Total revenue

70,143

5,451

75,594

65,968

4,236

70,204

Veritone, Inc.

Reconciliation of GAAP Net Loss to Non-GAAP Net Loss (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Net loss

(26,880

)

(21,746

)

(73,553

)

(69,175

)

Net income from discontinued operations, net of income taxes

—

(765

)

—

(2,897

)

Interest expense, net

2,908

2,987

8,970

8,485

Income taxes

(283

)

(2,575

)

275

(3,713

)

Depreciation and amortization

7,370

7,152

21,490

21,454

Stock-based compensation

1,643

2,099

5,096

5,691

Change in fair value of earnout receivable

7,997

—

7,213

—

Contingent purchase compensation expense

137

367

350

1,252

Foreign currency impact and other

472

(393

)

310

(37

)

Acquisition and due diligence costs

664

368

1,520

3,257

(Gain) Loss on asset disposition

—

172

Severance and executive transition costs

176

1,409

1,676

4,372

Lender consent fees

—

1,014

—

Non-GAAP net loss from continuing operations

(5,796

)

(11,097

)

(25,639

)

(31,139

)

Non-GAAP net income from discontinued operations(1)

—

3,984

—

9,560

Non-GAAP net loss

(5,796

)

(7,113

)

(25,639

)

(21,579

)

(1)

A reconciliation of non-GAAP net income from discontinued operations to GAAP net income from discontinued operations for the three and nine months ended September 30, 2024 is set forth in the table below.

Veritone, Inc.

Reconciliation of GAAP Net Income from Discontinued Operations to Non-GAAP Net Income from Discontinued Operations (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,

2024

September 30,

2024

Net income from discontinued operations, net of income taxes

765

2,897

Interest expense, net

1,699

4,689

Income taxes

Depreciation and amortization

245

Stock-based compensation

237

Acquisition and due diligence costs

1,292

1,369

Severance and executive transition costs

Non-GAAP net income from discontinued operations

3,984

9,560

Veritone, Inc.

Reconciliation of Expected GAAP Net Loss Range to Expected Non-GAAP Net Loss Range (unaudited)

(in millions)

Three Months Ended

Year Ended

December 31, 2025

Net loss

$(18.7) to $(13.3)

$(93.2) to $(85.7)

Interest expense, net

$2.9

$11.9

Income taxes

$(0.2)

$0.1

Depreciation and amortization

$8.0 to $7.0

$29.5 to $28.5

Stock-based compensation

$1.8 to $1.4

$6.9 to $6.5

Change in fair value of earnout receivable

$—

$7.2

Contingent purchase compensation expense

$0.2

$0.5

Foreign currency impact and other

$—

$0.3

Acquisition and due diligence costs

$—

$1.5

Severance and executive transition costs

$—

$1.7

Lender consent fees and other

$1.0 to $0.5

$2.0 to $1.5

Non-GAAP net loss

$(5.0) to $(1.5)

$(31.6) to $(26.0)

Veritone, Inc.

Supplemental Financial Information (unaudited)

We are providing the following unaudited supplemental financial information as a lookback of prior years to explain our recent historical and year-over-year performance.

Quarter Ended

September 30,

2024

December 31,

2024

March 31,

2025

June 30,

2025

September 30,

2025

Total Software Products & Services Customers(1)

3,291

3,237

3,156

3,067

3,021

Annual Recurring Revenue (SaaS) (in 000's)(2)

48,269

47,549

47,494

50,350

50,010

Annual Recurring Revenue (Consumption) (in 000's)(3)

15,011

11,245

11,223

12,249

18,822

Total New Bookings (in 000's)(4)

16,471

13,228

15,835

15,766

21,470

Gross Revenue Retention(5)

> 90%

(1)

(2)

“Annual Recurring Revenue (SaaS)” represents an annualized calculation of monthly recurring subscription-based SaaS revenue during the last month of the applicable quarter for all Total Software Products & Services customers. Management uses “Annual Recurring Revenue (SaaS)” and we believe Annual Recurring Revenue (SaaS) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues.

(3)

“Annual Recurring Revenue (Consumption)” represents the trailing twelve months of all non-recurring and/or consumption-based revenue for all active Total Software Products & Services customers. Management uses “Annual Recurring Revenue (Consumption)” and we believe Annual Recurring Revenue (Consumption) is useful to investors because Broadbean significantly increases our mix of subscription-based SaaS revenues as compared to consumption-based revenues and the split between the two allows us to delineate between predictable recurring SaaS revenues and more volatile consumption-based revenues.

(4)

(5)

Veritone, Inc.

Reconciliation of GAAP Gross Profit to Non-GAAP Gross Profit (unaudited)

(in thousands)

Three Months Ended

Nine Months Ended

September 30,

2025

September 30,

2024

September 30,

2025

September 30,

2024

Revenue

29,118

21,993

75,594

70,204

Operating expenses:

Cost of revenue (exclusive of depreciation and amortization)

8,567

6,325

23,879

19,614

Depreciation and amortization related to cost of revenue

1,842

1,013

3,948

3,193

GAAP gross profit

18,709

14,655

47,767

47,397

Depreciation and amortization related to cost of revenue

1,842

1,013

3,948

3,193

Stock-based compensation

—

)

Non-GAAP gross profit

20,551

15,668

51,715

50,589

GAAP gross margin

64.3

66.6

63.2

67.5

Non-GAAP gross margin

70.6

71.2

68.4

72.1