November 10, 2025 — Leads & Copy — Veritone, Inc. (NASDAQ: VERI) has issued a clarification on its third-quarter commentary and provided additional context regarding certain non-cash and non-operational expenses that impacted the third quarter of 2025, following the publication of several reports.
The company stated that the one-time expense of $8.0 million recorded during the third quarter was a non-operational and non-cash item, reflecting the estimated change in the potential earn-out from the divestiture of Veritone One in October 2024. According to the company, the change in the estimated earn-out from this transaction, which closed over a year prior, does not affect Veritone’s ongoing operations.
Veritone’s net loss from continuing operations for the third quarter of 2025 was $26.9 million, an increase of $4.4 million, or 20%, compared to the third quarter of 2024. The increase was primarily attributed to the $8.0 million non-cash adjustment related to the Veritone One earn-out, and a $2.2 million change in the company’s tax provision. The company noted that this was partially offset by a $6.7 million improvement in operating loss.
The company reported a non-GAAP net loss from continuing operations of $5.8 million for the quarter ended September 30, 2025. This represents a 47.8% improvement, or $5.3 million, from the $11.1 million loss reported for the third quarter ended September 30, 2024. The adjusted loss per share from continuing operations for the quarter ended September 30, 2025, was $(0.09) per share, compared to $(0.29) per share for the quarter ended September 30, 2024. This amounts to a $0.20 per share improvement, or 69%. The improvement was driven by the year-over-year growth in non-GAAP gross profit and lower operating losses resulting from improved cost management. The company stated that this adjusted result more accurately reflects the earnings power and sustainable run-rate of its model.
Veritone reaffirmed its confidence in its bottom-line outlook, as reflected in the guidance issued in its earnings release on Thursday, November 6, by providing the following projections:
For the fourth quarter of 2025, the company projects a non-GAAP net loss between $1.5 and $5.0 million, compared to $9.7 million in the fourth quarter of 2024, representing a 66% improvement at the midpoint and a 44% sequential improvement from the third quarter of 2025.
For the full year 2025, Veritone expects a non-GAAP net loss between $31.6 and $26.0 million, representing a 29% year-over-year improvement at the midpoint. The company said this reflects the timing shifts in revenue recognition and temporary margin compression in VDR, which is expected to improve in 2026.
Non-GAAP net loss from continuing operations for the three months ended September 30, 2025, was $(5,796), compared to $(11,097) for the three months ended September 30, 2024. The non-GAAP net loss for these periods was also $(5,796) and $(7,113), respectively.
Adjusted loss per share from continuing operations, basic and diluted, for the three months ended September 30, 2025, was $(0.09), compared to $(0.29) for the three months ended September 30, 2024. The adjusted loss per share, basic and diluted, for these periods was $(0.09) and $(0.19), respectively.
Veritone defines non-GAAP net income (loss) as the company’s net income (loss), adjusted to exclude net income from discontinued operations, net of income taxes, interest expense, net, income taxes, depreciation and amortization, stock-based compensation, change in fair value of earn-out receivable, contingent purchase compensation expense, foreign currency impact and other, acquisition and due diligence costs, (gain) loss on asset disposition, severance and executive transition costs, lender consent fees, and non-GAAP net income from discontinued operations.
Non-GAAP gross profit is defined as gross profit with adjustments to add back depreciation and amortization related to the cost of revenue and stock-based compensation expenses. Non-GAAP gross margin is defined as non-GAAP gross profit divided by revenue.
Management believes this information to be important supplemental measures of performance that are commonly used by securities analysts, investors and other interested parties in the evaluation of companies in its industry.
Veritone (NASDAQ: VERI) builds human-centered enterprise AI solutions, serving customers in media, entertainment, public sector and talent acquisition industries. The company’s software and services are designed to empower individuals at the world’s largest and most recognizable brands to run more efficiently, accelerate decision making and increase profitability.
To learn more, visit Veritone.com.
Source: Veritone, Inc.
