Veritone, Inc. (VERI): Business Model Canvas [Dec-2025 Updated]

You're looking to cut through the noise and see exactly how Veritone, Inc. is structuring its business now that the Veritone Data Refinery (VDR) is central to their plan, moving beyond just software services. Honestly, the core play is transforming unstructured data-audio, video, sensor feeds-into compliant, tokenized assets that developers and hyperscalers need for training AI models. This strategy is showing up in their guidance, projecting $109 million to $115 million in revenue for 2025, built on a foundation of $68.8 million in Annual Recurring Revenue as of the third quarter. So, you need to see how the big U.S. Air Force contracts, the IP owner partnerships, and the proprietary aiWARE platform combine to generate those dollars; the full Business Model Canvas breakdown is right here for you to examine.

Veritone, Inc. (VERI) - Canvas Business Model: Key Partnerships

You're looking at the core relationships that fuel Veritone, Inc.'s platform growth right now, especially as they push hard into the data monetization space. These partnerships are critical because they provide the scale and the raw material-the data-that Veritone's aiWARE operating system needs to generate revenue.

Armada for Edge-to-Enterprise data fabric and real-time sensor data ingestion

The strategic partnership with Armada, announced on December 4, 2025, is a direct play to capture data at the source. This collaboration unites Armada's Edge Platform (AEP), which includes Galleon modular data centers, with Veritone's aiWARE AI operating system. The goal is to create the industry's first fully integrated Edge-to-Enterprise Data Fabric. This fabric is designed to ingest high-volume audio, video, drone, and sensor streams even when disconnected, turning that raw input into actionable intelligence and monetizable digital assets in real time. This extends Veritone's reach directly to where mission-critical data is generated, like for public safety or live events.

• Partnership announced on December 4, 2025.
• Focus on ingesting data from drones, mobile sensors, and body-worn cameras.
• Aims to enable real-time situational awareness for agencies.

Major hyperscalers for VDR distribution and AI model training data licensing

The Veritone Data Refinery (VDR) initiative is clearly a major focus, directly involving major hyperscalers. Veritone has stated they are firmly on track to have formalized partnerships with nearly every major hyperscaler by the end of 2025. This is about turning proprietary, unstructured data into license-ready datasets for external AI model training. The pipeline for this is showing real traction, which is what you want to see.

Here's the quick math on the VDR pipeline momentum as of late 2025:

Metric	Value (as of late 2025)	Comparison/Context
VDR Qualified Pipeline & Bookings	Over $40.0 million	Up 100% from August 2025 estimates.
VDR Pipeline Growth (Q1 to Q3)	400% increase	From Q1 2025 levels.
Software Products & Services Growth (excl. Hire)	Over 200% year-over-year	Led principally by VDR initiatives in Q3 2025.

What this estimate hides is the conversion rate from pipeline to recognized revenue, but the growth rate is definitely telling.

Workday and other HCM/ATS providers for the Veritone Hire solution

The Veritone Hire solution, which uses the platform for Human Capital Management (HCM) and Applicant Tracking Systems (ATS), is part of the overall Software Products & Services revenue, but it appears to be a drag on the core AI software growth story. You can see this clearly when you look at the year-over-year numbers for Q3 2025. The core AI software growth is explosive, but the overall customer base is shrinking, which points directly to the Hire segment.

• Total Software Product & Services Customers as of September 30, 2025: 3,021.
• Customer count decreased 8.2% compared to September 30, 2024.
• This decline is principally due to fewer consumption-based customers across Veritone Hire.

Intellectual Property (IP) owners for content monetization via data licensing

The focus on data tokenization, especially with the Armada deal, directly supports the monetization of IP. By converting high-value audio, video, and sensor inputs into AI-ready digital tokens, Veritone is treating data as a renewable, monetizable asset class for long-term discovery and training-data licensing. This strategy is also evident in the Public Sector, where the pipeline approaches $218 million, up from $110 million earlier in the year, indicating strong enterprise appetite for licensed, processed data assets.

