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The call presented a broadly positive strategic narrative: Veritone announced major partnerships (Oracle), a transformative data transaction providing access to >50M hours of data with potential for >$100M in VDR revenue over three years, a $50M+ VDR pipeline, strong public sector momentum (68% YoY) and multiple commercial growth metrics (licensing +~10% YoY, software deals +14% YoY). The company also materially strengthened its balance sheet by exiting secured debt and cutting annual interest costs by ~90%, and provided revenue guidance of $130M–$145M for 2026. Key risks and lowlights include near-term GAAP uncertainty on a $12.9M Q4 transaction that widened Q4 revenue guidance ($18.1M–$30M), supply constraints that caused management to turn down >$10M of orders in 2025, continued near-term non-GAAP losses (forecast -$13.5M to -$22.5M for 2026), gross margin pressure from revenue mix, and limited visibility on consumption-based VDR revenue and government timing. Overall, the strategic wins, pipeline, marketplace launch and balance sheet improvements outweigh the operational and accounting risks discussed, but execution and timing remain critical to realizing the plan.
Veritone guided fiscal 2026 revenue of $130 million to $145 million (midpoint implying roughly a 47% increase versus the low end of their 2025 range), with public sector revenue targeted to grow 60%–70% year‑over‑year and managed services expected to rise 10%–15%; gross margins are forecast at 60%–65% and non‑GAAP net loss is projected at $13.5 million–$22.5 million (midpoint representing about a 54% improvement versus the low end of preliminary 2025 results). They expect sequential quarter‑over‑quarter revenue growth in 2026 (Q1 ~ Q1 2025, H1 flat to slightly down for certain product lines), a more pronounced VDR ramp starting in Q2, and the earliest path to profitability in Q4 2026 (dependent on VDR and public sector growth). Operational posture: S&M and G&A planned roughly flat to 2025, R&D slightly higher beginning Q1; pipelines/backlog include a VDR pipeline >50 million (hours/units cited) and a core AI platform backlog/sales pipeline in excess of $200 million (and an earlier referenced $50+ million VDR pipeline to convert to recurring revenue). Balance sheet improvements: retired 100% of senior secured term debt, repurchased ~50% of convertible notes, reduced annual debt carry from ~$14 million to ~$0.8 million, closed 2025 with $27.7 million in unencumbered cash, $45 million of 1.75% convertible debt and ~92.6 million shares outstanding.
Signed a multiyear strategic partnership with Oracle to deploy aiWARE on Oracle Cloud Infrastructure (OCI), providing financial incentives, higher-performance AI super clusters, improved cost efficiency for compute/storage, enhanced security/data sovereignty, and a scalable cloud foundation for Veritone's next-generation AI solutions.
Completed a complex non-monetary transaction with a face value of $12.9M that granted preferred access to customers controlling more than 50 million hours of monetizable data; management conservatively estimates this data could generate over $100M in VDR revenue over the next 3 years and includes a fixed 50% revenue share that materially improves VDR margins.
Near-term VDR pipeline is reported as $50+ million; Veritone is under contract to and generating revenue with major hyperscalers including NVIDIA, Amazon, Google and Meta, positioning the company to capture demand as hyperscalers scale AI infrastructure spending.
Provided 2026 revenue guidance of $130M to $145M. Management indicates the midpoint implies substantial year-over-year growth (CFO noted a ~47% increase contextually vs prior reference point), driven by public sector and VDR expansion.
Public sector business grew 68% year-over-year in 2025 and management is targeting 60%–70% year-over-year growth in fiscal 2026, citing expanded federal contracts, deployable secure architectures, and international opportunities.
Q4 licensing executed 224 orders (nearly +10% YoY) and software deal volume grew 14% YoY to 33 deals; Workday Platinum Partner program yielded 59 new deals, a 30% increase year-over-year.
Broadbean distributed over 7.6 million unique jobs, powered more than 40 million unique job ads, generated ~132 million engagements and serves ~30,000 unique HR professionals monthly while maintaining robust profit margins despite macro headwinds.
Global Media Services delivered double-digit net revenue growth and Q4 was the strongest on record with media under management crossing $10M for the first time; secured a major UK government SaaS win (Department for Work and Pensions) and other enterprise renewals (Sony Pictures, Summit Media).
Launched the Veritone Data Marketplace (VDM) to complement the Veritone Data Refinery, enabling governed, transactional distribution of tokenized, model-ready unstructured data and improving data monetization velocity and transparency for rights holders and AI developers.
Retired 100% of senior secured term debt, repurchased ~50% of outstanding convertible notes, reduced annual debt carry costs by ~90% (from ~$14M to ~$0.8M), and closed FY2025 with $27.7M in unencumbered cash; outstanding capital metrics: ~$45M of 1.75% convertible debt and ~92.6M shares outstanding.
Welcome to the Veritone Inc. Preliminary Unaudited Fourth Quarter 2025 Financial Results Conference Call. [Operator Instructions] Please note, this event is being recorded. [Audio gap] I would now like to turn the conference over to Cate Goldsmith, Investor Relations. Please go ahead.
Thank you, and good afternoon. After the market closed today, Veritone issued a press release announcing its preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2025. The press release is available on the Investor Relations section of Veritone's website. Joining us for today's call are Veritone's President and Chief Executive Officer, Ryan Steelberg; and Chief Financial Officer, Mike Zemetra, who will provide prepared remarks. Please note that certain information discussed on the call today will include forward-looking statements. This includes, without limitation, statements about our business strategy and future of financial and operating performance. These forward-looking statements are subject to risks, uncertainties and assumptions that may cause the actual results to differ materially from those stated. Certain of the risks and assumptions are discussed in Veritone's SEC filings, including its annual report on Form 10-K.
These forward-looking statements are based on assumptions as of today, March 26, 2026, and Veritone undertakes no obligation to revise or update them, except as may be set forth in a subsequent press release related to the company's audited Q4 and full year 2025 financial results. During this call, the actual and forecasted fin...