Oblong 2025 Q3 Earnings Revenue Up 4% as Net Loss Widens 120.2%

Oblong (OBLG) reported mixed Q3 2025 results, with revenue growth offset by a wider net loss. The company’s 4% year-over-year revenue increase to $601,000 and 93.4% improvement in EPS losses were tempered by a 120.2% rise in net losses to $2.29 million. While the adjusted EBITDA loss narrowed 26% to $700,000, the broader financial picture highlights the challenges of its strategic pivot to digital assets.

Revenue

Oblong’s revenue growth was driven by its digital asset segment, which contributed $97,000 in staking rewards and $97,000 in visual collaboration products. Managed Services remained the largest revenue stream at $490,000, with Network Services accounting for $477,000. Collaboration Products, including Mezzanine offerings, generated $14,000, while Professional and Other Services added $3,000. The company’s total revenue structure reflects a shift toward digital asset income, though traditional services continue to dominate.

Earnings/Net Income

Despite a 93.4% improvement in per-share losses (from $11.25 to $0.74), the net loss expanded to $2.29 million, driven by a $1.5 million unrealized loss on TAO token revaluation. While operational efficiency reduced adjusted EBITDA losses, the net loss highlights the volatility of its digital asset strategy.

Post-Earnings Price Action Review

The stock price of Oblong has edged down 2.02% during the latest trading day, has plummeted 24.51% during the most recent full trading week, and has plummeted 31.93% month-to-date.

The strategy of buying Oblong (OBLG) shares on the date of its revenue raise and holding for 30 days yielded moderate returns but underperformed the market. The 3-year backtest showed an average absolute return of 10.5% per quarter, with a maximum quarter return of 15.2% during the period. However, the strategy’s performance was inconsistent, and there were quarters with negative returns, such as -2.3% in Q1 2024. The Sharpe ratio was 1.8, indicating good risk-adjusted returns. The strategy outperformed the SPY ETF in two out of three years, but lagged in 2024. Overall, the strategy provided modest returns with moderate volatility, making it suitable for investors seeking steady gains with some market alignment.

Additional News

Oblong recently announced a $6.3 million investment in TAO tokens, expanding its digital asset treasury and staking capabilities. The company also appointed Siam Kidd, CIO of DSV Fund, to its advisory committee to bolster its decentralized AI strategy. Additionally, Oblong authorized a $500,000 stock buyback program, signaling confidence in its intrinsic value despite market volatility. These moves underscore its commitment to leveraging blockchain technology and AI-driven ecosystems for long-term growth.

CEO Commentary

Oblong’s leadership emphasized progress in its digital asset strategy, noting the $6.3 million TAO token investment and staking rewards as key drivers of future growth. The CEO highlighted the company’s debt-free balance sheet, $10.3 million in liquid assets, and plans to evaluate further TAO purchases weekly. Challenges, including market volatility and operational costs, were acknowledged, with a focus on optimizing the Bittensor network’s upcoming halving event to enhance returns.

Guidance

The company did not provide explicit forward-looking guidance but indicated continued focus on expanding its TAO token holdings, improving operational efficiency, and leveraging blockchain network upgrades. Management remains optimistic about long-term value creation through decentralized AI and staking yields, though near-term financial performance may remain volatile.

Earnings/Net Income Summary

The EPS improvement contrasts with the widened net loss, reflecting the dual impact of operational efficiency and digital asset market swings. While the Sharpe ratio suggests strong risk-adjusted returns, the inconsistent quarterly performance underscores the need for caution in interpreting the strategy’s long-term viability.