BuzzFeed(US:BZFD)2025-08-07 20:30PART I: FINANCIAL INFORMATION Item 1: Financial Statements (unaudited) BuzzFeed's H1 2025 revenue grew 5% to $82.4 million, narrowing losses, with assets decreasing and liabilities increasing due to new debt Condensed Consolidated Balance Sheets Total assets decreased to $210.4 million, liabilities increased to $126.5 million due to new debt, and equity declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $29,706 | $38,648 | | Total current assets | $85,517 | $100,886 | | Total assets | $210,354 | $221,398 | | Liabilities & Equity | | | | Total current liabilities | $69,306 | $96,836 | | Debt (non-current) | $38,333 | $0 | | Total liabilities | $126,454 | $114,456 | | Total stockholders' equity | $83,900 | $106,942 | Condensed Consolidated Statements of Operations Q2 2025 revenue grew 13% to $46.4 million, narrowing operating loss, but a debt extinguishment expense resulted in a higher net loss Statement of Operations Summary (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $46,394 | $41,115 | $82,415 | $78,124 | | Loss from continuing operations | ($3,466) | ($5,591) | ($17,208) | ($29,057) | | Net loss from continuing operations | ($10,627) | ($5,374) | ($23,088) | ($32,324) | | Net loss attributable to BuzzFeed, Inc. | ($10,820) | ($7,487) | ($23,491) | ($43,215) | | Basic and diluted EPS (continuing ops) | ($0.28) | ($0.15) | ($0.61) | ($0.88) | Condensed Consolidated Statements of Cash Flows H1 2025 operating cash flow improved, with financing providing $6.4 million, leading to an $8.9 million overall cash decrease Cash Flow Summary - Six Months Ended June 30 (in thousands) | Cash Flow Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | ($8,755) | ($25,703) | | Net cash (used in) provided by investing activities | ($7,116) | $102,302 | | Net cash provided by (used in) financing activities | $6,445 | ($66,396) | | Net (decrease) increase in cash | ($8,942) | $9,824 | - Financing activities in H1 2025 were highlighted by $39.2 million in borrowings from a new Term Loan, which were used for a $30.0 million payment on Convertible Notes and a $3.3 million repurchase of common stock33 Notes to Condensed Consolidated Financial Statements Notes detail 'going concern' resolution, a $40.0 million term loan, a reverse stock split, and asset dispositions - The company resolved the substantial doubt about its ability to continue as a going concern by securing a $40.0 million asset-backed term loan in May 2025 and using the proceeds to fully repay its convertible notes36 - A 1-for-4 reverse stock split of Class A and Class B common stock became effective on May 6, 2024, with all share and per-share amounts retroactively adjusted4447 - The company completed the disposition of Complex Networks on February 21, 2024, for $108.6 million and First We Feast on December 11, 2024, for $82.5 million, both presented as discontinued operations50154165 - In August 2025, the company announced a plan to reduce its workforce by approximately 6%, expecting to incur restructuring charges of $1.3 million to $1.8 million in Q3 2025174 Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations Q2 2025 revenue grew 13% to $46.4 million, Adjusted EBITDA improved, and a new $40.0 million term loan resolved 'going concern' risk Revenue by Type - Q2 (in thousands) | Revenue Type | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Advertising | $22,589 | $23,188 | (3)% | | Content | $10,699 | $6,985 | 53% | | Commerce and other | $13,106 | $10,942 | 20% | | Total revenue | $46,394 | $41,115 | 13% | - The 53% increase in Content revenue for Q2 2025 was primarily driven by a $4.7 million increase in studio revenue, largely due to the timing of revenue recognition for a feature film206 Adjusted EBITDA Reconciliation (in thousands) | Metric | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Net loss from continuing operations | ($10,627) | ($5,374) | ($23,088) | ($32,324) | | Adjusted EBITDA | $1,984 | $831 | ($3,910) | ($13,536) | - The company secured a $40.0 million asset-backed term loan in May 2025, maturing in 2028, with a portion of proceeds used to fully repay the remaining $30.0 million of its convertible notes, resolving the 'going concern' risk234243 Item 3: Quantitative and Qualitative Disclosures About Market Risk Primary market risks include foreign currency exchange, interest rate fluctuations, and equity investment risk - The company's primary market risks include foreign currency exchange risk (primarily British pound, Japanese yen, Australian and Canadian dollars), interest rate fluctuation risk on cash equivalents, and equity investment risk in a privately-held company263264265266 Item 4: Controls and Procedures Material weaknesses in internal control over financial reporting persist, with ongoing remediation for financial close and IT controls - Material weaknesses in internal control over financial reporting remain unremediated, relating to a lack of formalized controls and segregation of duties in the financial statement close process, and insufficient IT general controls for change management and logical security over financial IT systems268 - Management is continuing to implement remediation plans to address the identified material weaknesses, including enhancing documentation, enforcing segregation of duties, and centralizing IT security administration270271272 PART II: OTHER INFORMATION Item 1: Legal Proceedings Mass arbitrations initiated by former employees regarding share trading post-Business Combination have been resolved and are now closed - The mass arbitrations initiated by 91 former employees regarding the trading of their shares post-Business Combination have been resolved between the parties, and the matters are now considered closed276283 Item 1A: Risk Factors New risk factors include reliance on third-party financing for studio productions and disruption from AI-enabled search features - A new risk factor highlights the company's reliance on third-party loans and co-financing for its studio productions, noting the inherent uncertainty in the commercial performance of films and television content287288 - The company has identified a significant new risk from AI-enabled search features, which could disrupt its business model by reducing referral traffic, lowering advertising revenue, and diminishing brand recognition as users consume AI-generated summaries instead of clicking through to the source content290291 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds No unregistered sales of equity securities were reported during the period Item 3: Defaults Upon Senior Securities The company reported no defaults upon senior securities Item 4: Mine Safety Disclosures This item is not applicable to the company's operations Item 5: Other Information No other material information was reported for the period Item 6: Exhibits This section lists all exhibits filed with the Form 10-Q, including key agreements and certifications