IZEA WORLDWIDE, INC. (IZEA) could be a solid choice for investors given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Th ...

Core Insights - IZEA Worldwide, Inc. operates in the influencer marketing and content creation space but struggles with a ROIC of -24.62%, significantly lower than its WACC of 9.76%, indicating inefficiency in generating returns [1][5] - Remark Holdings, Inc. demonstrates strong performance with a ROIC of 47.12% and a WACC of 25.15%, showcasing effective capital utilization [2][5] - Other companies like Vislink Technologies, Inc. and Boxlight Corporation also face challenges with negative ROICs of -141.38% and -30.16%, respectively, indicating a common issue in the sector of not covering the cost of capital [3][5] Company Performance - IZEA's ROIC to WACC ratio is -2.52, highlighting its underperformance in capital utilization [1] - Remark Holdings has a positive ROIC to WACC ratio of 1.87, suggesting efficient capital use [2] - Vislink Technologies and Boxlight Corporation have ROIC to WACC ratios of -13.59 and -1.44, respectively, further emphasizing the sector's challenges [3][5] - Inuvo, Inc. also faces difficulties with a ROIC of -42.40% and a WACC of 8.55%, resulting in a ROIC to WACC ratio of -4.96 [4]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 was approximately $9.1 million, a 0.4% increase compared to the same quarter in 2024, excluding $800,000 from divested operations [4][5] - Managed services revenue increased by 12.9% when excluding the divested Hozu operations [5] - Net income for Q2 2025 was $1.2 million or $0.07 per share, compared to a net loss of $2.2 million or negative $0.13 per share in Q2 2024 [9][10] - Adjusted EBITDA for Q2 2025 was $1.3 million, a significant improvement from a negative $2.2 million in the prior year [9][10] Business Line Data and Key Metrics Changes - Managed services bookings for Q2 2025 totaled $5.6 million, bringing total bookings for the year to date to $13.1 million, compared to $9.6 million in the same period of 2024 [5][6] - The decline in bookings was attributed to timing differences, a strategic shift towards larger accounts, and macroeconomic pressures affecting marketing budgets [6] Market Data and Key Metrics Changes - As of June 30, 2025, managed services backlog was $11.5 million, representing unrecognized revenue from ongoing contracts [7] - Total cost of revenue was $4.4 million, or 48% of revenue, down from 57% in the prior year [8] Company Strategy and Development Direction - The company has committed to a business model focused on higher growth and profitability, reducing international exposure and emphasizing larger, recurring accounts [14][15] - New business was secured from notable clients such as Jeep, Nestle, and Kellogg's, indicating a strong sales pipeline [15] - A new technology initiative was launched to enhance campaign management and integrate more AI into business processes [15] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing a strong pipeline and the addition of large customers as key growth drivers [16][33] - The company is strategically preparing for M&A opportunities while ensuring integration readiness [21][22] Other Important Information - The company has no debt and maintains a cash and investment balance of $50.6 million, positioning it well for organic growth and acquisitions [11] - Operating cash flow is positive, covering approximately half of the stock repurchase program investments [10][11] Q&A Session Summary Question: Can you elaborate on M&A activity? - Management confirmed they are actively engaging in discussions for potential M&A, emphasizing a strategic and responsible approach to capital use [21][22] Question: What about valuations in the private markets? - Management stated they will be reasonable and not overpay for acquisitions, aiming for mutually beneficial deals [24] Question: Can you discuss the decline in bookings and future revenue growth? - Management explained the decline was due to timing issues, a shift towards more profitable accounts, and macroeconomic factors, but expressed confidence in the long-term success of the new model [26][27] Question: What are the expectations for operating expenses going forward? - Management indicated that operating expenses are expected to remain flat, with some efficiencies allowing for growth without proportional cost increases [29][30] Question: Is there any revenue guidance for the remainder of the year? - Management refrained from providing specific revenue guidance but noted a strong pipeline and relationships with large customers [32][33] Question: Is the new VP of Talent Acquisition a full-time position? - Management confirmed that the new VP is full-time and will focus on attracting talent across various areas, not just marketing [34]

