VerifyMe, Inc. reported a loss of $0.02 per share in Q3, which was better than the Zacks Consensus Estimate of a $0.04 loss. This is an improvement from last year’s loss of $0.06 per share. The company had a positive earnings surprise of 50% this quarter, following a 66.67% surprise in the previous quarter. Over the last four quarters, VerifyMe has exceeded consensus EPS estimates three times. In Q3 2025, VerifyMe’s revenue reached $5.03 million, surpassing estimates by 2.92%, but down from $5.43 million a year earlier. The company has beaten consensus revenue estimates twice in the past four quarters. Since the beginning of the year, VerifyMe shares have dropped about 41.5%, while the S&P 500 gained 14.6%. The company’s stock performance largely depends on earnings projections and management statements. For the next quarter, the consensus EPS estimate is -$0.02 with projected revenues of $7.47 million. The full-year estimate stands at -$0.13 EPS with $21.34 million in revenues. Arbe Robotics Ltd., a competitor, plans to release Q3 2025 results on November 17, forecasting revenues of $0.7 million, marking a substantial increase of 483.3% from the previous year. VerifyMe’s lower-than-expected loss of $0.02 per share, compared to the projected $0.04, has sparked short-term positive sentiment. Yesterday, trading volume surged to over 2.5 million shares, much higher than its 50-day average of around 700,000, indicating that traders are adjusting their positions. However, it’s important to note that the stock is still significantly down since January 2025. For derivatives traders, the immediate aftermath of the earnings report likely means a sharp decline in implied volatility. This “volatility crush” benefits those who sold premium through strategies like iron condors or straddles before the announcement. Interest is rising in December 2025 call options with a $1.50 strike price, suggesting expectations for a slight rise in stock price in the coming weeks. We should be cautious about the decline in year-over-year revenue, which fell to $5.03 million from $5.43 million in the same quarter of 2024. Generally, stocks that beat earnings estimates but show falling revenue may experience a short rally before falling again. Buying protective puts could be a wise hedging strategy if the stock can’t maintain its post-earnings gains. Management’s announcement of a new partnership during the earnings call may act as a growth catalyst into 2026, potentially supporting the stock price. The overall Technology Services industry is also doing well, providing a helpful boost. However, with the Federal Reserve indicating it will keep interest rates steady through early 2026, the market remains sensitive to weaknesses among small-cap growth companies. We are also monitoring Arbe Robotics, which is releasing its results today, November 17th. A strong report from Arbe could enhance confidence in the sector, providing a lift for VerifyMe. On the other hand, if Arbe disappoints, it could dampen the positive sentiment and put pressure back on VerifyMe shares.

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