Financial Investment and Revenue - Rumble announced a strategic investment of $775 million from Tether, closing on February 7, 2025, with Tether purchasing 103,333,333 shares at $7.50 each[108]. - Rumble generates revenue from Audience Monetization, including advertising fees and subscription fees, as well as Other Initiatives like cloud services[110]. - Revenues decreased by $0.3 million to $24.8 million for the three months ended September 30, 2025, compared to $25.1 million in the same period of 2024, with a $4.9 million reduction in advertising revenue[144]. - Revenues increased by $8.3 million to $73.6 million for the nine months ended September 30, 2025, with a $5.8 million increase in Audience Monetization revenues[157]. User Metrics - Monthly Active Users (MAUs) averaged 47 million in Q3 2025, an 8% decrease from Q2 2025, attributed to seasonal content creation trends[136]. - The transition from Universal Analytics to Google Analytics 4 may affect the comparability of MAU metrics, with potential discrepancies noted[130]. Expenses and Costs - Cost of services decreased by $11.2 million to $25.2 million for the three months ended September 30, 2025, primarily due to a reduction in programming and content costs of $11.9 million[145]. - General and administrative expenses increased by $0.8 million to $10.5 million for the three months ended September 30, 2025, driven by a $1.2 million rise in administrative expenses[146]. - Research and development expenses decreased by $0.2 million to $4.5 million for the three months ended September 30, 2025[147]. - Sales and marketing expenses increased by $1.1 million to $5.1 million for the three months ended September 30, 2025, due to higher marketing and public relations activities[148]. - General and administrative expenses increased by $9.3 million to $38.8 million for the nine months ended September 30, 2025, driven by higher payroll and administrative expenses[159]. - Cost of services decreased by $22.2 million to $81.8 million for the nine months ended September 30, 2025, primarily due to a reduction in programming and content costs[158]. Cash and Assets - As of September 30, 2025, cash and cash equivalents balance was $269.8 million[171]. - Digital asset holdings were valued at $24.0 million, consisting of 210.82 bitcoin as of September 30, 2025[172]. - The company has cash and cash equivalents of $269.8 million as of September 30, 2025, primarily invested in money market funds, treasury bills, and term deposits[198]. Strategic Initiatives - The company expects to continue investing significantly in growth initiatives, anticipating increases in expenses across various categories[114]. - The company completed a tender offer to purchase 70 million shares of its Class A common stock for $525 million, using part of the proceeds to support growth initiatives[108]. - Rumble's business combination agreement with Northern Data was signed on November 10, 2025, indicating ongoing strategic expansion efforts[109]. Financial Performance - Adjusted EBITDA for the nine months ended September 30, 2025 was $(58.3) million, compared to $(78.7) million for the same period in 2024[181]. - Interest income increased by $0.9 million to $2.9 million for the three months ended September 30, 2025, attributed to investments in money market funds and treasury bills[152]. - Interest income increased by $1.3 million to $8.0 million in the nine months ended September 30, 2025 compared to the same period in 2024[166]. Risk and Compliance - The company is exposed to credit risk on cash, cash equivalents, and accounts receivable, with a focus on high credit standing financial institutions[197]. - The company intends to adopt new or revised accounting standards under private company adoption timelines as an emerging growth company[195]. - The company is exposed to certain market risks as part of its ongoing business operations[196]. - An immediate 10% change in interest rates would not have a material effect on the fair market value of the company's cash and cash equivalents[198]. Shareholder Information - For the three months ended September 30, 2024, one customer accounted for $3,192,053 or 13% of total revenue, and for the nine months, this customer represented $11,671,470 or 18% of total revenue[197]. - As of September 30, 2025, no single customer represented 10% or more of the company's total accounts receivable[197]. - The agreements related to the sale of shares to Tether were determined to be a single unit of account due to their interdependence[193]. - The overall arrangement to sell shares to Tether is accounted for as a derivative, measured at fair value with changes through net loss[193].