[PART I. FINANCIAL INFORMATION](index=4&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) IZEA Worldwide, Inc. achieved a net income of $1.1 million for the first half of 2025, reversing a prior-year loss, driven by revenue growth and cost reductions [Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Consolidated%20Balance%20Sheets) Total assets slightly decreased to $59.6 million, while liabilities significantly reduced, leading to an increase in stockholders' equity to $49.4 million Balance Sheet Highlights | Balance Sheet Highlights | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $50,643,015 | $44,644,468 | | Accounts receivable, net | $6,177,880 | $7,781,824 | | Total current assets | $57,389,059 | $60,030,040 | | Total assets | $59,630,190 | $62,220,274 | | **Liabilities & Equity** | | | | Contract liabilities | $6,661,453 | $8,188,651 | | Total current liabilities | $10,250,106 | $13,434,521 | | Total liabilities | $10,250,106 | $13,438,555 | | Total stockholders' equity | $49,380,084 | $48,781,719 | [Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Operations) The company achieved net income of $1.2 million in Q2 and $1.1 million in H1 2025, reversing prior-year losses due to significant operating expense reductions Income Statement Summary | Income Statement Summary | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$9,133,232** | **$9,093,816** | **$17,101,595** | **$16,046,699** | | Total costs and expenses | $8,395,422 | $11,983,124 | $17,019,637 | $22,994,662 | | Income (loss) from operations | $737,810 | ($2,889,308) | $81,958 | ($6,947,963) | | **Net income (loss)** | **$1,205,068** | **($2,194,828)** | **$1,062,268** | **($5,460,678)** | | **Diluted EPS** | **$0.07** | **($0.13)** | **$0.06** | **($0.33)** | [Consolidated Statements of Cash Flows](index=11&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash and cash equivalents increased by $6.0 million, driven by investing activities and a significant turnaround in operating cash flow to $1.2 million Cash Flow Summary (Six Months Ended June 30) | Cash Flow Summary (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $1,245,988 | ($7,256,857) | | Net cash provided by investing activities | $6,013,506 | $14,245,536 | | Net cash used in financing activities | ($1,128,145) | ($116,508) | | **Net increase in cash and cash equivalents** | **$5,998,547** | **$6,855,138** | | **Cash and cash equivalents, end of period** | **$50,643,015** | **$44,284,833** | [Notes to the Unaudited Consolidated Financial Statements](index=12&type=section&id=Notes%20to%20the%20Unaudited%20Consolidated%20Financial%20Statements) Notes detail accounting policies, revenue recognition, and equity, highlighting Managed Services, a $10 million share repurchase, and a new tax law - The company's business model is centered on the creator economy, providing Managed Services which include custom content workflow, creator search, bidding, analytics, and payment processing[27](index=27&type=chunk)[28](index=28&type=chunk) - A **$10.0 million** share repurchase program was authorized. As of June 30, 2025, **$1.3 million** had been used to repurchase 523,268 shares, with approximately **$8.7 million** remaining available[95](index=95&type=chunk)[98](index=98&type=chunk) Revenue by Type (Six Months Ended June 30) | Revenue by Type (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | Managed Services Revenue | $16,960,441 | $15,547,005 | | SaaS Services Revenue | $141,154 | $499,694 | | **Total Revenue** | **$17,101,595** | **$16,046,699** | Revenue by Geography (Six Months Ended June 30) | Revenue by Geography (Six Months Ended June 30) | 2025 | 2024 | | :--- | :--- | :--- | | North America | $15,042,336 | $13,027,444 | | APAC | $1,855,012 | $2,139,422 | | Other | $204,247 | $879,833 | - The company operates and is managed as one reportable operating segment, with the CEO acting as the Chief Operating Decision Maker (CODM)[130](index=130&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operation](index=29&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operation) Profitability in H1 2025 resulted from cost savings and workforce reduction, despite a 29% decline in Managed Services Bookings, with a strong cash position of $50.6 million [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Net income of $1.2 million in Q2 and $1.1 million in H1 2025 was achieved, reversing prior losses due to significant reductions in sales, marketing, and G&A expenses - Excluding revenue from the divested Hoozu subsidiary, revenue grew **10.5%** in Q2 2025 and **19%** in H1 2025 compared to the prior year