Veritone, Inc. (VERI) DCF Valuation & Fundamental Primer
Veritone, Inc. (VERI) trades at $2.13 with a market enterprise value of $187.8M and generated $91.1M in TTM revenue and -$54.8M in free cash flow (filed 2026-08-13 (period ended 2026-06-30)). Our 5-year DCF model estimates an implied intrinsic value of -$5.50 per diluted share (Grade: B · 53/100 · Mixed Fundamental Profile).
SEC 10-K/10-Q DCF teardown of Veritone, Inc. (VERI): $91.1M TTM revenue (-5.4% growth), 71.8% GAAP gross margin, -60.1% FCF margin, 6.5% SBC/revenue, and Rule of 40 score of -65.6%.
Veritone, Inc. (VERI) earns a "Pass" rating and an institutional Quality Score of 53/100 (Grade B). On $91.1M in baseline revenue (-5.4% growth, 71.8% gross margin, -60.1% FCF margin), our 5-year DCF yields an Enterprise Value of -$529.2M (-$5.50/share vs. $2.13 market price). On the R&D Return Benchmark, VERI ranks #164 of 174 (Burners · Grade D, -0.16× return).
Gross Margin & Unit Economics: Veritone, Inc. operates at a 71.8% gross margin on $91.1M revenue (0.6 pts below the Software - Infrastructure median of 72.4%).
R&D Productivity (Burners · Grade D): Investing 24.4% of revenue in R&D ($22.2M) generates $-0.16 of incremental gross profit per R&D dollar (Rank #164 of 174).
Rule of 40 & Cash Conversion: Combining -5.4% top-line growth with -60.1% FCF margin yields a -65.6% Rule of 40 score (vs. 38.4% cohort median) and -$529.2M DCF Enterprise Value.
3-Statement Financial Schedule & 5-Year Horizon
Synchronized directly with the 3-Year Operating Statement (71.8% Gross Margin · -5.4% Growth)
| Income Statement Line | Year 1 (2026) | Year 2 (2027) | Year 3 (2028) |
|---|---|---|---|
| Revenue | $91.1M | $86.1M | $81.4M |
| Cost of Revenue (COGS) | ($25.7M) | ($23.8M) | ($22.1M) |
| Gross Profit & Margin | $65.4M (71.8%) | $62.3M (72.3%) | $59.3M (72.8%) |
| Research & Development (R&D) | $22.2M | $20.2M | $18.3M |
| Sales & Marketing (S&M) | $90.3M | $81.9M | $74.2M |
| General & Administrative (G&A) | $35.1M | $31.9M | $28.9M |
| Operating EBIT | -$82.2M (-90.2%) | -$71.7M (-83.3%) | -$62.1M (-76.3%) |
| Adjusted EBITDA | -$57.6M (-63.2%) | -$48.4M (-56.2%) | -$40.1M (-49.3%) |
3 Key Underwriting Risks
Structural sensitivities monitored in the 3-Statement Financial Engine
Value-Creation Levers · Quantified Statement Impact
Apply any lever below to write its operating assumptions directly into the 3-Statement Model
Automate cloud hosting & support workflows to lift gross margin from 71.8% to 76.8%.
Align R&D intensity and ASC 350-40 capitalization to the R&D Compounders cohort median, recapturing $1.8M in annual EBITDA.
Lift net dollar retention and expansion velocity by +300 bps, compounding Year 3 revenue to $86.7M.
Veritone, Inc. (VERI) 3-Scenario DCF Valuation Range
Stress-test VERI's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Simulate how deploying Gemini workflow automation and autonomous engineering expands VERI's Gross Margin, FCF Margin, DCF share price, and 2x2 R&D Return Quadrant.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $2.13).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $1.17 -45% | $1.22 -42% | $1.29 -39% | $1.37 -36% | $1.47 -31% |
| 9.3% | $1.07 -50% | $1.12 -48% | $1.17 -45% | $1.23 -42% | $1.30 -39% |
| 10.0% | $0.99 -53% | $1.03 -52% | $1.07 -50% | $1.12 -48% | $1.17 -45% |
| 10.8% | $0.92 -57% | $0.95 -55% | $0.99 -54% | $1.03 -52% | $1.07 -50% |
| 11.5% | $0.87 -59% | $0.89 -58% | $0.92 -57% | $0.95 -55% | $0.99 -54% |
Institutional Software Quality Scorecard (53/100 · Grade B)
Viable recurring software business but carries notable dilution, lower margins, or higher leverage.
Negative free cash flow; business consumes cash to sustain operations
Disciplined equity compensation well below software industry average
Solid gross margins with potential for operating leverage at scale
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
Key Operational & Dilution Risks
- Negative free cash flow burn of -$54.8M over trailing twelve months
Compare Veritone, Inc. (VERI) against the software universe on the 2x2 R&D Return vs. R&D Intensity matrix.
Reverse-DCF Solver: What Growth is Priced Into VERI?
