KUST · Kustom Entertainment, Inc.

Kustom Entertainment's fiscal year 2025 results demonstrate a transformative year marked by substantial financial improvement and strategic repositioning. The company achieved an $11.9 million reduction in net loss, driven by multiple factors including revenue growth, significant SG&A expense reductions of $2.28 million, and a remarkable $11.44 million increase in non-operating income. The non-operating improvement was primarily attributable to a $4.58 million favorable change in warrant derivative liabilities and reduced interest expense. Management's strategic pivot toward the $100 billion global live entertainment market is evidenced by the company's name change to Kustom Entertainment, Inc. and the divestiture of non-core assets. The sale of the medical billing RCM business, which closed effective January 1, 2026, removes a segment that generated $1.41 million in losses during 2025. Additionally, the company has entered into a non-binding MOU to sell its legacy video solutions division to Cycurion, Inc., with an expected valuation between $6.0 million and $8.5 million, further streamlining operations. The Forbes recognition of TicketSmarter as a 'Best Resale Site for Tickets' validates the company's ticketing platform strategy, while the announcement of the 2026 Country Stampede Music Festival lineup demonstrates continued execution in live event production. CEO Stanton Ross emphasized the strategic focus on live events and proprietary ticketing, stating the Forbes recognition 'serves as a powerful validation of our fan-first philosophy.' The company's improved balance sheet position, with stockholders' equity increasing $11.4 million and net working capital improving by $17.9 million year-over-year, provides additional financial flexibility for the strategic pivot.