Needham lowered its price target for Veritone (NASDAQ: VERI) from $10.00 to $5.00. The firm maintained a Buy rating despite the 50% reduction.
Veritone reported a wider-than-expected second-quarter loss and missed revenue estimates. Postponed public sector budgets drove the quarterly revenue shortfall.
Management reduced fiscal 2026 revenue guidance due to shifting U.S. Federal AI project priorities. Needham expressed concerns regarding increased cash burn and persistent revenue delays.
The company is executing a restructuring plan to lower costs. Veritone expects to achieve profitability by 2027.