v3.26.1
Consolidated Financial Statement Details
 3 Months Ended
Mar. 31, 2026
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidated Financial Statement Details Consolidated Financial Statement Details
Consolidated Balance Sheets Details

Cash and Cash Equivalents
As of March 31, 2026 and December 31, 2025, the Company had cash and cash equivalents of $15,087 and $27,426.
Accounts Receivable, Net and Allowance for Credit Losses
Accounts receivable consisted of the following:
As of
March 31,
2026		December 31,
2025
Accounts receivable - Managed Services (1)$11,113 $13,600 
Accounts receivable - Software Products and Services17,486 24,996 
28,599 38,596 
Less: allowance for expected credit losses(1,882)(1,828)
Accounts receivable, net$26,717 $36,768 

Accounts receivable - Managed Services reflects the amounts due from the Company’s licensing and representation customers.
Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following:
March 31,
2026		December 31,
2025
Prepaid expenses$4,518 $5,383 
Indemnification escrow holdback1,500 1,500 
Other receivables78 121 
Trade credits1,539 1,557 
Other current assets1,015 1,159 
Prepaid expenses and other current assets$8,650 $9,720 
Property, Equipment and Improvements, Net
Property, equipment and improvements, net consisted of the following:

As of
March 31,
2026		December 31,
2025
Property and equipment$3,768 $3,738 
Internal use software development costs16,628 16,533 
Leasehold improvements464 464 
20,860 20,735 
Less: accumulated depreciation(11,720)(11,153)
Property, equipment and improvements, net$9,140 $9,582 

Depreciation expense was $1,362 and $1,001 for the three months ended March 31, 2026 and 2025, respectively.

The Company’s property, equipment and improvements, net by geographic area are as follows:

As of
March 31,
2026		December 31,
2025
United States$5,843 $6,059 
United Kingdom3,103 3,333 
Others194 190 
Total property, equipment and improvements, net$9,140 $9,582 
Other Assets
Other assets consisted of the following:
March 31,
2026		December 31,
2025
Investments2,970 2,970 
Deferred tax assets836 835 
Operating lease right-of-use assets1,623 1,794 
Trade credits1,853 — 
Other1 1 
Other assets$7,283 $5,600 
Accrued Expenses and Other Current Liabilities
Accrued expenses and other current liabilities consisted of the following:
March 31,
2026		December 31,
2025
Accrued compensation$3,959 $4,288 
Taxes payable2,647 3,760 
Current portion of operating lease liabilities529 620 
Royalties payable7,105 7,246 
Accrued trade payables10,489 12,272 
Accrued expenses and other current liabilities$24,729 $28,186 

Other Non-Current Liabilities

Other non-current liabilities consisted of the following:

