Veritone reported third‑quarter 2025 results that surpassed revenue expectations, with total sales reaching $29.1 million, a 32 % increase from the $22.0 million recorded in the same quarter a year earlier. Software products and services, the company’s core AI platform, grew 55.5 % to $22.8 million, while managed services fell 14.1 % to $6.3 million, reflecting a shift toward higher‑margin software contracts.
The company’s gross‑margin profile illustrates the impact of that mix change. GAAP gross margin contracted to 64.3 % from 66.6 % in Q3 2024, largely because the higher proportion of lower‑margin managed‑services revenue offset the stronger software mix. Non‑GAAP gross margin, however, remained robust at 70.6 %, underscoring the profitability of the software business once one‑time and non‑core items are excluded.
Operating results were a loss of $15.8 million, and net loss widened to $26.9 million, driven by higher operating expenses and a one‑time earnout related to the divestiture of Veritone One. The company’s operating loss margin was 54.2 % of revenue, a slight improvement over the 55.5 % margin reported in Q3 2024, indicating modest cost discipline as revenue expanded.
Liquidity was bolstered by two equity offerings that raised $28.8 million in September and $75 million in October, bringing total capital raised to more than $100 million. In addition, Veritone entered into an agreement with its debt holders to retire 100 % of its senior secured term debt and roughly 50 % of its convertible notes, reducing long‑term leverage and lowering debt‑service obligations.
Management reiterated its guidance that the company will achieve non‑GAAP profitability by the latter part of fiscal 2026. The outlook is supported by a $40 million pipeline in the Veritone Data Refinery, which has doubled quarter‑over‑quarter, and by sustained demand in the public‑sector and commercial‑enterprise verticals. CEO Ryan Steelberg said the quarter “demonstrated strong execution, a solid liquidity position, and a clear path to profitability.”
Investors responded cautiously, with some concern over the EPS ambiguity—reported at $‑0.08 versus the consensus estimate of $‑0.11—while the revenue beat and liquidity improvements tempered the overall reaction. The company’s focus on high‑margin software growth and debt reduction signals a strategic shift toward sustainable profitability.
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