olivLaw · European equity research
VERIMATRIX VMX.PA
France · Euronext Paris · ISIN FR0010291245 · Vertical: Listed companies from France
Verimatrix is a software publisher specialised in protecting video content against piracy, with customers in the entertainment and streaming industry. In fiscal 2025 revenue fell to 46.509 million USD, and the company refocused after selling the XTD line in February 2026, which makes its new strategic direction worth assessing.
At the close of 05 Nov 2026, VERIMATRIX (VMX.PA) stock was 0.29 EUR (+0.69% on the day), with beta 0.36, 52-week range 0.15–0.37 EUR.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 52.1
- neutral
- Bollinger (20, 2)
- 0.25 – 0.31
- in the upper half of the band · %B 0.72 · band width 20.6%
- SMA 50 / 200
- 0.30 / 0.23
- mixed trend
- MACD (12, 26, 9)
- -0.00 / -0.01
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | −2.7% | −0.6% | −2.0 pp | — |
| 3 months | −8.2% | −4.2% | −4.0 pp | — |
| 6 months | +58.7% | +4.3% | +54.4 pp | — |
| Year to date | +43.1% | +7.5% | +35.6 pp | — |
| 1 year | +80.2% | +9.9% | +70.3 pp | −6.8% |
| 3 years | −33.6% | +49.8% | −83.5 pp | −15.9% |
| 5 years | −74.8% | +42.8% | −117.7 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
the price (USD) and the reports are in different currencies
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | 61.6 m | 57.2 m | 46.5 m |
| Revenue YoY | unavailable | −7.2% | −18.7% |
| Net income | -14.3 m | -10.3 m | -78.6 m |
| Net income YoY | unavailable | unavailable | unavailable |
| Diluted EPS | -0.17 | -0.12 | 0.90 |
| Diluted EPS YoY | unavailable | unavailable | unavailable |
| net % | -23.2% | -18.1% | -169.0% |
| Free cash flow | -1.1 m | -1.7 m | -662.0 k |
Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 7.1 m USD
- Financial debt
- 32.1 m USD
- Net debt
- 24.9 m USD
- Equity
- 34.6 m USD
- Total assets
- 91.4 m USD
- Debt / equity
- 0.93x
- Current ratio
- 0.79x
- ROE
- -107.5%
- ROA
- -59.7%
- FCF margin
- -1.4%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 61.6 m | 57.2 m | 46.5 m | esef· 12 May 2026verified |
| Cost of revenue | 19.1 m | 18.3 m | 17.0 m | esef· 12 May 2026verified |
| Gross profit | 42.5 m | 38.9 m | 29.5 m | esef· 12 May 2026verified |
| Research & development | 19.5 m | 18.3 m | 16.1 m | esef· 12 May 2026verified |
| Operating income | -8.3 m | -5.6 m | -73.1 m | esef· 12 May 2026verified |
| Pre-tax income | -12.2 m | -8.6 m | -78.0 m | esef· 12 May 2026verified |
| Income tax | 2.1 m | 1.7 m | 559.0 k | esef· 12 May 2026verified |
| Net income | -14.3 m | -10.3 m | -78.6 m | esef· 12 May 2026verified |
| Diluted EPS | -0.17 | -0.12 | 0.90 | esef· 12 May 2026verified |
Balance sheet · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Cash | 22.6 m | 11.0 m | 7.1 m | esef· 12 May 2026verified |
| Receivables | 28.7 m | 26.8 m | 16.7 m | esef· 12 May 2026verified |
| Inventories | 390.0 k | 388.0 k | 418.0 k | esef· 12 May 2026verified |
| Current assets | 56.6 m | 40.9 m | 35.4 m | esef· 12 May 2026verified |
| Property, plant & equipment, net | 5.7 m | 4.2 m | 3.0 m | esef· 12 May 2026verified |
| Goodwill | 115.2 m | 115.2 m | 48.2 m | esef· 12 May 2026verified |
