Veritone (VERI) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $20.3M, down 9.8% year-over-year, with declines in both Software Products & Services and Managed Services, but a 69% increase in Public Sector revenue.

• Annual Recurring Revenue (ARR) reached $64.2M, up 9–9.4% year-over-year, driven by a 50% increase in consumption-based ARR and over 2,897 software products & services customers.

• Signed major contracts with Google, NVIDIA, and The Washington Post for VDR, and announced a multi-year strategic agreement with Oracle to scale AI and VDR platforms.

• Proactively targeted a 30% operating expense reduction to accelerate path to profitability, aiming for operating profitability as early as Q4 2026.

• Expanded VDR bookings and pipeline to over $68M, up 500% year-over-year, and launched the Veritone Data Marketplace.

Financial highlights

• Q1 2026 revenue was $20.3M, down 9.8% year-over-year; Software Products & Services revenue was $13.8M (down 4.6%), Managed Services revenue was $6.4M (down 19.2%).

• GAAP gross profit was $12.4M (61.4% margin), non-GAAP gross margin was 67.7%, both improved year-over-year.

• Operating loss improved to $19.4M, net loss was $19.5M, and non-GAAP net loss was $11.9M.

• Cash and cash equivalents at March 31, 2026, were $15.1M, with total debt reduced to $45M–$45.4M, all related to Convertible Notes maturing November 2026.

• Net cash used in operating activities was $11.5M for Q1 2026.

Outlook and guidance

• Full-year 2026 revenue guidance maintained at $130M–$145M, a 48–49% year-over-year increase at midpoint.

• Non-GAAP net loss for 2026 forecasted at $13.5M–$22.5M, a 56% improvement at midpoint.

• Operating profitability targeted as early as Q4 2026, supported by cost reduction initiatives and sequential quarterly revenue growth.

• Q2 2026 revenue expected between $25M–$30M, potentially over 25% year-over-year growth.

• Public sector revenue projected to grow over 60% year-over-year; managed services expected up 10–15%.