Yangaroo Announces Third Quarter 2025 Financial Results

Core Viewpoint - Yangaroo Inc. reported its thirteenth consecutive quarter of positive Normalized EBITDA, reflecting strong operational focus and cost management despite a challenging geopolitical environment [3][6]. Financial Performance - Total revenue for Q3 2025 was $1,572,017, a decline of $370,508 or approximately 19% year-over-year, attributed to increased tariff-related costs and a cautious spending environment [4][13]. - The company recorded an operating loss of $95,609 and Normalized EBITDA of $152,906 for Q3 2025, compared to an operating income of $348,983 and Normalized EBITDA of $466,458 in Q3 2024 [5][13]. - For the nine months ended September 30, 2025, the company reported an operating loss of $89,860 and Normalized EBITDA of $638,066, down from operating income of $477,056 and Normalized EBITDA of $1,041,857 in the same period of 2024 [5]. Revenue Breakdown - Revenue decreased by $276,245 or 21% in Advertising and $94,263 or 15% in Entertainment compared to Q3 2024 [13]. - Revenue decreased by $79,424 or 5% compared to Q2 2025, primarily due to lower Advertising and Music revenue [13]. - Awards revenue increased by $65,294 or 29% due to seasonality, as the third quarter typically represents a strong period for Awards shows [13]. Operating Expenses - Operating expenses in Q3 2025 were $1,667,626, an increase of $74,084 or 5% compared to Q3 2024, driven by higher depreciation and legal fees [13]. - Operating expenses decreased by $2,593 or 1% compared to Q2 2025, attributed to cost control initiatives [13]. Strategic Focus - The company maintained strong service levels, added new clients, and expanded its U.S. and Canadian clearance service capabilities despite the softening advertising volumes [7]. - Yangaroo continues to support major U.S. and Canadian Awards Shows and invest in platform improvements to enhance configurability and onboarding timelines [8][10]. Legal Matters - The company reached a settlement agreement of $150,000 related to the acquisition of Digital Media Services Inc. and anticipates a receipt of $550,000 from a finalized legal settlement [15]. Shares for Services - Yangaroo will issue a total of 101,662 common shares under a Shares for Services Arrangement for the months of August through October 2025 [16].