VERI · Veritone
Conviction · Low · more likely to lag the S&P 500 over the next three months
Wrong if: a daily close above $0.67
Note written ·
Price against the kill line
32.6% clear of its kill line on the 13 November 2026 close.
How to read this
This note expects the shares to lag the market, so its kill line sits above the price: a close above the red mark would prove the view wrong. Prices run from low on the left to high on the right. The dot is where the stock closed on 13 November 2026, left of the mark while it is below the line; a dot right of the mark has closed through it.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a daily close above $0.6700, on record since 11 November 2026. The shares are down 58.4% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A daily close above $0.67, which would take the shares back above their late-October rebound high and show them leading. A disclosed agreement that repays or extends the notes without heavy new dilution would also point to leadership.
Research onlyNot in the portfolio.
Catalyst
Key figures from the filings · Technology
Quarter to 30 June 2026, filed 13 August 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 24.3
- Revenue, change on a year (%)
- +4.6
- Gross margin (%)
- 63.7
- Operating margin (%)
- −91.2
- Free cash flow, four quarters ($M)
- −54.8
- Net cash, cash less debt ($M)
- −33.0
- Free-cash-flow yield (%)
- −120.7
All filed numbers
What Veritone reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Gross margin (%) | Operating margin (%) |
|---|---|---|---|---|
| first filed | 24.3 | +4.6 | 63.7 | −91.2 |
| first filed | 20.3 | −9.8 | 67.7 | −95.9 |
| first filed | 29.1 | +32.4 | — | −54.3 |
| first filed restated | 23.2 | −3.6 | — | −82.0 |
| first filed | 22.5 | −7.0 | — | −96.3 |
| Pre-tax income ($M) | −22.5 |
| Net income ($M) four quarters: −107 | −22.2 |
| Diluted shares, change on a year (%) against the quarter to 30 June 2025 | +89.5 |
| Operating cash flow ($M) | −50.1 |
| Capital spending ($M) | 4.7 |
| Free cash flow ($M) | −54.8 |
| Cash and short-term investments ($M) | 12.4 |
| Debt ($M) convertible debt | 45.5 |
| Net cash, cash less debt ($M) | −33.0 |
| Deferred revenue ($M) −1.4% on a year | 12.2 |
| Backlog, orders not yet delivered ($M) −41.0% on a year | 20.6 |
| Receivables ($M) | 28.0 |
| Inventory ($M) | Not reported |
| Shareholders' equity ($M) | 37.9 |
| Market value ($M) | 45.4 |
| Enterprise value, market value plus net debt ($M) | 78.4 |
| Enterprise value to sales (×) | Not available |
| Enterprise value to operating income (×) | Not meaningful |
| Price to earnings (×) | Not meaningful |
| Price to book value (×) | 1.2 |
| Free-cash-flow yield (%) | −120.7 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 12.1% of shares outstanding sold short, 1.1 days of average trading to cover, −24.7% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $126K | $0 |
| 12 monthsfrom | $126K | $0 |
The thesis
Veritone's $45.58 million of 1.75% convertible senior notes mature on 15 November 2026, and the company has no disclosed agreement with noteholders. The shares are more likely to lag the S&P 500 than lead it, and a disclosed repayment, extension or restructuring settles the case.
On 11 November 2026 the company announced that it moved its third-quarter 2026 earnings release and call from 12 November 2026 to Monday, 16 November 2026 at 8:30 a.m. Eastern Time. It said the move gives it more time to provide "material updates on the status of its convertible debt discussions," according to the announcement as reported by Stock Titan. The new date falls one day after the maturity, which is a Sunday.
The company priced 20 million common shares at $0.75 on 1 October 2026 in a registered direct offering, about $13.8 million net, per its Form 424B5 prospectus supplement. Cash and restricted cash was $12.7 million at 30 June 2026, per the second-quarter release. Both the 13 August 2026 results and the prospectus cite substantial doubt about the company's ability to continue as a going concern.
The shares closed at $0.49 on 12 November 2026, below the offering price and 92.0% below the 52-week intraday high of $6.13 on 12 December 2025. The price already reflects a high probability of dilution or restructuring, in this view, and a deal on terms better than that would be the event that lifts the shares.
Bullish and bearish views on Veritone, Inc.
The bull case on Veritone, Inc. (VERI), in brief: noteholder talks are active. The bear case: proceeds cover under a third of the principal.
Bull case
- Noteholder talks are active. The company's own 11 November 2026 announcement says debt discussions are ongoing and material enough to delay the earnings date. A deal announced alongside the 16 November 2026 report would remove the maturity.
- Past repurchases succeeded below par. On 6 November 2025 the company agreed to repurchase about $45.7 million of the same notes for about $39.0 million of cash plus 625,000 common shares, per its 8-K. Repurchases in December 2022 and December 2023 were priced at about 65% and 75% of par.
- The chief executive bought shares. SEC Form 4 filings show Ryan Steelberg, president and CEO, bought 148,810 shares on the open market at $0.85 on 21 August 2026. The shares have since traded well under that price.
