Rumble (RUM) - 2025 Q2 - Quarterly Results

Rumble Q2 2025 Earnings Report Q2 2025 Financial & Operational Highlights Rumble reported a 12% year-over-year revenue increase to $25.1 million and improved its Adjusted EBITDA loss to $20.5 million Q2 2025 Key Financial Metrics | Metric | Q2 2025 | Change (YoY/QoQ) | | :--- | :--- | :--- | | Revenue | $25.1 million | +12% YoY | | Net Loss | $30.2 million | Increased from $26.8M loss YoY | | Adjusted EBITDA | -$20.5 million | $8.2M improvement YoY | | MAUs | 51 million | -14% QoQ | | ARPU | $0.42 | +24% QoQ | | Total Liquidity (as of June 30) | $306.4 million | N/A | - The decrease in Monthly Active Users (MAUs) from 59 million in Q1 2025 is attributed to a slowdown in news and political commentary outside of a U.S. election cycle[2] - Strategic developments in Q2 include partnerships with the Tampa Bay Buccaneers and TRON DAO, the appointment of a new Chief Marketing Officer, and the inclusion of Rumble's Class A shares in the Russell 2000® and 3000® Indexes[2] Management Commentary Management highlighted the company's entry into a new phase of aggressive growth, supported by recent investments and a focus on future initiatives - The company is entering a new phase of aggressive growth, aiming to compete with and surpass big tech peers[4] - Future growth is expected to be driven by the upcoming launch of Rumble Wallet and expanding cloud and AI initiatives[4] - Recent strategic partnerships with Cumulus Media, MoonPay, and a top AI innovator are building momentum for the company[4] Q2 2025 Financial Performance Analysis Revenue grew 12% YoY to $25.1 million while cost of services decreased significantly, though operating expenses showed mixed results Revenue Analysis Revenue increased by $2.6 million year-over-year, driven by growth in Audience Monetization and Other Initiatives Q2 2025 Revenue Breakdown (YoY Change) | Revenue Component | Change (YoY) | Key Driver(s) | | :--- | :--- | :--- | | Audience Monetization | +$1.7M | +$4.4M Subscriptions, -$3.7M Advertising | | Other Initiatives | +$0.9M | +$0.8M Cloud Services | | Total Revenue | +$2.6M | Overall growth in subscriptions and cloud | Expense Analysis Cost of services decreased by 26% due to lower content costs, while G&A and sales & marketing expenses increased Q2 2025 Expense Changes (YoY) | Expense Category | Q2 2025 Value | YoY Change | Reason for Change | | :--- | :--- | :--- | :--- | | Cost of services | $26.5M | -26% | $10.1M reduction in content costs | | General and administrative | $11.7M | +12% | $1.5M rise in administrative/professional fees | | Research and development | $4.8M | -9% | Reduction in payroll and other R&D costs | | Sales and marketing | $7.9M | +26% | $1.3M increase in marketing activities | Key Performance Indicators (KPIs) The company tracks audience engagement and monetization through MAUs and ARPU, noting a change in Google's analytics platform may impact data comparability - Monthly Active Users (MAUs) are defined as the total number of distinct web, mobile app, and connected TV users each month, as calculated by Google Analytics[12] - The transition from Google's Universal Analytics (UA) to Google Analytics 4 (GA4) in July 2023 may affect the comparability of MAU figures reported before and after this date[13] - Average Revenue Per User (ARPU) is calculated by dividing quarterly Audience Monetization revenue by the MAUs for that quarter and does not include revenue from Other Initiatives[14] Subsequent Events Post-quarter end, Rumble announced key strategic partnerships with MoonPay and Cumulus Media and appointed a new VP of Sales for Rumble Cloud - Announced an exclusive partnership with MoonPay to provide crypto on and off-ramps for the Rumble Wallet, which is expected to launch in Q3 2025[6] - Appointed tech industry veteran Ian O'Donnell, with prior leadership roles at Google Cloud and Microsoft, as Vice President of Sales for Rumble Cloud[6] - Entered a strategic partnership with Cumulus Media to address the convergence of podcasting and video in the media landscape[6] Financial Statements (Unaudited) The unaudited statements show a quarterly net loss of $30.2 million, a strong cash position of $283.8 million, and significant cash inflow from financing activities Condensed Consolidated Interim Statements of Operations The company reported a net loss of $30.2 million for the quarter on revenues of $25.1 million and total expenses of $51.7 million Q2 Statement of Operations Highlights (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $25,084,631 | $22,469,543 | | Total Expenses | $51,723,872 | $61,283,115 | | Loss from Operations | $(26,639,241) | $(38,813,572) | | Net Loss | $(30,224,930) | $(26,780,700) | | Loss per Share | $(0.12) | $(0.13) | Condensed Consolidated Interim Balance Sheets Total assets grew to $379.9 million, driven by a substantial increase in cash, while shareholders' equity turned positive to $314.2 million Balance Sheet Highlights (Unaudited) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $283,810,338 | $114,018,900 | | Digital assets | $22,593,025 | - | | Total Assets | $379,925,966 | $195,312,807 | | Total Liabilities | $65,704,968 | $258,428,209 | | Total Shareholders' Equity (Deficit) | $314,220,998 | $(63,115,402) | Condensed Consolidated Interim Statements of Cash Flows Financing activities provided $220.9 million in cash, offsetting cash used in operations and investing, resulting in a net cash increase of $169.8 million Six-Month Cash Flow Summary (Unaudited) | Cash Flow Category | Six Months Ended June 30, 2025 | | :--- | :--- | | Net cash used in operating activities | $(30,376,137) | | Net cash used in investing activities | $(20,752,005) | | Net cash provided by financing activities | $220,919,580 | | Net increase in cash | $169,791,438 | Reconciliation of GAAP to Non-GAAP Measures The company's Adjusted EBITDA loss improved by $8.2 million year-over-year to $20.5 million after reconciling from a GAAP Net Loss of $30.2 million Reconciliation of Net Loss to Adjusted EBITDA (Unaudited) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net loss | $(30,224,930) | $(26,780,700) | | Adjustments (e.g., D&A, SBC, etc.) | $9,762,807 | $(1,893,504) | | Adjusted EBITDA | $(20,462,123) | $(28,674,204) | - Adjusted EBITDA is used by management to identify business trends that might be masked by non-cash or non-recurring items included in the GAAP net loss calculation[16] Disclosures This section contains important forward-looking statements, outlines potential risks, and details the company's use of social media for material disclosures Forward-Looking Statements The report contains forward-looking statements based on current expectations that are subject to numerous risks and uncertainties - This section cautions investors that actual results could differ materially from those expressed in forward-looking statements due to a wide range of risks and uncertainties[19][20] Social Media Disclosures Rumble uses its investor relations website and specific social media accounts as primary channels for disclosing material information - Investors should monitor the company's investor relations website and designated social media accounts on X (formerly Twitter) and TRUTH Social for material information[21]