The overall company financial context shows the scale these partnerships are driving:

• Annual Recurring Revenue (ARR) as of September 30, 2025: $68.8 million, up 8.8% year-over-year.
• Full Year 2025 Revenue Guidance (as of November 2025): Range of $109 million to $115 million.

Finance: draft 13-week cash view by Friday.

Veritone, Inc. (VERI) - Canvas Business Model: Key Activities

You're looking at the core engine room of Veritone, Inc. (VERI) as of late 2025. The key activities revolve around making their AI platform the necessary infrastructure for data monetization, especially unstructured media.

Developing and orchestrating the aiWARE AI operating system.

The aiWARE platform is positioned as the 'operating system for AI'. This activity involves processing raw, unstructured media-video, audio, text, and images-using hundreds of specialized AI engines. The platform's strength is integrating various machine learning models. The core business momentum is clearly tied to this platform's success, as seen in the financial results.

Here are the latest figures reflecting the platform's traction:

Metric	Value (Q3 2025)	Comparison/Context
Total Revenue	$29.1 million	Up 32.4% year-over-year
Software Products & Services Revenue	$22.8 million	Up 55.5% year-over-year
Software Products & Services Revenue (Excl. Hire1)	Grew over 200% year-over-year	Led by iDEMS and VDR initiatives
Total ARR	$68.8 million	Up 9% year-over-year

The company is definitely pushing to cement aiWARE's role as foundational infrastructure.

Transforming unstructured media into 5T+ tokens of AI-ready data (VDR).

The Veritone Data Refinery (VDR) is the specific activity that turns media into sellable data products, creating AI-ready tokens with embedded governance and rights metadata. This is a direct monetization play on unstructured data, which is increasingly seen as the most strategic asset in the AI race.

• VDR processed over 5 trillion (5T) tokens in Q2 2025.
• These tokens were derived from several million hours of audio and video in Q2 2025.
• The VDR pipeline has shown explosive growth: it was over $10 million in Q1 2025, over $15 million in June 2025, over $20.0 million in Q2 2025, and exceeded $40.0 million by Q3 2025.

That pipeline growth-a 400% increase from Q1 2025 to Q3 2025-is a huge indicator of this activity's focus.

Securing and executing large Public Sector contracts (e.g., U.S. Air Force sole-source deal).

Securing and executing on government work is a major key activity, using the aiWARE platform and the Intelligent Digital Evidence Management System (iDEMS). The sole source contract with the U.S. Air Force Office of Special Investigations (AFOSI) was awarded on June 24, 2025. This agreement includes an option to extend for five years. The Public Sector segment is clearly delivering results, with revenue growing 59% year-over-year to $20.9 million in Q3 2025. Also, cost reduction initiatives were initiated in June 2025, expected to yield annualized savings up to $10.0 million, with over $7.5 million already executed.

Sales and marketing to convert the $40 million qualified VDR pipeline.

The sales and marketing effort is currently focused on converting the large, qualified VDR pipeline, which stood at over $40 million as of Q3 2025. This figure represents roughly 2x the current quarter's bookings. The company is aiming to have formalized partnerships with nearly every major hyperscaler by the end of 2025. The conversion of this pipeline is critical, as management noted that converting the existing VDR pipeline into recurring, higher margin revenue is the most important near-term catalyst. The full-year 2025 revenue guidance is set between $109 million and $115 million. Finance: draft 13-week cash view by Friday.

Veritone, Inc. (VERI) - Canvas Business Model: Key Resources

You're looking at the core assets that power Veritone, Inc.'s entire operation as of late 2025. The foundation here isn't just software; it's the accumulated data processing capability.

The proprietary aiWARE platform is central, acting as the AI operating system that orchestrates the processing of unstructured data. This system is equipped with 850 specialized AI models designed to handle multimodal data like audio, video, images, and text simultaneously.

