Core Insights - IZEA Worldwide, Inc. operates in the influencer marketing and content creation space, connecting brands with content creators to produce engaging content [1] - IZEA's Return on Invested Capital (ROIC) is -24.62%, significantly lower than its Weighted Average Cost of Capital (WACC) of 8.90%, indicating poor capital efficiency [2][6] - Remark Holdings, Inc. demonstrates a positive ROIC of 37.09% against a WACC of 25.17%, highlighting effective capital utilization [3][6] - Other peers like Vislink Technologies, Inc. and Boxlight Corporation also struggle with negative ROIC to WACC ratios, indicating industry-wide challenges in achieving capital efficiency [4][6] - Inuvo, Inc. faces similar issues with a ROIC of -46.39% and a WACC of 8.64%, further emphasizing the difficulties in capital efficiency within the sector [5]

Core Insights - IZEA held its Third Quarter 2025 Earnings Conference Call, with key executives present including the CEO and CFO [2][3] Financial Performance - The company issued a press release detailing its performance during Q3 2025, which can be reviewed on their Investor Relations website [3] - Commentary included non-GAAP financial measures such as adjusted EBITDA and revenues, excluding divested operations [5]

Financial Data and Key Metrics Changes - Total revenue for Q3 2025 decreased by 8% to $8.1 million due to shedding unprofitable project work and softness in government and retail accounts [4] - Managed service revenue excluding Hoozu increased by 5% [4] - Total operating expenses decreased by 67% [4] - Net income totaled $0.1 million compared to a net loss of $8.8 million during Q3 2024 [4] - Cash increased by $0.8 million to $51.4 million [4] - Year-to-date managed services revenue is up 14% with net income totaling $1.2 million [4][12] Business Line Data and Key Metrics Changes - Managed services bookings, excluding Hoozu, declined by 26% to $18.2 million for the nine months ended September 30, 2025 [10] - Revenue from managed services, excluding Hoozu, increased by 14% for the nine months ended September 30, 2025 [11] - Cost of revenue totaled $4.2 million, or 51% of revenue in Q3 2025, compared to $5.2 million, or 59% of revenue in the same quarter of the prior year [11] Market Data and Key Metrics Changes - Enterprise accounts are growing at double-digit rates, with some at triple-digit rates [5] - The pipeline reached a new high for the year, with invitations to larger pitches growing [6] Company Strategy and Development Direction - The company is focusing on fortifying, simplifying, and concentrating on managed services [5] - A new account management model was implemented to focus on larger, more profitable recurring accounts [9] - The company is investing in its technology platform, infusing it with AI-powered features [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future and the ability to deliver additional value to stakeholders [8] - The strategic focus on higher quality recurring accounts is expected to improve profitability and support sustainable growth [10] Other Important Information - The company achieved profitability for the third quarter, marking only the second quarter in its history to do so through operating performance [12] - Cumulative stock repurchases totaled 561,950 shares for an aggregate investment of $1.4 million [14] Q&A Session Summary - There were no questions in the queue during the Q&A session [16]

