Business
VerifyMe Reports First Quarter 2026 Financial Results
LAKE MARY, Fla., May 15, 2026--Q1 26 Earnings Press Release
About this update from Verifyme, Inc.
LAKE MARY, Fla., May 15, 2026--(BUSINESS WIRE)--VerifyMe, Inc. (NASDAQ: VRME) ("VerifyMe," "we," "our," or the "Company") provides time and temperature sensitive logistics, and brand protection and enhancement solutions, announced today the Company’s financial results for its first quarter ended March 31, 2026 ("Q1 2026"). Adam Stedham, VerifyMe’s CEO and President stated, "During Q1 of 2026, we fully implemented ProActive services and continued to transition ProActive customers from using our legacy shipping partner to using our new strategic shipping partner. We also transitioned key Premium customers to our Direct Premium model, allowing us to continue servicing these customers as they continue to ship with our legacy partner. In addition, we are in the final stages of integrating our technology with our new partner to begin offering our Premium services in Q2 of 2026. We believe our financial performance in Q1 of 2026 demonstrates the scalability of our model as we achieved improved gross profit margins despite lower revenues. We are now focused on completing our integrations and growing our revenues by both transitioning legacy customers and adding new customers." Key Financial Highlights for Q1 2026: Financial Results for the Three Months Ended March 31, 2026: Revenue in Q1 2026 was $1.8 million, compared to $4.5 million in Q1 2025. Revenue for the quarter decreased by $2.7 million, or 60%. The decrease in revenue is primarily due to the loss of ProActive services revenue, as a result of the September 2025 termination of our agreement with our prior carrier partner. Gross profit in Q1 2026 was $1.0 million, compared to $1.5 million in Q1 2025, a decline of ($0.5) million, or 36%. The resulting gross margin percentage was 54% for the three months ended March 31, 2026, compared to 33% for the three months ended March 31, 2025. The increase in gross profit percentage results from the mix of ProActive and Premium services provided during the quarter and process improvements implemented to increase ProActive services margins. Operating loss was ($0.8) million in Q1 2026, compared to ($0.6) million in Q1 2025. The increased loss primarily relates to an increase in legal expenses associated with the Company’s proposed merger recorded in general and administrative expenses and the decrease in gross...