The Veritone Data Refinery (VDR) technology is a key resource for data tokenization, transforming raw media into structured, AI-ready tokens with embedded governance and rights metadata. Since its 2024 launch, VDR built a near-term sales pipeline exceeding $20 million. In the second quarter of 2025 alone, the platform processed over 5 trillion tokens.

Financial resources are also critical for sustaining this operation. As of September 30, 2025, Veritone, Inc. held $36.5 million in cash and restricted cash. This was following significant capital activity, as the company raised aggregate net proceeds of approximately $154.9 million through equity offerings through the first nine months of 2025. The consolidated debt stood at approximately $126.7 million as of September 30, 2025, which was reduced subsequent to that date.

Here's a quick look at some of those key financial and operational figures:

Resource Metric	Value/Amount	As Of/Period
Cash and Restricted Cash	$36.5 million	September 30, 2025
Consolidated Debt	Approximately $126.7 million	September 30, 2025
aiWARE Integrated AI Models	850+	Current
VDR Tokens Processed Milestone	Over 5 trillion	Q2 2025
VDR Near-Term Sales Pipeline	Exceeding $20 million	As of August 2025

The intellectual property underpinning the business is protected through patents and the proprietary nature of the core technology. These assets govern the AI data processing capabilities:

• Proprietary aiWARE operating system.
• Patents governing AI data processing and tokenization architecture.
• The established, large library of tokenized audio and video data.
• 'Awardable' status through the Platform One (P1) Solutions Marketplace for DoD work.

This IP allows Veritone, Inc. to transform data into a monetizable digital asset class.

Veritone, Inc. (VERI) - Canvas Business Model: Value Propositions

You're looking at the core value Veritone, Inc. (VERI) delivers right now, late in 2025. It's all about making sense of the massive, messy data piles that every large organization sits on. Honestly, the biggest value is turning what was once a liability-unstructured data-into a strategic asset.

Unlocking value from unstructured data (audio, video, sensor streams)

The fundamental proposition here is tackling the fact that up to 90% of today's data is unstructured. Veritone, Inc. uses its aiWARE platform to ingest, index, and transform this raw media, like audio and video, into actionable intelligence. In the second quarter of 2025 alone, the Veritone Data Refinery (VDR) processed over 5 trillion (5T) tokens derived from premium video and audio, which translates to processing millions of hours of content in that quarter. This process creates structured metadata, or tokens, which are the building blocks for AI applications.

Providing a unified, multi-engine AI platform, not just a single tool

You aren't just buying one algorithm; you are buying an operating system for AI, which they call aiWARE. This platform orchestrates an ecosystem of specialized machine learning models. This is key because no single AI model can handle everything. Instead, Veritone, Inc. offers a suite of capabilities that can be deployed as needed for a specific task.

Cognitive Engine Feature	Examples of AI Capabilities
Data Ingestion & Processing	Leveraging 850 best-in-class AI models as of Q2 2025.
Media Analysis	Transcription, sentiment and emotion analysis, face detection.
Content Indexing	Music identification, object recognition, and geolocation information identification from audio-visual data.

This multi-engine approach lets them service diverse verticals, from media and entertainment to the public sector, all on the same foundational software. Their Software Products & Services revenue, excluding Veritone Hire, grew over 200% year-over-year in Q3 2025, showing strong adoption of this core platform capability.

Creating high-quality, compliant AI training data for model developers (VDR)

The Veritone Data Refinery (VDR) proposition is about creating the lifeblood of the AI industry: high-quality, compliant training data. VDR tokenizes this complex, multimodal data while embedding governance and rights metadata at creation. This makes the data licensable and commercially viable for model developers, including hyperscalers. The market validation for this is clear: the VDR qualified bookings and near-term pipeline hit nearly $40.0 million exiting Q3 2025, a 100% jump since August 2025. The company is positioning itself to be the preferred partner for most major hyperscalers by the end of 2025, aiming to capture a piece of a market projected to grow from $3.19 billion in 2025 to $16.3 billion by 2034. Veritone, Inc. projects its own training data revenue to grow from $5-20 million in 2025 to $60 million by 2027.

