Verb Technology 2025 Q2 Earnings Loss Widen Despite Revenue Surge

Generated by AI AgentAinvest Earnings Report Digest
Thursday, Aug 7, 2025 1:17 am ET2min read
Aime RobotAime Summary

- Verb Technology (VERB) reported a 5,637.8% revenue surge to $2.12M in Q2 2025 but widened its net loss to $2.35M, marking an eighth consecutive year of losses.

- The growth stemmed from AI social commerce, shoppable ads, and telehealth platforms, alongside its crowdfunded TV show Go Fund Yourself.

- CEO Rory Cutaia highlighted an $8.5M AI acquisition and announced a $558M PIPE deal led by Kingsway Capital, signaling a strategic shift to blockchain and TON-based staking.

- Shares rose 176.37% month-to-date despite a 30-day buy-and-hold strategy returning -99.89% over three years, underscoring high volatility.

Verb Technology (VERB) reported its fiscal 2025 Q2 earnings on August 6, 2025, revealing a significant revenue increase but a widening net loss. The results fell short of long-term profitability expectations, with no guidance adjustment provided.

Revenue
Verb Technology saw a massive 5,637.8% year-over-year increase in total revenue, reaching $2.12 million in Q2 2025 compared to just $37,000 in Q2 2024. This sharp rise was driven by strong performance across multiple business lines, particularly in AI social commerce, shoppable ads, and telehealth platforms. The company’s MARKET.live and LyveCom platforms also contributed to this impressive top-line growth, along with ongoing developments on its crowdfunded TV show, Go Fund Yourself.

Earnings/Net Income
While the company narrowed its per-share loss to $1.79 in Q2 2025 from $3.35 in the same period a year ago—a 46.6% improvement—its net loss actually widened to $2.35 million, up 35.9% from $1.73 million in 2024 Q2. This reflects the ongoing financial challenges, with losses now extending to an eighth consecutive year in the Q2 timeframe.

Price Action
VERB shares ended the latest trading day down 0.86%, though they posted a strong 92.46% gain for the week and an impressive 176.37% return month-to-date.

Post-Earnings Price Action Review
A strategy of buying shares following a revenue increase and holding for 30 days has been highly ineffective. Over the past three years, it returned -99.89%, underperforming the benchmark by 148.48%. The strategy also exhibited a Sharpe ratio of -0.53 and a maximum drawdown of 0.00%, underscoring its high volatility and poor risk-adjusted performance.

CEO Commentary
CEO Rory J. Cutaia highlighted the company’s progress, noting 80% revenue growth in Q1 2025 and a $8.5 million acquisition of an AI social commerce firm. He emphasized optimism around financial stability, including a $5 million preferred stock deal and funding runway until 2028. Cutaia noted ongoing operational challenges, including limited client announcements and reduced live stream visibility, but remains confident in the potential for future growth in white-label partnerships, shoppable ads, and recurring subscription models.

Guidance
The company has not provided formal revenue or EPS guidance for the upcoming quarter, but Cutaia expressed confidence in outperforming Q1 results.

Additional News
On August 5, 2025, Verb Technology announced plans to raise approximately $558 million through a private investment in public equity (PIPE) deal at $9.51 per share, led by Kingsway Capital and involving over 110 institutional and crypto investors. The company also unveiled a rebrand to TON Strategy Co. and plans to become the first publicly traded firm to use TON as its core reserve asset. Funds from the financing will be used to purchase and stake Toncoin (TON), aiming to generate additional returns through staking rewards. This move signals a major strategic shift toward blockchain integration and digital asset management.

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