periods[159](index=159&type=chunk)[168](index=168&type=chunk) - Sales and marketing expenses saw a dramatic decrease of **$2.2 million (70%)** in Q2 and **$4.2 million (67%)** in H1, attributed to workforce reductions and a pause in advertising spend[161](index=161&type=chunk)[170](index=170&type=chunk)[171](index=171&type=chunk) - General and administrative expenses decreased by **$0.5 million (14%)** in Q2 and **$1.3 million (18%)** in H1, also due to lower employee-related costs and reduced contractor use[162](index=162&type=chunk)[172](index=172&type=chunk) [Key Metrics and Non-GAAP Financial Measure](index=34&type=section&id=Key%20Metrics%20and%20Non-GAAP%20Financial%20Measure) Managed Services Bookings declined significantly to $5.6 million in Q2 and $13.1 million in H1, while Adjusted EBITDA dramatically improved to $1.3 million in Q2 2025 Managed Services Bookings | Managed Services Bookings | Three Months Ended June 30 | Six Months Ended June 30 | | :--- | :--- | :--- | | **2025** | **$5.6 million** | **$13.1 million** | | **2024** | **$10.3 million** | **$19.6 million** | Adjusted EBITDA Reconciliation (Non-GAAP) | Adjusted EBITDA Reconciliation (Non-GAAP) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | :--- | :--- | | Net income (loss) | $1,205,068 | ($2,194,828) | $1,062,268 | ($5,460,678) | | **Adjusted EBITDA** | **$1,326,460** | **($2,194,167)** | **$1,249,610** | **($5,615,828)** | | Adjusted EBITDA as a % of Revenue | 15% | (24)% | 7.3% | (35.0)% | [Liquidity and Capital Resources](index=36&type=section&id=Liquidity%20and%20Capital%20Resources) Liquidity strengthened with cash increasing to $50.6 million, deemed sufficient for future growth, despite a decline in contract backlog to $11.6 million - Cash and cash equivalents increased to **$50.6 million** as of June 30, 2025, from **$44.6 million** at year-end 2024[185](index=185&type=chunk) - Contract backlog declined from **$15.5 million** to **$11.6 million** during the first half of 2025, which management attributes to a strategic shift to larger accounts, client caution due to economic uncertainty, and internal resource allocation during a transition[187](index=187&type=chunk)[190](index=190&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=37&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section is not applicable as the company qualifies as a smaller reporting company - Not applicable to smaller reporting companies[193](index=193&type=chunk) [Controls and Procedures](index=37&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2025, with no material changes to internal control over financial reporting - Management concluded that as of June 30, 2025, the company's disclosure controls and procedures were effective[196](index=196&type=chunk) - No material changes to internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025[199](index=199&type=chunk) [PART II. OTHER INFORMATION](index=38&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Legal Proceedings](index=38&type=section&id=Item%201.%20Legal%20Proceedings) As of August 12, 2025, the company is not involved in any legal proceedings expected to have a material adverse effect on its business - The company is not currently a party to any legal proceedings or claims that are expected to have a material adverse effect[201](index=201&type=chunk) [Risk Factors](index=38&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes have occurred to the risk factors previously described in the 2024 Form 10-K[202](index=202&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=38&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased 121,788 shares at an average of $2.29 per share in Q2 2025, with $8.7 million remaining in the $10.0 million program Issuer Repurchases (Q2 2025) | Issuer Repurchases (Q2 2025) | Total Shares Purchased | Average Price Paid Per Share | | :--- | :--- | :--- | | April 2025 | 56,796 | $1.85 | | May 2025 | 26,310 | $2.48 | | June 2025 | 38,682 | $2.80 | | **Total** | **121,788** | **$2.29** | - As of June 30, 2025, the approximate dollar value of shares that may yet be purchased under the company's repurchase program was **$8,675,299**[203](index=203&type=chunk) [Defaults Upon Senior Securities](index=39&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) Not applicable [Mine Safety Disclosures](index=39&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable [Other Information](index=39&type=section&id=Item%205.%20Other%20Information) Not applicable [Exhibits](index=40&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data files