Streamlining public safety and national security evidence management (iDEMS)

For the public sector, the value is accelerating investigations and ensuring compliance with massive evidence loads. The Intelligent Digital Evidence Management System (iDEMS) centralizes data from disparate sources into one CJIS-compliant cloud location. This system leverages AI models-more than 300 in the aiWARE ecosystem-to automate tasks like redaction, suspect identification, and searching within video and audio. This directly addresses the explosion of video evidence, where over 80% of police departments now use body-worn cameras. The focus on this area is yielding results; Public Sector revenue grew 59% year-over-year to $20.9 million in Q3 2025, bolstered by a sole-source contract with the U.S. Air Force Office of Special Investigations (AFOSI) in Q2 2025. The global Digital Evidence Management market is estimated to exceed $12 billion by 2028, and iDEMS is positioned to capture a significant part of that. Finance: review the Q4 2025 Public Sector pipeline against the Q3 $20.9 million revenue mark by next Tuesday.

Veritone, Inc. (VERI) - Canvas Business Model: Customer Relationships

You're looking at how Veritone, Inc. manages its diverse customer base, which spans from large government agencies to individual users consuming AI services. It's a multi-pronged approach to keep those relationships strong and growing.

Dedicated enterprise sales for high-value Public Sector and Commercial deals

For the big, strategic wins, Veritone, Inc. relies on a dedicated enterprise sales force. This team targets high-value Public Sector and Commercial Enterprise customers, particularly for the Veritone Data Refinery (VDR) offering, which is sold into both segments. The momentum here is clear; the VDR qualified near-term pipeline and bookings already surpassed $40.0 million as of late 2025, representing a 100% increase from August 2025 estimates. This focus is driving significant growth in the Public Sector, which saw a 90% year-over-year revenue increase in Q2 2025, with management targeting 100%-150% revenue growth for the full fiscal year 2025. The Q3 2025 results showed total revenue growth of over 32% year-over-year, with Software Products & Services revenue jumping 55.5% year-over-year, which management attributes to larger deals executed in Public Sector and Commercial Enterprise VDR in Q2 2025.

Here are some key enterprise customer wins and pipeline metrics:

• Public Sector wins included the Department of Justice and Fresno Police Department in Q1 2025.
• A sole source contract was closed with the U.S. Air Force Office of Special Investigations (AFOSI) in June 2025.
• The company expressed confidence in holding active contracts or projects with nearly every major hyperscaler by the end of 2025.
• The VDR platform has processed over 5 trillion tokens derived from premium video and audio in Q2 2025 alone.

Automated self-service via the aiWARE platform for consumption-based users

For users engaging with the aiWARE platform on a consumption basis, the relationship is largely automated. This model is reflected in the Consumption ARR component of the total ARR. While Total Software Product & Services Customers stood at 3,021 as of September 30, 2025, this number was down 8.2% from the prior year, partly due to fewer consumption-based customers in Veritone Hire and sunsetting legacy customers. However, the spending from the remaining base is increasing. Consumption ARR jumped 54% sequentially to $18.8 million in Q3 2025. This indicates that while the total count of these users might be shrinking, the value derived from the remaining consumption-based relationships is accelerating rapidly.

