Verb Technology (TONX) Financials

Verb Technology (NASDAQ: TONX) has experienced a dramatic business reset over the last four years, and the latest quarter shows the company sitting on a much larger cash balance than in prior periods. But the income statement remains deeply negative, and the biggest driver of results is still a large amount of non-operating income/loss volatility rather than steady operating profitability.

For Q1 2026, revenue was $5.25 million, down from $5.74 million in Q4 2025 but up sharply from the prior year’s smaller historical quarters. Gross profit was $3.96 million, yet operating expenses were $7.84 million, producing an operating loss of $3.89 million. The quarter also included -$87.4 million of other expense, leading to a net loss of -$91.1 million.

Cash flow remains a concern. The company used -$4.69 million in operating cash during Q1 2026, and it ended the quarter with $34.8 million in cash and equivalents. That cash position is much stronger than at several points in 2024 and early 2025, but operations are still consuming cash.

• Revenue has improved materially versus 2024 levels. Q1 2026 revenue of $5.25 million is far above the very small revenue base seen in early 2024, showing the business has scaled meaningfully.
• Gross profit remains solid. Q1 2026 gross profit of $3.96 million suggests the core revenue mix can still produce acceptable margins before overhead.
• Cash on hand increased sharply year over year. Cash and equivalents were $34.8 million at the end of Q1 2026, versus much lower levels in 2024.
• The balance sheet is currently lightly levered. Total liabilities were only $5.1 million in Q1 2026, with no short-term debt reported.
• Operating cash burn improved sequentially from late 2025. Operating cash outflow of $4.69 million was better than the $7.99 million operating outflow in Q4 2025.
• The company’s financial profile changed dramatically in 2025. There were very large swings in equity, assets, and other income/expense, making year-over-year comparisons less straightforward than for a normal operating company.
• Non-cash items are a major part of reported results. Q1 2026 included $85.5 million of non-cash adjustments, indicating reported earnings are heavily affected by accounting items.
• Share count has fluctuated significantly over time. The weighted average shares outstanding have varied widely across quarters, which can affect per-share results and investor interpretation.
• Operating expenses still exceed gross profit. In Q1 2026, SG&A and depreciation totaled $7.84 million versus $3.96 million of gross profit.
• Net losses remain severe. Q1 2026 net loss was $91.1 million, reflecting a business that is still far from sustained profitability.
• Cash from operations is negative. The company burned $4.69 million in operating cash in Q1 2026, which is not sustainable without continued financing or improved profitability.
• Prior quarters showed extreme volatility in other income/expense. Large non-operating gains and losses have made earnings highly unstable and harder to model.
• Historical revenue base was very small. Even though recent revenue is much higher, the business is still operating from a relatively small top line compared with its expense load.

Bottom line: Verb Technology shows signs of a bigger business than it had a year ago, and its cash balance is healthier than it used to be. However, the company is still losing money at a steep rate, burning cash from operations, and posting highly volatile results driven by non-operating items. Investors should treat the improved revenue and balance sheet as encouraging, but not as proof of a durable turnaround yet.