0001213900-26-056616
SEC filingRumble reported a 7% revenue increase to $25.5 million in Q1 2026, but net loss widened to $30.3 million due to non-cash fair value adjustments and acquisition costs.
Rumble's Q1 2026 revenue rose 7% year-over-year to $25.5 million from $23.7 million in Q1 2025. The increase was driven by Audience Monetization (up $2.6 million to $22.5 million), reflecting higher subscription revenue, advertising, and licensing fees. Other Initiatives revenue declined $0.8 million to $2.9 million, primarily due to reduced publisher network advertising inventory. Cost of services decreased 10% to $27.0 million, driven by lower programming and content costs. Despite revenue growth, the operating loss widened to $39.1 million from $36.4 million, pressured by a $4.8 million increase in sales and marketing expenses, $4.8 million in acquisition-related costs, and a $4.1 million mark-to-market loss on bitcoin. Net loss ballooned to $30.3 million from $2.7 million in the prior-year quarter, which had benefited from $31.6 million in non-cash gains on warrant liability and derivative revaluations. Basic and diluted EPS were -$0.12 versus -$0.01.
Cash and cash equivalents fell to $219.0 million from $237.9 million at December 31, 2025, primarily due to operating cash usage and capex. Digital assets (bitcoin) decreased to $14.4 million from $18.5 million, reflecting a $4.1 million fair-value decline on 210.82 bitcoins. Accounts receivable increased modestly to $12.5 million. Total assets declined to $311.2 million from $336.8 million, largely driven by lower cash and digital assets. Total liabilities remained relatively flat at $61.3 million, with the warrant liability decreasing to $8.6 million from $15.6 million due to changes in the stock price. Shareholders' equity declined to $249.9 million from $274.8 million, reflecting the net loss and share-based compensation.
Operating cash flow was negative $16.6 million in Q1 2026, compared to negative $14.5 million in Q1 2025. The increase in cash burn was primarily due to a larger net loss adjusted for non-cash items and changes in working capital. Capital expenditures totaled $2.3 million (including $1.1 million for property and equipment and $1.2 million for intangible assets), up from $0.7 million in the prior year. Free cash flow (operating cash flow minus capex) was -$18.9 million. The company did not purchase additional bitcoin in the quarter, versus $19.1 million in Q1 2025. Financing activities contributed only $0.5 thousand from option exercises, compared to $221.6 million in Q1 2025 from the Tether investment and subsequent share repurchase.
Management highlighted that Monthly Active Users (MAUs) averaged 56 million in Q1 2026, an 8% increase from Q4 2025, driven by investment in Rumble Shorts and international expansion. Average Revenue Per User (ARPU) declined 13% to $0.40, reflecting faster MAU growth relative to revenue. The company expects continued investment in growth. Significant events included the pending acquisition of Northern Data AG, announced in November 2025. The exchange offer launched on April 13, 2026, and is expected to close in Q2 2026. Tether committed to a $100 million advertising agreement ($50M per year for two years) and a $150 million GPU services purchase commitment contingent on the transaction. In Q1 2026, Rumble recognized $1.2 million in revenue from the Tether advertising agreement. Management also noted that they are using a substantial portion of funds to acquire content, with minimum contractual cash commitments of $40.2 million at March 31, 2026.
The company operates as a single operating segment. Stock-based compensation totaled $5.2 million (down from $8.7 million in Q1 2025), with lower expense from restricted stock units and stock options. Acquisition-related transaction costs of $4.8 million were incurred for the Northern Data deal. Deferred revenue stood at $15.6 million, expected to be recognized within one year. Goodwill and intangible assets remained stable at $10.7 million and $23.1 million, respectively. The company held 210.82 bitcoins at March 31, 2026, with a fair value of $14.4 million. The warrant liability decreased due to a $7.0 million fair-value gain, reflecting the trading price of Rumble's warrants. Related-party transactions included $1.2 million in revenue from Tether and $0.9 million in expenses for content moderation services from Cosmic Inc., controlled by significant shareholders.