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VerifyMe

VRME
19
Security & Protection Services · Industrials
Price
$0.74
+0.04 (+5.50%)
Market Cap
$9.7M
Exchange
NASDAQ Capital Market
Winston Score
19
Winston is worried
Weak fundamentals across most pillars.
Data as of Aug 23, 2026 · filings through Jun 30, 2026
How the score breaks down
Quality
Weak
Growth
Weak
Cash Flow
Weak
Stability
Data not available
Valuation
Data not available

Share count rising — dilution

+70.9% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 7.4M (2021) → 12.6M (2025)

Winston Score History

The full picture

VerifyMe, Inc. is a small security and logistics company that helps businesses protect their products from counterfeiting and manage shipments more efficiently. Its two main business lines are brand protection — using special inks, labels, and digital codes to verify that products are genuine — and precision logistics, which helps companies track and route packages. Customers include consumer goods brands, pharmaceutical companies, and retailers who need to prove their products are authentic.

VerifyMe earns money through a mix of service fees, technology licensing, and logistics management contracts. It operates primarily in the United States and is a very small company with a market cap under $100 million. The brand protection side offers some differentiation through proprietary authentication technology, but the logistics segment faces intense competition from much larger players. The company is currently unprofitable, and its main challenge is scaling revenue fast enough to cover operating costs before its cash resources run thin.

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-57.8% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-73.9% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$20,000/ year

Declining (-71% vs prior year)

0.1% of revenue

Below sector average (4%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

20.8%ownership

Insiders own a meaningful stake in the company

Cash Runway

~2 years

$5M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$5M cash & investments at current burn rate

Revenue declining

VerifyMe's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

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Quality

Profit per sale
Gross Margin
53.5%
Healthy — 53.5% gross margin
Profit after running costs
Operating Margin
-29.1%
Losing money on operations — -29.1%
Return on the money invested
ROCE
-25.3%
Weak — -25.3% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth
Sales YoY
-49.7%
Shrinking sales (-49.7% YoY)
Profit growth
EPS YoY
N/A
Data not available
How steady the profit is
EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Profit that turns into cash
Cash Conversion
N/A
Data not available
Spare cash per sale
FCF Margin
-10.9%
Burning cash (-10.9%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns
Debt / Equity
N/A
Data not available
Covers its interest
Interest Cover
N/A
Data not available

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Valuation

Price vs profit
P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
Cheaper or dearer next year
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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