Veritone (NASDAQ:VERI) Plunges 10.64% on $26.9M Q3 Loss from Divestiture Charge

Shares of Veritone (NASDAQ:VERI) plummeted 10.64% in pre-market trading on November 10, 2025, signaling investor concerns over the company’s recent financial disclosures. The steep decline followed Veritone’s clarification of a $8.0 million non-cash, non-operational charge linked to an estimated change in the earn-out from its 2024 divestiture of Veritone One. The adjustment, which had no impact on ongoing operations, contributed to a $26.9 million net loss for Q3 2025, a 20% increase year-over-year. Despite this, non-GAAP metrics showed a 47.8% improvement in net loss compared to the prior year, driven by cost discipline and improved gross profit.

The company reported Q3 revenue of $29.1 million, a 32% year-over-year increase but below expectations for profitability. While revenue outperformed analyst estimates, the adjusted loss per share of -$0.09 (compared to -$0.29 in 2024) highlighted persistent challenges in translating top-line growth to bottom-line gains. Veritone reaffirmed its FY2025 non-GAAP loss guidance of $26.0–$31.6 million, with analysts forecasting continued unprofitability through the year. The stock’s sharp pre-market drop suggests market skepticism about the sustainability of cost-cutting measures and the path to profitability amid recurring non-cash adjustments.

Veritone’s management emphasized progress in operational efficiency, including a 69% reduction in non-GAAP adjusted loss per share year-over-year. However, the company’s trailing twelve-month EBITDA remains negative at -$52.92 million, and its full-year 2025 guidance reflects a 29% improvement at the midpoint compared to 2024. Analysts note that while near-term cost management has stabilized losses, structural challenges—such as reliance on AI-driven services with high R&D costs—pose long-term risks. The firm’s Q4 guidance, projecting a 66% improvement in non-GAAP net loss, will be critical for rebuilding investor confidence.

A hypothetical backtest strategy could involve short-term hedging or position sizing based on key support/resistance levels around $5.50–$6.00, aligning with the stock’s recent volatility. Traders might also monitor the company’s ability to meet Q4 non-GAAP loss projections and any updates on the Veritone Data Refinery’s performance, which is expected to drive margin improvements in 2026. Long-term investors could assess the feasibility of Veritone’s cost-discipline initiatives and the scalability of its enterprise AI solutions to gauge recovery potential.