RUMBW — Rumble Inc.

Rumble Inc. Q1 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• Revenue: $25.5 million, up 7% from $23.7 million in Q1 2025.
• Audience Monetization Revenue: Increased by $2.6 million.
• Cost of Services: Decreased to $27 million, down 10% year-over-year.
• General and Administrative Expenses: Reduced by 37% to $10.4 million.
• Research and Development Expenses: Increased by 20% to $5.7 million.
• Sales and Marketing Expenses: Increased significantly by 134% to $8.5 million.
• Adjusted EBITDA Loss: Improved to a loss of $21 million from a loss of $22.7 million in Q1 2025.
• Net Loss: Increased to $30.3 million compared to $2.7 million in Q1 2025, attributed to noncash items and acquisition-related costs.
• Liquidity: Total liquidity of $233.4 million, including $219 million in cash and 210.82 Bitcoin valued at $14.4 million.

2. Strategic Updates and Business Highlights:

• Rumble is on the verge of closing its acquisition of Northern Data, expected in June 2026, which will significantly enhance its cloud capabilities.
• Northern Data reported record Q1 revenue of approximately EUR 43 million, with a full-year outlook of EUR 130 million to EUR 150 million.
• Rumble is actively negotiating multiple GPU-as-a-Service contracts and has received non-dilutive GPU financing offers.
• The launch of Rumble Wallet in partnership with Tether is underway, supported by a $100 million advertising commitment from Tether.
• Monthly Active Users (MAUs) reached 56 million, driven by international expansion and Rumble Shorts, which set a record of 2 million unique video views in a single day.

3. Forward Guidance and Outlook:

• Rumble does not provide specific revenue guidance but indicated that the forecasts related to the Northern Data acquisition are internal and not formal guidance.
• The company anticipates scaling Tether ad revenue commitments throughout 2026, with significant growth expected in the second half of the year.
• Monetization of Rumble Shorts is planned for the second half of 2026, which is expected to positively impact Average Revenue Per User (ARPU).

4. Bad News, Challenges, or Points of Concern:

• The net loss has increased significantly year-over-year, primarily due to noncash items and acquisition-related costs.
• The increase in sales and marketing expenses (134%) raises concerns about cost management amidst ongoing losses.
• Rumble Shorts, while driving user growth, is currently not monetized, which negatively impacts ARPU.
• The company faces competitive pressures in both video and cloud services, particularly as it transitions to a cloud-focused business model.

5. Notable Q&A Insights:

• The management clarified that the revenue forecasts for Rumble and Northern Data are not guidance but internal projections related to the acquisition.
• Tether's advertising commitments have already begun and are not contingent upon the Northern Data transaction.
• Northern Data has approximately 22,000 GPUs across its data centers, but specific rack details were not disclosed.
• The company is optimistic about its advertising sales efforts, especially with the upcoming midterm elections, and plans to introduce new advertising capabilities to enhance monetization.

Overall, Rumble is positioning itself for significant growth through its cloud services and strategic partnerships, despite facing challenges related to profitability and competitive pressures.