The current share price demands 2.7% 5-year CAGR (8.5% net of SBC & dilution)—a +8.1% acceleration over historical run-rate (-5.4%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (6.5% of revenue) and annual share dilution (0.0%/yr). Accounting for both requires 8.5% 5-year revenue CAGR to justify $2.13/sh on a true per-share economic cash flow basis.
Veritone, Inc. (VERI) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $91.1M | $91.1M | $86.1M | $81.4M | $77.0M | $72.8M | $68.8M |
| Gross Profit | $65.4M | $65.4M | $61.8M | $58.5M | $55.3M | $52.3M | $49.4M |
| Operating Income (EBIT) | -$82.2M | -$72.8M | -$68.9M | -$65.1M | -$61.6M | -$58.2M | -$55.1M |
| Stock-Based Compensation (SBC) | $5.9M | $5.9M | $5.6M | $5.3M | $5.0M | $4.7M | $4.5M |
| Unlevered Free Cash Flow (FCF) | -$54.8M | -$54.8M | -$51.8M | -$49.0M | -$46.3M | -$43.8M | -$41.4M |
| SBC-Adjusted True Cash Flow | -$60.7M | -$60.7M | -$57.4M | -$54.2M | -$51.3M | -$48.5M | -$45.9M |
Software - Infrastructure Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = 7.1 + 0.05 × (Rule of 40) · R² = 12%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| Veritone, Inc. | VERI | $200.3M | $91.1M | 71.8% | -60.1% | -65.6% | 6.5% | 2.1× |
| Block, Inc. | XYZ | $41.67B | $25.04B | 46.4% | 15.5% | 23.7% | 4.8% | 1.6× |
| CoreWeave, Inc. | CRWV | $35.80B | $1.92B | 74.2% | -80.0% | 0.0% | 1.6% | 23.5× |
| VeriSign, Inc. | VRSN | $22.52B | $1.56B | 87.7% | 56.1% | 61.5% | 3.9% | 15.5× |
| CORPAY, INC. | CPAY | $22.17B | $3.97B | 78.1% | 44.4% | 52.1% | 2.9% | 7.2× |
| NetApp, Inc. | NTAP | $21.02B | $7.39B | 70.6% | 22.3% | 24.6% | 5.4% | 3.0× |
| Joint Stock Co Kaspi.kz | KSPI | $11,481.85B | $2,520.93B | 62.3% | 19.3% | 59.8% | — | 4.4× |
| Peer Cohort Median Benchmark (N=6) | 72.4% | 20.8% | 38.4% | 3.9% | 5.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 2.1× | $187.8M | $200.3M | $2.13 | 0.0% |
| -20% Multiple Compression | 1.7× | $150.3M | $162.7M | $1.73 | -20.0% |
| -35% Multiple Compression | 1.3× | $122.1M | $134.5M | $1.43 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $455.3M | $467.7M | $4.97 | +142.4% |
Frequently Asked Questions: Veritone, Inc. (VERI) Valuation
What is Veritone, Inc. (VERI)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, Veritone, Inc. (VERI) has a Base Case implied value of -$5.50 per share (with a Bear Case of -$4.02 and a Bull Case of -$6.77), compared to its current price of $2.13. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is Veritone, Inc. (VERI)'s Rule of 40 score and Free Cash Flow margin?
Veritone, Inc. achieves a Rule of 40 score of -65.6%, combining a -5.4% revenue growth run-rate with a -60.1% TTM free cash flow margin on $91.1M in trailing twelve-month revenue. In the Software - Infrastructure peer cohort, the median Rule of 40 benchmark is 38.4%.
What revenue growth rate is priced into VERI stock according to Reverse-DCF analysis?
At $2.13 per share (Enterprise Value of $187.8M), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 2.7%, compared to Veritone, Inc.'s historical CAGR of -5.4%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
What is Veritone, Inc. (VERI)'s R&D Return Score and innovation productivity?
Veritone, Inc. (VERI) recorded $20.7M in FY R&D expense (22.5% of revenue) and N/A in FY gross profit. It is currently unranked on the letter-grade leaderboard (pending full multi-year XBRL R&D history).
How does Veritone, Inc. compare to Software - Infrastructure peers?
Veritone, Inc. (VERI) earns an institutional Software Quality Score of 53/100 (Grade B — Mixed Fundamental Profile). Across its Software - Infrastructure peer group (XYZ, CRWV, VRSN, CPAY, NTAP), the cohort trades at a median EV/TTM Revenue multiple of 5.8× and a median gross margin of 72.4%.
How does Stock-Based Compensation (SBC) impact Veritone, Inc. (VERI)'s valuation?
Veritone, Inc. recorded $5.9M in TTM stock-based compensation (6.5% of revenue). When treating SBC as a cash-equivalent compensation expense, Veritone, Inc.'s SBC-adjusted free cash flow yield is -30.3%, scoring 21/25 on our Shareholder Dilution Friction pillar.