Revenue Performance - Revenue for the three months ended September 30, 2025, decreased by $759,414, or 9%, compared to the same period in 2024, totaling $8,072,380[166]. - Excluding revenue from the divested Hoozu, revenue grew by $200,000, or 2.48%, driven by strong growth among large enterprise customers[167]. - Revenue for the nine months ended September 30, 2025, increased by $295,482, or 1%, to $25,173,975 compared to $24,878,493 in 2024[175]. - Excluding the divested Hoozu, revenue increased by $2.6 million, or 11%, driven by strong growth among large enterprise customers[176]. - Revenue from Managed Services, excluding Hoozu, increased by 14% for the nine months ended September 30, 2025, compared to the prior-year period, while overall growth slowed to 5% in the quarter[198]. Cost Management - Cost of revenue declined by $1,057,729, or 20%, to $4,152,375, primarily due to the absence of Hoozu-related costs[166]. - Cost of revenue declined by $1.4 million, or 10%, primarily due to the absence of costs related to Hoozu; excluding Hoozu, costs increased by 5.2% year-over-year[177]. - Sales and marketing expenses decreased by $1,783,957, or approximately 62%, to $1,095,363, due to lower payroll and reduced advertising spending[169]. - Sales and marketing expenses decreased by $6.0 million, or approximately 65%, due to lower payroll and reduced advertising spending[178]. - General and administrative expenses decreased by $2,835,706, or approximately 49%, to $3,004,321, primarily from lower employee-related costs[170]. - General and administrative expenses decreased by $4.2 million, or approximately 32%, primarily from lower employee-related costs[179]. - Depreciation and amortization expenses decreased by $89,109, or approximately 37%, to $150,740, due to intangible assets becoming fully amortized[172]. - The total costs and expenses for the three months ended September 30, 2025, were $8,402,799, a decrease of $9,783,223, or 54%, compared to the prior year[166]. Profitability - Net income for the three months ended September 30, 2025, was $147,745, compared to a net loss of $8,768,319 for the same period in 2024, representing an improvement of $8,916,064[166]. - Net income for the nine months ended September 30, 2025, was $1,210,013, a $15,439,010 increase from a net loss of $14,228,997 in 2024[183]. - EBITDA improved by $10.7 million during the first nine months of 2025, moving from a $9.1 million loss in 2024 to a $1.6 million profit in 2025[199]. Cash Flow and Financial Position - Cash and cash equivalents increased to $51.4 million as of September 30, 2025, compared to $44.6 million as of December 31, 2024[193]. - Net cash provided by operating activities was $2.4 million during the nine months ended September 30, 2025, primarily driven by net income and strong accounts receivable collections[194]. - The company believes its cash and cash equivalents are sufficient to fund planned growth initiatives over the next twelve months[201]. Strategic Initiatives - The company implemented a new account management model focusing on larger, more valuable recurring accounts, resulting in a strategic realignment and improved profitability[195]. - The company expects profitable organic growth over the next twelve months, albeit from a lower, but more profitable revenue base in 2025[200]. - Operating expenses are expected to increase gradually as the company invests in expansion, but the current cost structure is better aligned to scale efficiently[200]. Accounting and Risk Disclosures - The company recorded a full impairment of goodwill of $4,016,722 in September 2024, impacting the prior year's results[171]. - There have been no material changes to the company's critical accounting policies as of the latest quarterly report[202]. - The company did not report any applicable market risk disclosures as it is classified as a smaller reporting company[204]. - No off-balance sheet arrangements were engaged by the company as of September 30, 2025[201].

Revenue Performance - Total revenue for Q3 2025 was $8.1 million, a decrease from $8.8 million in Q3 2024[5] - Revenue for Q3 2025 was $8,072,380, a decrease of 9% from $8,831,794 in Q3 2024[24] - Managed Services Revenue for Q3 2025 was $8,036,430, down 7% from $8,625,924 in Q3 2024[28] - SaaS Services Revenue for Q3 2025 was $35,950, a significant decline of 83% from $205,870 in Q3 2024[28] - The company reported a 14% increase in Managed Services Revenue for the nine months ended September 30, 2025, totaling $24,996,871 compared to $21,889,570 in the same period of 2024[28] Profitability - Net income for Q3 2025 was $0.1 million, a significant improvement from a net loss of $8.8 million in Q3 2024[9] - Net income for Q3 2025 was $147,745, compared to a net loss of $8,768,319 in Q3 2024[26] - Total comprehensive income for Q3 2025 was $148,793, compared to a loss of $8,777,659 in Q3 2024[26] - Basic income per share for Q3 2025 was $0.01, compared to a loss of $0.52 per share in Q3 2024[24] EBITDA - Adjusted EBITDA for the quarter was $0.4 million, improving by $3.8 million year-over-year from a loss of $3.4 million[10] - Adjusted EBITDA for Q3 2025 was $353,017, an improvement from a loss of $3,441,432 in Q3 2024[30] - Operating EBITDA as a percentage of revenue for Q3 2025 was 4.4%, a significant improvement from -39.0% in Q3 2024[30] Costs and Expenses - Total costs and expenses decreased by 54% to $8.4 million compared to $18.2 million in the prior year[7] - Total costs and expenses for Q3 2025 were $8,402,799, down from $18,186,022 in Q3 2024[24] - Cost of revenue was $4.2 million, or 51% of revenue, down from $5.2 million, or 59%, in the prior-year quarter[6] - Sales and marketing costs were $1.1 million, a 62% decrease from $2.9 million in the prior-year quarter[8] Business Development - The company has won new business from major brands including Amazon, General Motors, and Owens-Corning, and produced new work for clients like Kellogg's and Nestlé[7] - Managed services bookings declined by 44% to $3.6 million, reflecting the strategy to focus on larger, recurring accounts[7]

