VerifyMe, Inc. (VRME) reported fourth‑quarter 2025 financial results that ended December 31 2025, showing a revenue decline of 68.8% to $2.4 million compared with $7.7 million in the same quarter last year. The drop is largely attributable to the termination of a carrier partnership that accounted for roughly 78% of the company’s revenue, leaving the Precision Logistics segment under‑performing.
Net loss for the quarter widened to $0.7 million, or $0.05 per diluted share, versus a $0.5 million loss ($0.05 per share) in Q4 2024. The loss increase reflects the one‑time impairment charges of $2.788 million for intangible assets and $1.062 million for goodwill related to the Precision Logistics segment, as well as the costs associated with transitioning to a new shipping partner.
Gross profit margin expanded to 49% from 32% in the prior year, driven by higher pricing under the new shipping agreement and a more favorable mix of services. The margin improvement offsets the revenue decline and signals that the company’s cost structure is becoming more efficient as it scales the new partnership.
Management noted that the transition to the new shipping partner is ongoing: “In Q4 of 2025, VerifyMe began the process of transitioning ProActive clients from using our previous shipping partner to our new strategic shipping partner. We successfully transitioned a portion of our customers, and we continue to transition customers in 2026.” The comment underscores the company’s focus on stabilizing revenue streams while improving profitability.
The company’s guidance for the full year 2025 remains unchanged, with revenue expected to stay below analyst consensus and earnings per share to continue in the loss range. The guidance reflects management’s caution about the revenue impact of the carrier transition, while the improved gross margin suggests a potential upside if the new partnership matures.
Overall, the results highlight a company in transition: revenue is sharply down due to a lost partnership, but margin expansion and a strategic shift to a new carrier provide a foundation for future recovery. Investors will likely focus on the company’s ability to complete the transition and maintain the higher margin profile while rebuilding revenue.
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