As of
March 31,
2026		December 31,
2025
Deferred tax liability$3,327 $4,111 
Income taxes payable2,633 2,499 
Operating lease liability, net of current portion1,195 1,285 
Deferred revenue250 — 
Unclaimed escrow liability2,481 2,481 
Other50 — 
Other non-current liabilities$9,936 $10,376 
Contract Liabilities
Contract liabilities consist of deferred revenue. Deferred revenue represents billings under non-cancelable contracts before the related product or service is transferred to the customer. The portion of deferred revenue that is anticipated to be recognized as revenue during the succeeding twelve-month period is recorded as deferred revenue within the Company's condensed consolidated balance sheets. Deferred revenue was comprised of the following:
Deferred Revenue
Balance as of December 31, 2025$12,290 
Less: revenue recognized(7,992)
Additions to deferred revenue9,145 
Balance as of March 31, 202613,443 
Consolidated Statements of Operations and Comprehensive Loss Details
Revenue
The Company serves two customer groups: (1) Commercial Enterprise, which today consists of customers in the commercial sector, including media and entertainment customers, representation customers and Veritone Hire solutions customers (inclusive of Broadbean customers); and (2) Public Sector, which consists of customers in the public sector industries, including state, local and federal government, legal, and compliance customers.
Software Products & Services consists of revenue generated from the Company’s aiWARE platform, including its Veritone Data Refinery (“VDR”) product, and our Talent Acquisition solutions, any related support and maintenance services, and any related professional services associated with the deployment and/or implementation of such solutions.
Managed Services consists of revenues generated from content licensing customers, representation services, and, to a lesser extent, from advertising customers and related services.
The table below illustrates the presentation of our revenues based on the above definitions:
March 31, 2026March 31, 2025
Software Products & Services$13,815 $14,483 
Managed Services:
Representation Services1,976 2,771 
Licensing4,468 5,209 
Total Managed Services6,444 7,980 
Total revenue$20,259 $22,463 
Other Expense (Income), Net
The $520 of other expense, net for the three months ended March 31, 2026 primarily consisted of foreign currency impact.
The $4,061 of other (income), net for the three months ended March 31, 2025 consisted of a $3,654 gain on revaluation of the Veritone One earnout receivable and a $407 foreign currency impact.
Provision for Income Taxes
In accordance with ASC 740-270, Income Taxes, the provision or benefit from income taxes for interim periods is determined using an estimate of the Company’s annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates the estimate of the annual effective tax rate, and if the estimated tax rate changes, the Company records a cumulative adjustment. A separate estimated annual effective tax rate is applied for jurisdictions where an entity anticipates an ordinary loss or has an ordinary loss for the year to date for which no tax benefit can be recognized.
The Company’s effective tax rate was a benefit of 3.0% and 1.6% for the three months ended March 31, 2026 and 2025, respectively. The difference between the effective tax rate and the U.S. federal statutory rate of 21% is primarily due to a valuation allowance established on the Company’s domestic federal and state net deferred tax assets, as well as the impact of foreign operations subject to tax in foreign jurisdictions. The change in the effective tax rates for the three months ended March 31, 2026 as compared to the comparable prior year period is primarily due to the impact of taxes on foreign operations and valuation allowances against domestic net deferred tax assets.
As of March 31, 2026 and December 31, 2025, the Company had deferred tax assets of $836 and $835, respectively, and deferred tax liabilities of $3,327 and $4,111, respectively, which are included in other assets and other non-current liabilities, respectively, within the Company’s condensed consolidated balance sheets. As of March 31, 2026, the Company continues to provide a valuation allowance against deferred tax assets that are not expected to be realizable. The Company continues to evaluate the realizability of deferred tax assets and the related valuation allowance. If the Company’s assessment of the deferred tax assets or the corresponding valuation allowance were to change, the Company would record the related adjustment to income during the period in which the determination is made.
The Company is subject to taxation in the United States, Israel, the United Kingdom, France, and Australia. The United States, Israel, and the United Kingdom comprise the majority of the Company’s operations. In general, the U.S. federal statute of limitations is three years. However, the Internal Revenue Service may still adjust a tax loss or credit carryover in the year the tax loss or credit carryover is utilized. As such, the Company’s U.S. federal tax returns and state tax returns are open for examination since inception. The Israeli statute of limitations period is generally four years commencing at the end of the year in which the return was filed. The Company’s 2023 U.S. Federal tax return is currently under examination.
On July 4, 2025, the U.S. enacted H.R. 1 “A bill to provide for reconciliation pursuant to Title II of H. Con. Res. 14”, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”). The OBBBA contains significant provisions, including the permanent extension or restoration of certain expiring corporate income tax provisions, originally introduced by the Tax Cuts and Jobs Act of 2017, and incremental modifications to the international framework. The legislation has multiple effective dates, with certain provisions effective for the tax year beginning after December 31, 2024, and others effective for tax years beginning after December 31, 2025. Veritone has evaluated the OBBBA provisions enacted during the quarter and has included the related impact in the provision for income taxes for the three months ended March 31, 2026, which was not material.