Core Insights - IZEA Worldwide, Inc. reported a year-over-year improvement in net income of $8.8 million, achieving positive cash from operations [1][11] - The company experienced its third consecutive quarter of financial improvement, focusing on sustainable and profitable growth despite a decline in total revenue and bookings due to shedding unprofitable work [5][6] Financial Performance - Total revenue for Q3 2025 was $8.1 million, a decrease from $8.8 million in Q3 2024, but a 2.5% increase year-over-year when excluding the divested Hoozu [7][24] - Managed services revenue increased by 5% to $8.0 million compared to $7.7 million in the previous year, excluding Hoozu [8][29] - Net income for Q3 2025 was $0.1 million, a significant recovery from a net loss of $8.8 million in Q3 2024 [11][30] - Adjusted EBITDA for the quarter was $0.4 million, improving by $3.8 million year-over-year [12][31] Cost Management - Cost of revenue decreased to $4.2 million, representing 51% of revenue, down from 59% in the prior-year quarter [8][25] - Total costs and expenses declined by 54% to $8.4 million compared to $18.2 million in Q3 2024 [8][30] - Sales and marketing costs were reduced by 62% to $1.1 million, largely due to workforce reductions and a pause in advertising spending [10][30] Strategic Initiatives - The company has focused on strengthening U.S. operations and prioritizing enterprise clients, resulting in double- and triple-digit growth among enterprise accounts [6][8] - New business wins include contracts with major brands such as Amazon, General Motors, and Kellogg's, contributing to the company's growth trajectory [6][8] - Investment in technology has been emphasized, with enhancements to the platform including AI-powered insights to improve client performance [6][8] Cash Position - As of September 30, 2025, cash and equivalents totaled $51.4 million, reflecting positive cash from operations [12][23] - The company has no outstanding long-term debt, indicating a strong financial position [12][23]

Earnings Reports Overview - The earnings season is slowing down, but several retail-favorite companies are set to report this week [1] - Key companies reporting include Barrick Mining Corp., Plug Power Inc., Oklo Inc., Cisco Systems Inc., Walt Disney Co., and Applied Materials Inc. [2][3][5][10][11] Company-Specific Insights - Barrick Mining Corp. reported its third-quarter results before the market opened on November 10 [2] - Plug Power Inc. is expected to report losses of 12 cents per share and revenue of $179.54 million, having missed earnings expectations for the last 18 quarters [3] - Oklo Inc. is anticipated to report losses of 13 cents per share and revenue of $17.01 billion, with stock volatility noted ahead of the report [5] - Cisco Systems Inc. is expected to be a focal point for investors, particularly regarding management's guidance and updates on AI and cybersecurity business momentum [10] - Walt Disney Co. and JD.com Inc. will release earnings reports before the market opens on November 13 [11] - Applied Materials Inc. is set to release its Q4 results after the market closes on November 13 [11] Additional Companies Reporting - Other companies reporting this week include Workhorse Group Inc., Beyond Meat Inc., Microvision Inc., and Virgin Galactic Holdings Inc. [4][6][12]

Core Insights - IZEA Worldwide, Inc. will hold a conference call to discuss its Q3 2025 financial results on November 12, 2025, at 5:00 p.m. EST [1] - The call will be hosted by CEO Patrick Venetucci and CFO Peter Biere, followed by a Q&A session [1] Company Overview - IZEA is an influencer marketing company focused on creating solutions for the Creator Economy [3] - Since its inception in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators [3]

Group 1: IZEA Worldwide, Inc. - IZEA operates in the influencer marketing and content creation space, connecting brands with content creators [1] - The stock is currently trading at $4.90, with a target price of $2.26, indicating a potential downside of approximately 53.90% [1] - Analysts hold pessimistic views on IZEA's stock, resulting in its exclusion from coverage [1][4] Group 2: Peer Comparison - Vislink Technologies, Inc. (VISL) is trading at $1.86, with a DCF of $1.07 and a market cap of $4.59 million, reflecting a negative outlook [2] - Boxlight Corporation (BOXL) has the highest growth potential among IZEA's peers, with a current price of $1.90 and a DCF of $1.35 [3][4] - BOXL's market cap is $5.05 million, with an EPS of -13.34 and a P/E ratio of -0.15, indicating a relatively better outlook compared to other peers [3]

Core Viewpoint - IZEA WORLDWIDE, INC. (IZEA) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - Institutional investors often rely on earnings estimates to determine the fair value of a company's shares, leading to buying or selling actions that affect stock prices [4]. Recent Performance and Outlook - The Zacks Consensus Estimate for IZEA WORLDWIDE has increased by 41.9% over the past three months, with expected earnings of $0.44 per share for the fiscal year ending December 2025, showing no year-over-year change [8]. - The upgrade reflects an improvement in the company's underlying business, suggesting that investors may push the stock price higher in response to this positive trend [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating [9][10]. - Stocks rated Zacks Rank 1 (Strong Buy) have historically generated an average annual return of +25% since 1988, indicating the effectiveness of the rating system [7].