Group 1 - Rumble's stock price surged by 12% in after-hours trading on Monday [1] - The company announced a strategic transformation by signing an AI infrastructure agreement [1] - Rumble is expanding its collaboration with Tether [1]

Core Insights - Rumble Inc's stock surged by 13.7% to $6.69 following the announcement of its acquisition of German AI firm Northern Data for approximately $767 million, despite disappointing Q3 results showing a loss of 8 cents per share on revenue of $24.76 million, both missing estimates [1] Group 1: Stock Performance - The recent stock price increase has allowed Rumble to rebound from nearly 12-month lows, although daily moving averages from 20 to 320 days remain above as potential resistance [2] - Since the beginning of 2025, Rumble's equity has declined by 48.5% [2] Group 2: Options Activity - There has been significant options activity, with 7,033 calls exchanged, which is five times the typical call volume, compared to only 835 puts [2] - The most popular option is the weekly 11/14 7-strike call, with new positions being opened [2] Group 3: Short Selling Dynamics - A portion of the stock's price movement may be due to short covering, as 17.8% of the available float is sold short, requiring over six days for shorts to cover at the average trading pace [3] - The stock's 14-day Relative Strength Index (RSI) is at 20, indicating it is in "oversold" territory, which often precedes a short-term bounce [3]

Core Viewpoint - Rumble is acquiring German AI infrastructure company Northern Data in a deal valued at up to $970 million, which is expected to enhance Rumble's capabilities in the AI sector and data center capacity [2][4]. Group 1: Acquisition Details - The acquisition deal values Northern Data at approximately $767 million, translating to $11.95 per share, with Northern Data shareholders receiving 2.0281 newly issued Class A Rumble shares for each share they own [3][4]. - Northern Data shareholders may also receive cash payments totaling $200 million if the company successfully sells its Texas data center [4]. Group 2: Market Reaction - Following the announcement, Rumble's stock surged by 12% to $6.61, while Northern Data's stock increased by 34% to €15.78 [3]. Group 3: Strategic Implications - The acquisition will allow Rumble to gain access to over 40,000 Nvidia graphics processing units, significantly boosting its data center capacity and positioning the company for future AI developments [5]. - Rumble's CEO emphasized that this acquisition is a foundational step in building an AI ecosystem, with plans to expand into financial services and introduce AI chatbots and agents [5][6]. Group 4: Financial Performance - Rumble reported a third-quarter loss of $0.06 per share, with revenue decreasing by 1.2% year-over-year to $24.8 million, which was below analysts' expectations of a loss of $0.06 per share on revenue of $26.8 million [4][6].

Summary of Rumble Update Call Company and Industry Overview - **Company**: Rumble - **Industry**: Technology, specifically focusing on video platforms, AI infrastructure, and decentralized financial tools Key Points and Arguments 1. **Transformational Milestones**: Rumble announced three significant milestones: - Acquisition of Northern Data, positioning Rumble as a leader in AI infrastructure with over 22,000 GPUs and nine data centers [3][5] - Tether's $150 million GPU purchase agreement, providing immediate revenue scale and validating Rumble's platform [3][6] - Tether's $100 million advertising commitment to enhance creator monetization on Rumble [3][7] 2. **Market Positioning**: Rumble is redefining itself from a video platform to a comprehensive tech ecosystem that competes with major players like Microsoft, Google, and Amazon [4][8] 3. **User Engagement**: Rumble has 47 million monthly active users and an advertising ecosystem capable of handling over a billion ad requests daily [4][5] 4. **Future Plans**: Rumble aims to expand into web tools and a productivity suite, including email and file storage, to further enhance its ecosystem [5] 5. **Strategic Alignment with Tether**: The partnership with Tether is seen as a strategic alignment that will provide Rumble with the necessary infrastructure and financial backing to grow aggressively [6][11] 6. **Advertising and Revenue Growth**: The $100 million advertising commitment from Tether is expected to significantly boost creator growth and platform monetization [7][36] 7. **Seasonal User Trends**: Rumble experienced a seasonal decline in users during the summer months due to creator inactivity, but anticipates a rebound as creators return to the platform [35] 8. **Creator Acquisition Strategy**: With Tether's advertising support, Rumble plans to aggressively pursue new creators, changing the dynamics of creator acquisition and profitability [36][37] Additional Important Content 1. **Decentralization Vision**: Both Rumble and Tether emphasize the importance of decentralization and freedom in technology, aiming to create an open infrastructure that counters the control of big tech [11][12][13] 2. **Global Financial Inclusion**: Tether's CEO highlighted the role of stablecoins in facilitating remittances and financial access for underserved populations, aligning with Rumble's mission to empower creators and communities [24][30] 3. **Long-term Growth Mandate**: Rumble's focus is on aggressive growth while maintaining a commitment to a free and open internet, contrasting with traditional big tech models [8][15] 4. **Non-Custodial Wallet**: The upcoming Rumble Wallet will be a non-custodial wallet, allowing users to engage in various financial transactions beyond just tipping creators [23][24] 5. **Market Dynamics**: The call addressed the need for a counterbalance to the centralization of information and financial systems, advocating for a technology ecosystem that empowers individuals [30][31] This summary encapsulates the key insights and strategic directions discussed during the Rumble Update Call, highlighting the company's ambitions and the transformative partnerships that are set to redefine its market presence.

