Veritone Inc. (VERI), a maker of artificial intelligence (AI) computing solutions, recently revealed it would not be able to file its annual report with the Securities and Exchange Commission (SEC) on time because it cannot immediately account for certain non-monetary revenue transactions, including:

“...a non-monetary transaction in which the Company sold an on-premise software license in exchange for certain intangible rights with a contracted price of $13.0 million during the fourth quarter of fiscal year 2025 and (2) the estimated fair value associated with an on-premise software sale in the fiscal year ended December 31, 2025.”

Later in the disclosure, Veritone admitted its accounting for the aforementioned on-premise software sale was flawed and may result in out-of-period adjustments

“... the largest of which may result in a reduction in revenue for the quarter ended September 30, 2025 of $1.5 million to $2.5 million, or 5.2% to 8.6%, of the total $29.1 million of revenue previously reported for such quarter.”

The company says it is evaluating whether the accounting errors will require it to restate its second and third quarter financials.

The disclosure also revealed Veritone’s recently released preliminary fourth quarter results— announced five days earlier— were not wholly accurate.

Rather than generating between $18.1 million and $30 million in sales during the latest quarter, Veritone says it did between $18.1 million to $21.8 million. The company also increased the lower end of its Operating loss estimate versus results released a month earlier.



With an Enterprise Value (EV) of approximately $234 million, Veritone is priced as if it will grow annual sales to more than $667.3 million, up from $127.5 million in 2025. To justify its current share price of $1.79 our Reverse DCF— which quantifies investor expectations embedded in the current share price— indicates Veritone must:

—Grow sales 18% annually for the next decade, versus 2025 sales growth of (14.8%) and the three-year average of 15.7%
—Increase NOPAT margin to 8%, versus our 2025 estimate of (68.6%) and three-year average estimate of (58.8%)
—Increase Invested Capital (IC) Turns to 1.7, up from our three-year estimates of 0.98

Notably, the current share price also implies Veritone increases Return on Invested Capital (ROIC) to 13.6% from our 2025 estimate of (76.2%) and three-year estimate of (56.1%):