[Q2 2025 Earnings Overview](index=1&type=section&id=Q2%202025%20Earnings%20Overview) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) IZEA achieved its first-ever profitability in Q2 2025, with positive net income and operating cash flow, driven by strategic transformation and significant reductions in operating costs - The company achieved its first-ever profitability in Q2 2025, both from an operational and net income perspective[3](index=3&type=chunk) Q2 2025 Key Financial Data | Metric | Q2 2025 | Q2 2024 | | :----------------------------- | :------------- | :------------- | | Net Income | $1.2 million | $(2.2) million | | Earnings Per Share (EPS) | $0.07 | $(0.13) | | Adjusted EBITDA | $1.3 million | $(2.2) million | | Total Revenue | $9.1 million | $9.1 million | | Revenue from On-Going Operations (Excluding Hoozu) | 11% Growth | - | - Positive cash flow generated from operating activities[1](index=1&type=chunk)[6](index=6&type=chunk) - Total costs and expenses decreased by **30% year-over-year to $8.4 million**[6](index=6&type=chunk) [Management Commentary](index=1&type=section&id=Management%20Commentary) CEO Patrick Venetucci highlighted Q2 2025 as another exceptional quarter for IZEA, achieving the company's first-ever profitability due to 11% growth in continuing operations, strong margins, and reduced operating costs, successfully transitioning to larger, more profitable, and recurring clients, and building a strong business pipeline for future profitable growth - Q2 was another exceptional quarter for IZEA, with **11% growth in continuing operations**, strong margins, and reduced operating costs[3](index=3&type=chunk) - The company achieved its first-ever quarter of both operational and net income profitability[3](index=3&type=chunk) - Executed a strategic shift towards larger, more profitable, and recurring clients, while reducing smaller, lower-margin projects[3](index=3&type=chunk) - Possesses a strong and growing business pipeline expected to support profitable growth over the next twelve months[3](index=3&type=chunk) [Detailed Financial Results](index=1&type=section&id=Detailed%20Financial%20Results) [Revenue Performance](index=1&type=section&id=Revenue%20Performance) Total revenue for Q2 2025 was $9.1 million, a slight year-over-year increase of 0.4%, with revenue from continuing operations growing 11% after excluding the Hoozu business divested in December 2024, driven by a 13% increase in managed services revenue from continuing operations, while SaaS services revenue significantly decreased by 67% Q2 2025 Revenue Performance | Metric | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----------------------------- | :---------- | :---------- | :--------- | :--------- | | Total Revenue | $9,133,232 | $9,093,816 | $39,416 | 0% | | Managed Services Revenue from On-Going Operations | $9,053,031 | $8,019,123 | $1,033,908 | 13% | | Hoozu Revenue | — | $831,340 | $(831,340) | (100)% | | SaaS Services Revenue | $80,201 | $243,353 | $(163,152) | (67)% | [Cost and Expense Management](index=1&type=section&id=Cost%20and%20Expense%20Management) The company demonstrated strong cost control in Q2 2025, with total costs and expenses decreasing by 30% year-over-year, primarily due to significant reductions in sales and marketing costs (down 70%) and general and administrative costs (down 14%), resulting from targeted layoffs, paused advertising, and reduced contractor fees Q2 2025 Costs and Expenses | Expense Category | Q2 2025 | Q2 2024 | Change ($) | Change (%) | | :----------------------- | :---------- | :---------- | :--------- | :--------- | | Total Costs and Expenses | $8,395,422 | $11,983,124 | $(3,587,702) | (30)% | | Cost of Revenue | $4,386,612 | $5,177,600 | $(790,988) | (15)% | | Sales and Marketing | $962,017 | $3,206,979 | $(2,244,962) | (70)% | | General and Administrative | $2,897,551 | $3,372,797 | $(475,246) | (14)% | - Sales and marketing costs decreased primarily due to targeted layoffs, a temporary pause in advertising spending, and lower overall contractor fees[5](index=5&type=chunk) - General and administrative expenses decreased mainly due to reduced employee costs associated with layoffs, decreased use of external contractors, and lower spending on professional services and software licenses[5](index=5&type=chunk) [Profitability Metrics](index=1&type=section&id=Profitability%20Metrics) IZEA achieved significant improvement in profitability in Q2 2025, with net income reaching $1.2 million and Adjusted EBITDA at $1.3 million, marking a substantial turnaround from a loss in the prior year period and the company's first-ever profitability Q2 2025 Profitability | Metric | Q2 2025 | Q2 2024 | Change ($) | | :-------------------- | :---------- | :---------- | :--------- | | Net Income (Loss) | $1,205,068 | $(2,194,828) | $3,399,896 | | Basic EPS | $0.07 | $(0.13) | $0.20 | | Diluted EPS | $0.07 | $(0.13) | $0.20 | | Adjusted EBITDA | $1,326,460 | $(2,194,167) | $3,520,627 | [Balance Sheet and Cash Position](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Position) As of June 30, 2025, IZEA maintained strong liquidity with $50.6 million in cash and equivalents and no long-term debt, also achieving positive cash flow from operating activities during the quarter Key Balance Sheet Data | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and Cash Equivalents | $50,643,015 | $44,644,468 | | Accounts Receivable, Net | $6,177,880 | $7,781,824 | | Short-Term Investments | — | $6,427,488 | | Total Current Assets | $57,389,059 | $60,030,040 | | Total Assets | $59,630,190 | $62,220,274 | | Total Current Liabilities | $10,250,106 | $13,434,521 | | Total Liabilities | $10,250,106 | $13,438,555 | | Total Stockholders' Equity | $49,380,084 | $48,781,719 | - Total cash, cash equivalents, and investments were **$50.6 million** as of June 30, 2025[7](index=7&type=chunk) - The company has no outstanding long-term debt[7](index=7&type=chunk) - Positive cash flow generated from operating activities[6](index=6&type=chunk) [Operational Achievements](index=1&type=section&id=Operational%20Achievements) IZEA achieved several operational milestones in Q2 2025, including winning new clients like T. Marzetti, Corona, and Kellogg's, producing new work for projects such as 'Minecraft The Movie' and 'F1: The Movie', enhancing its technology platform with improved workflows, analytics, and TikTok API, and recruiting Cecilia Peralta as VP of Talent Acquisition to attract top talent - Secured new business with T. Marzetti, Shampoo Hotel, Corona, Revry, Kellogg's, and Nestlé[6](index=6&type=chunk) - Produced new work for 'Minecraft The Movie', 'F1: The Movie', Jeep, and Acer[6](index=6&type=chunk) - Enhanced its technology platform with improved workflows, analytics, and TikTok API[6](index=6&type=chunk) - Recruited Cecilia Peralta as Vice President of Talent Acquisition to attract top talent and elevate the brand[6](index=6&type=chunk) [Capital Allocation Strategy](index=2&type=section&id=Capital%20Allocation%20Strategy) IZEA continued to return value to shareholders through its stock repurchase program, repurchasing 121,788 shares for a total investment of $0.3 million in Q2 2025 - Committed to repurchasing up to **$10 million** of its common stock in the open market[8](index=8&type=chunk) - Repurchased **121,788 shares** at an average price of **$2.29 per share** for a total investment of **$0.3 million** in Q2 2025[8](index=8&type=chunk) - As of August 8, 2025, **523,268 shares** have been repurchased for an investment of **$1.3 million**[8](index=8&type=chunk) [About IZEA Worldwide, Inc.](index=2&type=section&id=About%20IZEA%20Worldwide%2C%20Inc.) IZEA Worldwide, Inc. is a leading influencer marketing company providing creator economy solutions for marketers, having facilitated nearly 4 million collaborations between brands and creators since launching the industry's first influencer marketing platform in 2006 - IZEA Worldwide, Inc. is an influencer marketing company dedicated to providing creator economy solutions for marketers[10](index=10&type=chunk) - Since launching the industry's first influencer marketing platform in 2006, it has facilitated nearly **4 million** collaborations between brands and creators[10](index=10&type=chunk) [Use of Key Metrics and Non-GAAP Financial Measures](index=1&type=section&id=Use%20of%20Key%20Metrics%20and%20Non-GAAP%20Financial%20Measures) [Managed Services Bookings](index=2&type=section&id=Managed%20Services%20Bookings) Managed Services Bookings measure all sales orders received in a period, net of cancellations and refunds, serving as a general indicator of business health, and while useful for operational planning and client trend analysis, it may not directly predict quarterly revenue due to contract complexities and varying revenue recognition timelines - Managed Services Bookings measure all sales orders received in a specific period, net of cancellations and refunds[11](index=11&type=chunk) - This metric is a general indicator of business health, used by management to plan operational staffing, identify trends in key client groups, and guide marketing activities and product development[11](index=11&type=chunk)[12](index=12&type=chunk) - Due to contract complexities and varying revenue recognition timelines, this metric may not be used to predict quarterly revenue and may be subject to future adjustments[11](index=11&type=chunk) - Managed Services Bookings were **$5.6 million** in Q2 2025, compared to **$10.3 million** in the prior year period[6](index=6&type=chunk) [Adjusted