Veritone reported QQ1 2025 results reflecting a modest year-over-year revenue decline and continued operating losses, underscored by meaningful cash burn and leverage against a still-elevated asset base. Revenue came in at $22.5 million, down 6.8% YoY but flat to marginally positive QoQ, while gross profit was $7.3 million for a gross margin of ~32.4%. The company posted an operating loss of $20.4 million and a net loss of $19.9 million, with EBITDA of negative $10.6 million and an EBITDAR of negative 47.1%. On the balance sheet, Veritone carries substantial long-term debt and significant goodwill/intangible assets, contributing to a modest equity base and a leveraged capital structure. Free cash flow was negative at $18.4 million, and operating cash flow burned $17.0 million in the quarter, leaving cash and equivalents of about $16.1 million at period end. The sequential cash movements were modest, but financing activities provided a near-term liquidity cushion of approximately $17.9 million, suggesting the company remains dependent on external financing to support working capital and ongoing losses.
From a strategic perspective, Veritone’s AI platform aiWARE remains the central growth vector, with potential cross-sell opportunities across verticals such as media, government, legal/compliance, energy, and other industries. However, near-term profitability remains a concern given the scale of operating expenses (SG&A plus R&D) and the absence of visible free cash flow generation. The results imply that management must meaningfully scale revenue while containing opex to move toward breakeven or positive FCF in the coming quarters. The outlook is sensitive to the company’s ability to monetize aiWARE at higher margins and optimize capital structure to reduce interest burden and working capital strain.