VerifyMe Inc (VRME) Q3 2026 Earnings Call Highlights: RWA Platform Drives 86% of Revenue as ... GuruFocus News Fri, November 13, 2026 at 12:04 AM EST 7 min read OPNW +6.32% TSLA +1.43% VRME 0.00% Trade Tesla on Coinbase Trading disclosure Trading disclosure The above button links to Coinbase. Yahoo Finance is not a broker-dealer or investment adviser and does not offer securities or cryptocurrencies for sale or facilitate trading. Coinbase pays us for certain activity generated through this link. Prices displayed are informational.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
VerifyMe Inc (NASDAQ:VRME) reported Q3 2026 total revenue of $7.4 million, with real-world asset (RWA) platform revenues contributing $6.4 million, or 86% of quarterly revenue, up from zero in Q3 2025.
Gross margin improved to 84% in Q3 2026 from 77% a year ago, driven by higher-margin RWA work.
Adjusted EBITDA was positive at $2.2 million for Q3 2026, excluding non-cash and non-recurring expenses.
VerifyMe Inc (NASDAQ:VRME) has approximately $21.2 million of transaction price allocated to unsatisfied performance obligations, providing visibility into future revenue.
The company announced strategic partnerships, including a deal with Meridian for up to $1 billion in tokenized Tesla Powerwall assets and a tokenized industrial IP deal with Beyond AI, positioning it in high-growth RWA tokenization markets.
VerifyMe Inc (NASDAQ:VRME) recorded a net loss of $10.2 million, or $0.93 per share, in Q3 2026, significantly impacted by $6 million in professional fees and $6.4 million in non-cash stock-based compensation.
Digital assets and capital markets revenue plummeted to $0.4 million in Q3 2026 from $20 million in Q3 2025, which was mostly one-time revenue from token generation events.
General and administrative expenses totaled $14.6 million, far exceeding revenue and highlighting cost inefficiencies despite being largely transaction-related.
Cash balance at September 30, 2026, was only $4.5 million, and the company needed a $3.5 million registered direct offering post-quarter to bolster liquidity.
Many announced deals are still in non-binding or definitive agreement phases, with capital formation underway, creating execution risk and uncertainty around timing of revenue recognition.
Warning! GuruFocus has detected 3 Warning Signs with VRME.
Is VRME fairly valued? Test your thesis with our free DCF calculator.
Q: With several strategic opportunities announced as non-binding agreements, what is needed to move these forward and actually close them? A: President Ross McMeekin explained that definitive agreements are underway with law firms representing both sides, and capital formation is progressing in parallel. He noted he was in the Middle East working on exactly that. Closure occurs when the definitive agreement is signed and initial capital formation begins. For large deals like the $1 billion-plus Powerwall project, there will be multiple tranches of capital formation over time, though the structures are similar. (President Ross McMeekin)
Q: Why is the Solana and Backpack trading announcement strategic and important for the company and the industry? A: CEO Matt Shaw said tokenizing the company's own stock enables 24/7 trading and access to deep DeFi liquidity, and lets OpenWorld lead by example in the RWA tokenization business. Investors can move seamlessly between the token and the stocka tokenized OPNW holder can request delivery from Backpack directly to their brokerage account. Solana offers broad distribution, deep liquidity, and Foundation support, and brings a new Web3-native community to the stock. He added that RWAs on Solana have reached over $5 billion, a six-fold increase since the start of the year, which should also help capital formation for OpenWorld's RWA deals. (Chairman and CEO Matt Shaw)
Q: Given just over $7 million of revenue, gross margin and adjusted EBITDA margin were strong out of the gate. Are these margin levels sustainable, and is there more upside? A: CFO Gerard Hernandez said the RWA business combines specialized structuring, implementation, and tokenized services with ongoing platform and servicing fees. Initial engagements establish the infrastructure, and recurring revenues build on that foundation with relatively limited incremental delivery costs. He expects this combination of reasonable technology costs, specialized expertise, and recurring fees to support attractive margins and additional operating leverage, with further upside as the business scales. (CFO Gerard Hernandez)