Here's a look at the ARR mix as of late 2025:

Metric	Amount (as of Q3 2025)	Change Context
Total Annual Recurring Revenue (ARR)	$68.8 million	8.8% increase year-over-year (Source 1)
Subscription-based SaaS ARR	~$50 million	Roughly flat sequentially (Source 6)
Consumption ARR	$18.8 million	54% jump sequentially (Source 6)

Professional services for custom deployment and integration support

When a high-value deal closes, especially in the Public Sector like the AFOSI contract, Veritone, Inc. deploys professional services for custom deployment and integration support. The AFOSI agreement specifically mentioned that aiWARE, iDEMS, and professional services will be implemented to provide advanced investigative capabilities. This service component is crucial for ensuring complex, on-premise or highly customized AI deployments on the aiWARE operating system are successful, which directly impacts long-term customer satisfaction and potential upsells.

Account management for recurring subscription-based SaaS customers

For customers on the recurring subscription-based SaaS model, account management is key to retention and expansion. This segment contributes to the Subscription ARR, which was approximately $50 million in Q3 2025. The company reported securing over 100 new business and renewal software agreements in Q1 2025, showing active management of the installed base. Furthermore, the company maintained a solid gross revenue retention rate above 90% in Q2 2025, which is a direct indicator of effective account management practices keeping the core subscription revenue sticky. New bookings, which include both subscription and consumption elements, rose 30% year-over-year to $21.5 million in Q3 2025, suggesting successful upselling or cross-selling efforts within the existing customer base.

Key retention and expansion indicators:

• Gross Revenue Retention Rate: Above 90% in Q2 2025.
• New Bookings (Q3 2025): $21.5 million, up 30% year-over-year.
• Total Software Product & Services Customers (Q3 2025): 3,021.

Finance: finalize the Q4 2025 customer retention forecast by end of January.

Veritone, Inc. (VERI) - Canvas Business Model: Channels

You're looking at how Veritone, Inc. gets its AI software and services into the hands of customers, which is definitely shifting toward software products as of late 2025. The channels are a mix of direct selling muscle and strategic alliances, all feeding into the aiWARE platform.

Direct Sales Team Focus: Public Sector and Commercial Enterprise

The direct sales force is clearly prioritizing the Public Sector and Commercial Enterprise, especially with the Veritone Data Refinery (VDR) offering. For the third quarter of 2025, Software Products & Services revenue hit $22.8 million, which was a strong 55.5% increase year-over-year. Honestly, the growth story is split, but Commercial Enterprise is driving the dollar volume right now.

Here's the quick math on the Q3 2025 Software Products & Services growth:

Segment	Q3 2025 Growth Driver	Approximate Dollar Growth (Q3 2025 YoY)
Commercial Enterprise Software	VDR driven	$7.8 million
Public Sector Software	General growth	$0.4 million

Still, the Public Sector is the high-growth story on a percentage basis. Management reaffirmed a fiscal year 2025 target of 100% to 150% growth for the Public Sector. By the end of Q2 2025, the Public Sector pipeline had swelled to $189 million, up from $110 million in Q1 2025. The Commercial Enterprise sector saw its revenue grow by 24% in Q3 2025, while the Public Sector grew by 59% to $20.9 million in that same quarter. If onboarding takes too long, churn risk rises, but these large government deals are clearly ramping up.

Strategic Channel Partners

Veritone, Inc. uses strategic channel partners to help deploy its technology, especially for edge-to-cloud needs. You see this in the co-selling efforts and the growth of the VDR pipeline, which is a key asset being pushed through various routes. The company announced a co-selling agreement with Workday that has already generated new opportunities and leads. Other named partners include Freemantle, Audacy, World Athletics, Cox Media Group, Westwood One, Allrites, Beasley, and Hubbard.

The VDR offering is a big part of this channel push. Its qualified near-term pipeline shows clear momentum:

• VDR Qualified Pipeline (Q3 2025 end): over $40.0 million.
• VDR Pipeline Growth (Q3 2025 vs Q1 2025): up 400%.
• VDR Initial Gross Margin: approximately 40%, with expectations for expansion throughout 2025.

