10-Q · May 14, 2026
Veritone's Q1 2026 results show a 9.8% revenue decline to $20.3 million, with a net loss of $19.5 million. Revenues fell across both Software Products & Services and Managed Services divisions, attributed to lower…
Earnings analysis · 10-Q
VERI earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Veritone's Q2 revenue of $24.263 million recovered sequentially and Managed Services grew 15.2% year over year, but profitability weakened sharply as gross margin declined to 58.5% and the operating loss reached $22.136…
Read full summary
Veritone's Q2 revenue of $24.263 million recovered sequentially and Managed Services grew 15.2% year over year, but profitability weakened sharply as gross margin declined to 58.5% and the operating loss reached $22.136 million. GAAP diluted EPS was negative $0.24, while the company continues a restructuring plan involving at least 25% workforce reduction and targeting 15% to 20% annualized operating-expense reductions. Persistent material weaknesses in internal controls, potential issuance of up to $50.0 million of stock and unquantified litigation exposure outweigh the revenue and cost-reduction positives.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.24
- Segment
- Managed Services: revenue increased 15.2% year over year; segment revenue dollars were not disclosed in the provided filing text.
What stood out
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Revenue Rebounded Sequentially
Q2 revenue was $24.263 million, up approximately 21% from $20 million in Q1 2026 and approximately 1% from $24 million in Q2 2025.
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Managed Services Drove Growth
Managed Services revenue grew 15.2% year over year, making it the disclosed growth driver for the quarter.
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Cost Reduction Program Advanced
The company reported $11.3 million of annualized cost reductions, while its Expense Reduction Plan targets total annualized operating-expense reductions of approximately 15% to 20% by year-end 2026.
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Year-Over-Year EPS Improvement
GAAP diluted EPS was negative $0.24 versus negative $0.21 in Q1 2026 and negative $0.54 in Q2 2025, representing sequential deterioration but substantial year-over-year improvement.
What to watch
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Material Margin Compression
Gross margin fell to 58.5% from 67.7% in Q1 2026 and 68.9% in Q2 2025, a decline of 9.2 and 10.4 percentage points, respectively. Operating loss was $22.136 million, equivalent to an operating margin of approximately negative 91.2%.
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Restructuring Execution Risk
The June 2026 Expense Reduction Plan requires a workforce reduction of at least 25% of the employee count as of March 31, 2026. Management targets additional cost reductions by year-end 2026, but the plan may impair execution, employee retention and growth initiatives.
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Significant Potential Dilution
The company may sell up to $50.0 million of common stock under its May 2026 at-the-market agreement, while authorized common shares increased from 150,000,000 to 225,000,000 on July 7, 2026. These actions and potential Convertible Note conversions could materially dilute existing holders.
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Unremediated Control Weaknesses
Disclosure controls were deemed ineffective as of June 30, 2026. Material weaknesses relating to non-routine revenue recognition and information and communication were not remediated, and additional weaknesses involving foreign-exchange consolidation, IT general controls and entity-level controls also remained outstanding.
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Unquantified Litigation Exposure
Pending lawsuits could require significant defense costs, settlements or damages, but the company has not established a reserve and stated it cannot currently estimate the possible cost or timing of resolution.
Management's outlook
The FY2026 outlook referenced in the associated earnings release is revenue of $100 million to $115 million and non-GAAP net loss of $22 million to $32 million. The filing does not identify a prior outlook against which to assess direction.
Earlier filings 4
10-K · April 29, 2026
Veritone, Inc.'s 2025 10-K reflected ongoing challenges, evident from a revenue drop to $20 million in Q4 2025, missing estimates substantially. The company's strategic reliance on its aiWARE platform appears under…
10-K · April 15, 2026
Veritone is positioning itself as a pure-play AI software company around its aiWARE platform after the October 17, 2024 divestiture of Veritone One, emphasizing modular, multi‑environment deployment and recent…
10-Q · November 7, 2025
Veritone reported Q3 revenue of $29.118M, up from $21.993M a year ago (+$7.125M, +32.4%), with operating loss narrowing to $(15.802)M from $(22.492)M and GAAP loss per share improving to $(0.41) from $(0.59). Liquidity…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.