Q: What drove the third quarter revenue mix, and how much of it came from the RWA business? A: CFO Gerard Hernandez reported total Q3 2026 revenue of $7.4 million, of which RWA platform revenues contributed $6.4 million, or approximately 86%. There was no RWA revenue in Q3 2025, as the ramp-up only began in early 2026. For the first nine months of 2026, RWA revenue reached $9.1 million. Digital assets and capital markets revenue was $0.4 million, down from $20 million in Q3 2025, most of which was one-time revenue tied to specific token generation events last year. (CFO Gerard Hernandez)
Q: What explains the large net loss in the quarter, and what was the adjusted EBITDA? A: CFO Gerard Hernandez said G&A expenses totaled $14.6 million, including $6 million in professional fees tied to the reverse takeover and public listing process and $6.4 million in non-cash stock-based compensation from option and restricted share grants. These items drove a net loss of $10.2 million, or $0.93 per share. Absent those merger-related and non-cash items, the underlying result would look materially differentadjusted EBITDA for the quarter was $2.2 million. (CFO Gerard Hernandez)
Q: What is the company's liquidity position and visibility into future revenue? A: CFO Gerard Hernandez said cash at September 30 was $4.5 million, with contract assets of $9.5 million primarily related to unbilled RWA work pending contractual billing conditions. Subsequent to quarter end, the company completed a registered direct offering generating approximately $3.5 million in gross proceeds. Management believes existing cash, anticipated collections of receivables and contract assets, and the financing proceeds will provide sufficient liquidity for at least the next 12 months. Additionally, approximately $21.2 million of transaction price remained allocated to unsatisfied or partially unsatisfied RWA performance obligations as of September 30, providing visibility into future revenue recognition. (CFO Gerard Hernandez)
Q: What is the status of the Meridian partnership involving Tesla Powerwalls? A: President Ross McMeekin described it as one of the largest tokenized projects in the world, using existing homes and commercial buildings with existing infrastructure plus solar to generate power for AI. The model requires no grid power or water cooling and has built-in offtake. The partnership captures Powerwall assets on a favorable tax basis, making IRRs and yields attractive. The initial announcement was for up to $1 billion, but he said there is room to grow considerably, and the agreement contemplates something significantly larger. (President Ross McMeekin)
Q: What is the tokenized industrial IP deal with Beyond AI, and why is it attractive? A: President Ross McMeekin said the customer is Beyond AI, a California-based AI company with investors including Aramco, BP, and G42, and a NASA spinout with globally applicable IP. OpenWorld is working closely with the customer and Aramco, which is both an investor and a major customer for the IP. The on-chain tokenization structure is expected to facilitate additional agreements and added IP, leveraging blockchain, fractionalized structures, high yields, and recurring revenue potential. (President Ross McMeekin)
Q: What is the outlook for announcements and capital formation through year-end? A: President Ross McMeekin said the announced agreements are in the definitive agreement phase with capital formation well underway, aided by the planned Solana blockchain launch. He expects many similar arrangements to be announced throughout November and December, with capital formation, definitive agreements, and scale as the primary themes. The focus is on the United States, the Middle East, and soon Southeast Asia, where these structures and use cases can bring the business to global scale. (President Ross McMeekin)
Q: What was the gross margin in the quarter, and what drove the improvement? A: CFO Gerard Hernandez reported gross profit of $6.3 million, producing an 84% gross margin, up from 77% a year ago. The improvement was driven by the higher-margin mix from RWA work, reflecting the deliberate shift from project-based token launch activity toward higher-value, recurring, platform-oriented RWA infrastructure and tokenization services. (CFO Gerard Hernandez)
Q: How is the company shifting its business model, and what does that mean for future
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
