VERSES AI Narrows Q3 Net Loss 67% to $5.5M as Cash Reserves Shrink
VERSES AI INC., an artificial intelligence company, posted a net loss of $5.5 million for the three months ending December 31, 2025, down from a $16.8 million loss in the same quarter a year earlier. The company burned through $21.8 million in operating cash during the first nine months of fiscal 2026.
VERSES AI INC., an artificial intelligence company, reported a net loss of $5.5 million for the three months ending December 31, 2025, a 67% improvement from the $16.8 million loss recorded in the same quarter of the prior year. For the nine months ending December 31, 2025, the company's net loss totaled $25.0 million, compared to $34.3 million for the nine months ending December 31, 2024. Read more earnings reports.
Revenue for the three-month period reached $417,932, up from $155,000 for the nine-month period ending December 31, 2024. For the nine months ending December 31, 2025, total revenue came to $818,632. Cost of revenue for the quarter was $292,552, resulting in gross profit of $125,380.
Operating expenses remained elevated despite the improved bottom line. Selling, general and administrative expenses totaled $5.5 million for the three months ending December 31, 2025, down from $13.3 million in the year-earlier quarter. The operating loss for the quarter was $5.4 million, compared to an operating loss of $13.3 million in the prior-year period.
The company's balance sheet showed total assets of $2.3 million as of December 31, 2025, down sharply from $6.4 million as of March 31, 2025. Current assets fell to $2.1 million from $6.2 million over the same period. Cash used in operations totaled $21.8 million for the nine months ending December 31, 2025, compared to $24.8 million in the year-earlier period.
VERSES AI reported a stockholders' deficit of $13.2 million as of December 31, 2025, compared to a deficit of $8.9 million as of March 31, 2025. The company raised $17.0 million from financing activities during the nine-month period, compared to $24.4 million in the prior-year period. Common shares outstanding increased to 12.6 million as of December 31, 2025, from 7.8 million as of March 31, 2025.
Total liabilities stood at $15.5 million as of December 31, 2025, compared to $15.2 million as of March 31, 2025. Accounts payable rose to $3.1 million from $2.0 million over the same period. The company held $164,000 in accounts receivable as of December 31, 2025.
Basic and diluted loss per share for the three months ending December 31, 2025 was $0.47, based on 11.3 million weighted average shares outstanding. This compared to a loss per share of $2.63 for the same quarter in the prior year, based on 6.4 million weighted average shares.
| Key Financials | Q3 FY2026 | Q3 FY2025 |
|---|---|---|
| Total Revenue (3 months) | $417,932 | — |
| Net Loss (3 months) | ($5,476,661) | ($16,811,050) |
| Net Loss (9 months) | ($24,982,562) | ($34,274,476) |
| Operating Loss (3 months) | ($5,409,363) | ($13,259,580) |
| Total Assets | $2,290,444 | $6,376,575* |
| Cash from Operations (9 months) | ($21,788,300) | ($24,762,761) |
| Stockholders' Deficit | ($13,197,759) | ($8,868,756)* |
*As of March 31, 2025