Rumble 2025 Q1 Earnings Beats Expectations with 94% Net Income Improvement

Rumble reported its fiscal 2025 Q1 earnings on May 8th, 2025. The company posted a remarkable 94% improvement in net income compared to the previous year, surpassing expectations. While management maintains guidance towards adjusted EBITDA breakeven, the successful execution of brand advertising campaigns and strategic partnerships are expected to drive further growth. The upcoming launch of the Rumble Wallet is anticipated to bolster international monetization efforts, enhancing the company's expansion prospects.

Revenue

Rumble's revenue for the first quarter of 2025 increased significantly, reaching $23.71 million, marking a 33.7% rise from $17.73 million in the same quarter of 2024. This growth was primarily driven by enhanced subscription revenue and successful brand partnerships.

Earnings/Net Income

Rumble reported a narrowed loss of $0.01 per share in Q1 2025, demonstrating a 95.2% improvement from the $0.21 loss per share in Q1 2024. The net loss was reduced to $2.65 million from $43.29 million year-over-year, reflecting positive progress in the company's financial health. The EPS indicates a robust recovery trajectory.

Price Action

The stock price of Rumble edged down 0.38% during the latest trading day, remained unchanged over the recent full trading week, and rose by 2.10% month-to-date.

Post-Earnings Price Action Review

Over the past five years, investors who pursued the strategy of buying Rumble shares after a quarterly revenue drop and holding for 30 days faced substantial losses. This approach resulted in a significant negative return of -24.22%, underperforming the benchmark return of 32.02%. The strategy's compounded annual growth rate was -6.61%, with a maximum drawdown of -73.68%, indicating severe risk exposure and poor performance compared to the benchmark. The Sharpe ratio of -0.08 further emphasized the high risk and inefficacy of this strategy in the context of Rumble’s post-revenue drop investment scenario.

CEO Commentary

Chris Pavlovski, Founder, Chairman, and CEO of Rumble, highlighted that Q1 2025 marked a pivotal period for the company, showcasing significant user retention improvements with 59 million MAUs and a 34% revenue growth year-over-year. He emphasized the successful execution of brand advertising campaigns, including collaborations with Netflix, Crypto.com, and Chevron, indicating a shift in brand interest post-elections. Pavlovski elaborated on the upcoming Rumble Wallet, set to launch in Q3, as a strategic tool to enhance monetization in international markets. He conveyed optimism about the company's trajectory, noting the stability of core products and the increasing demand for their offerings across multiple sectors.

Guidance

Rumble anticipates continued progress towards adjusted EBITDA breakeven in 2025, supported by recent capital infusion from Tether. The CEO mentioned an approved strategy for a Bitcoin treasury of up to $20 million, while emphasizing the importance of the Rumble Wallet in expanding international market penetration. The company remains focused on further investments to accelerate business growth and is evaluating strategic M&A opportunities as they arise.

Additional News

In recent developments, Rumble announced a strategic partnership with the Tampa Bay Buccaneers, marking its expansion into sports verticals. The company also filed a lawsuit alongside Trump Media & Technology Group against Brazilian Supreme Court Justice Alexandre de Moraes, challenging censorship orders affecting U.S.-based accounts. Furthermore, Rumble unveiled the purchase of approximately 188 Bitcoin, totaling $17.1 million, as part of its Bitcoin treasury strategy, aimed at diversifying assets and hedging against inflation. These strategic moves reflect Rumble’s proactive approach to broadening its operational scope and strengthening its market position.