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Beacon Securities Cuts VerticalScope Target Amid Revenue Decline

5/16/2025

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Summary

Story summary

Beacon Securities lowers VerticalScope Holdings' price target from $12.00 to $8.50 but keeps a “Buy” rating.
Q1 revenue of $13.6 million fell short of expectations, with digital ad revenue declining 7.8% year-over-year.
Monthly active users decreased by 7.8% to 103.9 million, and free cash flow dropped 39.6% to $3.12 million.
The company plans to diversify from search traffic by improving its platform and investing in direct traffic.
Full-year 2025 guidance remains steady, with EBITDA expected between $21-24 million.

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Story summary

Beacon Securities lowers VerticalScope Holdings' price target from $12.00 to $8.50 but keeps a “Buy” rating.
Q1 revenue of $13.6 million fell short of expectations, with digital ad revenue declining 7.8% year-over-year.
Monthly active users decreased by 7.8% to 103.9 million, and free cash flow dropped 39.6% to $3.12 million.
The company plans to diversify from search traffic by improving its platform and investing in direct traffic.
Full-year 2025 guidance remains steady, with EBITDA expected between $21-24 million.