Strategic Combination - Rumble and Northern Data are combining to build a "Freedom-First Ecosystem" rooted in freedom, privacy, independence, and resilience, aiming to compete with Big Tech[2] - The combination seeks to provide independent access to technology and financial tools, decentralizing these resources to enhance societal resilience[3] - The combined entity aims to create a full-stack cloud platform, from power to GPUaaS[22] Key Assets and Capabilities - Rumble has 47 million Monthly Active Users and a growing cloud business, securing a $775 million strategic investment with Tether[10] - Northern Data possesses over 22,000 GPUs and operates 9 data centers, providing a sovereign AI Cloud platform[13] - The combined entity will have over $1 billion in capital deployed[16] Strategic Rationale - The acquisition of Northern Data will provide Rumble with immediate scale in the enterprise market through GPUaaS and data center businesses[20] - The combination expands the international footprint of both companies, creating globally accessible computing infrastructure[23] - Tether has committed to an initial purchase of up to $150 million of GPU services over a 2-year period from the combined entity[25] Financial Terms and Ownership - The transaction is an all-stock deal where Northern Data shareholders will receive 2.0281 newly issued Rumble Class A shares[31] - Post-transaction, Rumble will own 69.6% and Northern Data will own 30.4% of the combined company[32] Market Positioning - The combined company aims to become a growing player in the high-growth AI and GPU market, with a market capitalization of $3.5 billion[30]

Revenue and Financial Performance - Revenue for Q3 2025 was $24.8 million, a decrease of 1% from $25.1 million in Q3 2024[4] - Revenues for the three months ended September 30, 2025, were $24,762,445, a decrease from $25,056,904 in the same period of 2024, representing a decline of approximately 1.2%[22] - The net loss for the three months ended September 30, 2025, was $16,261,762, compared to a net loss of $31,539,413 for the same period in 2024, reflecting an improvement of approximately 48.7%[22] - The company reported a loss per share of $0.06 for the three months ended September 30, 2025, compared to a loss per share of $0.15 in the same period of 2024[22] - The company experienced a net loss of $49,136,885 for the nine months ended September 30, 2025, compared to a net loss of $101,610,153 for the same period in 2024, indicating an improvement of approximately 52%[26] - The company reported an Adjusted EBITDA loss of $(58,265,958) for the nine months ended September 30, 2025, compared to a loss of $(78,684,576) for the same period in 2024, showing an improvement of approximately 26%[29] User Metrics - Monthly Active Users (MAUs) were 47 million in Q3 2025, down from 51 million in Q2 2025, attributed to seasonal content creation and a slowdown in news and political commentary[4] - Average Revenue Per User (ARPU) increased by 7% to $0.45 in Q3 2025 compared to Q2 2025, driven by audience monetization despite fewer MAUs[4] Expenses - Total expenses for the three months ended September 30, 2025, were $52,904,530, down from $57,874,368 in the same period of 2024, indicating a reduction of about 8.5%[22] - Cost of services decreased by 31% to $25.2 million in Q3 2025, primarily due to a reduction in programming and content costs[6] - General and administrative expenses increased by 8% to $10.5 million in Q3 2025, driven by higher professional fees[7] - Sales and marketing expenses rose by 28% to $5.1 million in Q3 2025, reflecting increased marketing and public relations activities[9] - Research and development expenses for the three months ended September 30, 2025, were $4,455,354, slightly down from $4,650,688 in the same period of 2024[22] - The total share-based compensation expense for the three months ended September 30, 2025, was $5,383,691, compared to $6,157,765 in the same period of 2024, indicating a decrease of about 12.5%[22] - Share-based compensation expenses for the nine months ended September 30, 2025, totaled $19,447,788, compared to $17,478,041 for the same period in 2024, representing an increase of approximately 11%[29] Liquidity and Assets - Total liquidity as of September 30, 2025, was $293.8 million, including $269.8 million in cash and cash equivalents and Bitcoin valued at $24.0 million[4] - Cash and cash equivalents increased to $269,757,150 as of September 30, 2025, up from $114,018,900 at the beginning of the period, reflecting a growth of approximately 136%[26] - As of September 30, 2025, the company reported total assets of $367,174,300, a significant increase from $195,312,807 as of December 31, 2024, representing an increase of approximately 88%[24] Liabilities - The total liabilities decreased from $258,428,209 as of December 31, 2024, to $64,943,669 as of September 30, 2025, reflecting a reduction of approximately 75%[24] - The company reported a significant increase in accounts payable and accrued liabilities, rising to $30,545,284 as of September 30, 2025, compared to $18,223,372 as of December 31, 2024, an increase of approximately 68%[24] Strategic Initiatives - Rumble announced a strategic partnership with Cumulus Media to enhance distribution and monetization opportunities[4] - The company incurred acquisition-related transaction costs of $5,236,796 during the three months ended September 30, 2025, with no such costs reported in the same period of 2024[22] - The company raised $775,000,000 from the issuance of Class A Common Stock during the financing activities, which was a key strategy to enhance liquidity[26] Other Financial Metrics - Interest income for the three months ended September 30, 2025, was $2,896,649, an increase from $1,949,898 in the same period of 2024, representing a growth of approximately 48.7%[22] - The company reported changes in fair value of digital assets amounting to $(1,456,388) for the three months ended September 30, 2025, with no such changes reported in the same period of 2024[22] - The company’s digital assets amounted to $24,049,413 as of September 30, 2025, indicating a new asset class introduced in the financials[24]

