Bull case
Veritone is attractive because its managed services are rebounding meaningfully, with revenue up 17% year over year after a prior 19% decline, while software revenue held flat at $16.7 million and the company closed over 100 public sector contracts in the quarter, signaling resilience across both commercial and government demand. The longer-term investment case is supported by a large VDR opportunity, with management citing a $99 million direct revenue opportunity over the next 18 months, including $65 million over the next 12 months, and by the possibility that faster adoption of VDR solutions by LLMs could drive material upside through higher estimates and multiple expansion. Even though FY26 revenue guidance was lowered to $100-$115 million from $130-$145 million and execution delays at major hyperscalers and the DOW contract have pressured reported results, the underlying pipeline, improving mix, and strong unit economics suggest the business can recover as timing issues normalize.