Veritone, Inc.

Q2 2026 revenue was $24.3 million, up $4 million, or 20%, sequentially from Q1 2026 and up $1 million, or 5%, from Q2 2025. GAAP gross profit was $14.2 million versus $15.7 million a year ago, and GAAP gross margin was 58.5% versus 67.5%; non-GAAP gross margin was 63.7% versus 72.6%. Operating loss was $22.1 million, and net loss was $22.2 million compared with $26.5 million in Q2 2025; non-GAAP net loss was $9.95 million versus $8.4 million. For full-year 2026, Veritone now expects revenue of $100 million to $115 million, gross margin of 60% to 65%, and non-GAAP net loss of $22 million to $32 million. Management also said Q3 2026 revenue is expected to be between $24 million and more than $28 million. The company ended Q2 with $12.7 million of cash and restricted cash, about $45 million of total debt outstanding, and over $40 million of remaining ATM availability.

Ryan Steelberg framed the quarter as execution on a reset: the company is cutting costs, reworking the organization, and still growing revenue and pipeline. He emphasized VDR, public sector, and new AI products like Assess and Document Redaction as the main growth engines, while saying the business is being positioned for breakeven profitability in fiscal 2027. His tone was upbeat but realistic, repeatedly noting that some deals are large and timing-dependent.

Michael Zemetra focused on the numbers behind the reset. He said Veritone has already executed $11.3 million of annualized cost reductions, roughly 11% of annualized cost structure, and is targeting another $3.5 million to $8.5 million by year-end 2026. He highlighted Q2 gross margin pressure from mix, especially VDR, and reiterated that 2026 non-GAAP gross margins should land around 60% to 65%. He also pointed to the balance sheet improvement: $12.7 million of cash and restricted cash, about $45 million of debt outstanding at a 1.75% interest rate, and more than $40 million of ATM capacity still available.

Analysts focused first on what drove the guidance cut, and management said it was mainly lower expected contributions from DoD/public sector timing and some VDR deal delays, not a full removal of VDR from the back half. On debt, management said discussions with holders are active and they expect an update in the coming months. A question on the path to breakeven drew an answer that the company believes modest growth to $125 million to $130 million of revenue, plus the remaining cost cuts, should be enough to reach breakeven in fiscal 2027, though timing depends on execution and some government-related reengagement.