Revenue rose to $24.3 million in Q2 2026, up 20% sequentially and 5% year over year, driven by Veritone Data Refinery and licensing services. Growth was partly offset by delayed public-sector funding and weaker hiring-market demand. Veritone has implemented about $11.3 million in annualized savings and is targeting $15 million to $20 million by the end of 2026, with break-even profitability targeted for fiscal 2027.
The company ended the quarter with $12.7 million in cash and restricted cash and about $45 million in debt. The company updated its 2026 outlook to $100 million–$150 million in revenue and a non-GAAP net loss of $22 million–$32 million. Its VDR pipeline exceeds $65 million, while the public-sector pipeline remains above $200 million, though some opportunities may shift into 2027.
Veritone (NASDAQ:VERI) reported second-quarter 2026 revenue of $24.3 million, up 20% sequentially and 5% from a year earlier, as growth in its Veritone Data Refinery, or VDR, and licensing services offset pressure in hiring and public-sector revenue. Chief Executive Officer Ryan Steelberg said the company continued to execute restructuring and cost-reduction initiatives while launching new artificial intelligence products and expanding its sales pipeline. Veritone has implemented actions representing approximately $11.3 million in annualized savings, including workforce reductions and lower non-payroll expenses, he said. → Lumentum Just Delivered the AI Growth Investors Wanted The company is targeting total annualized cost reductions of $15 million to $20 million by the end of 2026.
Steelberg said Veritone intends to continue identifying efficiencies into 2027, with a goal of realizing up to 30% in relative total savings through the first part of that year. The company is targeting break-even profitability in fiscal 2027. Chief Financial Officer Mike Zemetra said second-quarter revenue increased $4 million from the first quarter, driven by VDR and licensing services, which together rose 40% sequentially.
Managed services also increased $1 million from the prior-year quarter, led by representation and licensing services. → Joby's Defense Pivot Accelerates With $500M Resonant Sciences Deal However, Zemetra said results came in slightly below expectations due largely to delayed public-sector funding. He attributed the decline in public-sector revenue from a year earlier to a delayed Department of Defense contract extension, which he said resulted from temporary budget shifts toward the conflict in Iran. Veritone remains engaged with the Department of Defense and expects funding for the project could be approved in the second half of 2026 or the first half of 2027, depending on the status of the conflict, Zemetra said. → Ryman Checks Into a $1.38B Hospitality Upgrade The company also said some larger hyperscaler VDR transactions remained under review and had not been fully processed during the quarter.
Veritone has all major hyperscalers under contract and reported a near-term VDR sales pipeline and bookings opportunity exceeding $65 million, including more than $15 million in active opportunities that could close in the third or fourth quarter. Steelberg said a single incremental order from a signed hyperscaler or foundation-model developer could represent millions of dollars in quarterly margin. He added that Veritone is progressing with its migration to Oracle, with initial storage payloads expected to begin moving during the current month.
Extract — continue reading at the source.