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 - Rumble Inc. reported a quarterly loss of $0.08 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.07, marking an earnings surprise of -14.29% [1] - The company's revenues for the quarter ended September 2025 were $24.76 million, missing the Zacks Consensus Estimate by 5.92% and down from $25.06 million a year ago [2] - Rumble Inc. shares have declined approximately 54.7% year-to-date, contrasting with the S&P 500's gain of 14.4% [3] Financial Performance - Over the last four quarters, Rumble Inc. has not surpassed consensus EPS estimates and has only topped revenue estimates once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.06 on revenues of $31.3 million, and for the current fiscal year, it is -$0.26 on revenues of $106.42 million [7] Market Outlook - The company's earnings outlook is mixed, with a Zacks Rank of 3 (Hold), indicating expected performance in line with the market [6] - The Internet - Software industry, to which Rumble Inc. belongs, is currently in the top 28% of Zacks industries, suggesting a favorable industry outlook [8]

Core Insights - Rumble plans to acquire Northern Data for approximately $767 million in an all-stock transaction, allowing Northern Data shareholders to receive 2.0281 shares of Rumble for each share they hold, resulting in them owning about 30.4% of Rumble post-transaction [1] - The acquisition includes a $150 million GPU computing power leasing agreement with Tether, which holds about 48% of Rumble's shares, and Rumble will also provide around $200 million in tax liability support [1] - The deal is expected to close by Q2 2026, after which Northern Data will be delisted from the pan-European stock exchange [1] Company Strategy - Rumble aims to transform itself from a conservative video platform into a significant player in the AI cloud infrastructure sector by leveraging Northern Data's extensive AI GPU components and cloud computing services [2] - The acquisition will allow Rumble to integrate Northern Data's Ardent data center and Taiga AI GPU services into its existing cloud platform, enhancing its capabilities without the need to build infrastructure from scratch [3] - Rumble intends to utilize the acquired computing power for its own video platform's recommendation and content generation models while also renting out excess capacity, focusing on cloud-based AI computing power leasing services [3] Industry Context - The demand for AI computing power is surging globally, leading to exponential growth in the valuation and performance of AI cloud computing service platforms [4] - CoreWeave, a leader in cloud-based AI computing power leasing, has seen its stock price increase by approximately 186% since its market debut, with revenue projections rising from about $395 million in Q2 2024 to around $1.2 billion in Q2 2025 [4]