📊 VRME Key Takeaways
Is VerifyMe, Inc. (VRME) a Good Investment?
VerifyMe demonstrates strong financial health with excellent liquidity (3.82x current ratio) and conservative leverage (0.05x debt/equity), but faces severe profitability challenges with a -30.9% operating margin and -4.9M net loss on 16.4M revenue. While positive operating cash flow (603K) and free cash flow (585K) suggest cash generation capability, losses are unsustainable and without evidence of improving profitability trends, the company risks depleting its 4.4M cash position within 2-3 years.
Why Buy VerifyMe, Inc. Stock? VRME Key Strengths
- Excellent liquidity position with 3.82x current ratio and 4.4M cash provides significant financial flexibility
- Conservative capital structure with minimal debt (0.05x debt/equity) limits downside risk from leverage
- Positive operating and free cash flow despite net losses indicates underlying cash generation capability
- Reasonable gross margin of 38.5% demonstrates viable core product/service unit economics
VRME Stock Risks: VerifyMe, Inc. Investment Risks
- Severe operating losses with -30.9% operating margin and -4.9M net loss indicate fundamentally unsustainable business model at current scale
- Lack of year-over-year trends prevents assessment of whether losses are improving or deteriorating
- Current cash burn rate is unsustainable long-term; company could deplete cash reserves within 2-3 years at present rate
- Negative returns on equity (-44.6%) and assets (-37.7%) indicate shareholder capital is being destroyed
- No insider trading activity in past 90 days suggests lack of confidence from management
Key Metrics to Watch
- Operating margin trend - critical indicator of whether path to profitability is emerging
- Revenue growth rate relative to operating expense control - assess if scale can solve unit economics
- Operating cash flow sustainability - monitor whether positive OCF persists or deteriorates as business adjusts
VerifyMe, Inc. (VRME) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 3.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 3.82x current ratio provides a solid financial cushion.
VRME Profit Margin, ROE & Profitability Analysis
VRME vs Technology Sector: How VerifyMe, Inc. Compares
How VerifyMe, Inc. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is VerifyMe, Inc. Stock Overvalued? VRME Valuation Analysis 2026
Based on fundamental analysis, VerifyMe, Inc. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
VerifyMe, Inc. Balance Sheet: VRME Debt, Cash & Liquidity
VRME Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: VerifyMe, Inc.'s revenue has grown significantly by 2,692% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.37 indicates the company is currently unprofitable.
VRME Revenue Growth, EPS Growth & YoY Performance
VRME Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $5.0M | -$2.4M | $-0.23 |
| Q2 2025 | $4.5M | -$291.0K | $-0.02 |
| Q1 2025 | $4.5M | -$553.0K | $-0.05 |
| Q3 2024 | $5.4M | -$930.0K | $-0.09 |
| Q2 2024 | $5.3M | -$346.0K | $-0.03 |
| Q1 2024 | $5.7M | -$553.0K | $-0.05 |
| Q3 2023 | $5.2M | -$557.0K | $-0.06 |
| Q2 2023 | $4.5M | -$882.0K | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
VerifyMe, Inc. Dividends, Buybacks & Capital Allocation
VRME SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for VerifyMe, Inc. (CIK: 0001104038)
📋 Recent SEC Filings
❓ Frequently Asked Questions about VRME
What is the AI rating for VRME?
VerifyMe, Inc. (VRME) has an AI rating of SELL with 70% confidence, based on fundamental analysis of SEC EDGAR filings.
What are VRME's key strengths?
Claude: Excellent liquidity position with 3.82x current ratio and 4.4M cash provides significant financial flexibility. Conservative capital structure with minimal debt (0.05x debt/equity) limits downside risk from leverage.
What are the risks of investing in VRME?
Claude: Severe operating losses with -30.9% operating margin and -4.9M net loss indicate fundamentally unsustainable business model at current scale. Lack of year-over-year trends prevents assessment of whether losses are improving or deteriorating.
What is VRME's revenue and growth?
VerifyMe, Inc. reported revenue of $16.4M.
Does VRME pay dividends?
VerifyMe, Inc. does not currently pay dividends.
Where can I find VRME SEC filings?
Official SEC filings for VerifyMe, Inc. (CIK: 0001104038) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is VRME's EPS?
VerifyMe, Inc. has a diluted EPS of $-0.39.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is VRME a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, VerifyMe, Inc. has a SELL rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is VRME stock overvalued or undervalued?
Valuation metrics for VRME: ROE of -44.6% (sector avg: 22%), net margin of -29.9% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy VRME stock in 2026?
Our dual AI analysis gives VerifyMe, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is VRME's free cash flow?
VerifyMe, Inc.'s operating cash flow is $603.0K, with capital expenditures of $18.0K. FCF margin is 3.6%.
How does VRME compare to other Technology stocks?
Vs Technology sector averages: Net margin -29.9% (avg: 18%), ROE -44.6% (avg: 22%), current ratio 3.82 (avg: 2.5).