- Recurring revenue base persists. Annual recurring revenue was $62.0 million at 30 June 2026, roughly flat year over year, with gross revenue retention above 90%, per the 13 August 2026 results release.
- Product work continues. On 21 October 2026 Veritone said its Redact software integrates with the Getac Video Suite.
Bear case
- Proceeds cover under a third of the principal. Net proceeds of about $13.8 million compare with $45.58 million of principal outstanding, per the 424B5. Cash and restricted cash fell to $12.7 million at 30 June 2026 from $27.7 million at 31 December 2025.
- Postponed earnings point to unfinished talks. The report was moved on 11 November 2026, the day before it was due and four days before maturity. The company has not disclosed terms of any repurchase, exchange or extension.
- Dilution is large and the shares trade below the sale price. Shares outstanding were 101.6 million on 28 September 2026 and were expected to be 121.6 million after the 1 October 2026 sale, per the prospectus. The shares closed at $0.49 on 12 November 2026 against the $0.75 offering price.
- Operations are shrinking. On 13 August 2026 the company cut FY2026 revenue guidance to $100–115 million from $130–145 million. Second-quarter sales were $24.263 million against a $28.287 million estimate, per Benzinga.
- Sub-$1.00 shares invite a Nasdaq notice. Closes in November have ranged from $0.48 to $0.54. Nasdaq's minimum-bid rule can lead to a deficiency notice after 30 consecutive business days below $1.00.
Price setup
The shares closed at $0.49 on 12 November 2026. The 52-week closing low is $0.48, set on 11 November 2026, so the shares sit one cent above it. The 50-day average is $0.79 and the 200-day average is $1.67, both well above the last close.
The three-month change is −57.3%, from a close of $1.15 on 14 August 2026. Closes in the week of 5 November to 12 November 2026 ran between $0.48 and $0.54, a narrow range for a name with a maturity days away.
The company's 60-day restriction on new equity issuance from the 1 October 2026 offering runs to about 30 November 2026, with listed exceptions. The 90-day restriction on officer and director sales runs into late December. A Benzinga preview on 31 October 2026 expected a third-quarter loss of 11 cents a share.
Catalysts ahead
- 15 November 2026: 1.75% convertible senior notes mature ($45.58 million principal); the date is a Sunday. Repayment, refinancing or extension settles the financing case; a missed payment rejects it.
- 16 November 2026: Third-quarter 2026 results and call at 8:30 a.m. ET, rescheduled from 12 November 2026. The company said it will give material updates on convertible debt discussions, plus cash, bookings and FY2026 guidance.
- ~30 November 2026 (est.): 60-day company restriction on new equity issuance from the 1 October 2026 offering lapses. Reopens the way to further share sales if the debt is not fully addressed.
What would change the view
A daily close above $0.67, which would take the shares back above their late-October rebound high and show them leading. A disclosed agreement that repays or extends the notes without heavy new dilution would also point to leadership.
What it trades with
Veritone trades on its own balance-sheet event, the 15 November 2026 maturity, rather than with artificial-intelligence software shares. Sector moves in small-cap AI software would matter mainly for the price at which any further equity could be sold after the issuance restriction lapses.
The outcome splits into three cases: full repayment or extension, a partial restructuring with more shares issued, or a missed payment. Each would show in an 8-K or in the 16 November 2026 report.
The evidence, claim by claim (7)
- Veritone moved its third-quarter 2026 earnings release and call to 16 November 2026 at 8:30 a.m. ET from 12 November 2026, to provide material updates on its convertible debt discussions. Veritone announcement 11 November 2026, via Stock Titan · as of
- Veritone agreed to sell 20,000,000 common shares at $0.75 per share in a registered direct offering for $15 million gross, about $13.8 million net. Veritone Form 424B5 prospectus supplement · as of
- $45.58 million principal of 1.75% convertible senior notes remains outstanding and matures 15 November 2026. Veritone Form 424B5 · as of
- FY2026 revenue guidance was cut to $100–115 million from $130–145 million; Q2 sales were $24.263 million against a $28.287 million estimate. Veritone Q2 2026 results; Benzinga · as of
- Cash and restricted cash totaled $12.7 million at 30 June 2026, down from $27.7 million at 31 December 2025. Veritone Q2 2026 results release · as of
- CEO Ryan Steelberg bought 148,810 shares on the open market at $0.85. SEC Form 4 filed 24 August 2026 · as of
- Veritone agreed to repurchase about $45.7 million of the 2026 convertible notes for about $39.0 million of cash and 625,000 common shares. Veritone Form 8-K · as of
Sources
- More time for financing updates shifts Veritone's earnings call to Nov. 16. · stocktitan.net
- Veritone, Inc. - Form 8-K - FY2026 · sec.gov
- Veritone, Inc. - Form 8-K - FY2025 · sec.gov ·
- Veritone to Hold Third Quarter 2026 Results Conference Call on November 12th · finviz.com