0001213900-25-073910
SEC filingRumble's Q2 2025 revenue grew 12% YoY to $25.1M, but net loss widened to $30.2M due to non-cash warrant liability losses, while the Tether investment closed, boosting cash and equity.
For the three months ended June 30, 2025, Rumble reported revenue of $25.1 million, a 12% increase compared to $22.5 million in the same period last year. The growth was driven by a $1.7 million rise in Audience Monetization revenue, which includes advertising, subscriptions, licensing, and tipping fees. Subscription revenue alone increased by $4.4 million, offset by a $3.7 million decline in advertising revenue. Other Initiatives revenue grew $0.9 million, primarily from cloud services and publisher network monetization.
Gross profit improved significantly from a negative $13.2 million in Q2 2024 to a negative $1.5 million in Q2 2025, reflecting a gross margin improvement from -58.9% to -5.8%. This was driven by a $10.1 million reduction in programming and content costs, partially offset by a $1.0 million increase in other cost of services.
Operating loss narrowed to $26.6 million from $38.8 million in the prior year quarter, a 31% improvement, as total expenses decreased 16% to $51.7 million. However, net loss widened to $30.2 million from $26.8 million, primarily due to a $16.5 million swing in the change in fair value of warrant liability (from a $10.0 million gain to a $6.5 million loss). Basic and diluted loss per share was $0.12 versus $0.13 in the prior year.
For the six-month period, revenue grew 21% to $48.8 million, while net loss narrowed sharply to $32.9 million from $70.1 million, benefiting from a $9.7 million gain on the Tether derivative and a $15.4 million gain on warrant liability changes.
As of June 30, 2025, Rumble held $283.8 million in cash and cash equivalents, up from $114.0 million at December 31, 2024, primarily due to the $775 million gross proceeds from the Tether investment, partially offset by the $525 million tender offer repurchase and $29.4 million in share issuance costs. The company also held $22.6 million in digital assets (bitcoin), with 210.82 units acquired during the period. Total assets were $379.9 million vs. $195.3 million at year-end 2024, largely reflecting increased cash and digital assets. Total liabilities decreased to $65.7 million from $258.4 million, primarily due to the elimination of the $184.7 million derivative liability upon closing of the Tether transaction. Shareholders' equity turned positive to $314.2 million from a deficit of $63.1 million, driven by the $250 million net proceeds and the extinguishment of the derivative liability, offset by accumulated deficits.
Operating cash flow for the first half of 2025 was negative $30.4 million, improved from negative $55.6 million in the prior year period, reflecting lower net loss adjusted for non-cash items. Key non-cash adjustments included $14.1 million share-based compensation, $6.9 million depreciation/amortization, $15.4 million gain on warrant liability, $9.7 million gain on derivative, and $3.5 million gain on digital assets. Investing activities consumed $20.8 million, including $19.1 million for bitcoin purchases and $1.3 million for intangible assets. Financing activities provided $220.9 million, mainly from the Tether equity issuance ($775M) and share repurchase (-$525M), plus stock option exercises and ESPP proceeds, offset by share issuance costs and tax withholdings. Free cash flow (operating cash flow minus capex and digital asset purchases) was negative $30.7 million.
Management highlighted the successful closing of the $775 million strategic investment from Tether, with $250 million of net proceeds allocated to growth initiatives. The company continues to invest in content creator incentives, with $34 million in minimum contractual commitments as of June 30, 2025, expected to be paid over 12-24 months. Key business metrics showed Monthly Active Users (MAUs) averaged 51 million in Q2 2025, a 14% sequential decline from Q1 2025, which management attributed to a slowdown in news and political commentary outside a U.S. election cycle. Average Revenue Per User (ARPU) improved to $0.42 in Q2, up 24% sequentially, driven by higher subscription and licensing revenue. No forward guidance was provided. The company identified material weaknesses in internal controls as of December 31, 2024, and is implementing remediation plans, including hiring additional finance personnel and formalizing accounting policies. Risks include ongoing litigation, particularly a lawsuit seeking rescission or damages of approximately $419 million, though management considers the likelihood of loss remote.
Rumble operates as a single reportable segment. Revenue is disaggregated into Audience Monetization ($41.4M in H1 2025) and Other Initiatives ($7.4M in H1 2025). Geographic revenue is predominantly U.S. (90% in H1 2025). Deferred revenue was $17.1 million at June 30, 2025, expected to be fully recognized within the next year. Share-based compensation totaled $5.4 million in Q2 2025 ($14.1M in H1 2025), with modifications accelerating vesting for certain officers incurring incremental expense of $1.1 million in H1 2025. Goodwill was $10.7 million, unchanged from year-end 2024. Intangible assets net decreased to $26.5 million from $29.3 million due to amortization. The company had no debt. Buybacks during the period consisted solely of the $525 million tender offer; no ongoing buyback program was disclosed.