IZEA Reports Q2 2025 Revenue of $9.1 Million

Core Insights - IZEA Worldwide, Inc. reported a net income of $1.2 million, achieving $0.07 per share, marking its first profitable quarter in history [1][7] - The company experienced an 11% growth in ongoing operations, with total revenue reaching $9.1 million, a 0.4% increase year-over-year [4][6] - Management emphasized a strategic shift towards larger, more profitable accounts, resulting in a strong pipeline for future growth [3] Financial Performance - Total revenue for Q2 2025 was $9.1 million, a 0.4% increase compared to Q2 2024; excluding the divested Hoozu revenue, revenue grew by 11% [4][6] - Cost of revenue decreased to $4.4 million, representing 48% of revenue, down from 57% in the prior year [4] - Total costs and expenses decreased by 30% to $8.4 million compared to $12.0 million in Q2 2024 [6] Operational Highlights - Adjusted EBITDA for Q2 2025 was $1.3 million, compared to a loss of $2.2 million in the same period last year [7][25] - Cash and equivalents as of June 30, 2025, totaled $50.6 million, with no outstanding long-term debt [8] - The company won new business from notable clients including T. Marzetti, Kellogg's, and Nestlé, and produced new work for major projects [6] Cost Management - Costs and expenses, excluding the cost of revenue, totaled $4.0 million, a 41% decrease from the prior year [5] - Sales and marketing costs were significantly reduced by 70% to $1.0 million, attributed to workforce reductions and a pause in advertising spending [5] - General and administrative costs decreased by 14% to $2.9 million, mainly due to reduced employee-related expenses [5] Share Repurchase Program - The company announced a commitment to repurchase up to $10 million of its stock, having purchased 121,788 shares at an average price of $2.29 during Q2 2025 [9]