IZEA(US:IZEA)2025-08-12 20:07PART I. FINANCIAL INFORMATION Financial Statements 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 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 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 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 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 processing2728 - 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 available9598 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 Management's Discussion and Analysis of Financial Condition and Results of Operation 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 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 periods159168 - 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 spend161170171 - 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 use162172 Key Metrics and Non-GAAP Financial Measure 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 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 2024185 - 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 transition187190 Quantitative and Qualitative Disclosures About Market Risk This section is not applicable as the company qualifies as a smaller reporting company - Not applicable to smaller reporting companies193 Controls and Procedures 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 effective196 - No material changes to internal control over financial reporting occurred during the fiscal quarter ended June 30, 2025199 PART II. OTHER INFORMATION Legal Proceedings 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 effect201 Risk Factors 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-K202 Unregistered Sales of Equity Securities and Use of Proceeds 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 $8,675,299203 Defaults Upon Senior Securities Not applicable Mine Safety Disclosures Not applicable Other Information Not applicable Exhibits This section lists exhibits filed with the Form 10-Q, including corporate governance documents, officer certifications, and XBRL data files