Rumble’s Q1 Results Signal Progress, But Profitability Remains Elusive

Rumble Inc. (RUM) reported a significant narrowing of its net loss and strong revenue growth in Q1 2025, marking progress toward stabilizing its business. However, persistent operational losses and mounting expenses underscore the challenges the free-speech-focused platform still faces in achieving sustained profitability.

Revenue Growth Accelerates Amid Strategic Partnerships

Rumble’s revenue surged 34% year-over-year to $23.7 million in Q1 2025, outpacing analyst estimates by 4.1%. This milestone reflects expanding subscription services, stronger advertising monetization, and new partnerships with major brands like Netflix, Crypto.com, and Chevron. The company also secured high-profile clients through its Rumble Cloud division, including the government of El Salvador and the Tampa Bay Buccaneers, signaling a strategic shift toward enterprise revenue streams.

The 59 million monthly active users (MAUs) reported in Q1 2025 represent a stabilization in user engagement, with an 87% retention rate post the 2024 U.S. election, a marked improvement from the 60% retention rate seen after the 2022 midterms. CEO Chris Pavlovski highlighted these metrics as evidence of Rumble’s growing appeal as a “free and open internet” alternative.

Net Loss Narrows Dramatically, but EBITDA Misses Estimates

While Rumble’s net loss shrank 94% year-over-year to $2.7 million from $43.3 million in Q1 2024, the company still faces challenges in converting revenue into profits. The adjusted EBITDA loss of $22.7 million missed estimates by 37.5%, highlighting inefficiencies in cost management. Operating margins improved to -153% from -190% in Q1 2024, but they remain deeply negative, reflecting ongoing struggles to scale operations profitably.

Liquidity Strengthens, but Risks Linger

Rumble’s liquidity position improved significantly, with $318.7 million in cash and Bitcoin as of May 2025, bolstered by a $775 million investment from Tether in early 2025. However, rising expenses—particularly a $7.3 million increase in general and administrative costs—signal potential pressures on margins. Meanwhile, the average revenue per user (ARPU) dropped 13% sequentially in Q1 2025 due to weaker advertising revenue, despite strong subscription growth.

Analysts Remain Cautious Amid Growth

Despite the Q1 win, analysts at TipRanks’ Spark maintained an “Underperform” rating, citing persistent operational losses and liquidity risks. While Rumble’s stock rose 3% to $8 post-earnings, its $3.31 billion market cap lags behind peers, and full-year 2025 EPS estimates remain negative at -$0.34.

Key Takeaways for Investors

1. Revenue Momentum: The 34% growth and strategic partnerships suggest Rumble is gaining traction in its niche.
2. Profitability Struggles: EBITDA losses and rising expenses indicate that scaling costs remain a hurdle.
3. Liquidity Cushion: The Tether investment provides breathing room, but long-term success hinges on margin improvement.
4. User Retention: The 87% post-election retention rate is a positive sign for long-term engagement.

Conclusion: Progress Made, Challenges Ahead

Rumble’s Q1 2025 results demonstrate meaningful progress in curbing losses and driving revenue growth, fueled by enterprise partnerships and user retention. However, the path to sustained profitability remains fraught with challenges, including declining ARPU, high operational costs, and a history of steep losses.

The company’s $2.7 million net loss—down from $43.3 million in Q1 2024—and $23.7 million in revenue (up from $17.7 million) are clear improvements. Yet, with an adjusted EBITDA loss of $22.7 million and a five-year average operating margin of -137%, Rumble must address cost structures to avoid continued dilution of shareholder value.

Investors should weigh Rumble’s $318.7 million liquidity buffer and growth potential against its reliance on external capital and execution risks. While the stock’s 3% post-earnings rally reflects optimism, profitability—not just revenue growth—is the ultimate test for this high-growth disruptor.

For now, Rumble remains a high-risk, high-reward bet for investors willing to bet on its vision of a “free and open internet,” but patience—and a close eye on margin trends—will be critical.