| Intangibles (excl. goodwill) | 13.0 m | 10.5 m | 4.2 m | esef· 12 May 2026verified |
| Total assets | 191.9 m | 171.9 m | 91.4 m | esef· 12 May 2026verified |
| Short-term debt | 26.1 m | 2.4 m | 20.6 m | esef· 12 May 2026verified |
| Long-term debt | 14.4 m | 29.9 m | 11.5 m | esef· 12 May 2026verified |
| Current liabilities | 53.5 m | 28.6 m | 44.9 m | esef· 12 May 2026verified |
| Total liabilities | 70.1 m | 60.4 m | 56.9 m | esef· 12 May 2026verified |
| Equity | 121.8 m | 111.5 m | 34.6 m | esef· 12 May 2026verified |
| Shares outstanding at year end | 84.1 m | 86.1 m | — | esef· 12 May 2026derived |
Cash flow · USD
| Line | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | -792.0 k | -1.6 m | -289.0 k | esef· 12 May 2026verified |
| Capex | 322.0 k | 100.0 k | 373.0 k | esef· 12 May 2026verified |
| Free cash flow | -1.1 m ≈ | -1.7 m ≈ | -662.0 k ≈ | esef· 12 May 2026derived |
| Investing cash flow | -2.8 m | -2.1 m | -2.0 m | esef· 12 May 2026verified |
| Financing cash flow | -3.7 m | -8.1 m | -1.4 m | esef· 12 May 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 3 of at least 6
- score weight coverage: 20.8% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: unavailable
Price and reporting are in different currencies; market indicators are unavailable.
Key indicators
Coverage and freshness
Score by group
21% · Insufficient data
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 9.98 – 26.82 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)unavailable · input data missing
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E9.98 – 26.82 (Mid 15.42)20 companies used · median multiple 17.1x · quartiles 11.1x – 29.8x74SW.PA, ABEO.PA, AC.PA, ADP.PA, AF.PA, AI.PA, ALBON.PA, ALCIS.PA, ALCLA.PA, ALFER.PA, ALHEX.PA, ALO.PA, ALPWG.PA, ALSOG.PA, ANTIN.PA, ARAMI.PA, ATE.PA, AUB.PA, AURE.PA, BB.PA
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 3 of at least 6; score weight coverage: 20.8% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | -63.8% | 5 (vs peers) | 50% |
| Net margin · Quality | -169.0% | 13 (vs peers) | 30% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 0.8x | 0 (on a fixed band) | 20% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | unavailable | unavailable | — |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial0/100 · 1/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality8/100 · 2/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partialunavailable · 0/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
VERIMATRIX (VMX.PA). Latest full fiscal year: 2025; data up to 2025-12-31.
Figures computed from the financial statements: revenue 46.5 m USD in 2025; YoY growth -18.7%; net margin -169.0%; ROE -107.5%.
The estimated value range is 9.98–26.82 USD per share (median of 1 methods, agreement: single method); assumptions are illustrative. The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (indicators available: 3 of at least 6; score weight coverage: 20.8% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
No signal among the computed factors. That is not an absence of risk: factors without data were not assessed, and business risks (margins, inventory, demand) are in the source-based analysis.