Online Platform Access for Software Product and Service Delivery

The aiWARE platform is the core delivery mechanism for software products. As of September 30, 2025, Total Software Product & Services Customers stood at 3,021, a slight decrease of 8.2% compared to September 30, 2024, largely due to sunsetting legacy CareerBuilder customers and consumption shifts in Veritone Hire. However, the stickiness of the remaining base is strong, with Annual Recurring Revenue (ARR) reaching $68.8 million, an increase of 8.8% year-over-year.

The revenue mix is also telling you something about platform use. In Q3 2025, SaaS revenue represented 73% of total ARR, which is down from 81% in previous quarters, suggesting consumption-based revenue models are growing their share of the recurring base. Plus, the gross revenue retention rate for Q3 2025 was reported as exceeding 90%. To give you a sense of scale on the platform, in Q2 2025, Veritone aiWARE processed an estimated 5 trillion tokens.

Third-Party AI Systems Integration

Veritone, Inc. is positioning VDR as a critical enabler for the broader AI ecosystem, meaning its output is integrated into third-party AI systems, particularly hyperscalers. The company is confident that by the end of 2025, it will hold active contracts or projects with nearly every major hyperscaler in the market. This integration strategy is key to monetizing the tokenization of unstructured data. Back in fiscal year 2024, Veritone leveraged over 862 unique AI models, blending its own technology with models from leading third-party partners to process over 10.5 petabytes of data. This shows the platform is designed to be an interoperable layer, not a closed garden.

Finance: draft 13-week cash view by Friday.

Veritone, Inc. (VERI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Veritone, Inc. as of late 2025, and it's clearly segmented across high-value, data-intensive verticals. The company is actively pivoting its focus toward its core AI software, which is showing up in the numbers, especially with the Veritone Data Refinery (VDR) product line.

The customer segments are distinct, each using the aiWARE platform for different, yet related, needs-from evidence management to training the next generation of AI models. Here's how the pieces fit together based on the latest figures from the third quarter of 2025.

Public Sector: Federal (U.S. Air Force), state, and local law enforcement (iDEMS)

This segment is a major growth engine for the Software Products & Services revenue. The Public Sector showed strong year-over-year growth in Q3 2025, with its Software Products & Services revenue reaching $20.9 million, a 59% increase compared to the third quarter of 2024. This growth is underpinned by significant federal contracts. For instance, Veritone, Inc. was awarded a Sole Source Contract with the United States Air Force Office of Special Investigations (AFOSI) in June 2025, deploying both aiWARE and the Intelligent Digital Evidence Management System (iDEMS). The company had guidance suggesting Public Sector growth between 100-150% for the full year 2025. iDEMS is the direct solution for law enforcement, streamlining digital evidence management and analysis.

• Awarded Sole Source Contract with AFOSI in June 2025.
• Public Sector contributed $0.4 million growth to Software Products & Services revenue in Q3 2025.
• Public Sector growth was 90% year-over-year in Q2 2025.

Commercial Enterprise: Media, entertainment, and sports IP owners

The Commercial Enterprise segment is a significant contributor to the overall Software Products & Services revenue growth, though it has seen some consumption-based headwinds. In Q3 2025, this sector drove $7.8 million in revenue growth for Software Products & Services compared to Q3 2024. Overall commercial sector revenue increased by 24% in Q3 2025. Key customers mentioned include Amazon, Bloomberg, and ESPN, with expanded partnerships noted with ESPN and CBS News. However, Q1 2025 revenue was negatively affected by reduced consumption spending from this customer base.

AI Model Developers and Hyperscalers needing training data (VDR)

The Veritone Data Refinery (VDR) is Veritone, Inc.'s play in the AI training data market, selling tokenized, clean data sets to developers and hyperscalers. This is a high-growth area. As of the Q3 2025 earnings report, the qualified bookings and near-term pipeline for VDR surpassed $40.0 million. This pipeline represented a 400% increase from Q1 2025 estimates. The pipeline was reported at over $10.0 million at the end of Q1 2025 and exceeded $15 million by late June 2025. Management expressed confidence in holding active contracts or projects with nearly every major hyperscaler by the end of 2025. VDR revenue growth contributed to the overall Software Products & Services growth, which grew over 200% year-over-year in Q3 2025 when excluding Veritone Hire revenue.

