VerifyMe (VRME) investor relations material

Executive summary

• Revenue for Q2 2026 declined 58% year-over-year to $1.9M, primarily due to the loss of a major carrier partner and resulting customer erosion.

• Gross margin improved to 54% from 35% year-over-year, reflecting a favorable mix of services and process improvements.

• Net loss increased to $505K ($0.04/share) for Q2 2026 from $291K ($0.02/share) in Q2 2025, driven by lower revenues.

• The company operates a single Precision Logistics segment after consolidating its former Authentication segment in 2026.

• Adjusted EBITDA was $0.0M in Q2 2026, down from $0.3M in Q2 2025.

Financial highlights

• Q2 2026 revenue: $1.9M (down from $4.5M in Q2 2025); six-month revenue: $3.7M (down from $9.0M year-over-year).

• Q2 2026 gross profit: $1.0M (down from $1.6M); gross margin: 54% (up from 35%).

• Q2 2026 net loss: $505K ($0.04/share); six-month net loss: $1.2M ($0.09/share).

• Cash and equivalents at June 30, 2026: $5.1M (up from $4.4M at year-end 2025); working capital: $4.7M.

• Operating loss increased to $0.6M, mainly due to higher legal expenses related to a proposed merger and lower gross profit.

Outlook and guidance

• Management expects historical seasonality trends to return in 2026, with higher Q4 revenues.

• Focus remains on expanding in healthcare, agriculture, and food sectors, leveraging predictive analytics and service center capabilities.

• Management is finalizing technology integration with a new strategic shipping partner and evaluating emerging technologies to enhance margins and efficiency.

• The company is progressing with its Precision Logistics business and working toward a previously announced merger.