What contradicts it
- ROIC: -63.8%
- Net margin: -169.0%
- Current ratio: 0.8x
Not assessed (insufficient data or a ratio without meaning): FCF conversion, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, FCF yield, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Listed companies from France · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| AI.PAL'air Liquide Societe Anonyme Pour L'etude Et L'exploitation Des Procedes Georges Claude | 109.3 bn | 33.2 | 12.9% | 12.2% | −2.0% | +26% / +32% |
| AC.PAAccor | 13.8 bn | 30.7 | 9.6% | 8.0% | +0.6% | +6% / +56% |
| ADP.PAAeroports De Paris | 11.7 bn | 34.1 | 7.8% | 5.6% | +12.1% | −7% / +4% |
| AKE.PAArkema | 7.1 bn | 115.4 | 0.9% | 0.7% | −5.0% | +12% / −37% |
| ALO.PAAlstom | 5.8 bn | 18.3 | 3.1% | 1.7% | +3.7% | −51% / −4% |
| AF.PAAir France - Klm | 4.3 bn | 13.6 | — | 1.0% | +4.8% | +20% / +9% |
| ATE.PAAlten | 3.1 bn | 29.5 | 4.8% | 2.6% | −1.1% | +33% / −29% |
| BB.PASociete Bic | 2.7 bn | 31.3 | 5.0% | 4.1% | −4.8% | +32% / +5% |
| ANTIN.PAAntin Infrastructure Partners | 1.4 bn | 13.0 | 21.9% | 36.6% | −8.1% | −24% / −35% |
| 74SW.PA74software | 792.7 m | 20.9 | 8.9% | 8.5% | +44.8% | −13% / +41% |
| AUB.PAAubay | 667.4 m | 17.8 | 13.6% | 6.3% | +11.3% | +3% / +45% |
| ASY.PAAssystem | 507.1 m | 69.9 | 2.5% | 1.1% | +7.4% | −19% / −18% |
| ATO.PAAtos Se | 483.0 m | — | -23,400.0% | -17.5% | −16.5% | −45% / −94% |
| ARAMI.PAAramis Group | 298.8 m | 15.0 | 10.0% | 0.8% | +6.3% | −33% / −16% |
| ARVEN.PAArverne Group | 246.1 m | — | -14.0% | -115.3% | +27.0% | +20% / −35% |
| BGO.PACompagnie Chargeurs Invest | 189.4 m | — | -8.6% | -5.7% | −2.9% | unavailable / unavailable |
| ALCIS.PACatering International & Services | 145.0 m | 28.4 | 9.3% | 1.9% | +5.8% | +39% / +107% |
| ALCGM.PACegedim | 144.6 m | — | -2.6% | -1.2% | +10.9% | −26% / −49% |
| ATEME.PAAteme | 144.0 m | 151.3 | 2.8% | 1.0% | +2.2% | +82% / +77% |
| ALHEX.PAHexaom | 144.0 m | 6.7 | 9.9% | 2.2% | +13.1% | −32% / +7% |
| ALBON.PACompagnie Lebon | 111.7 m | 16.5 | 4.2% | 8.8% | −17.9% | +6% / +8% |
| ALHYF.PALhyfe | 75.8 m | — | -33.4% | -570.5% | +287.2% | unavailable / unavailable |
| ALFER.PASergeferrari Group | 61.5 m | 11.5 | 5.1% | 1.5% | +7.4% | −33% / −27% |
| ABEO.PAAbeo | 60.8 m | 7.3 | 6.9% | 3.0% | +12.6% | −13% / −54% |
| ABNX.PAAbionyx Pharma | 53.5 m | — | -92.3% | -136.6% | −10.7% | −62% / +19% |
1- and 3-year price returns: for VMX.PA from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Scenarios are not available. input data missing
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Verimatrix is a software publisher specialised in protecting video content against piracy, with customers in the entertainment and streaming industry. In fiscal 2025 revenue fell to 46.509 million USD, and the company refocused after selling the XTD line in February 2026, which makes its new strategic direction worth assessing.
SWOT
Strengths
- Established position in content protection for Hollywood studios and other content providers.
- A portfolio focused on the core anti-piracy line, which generates most of the revenue.
- A balance sheet cleaned of non-core activities through recent disposals of product lines.
Weaknesses
- Revenue has declined in recent years, and net losses increased significantly in fiscal 2025.
- Dependence on a limited number of large customers who can negotiate hard terms.
- Smaller resources compared with historical competitors, which limits investment in new products.
Opportunities
- Growth in streamed sport and new uses of content protection could open new customers.
- If the shift to subscriptions succeeds, recurring revenue could become more predictable.
- Leveraging the existing installed base could generate additional revenue without large acquisition costs.
Threats
- Larger competitors could offer integrated bundles or aggressive pricing that reduce market share.
- Large customers could develop security components in-house, reducing demand for the company's solutions.
- Geopolitical tensions and sanctions may restrict operations in certain countries.
Risks
- Customer concentrationhigh
Losing a major customer could significantly affect revenue and operating result.
- Competitivenesshigh
If the company does not maintain its technological edge, it could lose market share to larger competitors.
- Currency riskmedium
Most revenue is in dollars, while part of operating costs and debt are in other currencies, mainly the euro.