EBITDA](index=1&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a non-GAAP financial measure defined as earnings or loss before interest, taxes, depreciation, amortization, non-cash stock-based compensation, gain or loss on asset disposals, and other non-recurring non-cash items, used by management as a proxy for operating cash flow and providing useful information to investors for period-over-period comparisons by excluding non-cash and non-operating transactions - Adjusted EBITDA is a non-GAAP financial measure defined in accordance with SEC rules[13](index=13&type=chunk) - Defined as earnings or loss before interest expense, interest income, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on disposal or impairment of assets, and certain other non-recurring or non-cash income and expense items such as gain or loss on settlement of liabilities and transactions, and changes in fair value of derivatives[13](index=13&type=chunk) - This metric provides useful information to investors by primarily excluding non-cash and non-operating transactions, and facilitates consistent period-over-period comparisons[14](index=14&type=chunk)[15](index=15&type=chunk) - Adjusted EBITDA was **$1.3 million** in Q2 2025, compared to **negative $2.2 million** in the prior year period[6](index=6&type=chunk)[7](index=7&type=chunk)[28](index=28&type=chunk) [Revenue from On-Going Operations](index=1&type=section&id=Revenue%20from%20On-Going%20Operations) Revenue from On-Going Operations is a key metric that excludes revenue from the Hoozu business, which was divested in December 2024, aiming to provide investors with more accurate period-over-period comparisons of the core business - Revenue from On-Going Operations excludes revenue from Hoozu in the prior year period[15](index=15&type=chunk) - Hoozu was divested by the company in December 2024[15](index=15&type=chunk) - This metric is useful to investors and facilitates period-over-period comparisons[15](index=15&type=chunk) - Revenue from On-Going Operations increased by **11% year-over-year** in Q2 2025[3](index=3&type=chunk)[4](index=4&type=chunk)[6](index=6&type=chunk) [Unaudited Consolidated Financial Statements](index=4&type=section&id=Unaudited%20Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The Consolidated Balance Sheets show total assets decreased from $62.2 million as of December 31, 2024, to $59.6 million as of June 30, 2025, with a decline in current assets primarily due to reduced short-term investments and accounts receivable, but an increase in cash and cash equivalents, while total liabilities also significantly decreased Consolidated Balance Sheet Highlights | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :------------ | :---------------- | | Cash and Cash Equivalents | $50,643,015 | $44,644,468 | | Accounts Receivable, Net | $6,177,880 | $7,781,824 | | Short-Term Investments | — | $6,427,488 | | Total Current Assets | $57,389,059 | $60,030,040 | | Total Assets | $59,630,190 | $62,220,274 | | Total Current Liabilities | $10,250,106 | $13,434,521 | | Total Liabilities | $10,250,106 | $13,438,555 | | Total Stockholders' Equity | $49,380,084 | $48,781,719 | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) The Consolidated Statements of Operations reflect a significant turnaround, with IZEA achieving a net income of $1.2 million in Q2 2025, compared to a net loss of $2.2 million in Q2 2024, driven by stable revenue and a substantial reduction in total costs and expenses Consolidated Statements of Operations Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------- | :---------- | :---------- | | Revenue | $9,133,232 | $9,093,816 | | Total Costs and Expenses | $8,395,422 | $11,983,124 | | Operating Income (Loss) | $737,810 | $(2,889,308) | | Net Income (Loss) Before Taxes | $1,205,068 | $(2,283,124) | | Net Income (Loss) | $1,205,068 | $(2,194,828) | | Basic EPS | $0.07 | $(0.13) | | Diluted EPS | $0.07 | $(0.13) | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20%28Loss%29) The Consolidated Statements of Comprehensive Income (Loss) show total comprehensive income of $1.17 million in Q2 2025, a significant improvement from a comprehensive loss of $2.12 million in Q2 2024, primarily attributed to the reported net income despite some unrealized losses from currency translation Consolidated Statements of Comprehensive Income (Loss) Highlights (Three Months Ended June 30) | Metric | 2025 | 2024 | | :-------------------------------- | :---------- | :---------- | | Net Income (Loss) | $1,205,068 | $(2,194,828) | | Unrealized Gain (Loss) on Securities Held | $1,694 | $92,630 | | Unrealized Gain (Loss) on Currency Translation | $(34,932) | $(16,472) | | Total Other