Oblong 2025 Q3 Earnings Net Loss Widens Despite Revenue Growth

Oblong’s Q3 2025 earnings showed a 4% revenue increase but a 120% wider net loss compared to 2024, driven by TAO token valuation swings. The results aligned with expectations, with mixed market reaction to the strategic pivot toward digital assets.

Revenue

Oblong reported total revenue of $601,000 for Q3 2025, a 4% rise from $578,000 in Q3 2024. The Managed Services segment remained the largest contributor, generating $490,000, while Network Services accounted for $477,000. Visual collaboration services and Professional & Other Services added $10,000 and $3,000, respectively. The Collaboration Products segment contributed $14,000, primarily from Visual Collaboration offerings. Digital Assets revenue, driven entirely by Staking Rewards, totaled $97,000, reflecting the company’s strategic shift toward blockchain investments.

Earnings/Net Income

The company narrowed its adjusted EBITDA loss by 26% to $700,000, but the net loss widened to $2.29 million—a 120.2% increase from $1.04 million in Q3 2024—due to a $1.5 million unrealized loss on TAO token revaluation. Despite improved operational efficiency, the net loss per share of -$0.74 indicates ongoing financial challenges, as digital asset volatility overshadowed core business improvements.

Post-Earnings Price Action Review

The strategy of buying Oblong shares on the earnings date and holding for 30 days yielded a 5.33% return, with a peak of 8.15% on August 14, 2025. However, the stock’s performance was volatile, influenced by TAO token price swings and mixed investor sentiment. While the debt-free balance sheet and $3.7 million in cash provided stability, the 5.33% return lagged behind the NASDAQ Composite Index, underscoring the risks of digital asset exposure. The market’s lukewarm reception to the AI and digital assets pivot suggests investors remain cautious about the long-term viability of the strategy.

CEO Commentary

CEO Pete Holst emphasized the company’s strategic shift to AI and digital assets in the Q3 earnings call, highlighting the $6.3 million investment in TAO tokens and the potential of Bittensor’s decentralized AI network. He noted improved operational efficiency, with adjusted EBITDA losses narrowing, but acknowledged the challenges posed by TAO token valuation volatility. Holst reiterated confidence in the long-term value of the company’s digital asset holdings, particularly with the upcoming December 2025 halving event.

Guidance

The company did not provide specific forward-looking revenue or earnings guidance for future periods but reiterated its focus on expanding TAO token staking and leveraging Bittensor’s ecosystem. Management indicated plans to continue evaluating additional TAO purchases weekly and exploring technology partnerships within the decentralized AI space.

Additional News

1. Strategic Advisory Appointment: Oblong appointed Siam Kidd, CIO of DSV Fund, to its Advisory Committee on August 5, 2025, to guide its Bittensor ($TAO) investments.

2. TAO Token Expansion: In July 2025, the company doubled its TAO token holdings by acquiring $1.65 million in tokens, increasing its stake to 9,963 TAO.

3. Share Repurchase Program: Oblong authorized a $500,000 stock buyback program in April 2025, reflecting management’s belief in the company’s intrinsic value amid strategic digital asset investments.