VerifyMe has a positive outlook with a Buy rating from Maxim Group's Jack Vander Aarde, thanks to a UPS partnership expected to drive growth by 2026 and the company's stable financial position with $6.1 million in cash and minimal debt. Vander Aarde's optimism is also based on cost rationalization efforts, EBITDA results, and strategic shifts expanding relationships with freight carriers.
VerifyMe (NASDAQ: VRME) has seen its price target raised to $1.50 from $1.25 by Barrington analysts, following solid Q2 2025 results and a strategic partnership with United Parcel Service (UPS). The new partnership is expected to significantly contribute to the company's Precision Logistics segment, addressing previous single-carrier limitations and unlocking substantial new volume opportunities beginning in 2026. Analysts maintain an Outperform rating on the shares, reflecting optimism about the new deal's potential impact.
In its Q2 2025 results, VerifyMe reported $4.5 million in revenue, a net loss of $290,000 (GAAP), and positive adjusted EBITDA of $300,000. The company's strategic cash deployment initiative, confirmed multi-carrier integration, and sustained cost discipline position it for future growth. Operating expenses declined by 27% year-over-year (YoY) to $1.9 million, contributing to a gross margin of 35%.
Management projects ongoing positive cash flow from operations for full-year 2025 and expects gross margin (GAAP) to improve year-over-year, driven by seasonal factors and the integration with the second freight carrier, which is expected to start delivering notable revenue contributions in 2026.
Maxim Group's Jack Vander Aarde has given VerifyMe a Buy rating, citing the UPS partnership as a key driver for growth. Vander Aarde also points to VerifyMe's stable financial position, with $6.1 million in cash and minimal debt, as well as cost rationalization efforts and strategic shifts expanding relationships with freight carriers.
References:
[1] https://www.ainvest.com/news/verifyme-q2-results-ups-partnership-boost-price-target-1-50-1-25-barrington-2508/
[2] https://www.morningstar.com/news/pr-newswire/20250812ph49425/at-11th-hour-ups-bows-to-teamsters-strike-threat-in-7-states
[3] https://www.aol.com/finance/verifyme-q2-revenue-rises-cash-153623016.html
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