Talent Acquisition: Enterprises using Veritone Hire for recruitment

This segment, represented by Veritone Hire, is currently a drag on the total customer count, though it still contributes to revenue. Total Software Products & Services Customers stood at 3,021 as of September 30, 2025, an 8.2% decrease year-over-year, which was principally attributed to fewer consumption-based customers across Veritone Hire. Similarly, the customer count was 3,067 as of June 30, 2025, down 10.8% from the prior year. Veritone Hire revenue itself declined year-over-year in Q3 2025.

Here's a quick look at the customer base metrics as of the latest reported periods:

Segment/Metric	Latest Reported Value (2025)	Reporting Period	Context/Driver
Total Software Products & Services Customers	3,021	September 30, 2025	Decreased 8.2% Y/Y, impacted by Veritone Hire
Public Sector Software Products & Services Revenue Contribution	$20.9 million	Q3 2025	Grew 59% Y/Y
Commercial Enterprise Software Products & Services Revenue Growth	$7.8 million	Q3 2025 vs Q3 2024	Revenue growth contribution
Veritone Data Refinery (VDR) Pipeline	Over $40.0 million	Q3 2025	Qualified bookings and near-term pipeline
Veritone Hire Customer Count Impact	Fewer consumption-based customers	Q3 2025	Contributed to overall customer base decline

The shift in revenue mix is notable; SaaS revenue was 73% of total Annual Recurring Revenue (ARR) in Q3 2025, down from 81% in previous quarters, signaling an increase in consumption-based revenue models, likely from VDR and Public Sector deals. The total ARR was $68.8 million as of September 30, 2025, an 8.8% increase year-over-year.

Finance: draft 13-week cash view by Friday.

Veritone, Inc. (VERI) - Canvas Business Model: Cost Structure

You're looking at the core expenses driving Veritone, Inc.'s operations as of late 2025. The cost structure is heavily weighted toward developing and running its proprietary artificial intelligence, even as the company aggressively works to streamline its overhead.

The most immediate, quantifiable cost-cutting action involved restructuring initiatives announced in June 2025. These efforts were designed to yield targeted annualized savings of up to $10 million. The one-time costs associated with these reductions, primarily severance and transition expenses, were expected to be between $0.5 million and $0.7 million.

A major structural cost reduction came from transforming the balance sheet in November 2025. By paying down debt, Veritone, Inc. significantly lowered its annualized debt carrying costs by over 90%, dropping them from approximately $14.0 million to just $0.8 million annually, which translates to an annual saving of approximately $13.0 million.

The overall spending on operations, which includes R&D and SG&A, is reflected in the operating loss figures. For the third quarter ended September 30, 2025, the reported GAAP loss from operations was $15.8 million, an improvement of 29.7% from the $22.5 million loss reported in Q3 2024.

The continuous investment in the aiWARE platform and specific product lines like Veritone Data Refinery (VDR) is the engine of the business, but it drives significant ongoing costs, which are bundled into the operating expenses. The company is focused on driving high-margin software revenue to absorb these fixed technology costs.