- Liquidity and financingmedium
The company could need additional capital or new financing to support its development.
- Cryptology regulationlow
Cryptology activities are subject to prior declarations and authorisations, and regulatory changes could add costs.
Investment thesis
What would need to be true (bull case)
- If demand for content protection in sport and streaming grows, the company could benefit from a consolidated customer base and steadier recurring revenue.
- Refocusing on anti-piracy could reduce costs and make the company more efficient in execution.
- If subscription offers succeed in retaining customers, the revenue profile could become more predictable.
What would break the thesis
- The decline in revenue and large losses in the latest year could point to structural issues in the business model.
- Dependence on a few large customers could expose the company to pricing pressure and sudden revenue losses.
- Competitors with larger resources could limit the company's ability to expand its market share.
What to watch
- Revenue trend after the refocus on anti-piracy2026
- Share of subscription revenue in total revenue2026
- Stability of the large-customer portfolionext 10-K
- Progress toward the growth, EBITDA and free cash flow objectives set for 20282028
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Verimatrix designs software security solutions for video content, mobile applications and connected objects, headquartered in San Diego, California. In fiscal 2025 consolidated revenue was 46.509 million USD, compared with 57.205 million USD in 2024, and the company recorded a goodwill impairment of 60 million USD. The current offer centres on content protection (Anti-Piracy) and digital rights management.
The revenue model combines on-premise licences, SaaS services hosted in the cloud and subscriptions, and the company aims to grow the share of subscriptions. The customer base is concentrated: the largest customer represented 6% of consolidated revenue in 2025, the top five 20%, and the top ten 32%.
The company exited historical semiconductor activities and product lines outside video content, including the sale of its NFC patent portfolio and of the XTD line to Guardsquare for 8.4 million USD. Management states that the new structure is more focused but smaller in revenue terms.
Segments
Anti-Piracy (video content protection)
The main line, representing about 90% of total group revenue, includes the VCAS platform and the Streamkeeper solution for tracking piracy almost in real time. Customers are Hollywood studios and content providers worldwide.
Subscriptions and SaaS services
The company intends for subscription offers to become the main driver of its revenue profile, leveraging its installed base. This component is still developing and is not reported separately in financial figures.
Market context
The market for video content protection solutions depends on user adoption and customer demand in the entertainment industry, and the environment is described as having limited visibility and mixed decision cycles. Demand could be influenced by the expansion of OTT at the expense of linear television.
The market for security for mobile applications and connected objects, where the company has narrowed its activity, is fragmented, with smaller and less known competitors. In the video segment the company competes with established players with larger resources.
Trends
- Shift to digital content consumptiontailwind
The expansion of OTT distribution and streamed sport increases the need for content protection, which could support demand for Verimatrix solutions.
- Economic conditions and IT budgetsheadwind
Customers may cut investment in new technologies when conditions weaken, which could lengthen sales cycles.
- Shift to subscriptionsmixed
Moving from one-off licences to subscriptions can stabilise recurring revenue, but depends on retaining existing customers.
- Geopolitical tensionsheadwind
The conflicts in Ukraine and the Middle East led to trade restrictions and the relocation of software development work, with effects the company describes as limited so far.
Competitive position
In video content protection the main competitors named are Nagra-Kudelski, Irdeto and Synamedia. These competitors have greater resources, long-standing customer relationships and can offer integrated bundles or aggressive pricing.
In security for applications and connected devices, competition comes from smaller firms, and new entrants could appear through in-house development or technology licensing.
- Nagra-Kudelski
Long-standing competitor in video content protection, with greater resources and strong relationships with broadcast operators.
- Irdeto
Provider of security solutions for video delivery, present in the same customer segments.
- Synamedia
Competitor in video distribution platforms and integrated solutions for operators.
- Guardsquare
Belgian company that acquired the XTD product line from Verimatrix, so it is a transaction counterparty rather than a direct competitor.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202512 May 2026
- Annual report 202429 Apr 2025
Sources
- [1] Annual report, fiscal year ended 2025-12-31 (ESEF) · SEC / VERIMATRIX · 31 Dec 2025
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.