Rumble (NASDAQ:RUM) Issues Quarterly Earnings Results

Rumble (NASDAQ:RUM) issued its earnings results on Wednesday. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.08), Briefing.com reports. Rumble had a negative return on equity of 28.72% and a negative net margin of 117.18%. The business had revenue of $96.58 million for the quarter, compared to analyst estimates of $89.00 million. During the same period last year, the company posted ($0.06) earnings per share. The firm’s revenue for the quarter was up 289.5% on a year-over-year basis.

Here are the key takeaways from Rumble’s conference call:

• RUM Group reported record Q3 revenue of $96.6 million, up 290% year over year, with Quake AI contributing $68.2 million and more than 70% of revenue. Adjusted EBITDA was positive $4.4 million for the first time as a public company, although the company still recorded a $91.7 million net loss, primarily due to non-cash depreciation and amortization.
• Quake AI operated about 22,000 GPUs at 85% utilization, and management said most H100 contracts renew by the end of Q1 2027, creating an opportunity for higher rates and customer prepayments. Management expects to balance contract lengths to retain exposure to favorable supply-and-demand conditions.
• Financing conditions for data-center projects have tightened, and a portion of the planned 250 MW capacity may move beyond 2027. RUM is discussing an alternative path with its customer for the Maysville project, but the approach is in early stages and the company did not provide project-specific timing or financing details.
• Rumble Video revenue rose 15% year over year, and the segment was gross-margin positive in Q3. Management cited video cost reductions expected to exceed 20% on a run-rate basis, while noting that savings should emerge through 2027.
• RUM expects Q4 revenue of $88 million to $94 million, below Q3’s reported $96.6 million; Q3 included more than $3 million of accelerated revenue from a barter arrangement that is not expected to recur. The company said Q3 revenue excluding unusual items would have been roughly at the top of its prior guidance range.

Rumble Trading Down 4.2%

Shares of RUM opened at $5.71 on Friday. Rumble has a 1 year low of $4.49 and a 1 year high of $10.60. The company has a debt-to-equity ratio of 0.25, a current ratio of 2.12 and a quick ratio of 2.12. The firm has a fifty day moving average of $6.87 and a 200-day moving average of $6.67.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on RUM. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rumble in a report on Thursday, October 22nd. Lake Street Capital started coverage on shares of Rumble in a research note on Tuesday, October 6th. They set a “hold” rating and a $25.00 price objective on the stock. Wall Street Zen cut Rumble from a “hold” rating to a “sell” rating in a research report on Saturday, August 15th. Finally, Zacks Research raised Rumble from a “strong sell” rating to a “hold” rating in a report on Tuesday. Two equities research analysts have rated the stock with a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company currently has an average rating of “Reduce” and an average price target of $25.00.

Rumble Company Profile

Rumble Inc. operates a video-sharing platform where users can upload, watch and share videos. The company also offers live-streaming tools and services that help creators publish and monetize content, including through advertising and subscriptions. Founded in 2013 by Chris Pavlovski, Rumble has expanded beyond video distribution into cloud computing. Its Rumble Cloud business provides infrastructure services to organizations seeking alternatives to larger cloud providers. The company serves creators, viewers and business customers in multiple countries, with a substantial presence in North America.