Comprehensive Income (Loss) | $(33,238) | $76,158 | | Total Comprehensive Income (Loss) | $1,171,830 | $(2,118,670) | [Revenue Details by Type](index=7&type=section&id=Revenue%20Details%20by%20Type) Revenue details indicate that managed services revenue from continuing operations was the primary growth driver, increasing by 13% in Q2 2025, while the divestiture of Hoozu led to a 100% decrease in its revenue contribution, and SaaS services revenue significantly declined by 67% Q2 2025 Revenue Details by Type | Revenue Type | Q2 2025 | Percentage of Total Revenue (2025) | Q2 2024 | Percentage of Total Revenue (2024) | Change ($) | Change (%) | | :----------------------------- | :---------- | :---------------- | :---------- | :---------------- | :--------- | :--------- | | Managed Services Revenue from On-Going Operations | $9,053,031 | 99% | $8,019,123 | 88% | $1,033,908 | 13% | | Hoozu | — | 0% | $831,340 | 9% | $(831,340) | (100)% | | Total Managed Services Revenue | $9,053,031 | 99% | $8,850,463 | 97% | $202,568 | 2% | | SaaS Services Revenue | $80,201 | 1% | $243,353 | 3% | $(163,152) | (67)% | | Total Revenue | $9,133,232 | 100% | $9,093,816 | 100% | $39,416 | 0% | [Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA](index=8&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20%28Loss%29%20to%20Non-GAAP%20Adjusted%20EBITDA) The reconciliation table shows IZEA's Adjusted EBITDA was $1.33 million in Q2 2025, a significant improvement from negative $2.19 million in Q2 2024, with key adjustments from net income (loss) to Adjusted EBITDA including non-cash stock-based compensation, non-cash stock for services, depreciation and amortization, and interest income Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA (Three Months Ended June 30) | Metric | 2025 | 2024 | | :------------------------------------------ | :---------- | :---------- | | Operating Net Income (Loss) | $1,205,068 | $(2,194,828) | | Fair Value Adjustment of Digital Assets | — | $26,044 | | Non-Cash Stock-Based Compensation | $355,714 | $394,931 | | Non-Cash Stock for Services | $89,994 | $75,000 | | Depreciation and Amortization | $149,242 | $225,748 | | Interest Expense | $1,784 | $1,999 | | Interest Income | $(475,342) | $(634,765) | | Adjusted EBITDA | $1,326,460 | $(2,194,167) | [Additional Information](index=2&type=section&id=Additional%20Information) [Conference Call Details](index=2&type=section&id=Conference%20Call%20Details) IZEA will host a conference call on Tuesday, August 12, 2025, at 5:00 PM ET to discuss its Q2 2025 results, led by CEO Patrick Venetucci and CFO Peter Biere, with replay information available after the call - Conference call date: **Tuesday, August 12, 2025**[9](index=9&type=chunk) - Time: **5:00 PM ET**[9](index=9&type=chunk) - Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1727723&tp_key=0f55fcfc8d[9](index=9&type=chunk) - Replay will be available approximately 3 hours after the call until **11:59 PM ET on Tuesday, August 19, 2025**[9](index=9&type=chunk) [Safe Harbor Statement](index=3&type=section&id=Safe%20Harbor%20Statement) This press release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially, based on certain assumptions and describing future plans, strategies, and expectations, with IZEA undertaking no obligation to update these statements unless required by law - All statements in this press release that are not historical facts are 'forward-looking statements' intended to qualify for the safe harbor provisions established by the Private Securities Litigation Reform Act of 1995[17](index=17&type=chunk) - Forward-looking statements involve inherent risks and uncertainties that could cause actual results to differ materially, including factors such as competitive conditions, failure of platform adoption, ability to maintain disclosure controls and internal controls, Nasdaq listing requirements, and adverse economic conditions[17](index=17&type=chunk) - IZEA undertakes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as required by law[17](index=17&type=chunk) [Press Contact](index=3&type=section&id=Press%20Contact) For media inquiries, please contact Matt Gray at IZEA Worldwide, Inc - Contact: Matt Gray[18](index=18&type=chunk) - Phone: **407-674-6911**[18](index=18&type=chunk) - Email: ir@izea.com[18](index=18&type=chunk)

Reporting $1.2 Million in Net Income, Achieving $0.07 per Share, Positive Cash from Operations ORLANDO, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, reported its financial and operational results for the second quarter ended June 30, 2025. Q2 2025 Financial Results Total revenue in the second quarter of 2025 totaled $9.1 million, a 0.4% increase compared to the prior year quarter. Exclu ...