Here are the key financial metrics related to Veritone, Inc.'s cost profile as of the latest reported periods:

Cost/Savings Component	Period/Context	Amount
Targeted Annualized Savings (Restructuring)	Initiated June 2025	Up to $10 million
One-Time Restructuring Costs	Expected related to June 2025 initiatives	$0.5 million to $0.7 million
Annualized Debt Carrying Cost Savings	Following November 2025 debt paydown	Approximately $13.0 million
GAAP Loss from Operations	Q3 2025 (Ended September 30, 2025)	$15.8 million
GAAP Loss from Operations	Q3 2024	$22.5 million
Non-GAAP Net Loss from Continuing Operations	Q3 2025 (Ended September 30, 2025)	$5.8 million
Full Year 2025 Non-GAAP Net Loss Expectation	Reaffirmed Guidance	Between $26.0 million and $31.6 million

The primary drivers of the variable and fixed costs underpinning the platform development and service delivery include:

• Significant R&D investment for continuous AI model and platform enhancement.
• Cloud infrastructure and data processing expenses for aiWARE and VDR operations.
• Sales, General, and Administrative (SG&A) expenses, including sales commissions tied to revenue growth.
• Costs related to the execution of the debt paydown, which was approximately $78 million in cash and stock used for debt and note repurchase.

You should track the relationship between the growth in Software Products & Services revenue-which grew 55% year over year in Q3 2025 to $22.8 million-and the operating loss improvement, as this indicates operating leverage kicking in. CFO Michael L. Zemetra noted that some one-time software revenue with very high gross margins was included in Q3 2025, which may affect the gross margin profile in Q4 2025.

Finance: draft 13-week cash view by Friday.

Veritone, Inc. (VERI) - Canvas Business Model: Revenue Streams

You're looking at how Veritone, Inc. actually brings in the money, which is key to understanding its platform value. The revenue model clearly leans heavily into its AI software offerings now, moving away from older service lines.

The core of the revenue generation is split between Software Products & Services and Managed Services. For the third quarter ending September 30, 2025, the total revenue hit $29.1 million.

Software Products & Services (SaaS and Consumption-based fees)

• This segment is the primary growth engine, reporting Q3 2025 revenue of $22.8 million.
• That represents a year-over-year increase of 55.5%.
• Excluding revenue from Veritone Hire, this core software business grew over 200% year-over-year, largely fueled by iDEMS and VDR initiatives.
• As of Q3 2025, Annual Recurring Revenue (ARR) stood at $68.8 million, up 9% from Q2 2024's $63.4 million.
• Consumption-based ARR specifically increased 26% year-over-year.
• Subscription-based SaaS customers were up slightly by 3% year-over-year as of Q3 2025.

Managed Services (Content licensing and representation services)

• Managed Services revenue was $6.3 million in Q3 2025.
• This was a year-over-year decrease of 14.1%, mainly due to lower revenue from representation services.

VDR data licensing revenue from tokenized, AI-ready datasets

The Veritone Data Refinery (VDR) is a major driver within the Software Products & Services category. It transforms unstructured data into tokenized, searchable, model-ready datasets, creating recurring revenue streams. The momentum here is clear:

• The VDR qualified bookings and near-term pipeline exceeded $40.0 million exiting Q3 2025.
• This pipeline represented a 100% sequential increase from August 2025 estimates and a 400% increase from Q1 2025.
• For context, VDR gross margins were approximately 40% back in Q2 2025.

Here's a quick look at the key financial metrics driving the revenue picture as of the latest reporting period:

Metric	Value (Q3 2025 or Guidance)	Context
Q3 2025 Total Revenue	$29.1 million	Up 32.4% year-over-year.
Software Products & Services Revenue (Q3 2025)	$22.8 million	Grew 55.5% year-over-year.
Managed Services Revenue (Q3 2025)	$6.3 million	Decreased 14.1% year-over-year.
Annual Recurring Revenue (ARR)	$68.8 million	As of Q3 2025.
VDR Near-Term Pipeline	Over $40.0 million	As of Q3 2025.

Looking ahead, Veritone, Inc. has updated its expectations for the full year 2025. The company projects total revenue to be in the range of $109 million to $115 million. This compares to the actual revenue of $92.6 million reported for fiscal year 2024. The midpoint of the new guidance implies about a 21% annual increase over 2024.

Finance: draft 13-week cash view by Friday.