Company Overview - IZEA Worldwide, Inc. is a leading influencer marketing company focused on creating solutions for the Creator Economy [3] - The company has facilitated nearly 4 million collaborations between brands and creators since launching its first influencer marketing platform in 2006 [3] Upcoming Conference Call - The conference call to discuss IZEA's second quarter 2025 financial results is scheduled for August 12, 2025, at 5:00 p.m. Eastern Daylight Time [1][2] - The call will be hosted by CEO Patrick Venetucci and CFO Peter Biere, followed by a question and answer session [1] Access Information - Participants can join the call via a toll-free number (1-877-407-4018) or an international dial-in number (1-201-689-8471) [2] - A replay of the call will be available approximately 3 hours after the conference ends until August 19, 2025, at 11:59 p.m. EDT [2] Contact Information - Press inquiries can be directed to Matt Gray at IZEA Worldwide, Inc. via phone (407-674-6911) or email (ir@izea.com) [4]

Core Insights - IZEA Worldwide, Inc. has appointed Steve Bonnell as Executive Vice President of Account Management to enhance strategic partnerships and drive enterprise success in the Creator Economy [1][3] - Bonnell brings over 25 years of experience in managing multinational accounts and driving innovation, having previously led significant global accounts at Publicis Groupe and Leo Burnett [2][3] - The appointment aims to strengthen IZEA's ability to deliver tailored, high-impact solutions for enterprise clients as the Creator Economy evolves [3] Company Overview - IZEA is a leading influencer marketing company focused on providing solutions for the Creator Economy, having facilitated nearly 4 million collaborations between brands and creators since its inception in 2006 [4]

Core Points - IZEA Worldwide, Inc. announced the preliminary results of its modified "Dutch auction" tender offer to repurchase up to 8,700,000 shares at a price of $2.80 per share, which expired on June 16, 2025 [1] - A total of 38,682 shares were properly tendered and accepted for purchase, representing approximately 0.23% of the company's outstanding shares, at an aggregated cost of about $108,310 [2] - Following the tender offer, approximately $8.6 million will remain outstanding under the company's stock repurchase obligations [3] Company Overview - IZEA is an influencer marketing company focused on creating solutions for the Creator Economy, having facilitated nearly 4 million collaborations between brands and creators since its inception in 2006 [5]

Core Points - IZEA Worldwide, Inc. announced a modified "Dutch auction" tender offer to repurchase up to $8,700,000 of its common stock at a price of $2.80 per share, which expired on June 16, 2025 [1] - A total of 36,682 shares were properly tendered in the tender offer, representing approximately 0.23% of the company's outstanding shares as of the expiration date [2] - The total cost for the shares expected to be acquired in the tender offer is approximately $108,310, excluding fees and expenses [2] - The final number of shares to be purchased is subject to confirmation by the Depositary and will be announced after the expiration of the guaranteed delivery period [3] Company Overview - IZEA is an influencer marketing company focused on creating solutions for the Creator Economy, having facilitated nearly 4 million collaborations between brands and creators since its inception in 2006 [5]