Rumble (NASDAQ:RUM) Releases Quarterly Earnings Results, Misses Expectations By $0.18 EPS

Rumble (NASDAQ:RUM) announced its earnings results on Monday. The company reported ($0.28) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.10) by ($0.18), FiscalAI reports. The company had revenue of $40.37 million during the quarter, compared to analyst estimates of $31.23 million. Rumble had a negative net margin of 134.60% and a negative return on equity of 46.53%. The firm’s revenue for the quarter was up 61.0% compared to the same quarter last year. During the same quarter last year, the business earned ($0.12) EPS.

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

• Northern Data acquisition completed, creating Quake AI as a cloud and AI infrastructure business alongside Rumble Video, with approximately 22,000 NVIDIA H100 and H200 GPUs and reported utilization above 85%.
• Second-quarter revenue rose 61% year over year to $40.4 million, while adjusted EBITDA loss improved to $16.6 million from $20.5 million; management issued third-quarter revenue guidance of $87 million to $93 million, reflecting the first full quarter with Quake AI.
• The company signed a multi-year agreement with Together AI for NVIDIA HGX B300 capacity and is targeting monetization of 250 megawatts of power in 2027, which management estimates could represent a $3 billion-plus annual revenue run rate.
• Rumble reported 57 million average monthly active users and $0.48 ARPU, up 20% sequentially, but will discontinue MAU and ARPU as headline metrics and begin reporting separate Rumble Video and Quake AI segments next quarter.
• Net loss widened to $80.3 million from $30.2 million a year earlier, primarily due to $28.3 million of Northern Data transaction costs and higher non-cash depreciation and amortization; the company also incurred nearly $47 million in investing activity during the quarter for AI infrastructure equipment.

Rumble Stock Up 4.3%

Shares of Rumble stock traded up $0.30 during trading hours on Wednesday, reaching $7.22. 1,475,490 shares of the company’s stock were exchanged, compared to its average volume of 2,705,273. Rumble has a 1 year low of $4.62 and a 1 year high of $10.54. The company has a market capitalization of $3.15 billion, a P/E ratio of -12.24 and a beta of 1.14. The business has a fifty day moving average of $6.53 and a two-hundred day moving average of $6.36.

Hedge Funds Weigh In On Rumble

Several hedge funds and other institutional investors have recently modified their holdings of RUM. Virtu Financial LLC purchased a new stake in Rumble during the 4th quarter valued at about $146,000. NewEdge Advisors LLC lifted its stake in Rumble by 2,905.9% in the 4th quarter. NewEdge Advisors LLC now owns 10,250 shares of the company’s stock worth $65,000 after purchasing an additional 9,909 shares in the last quarter. XTX Topco Ltd purchased a new position in Rumble in the 4th quarter worth approximately $313,000. VestGen Advisors LLC acquired a new position in shares of Rumble during the 4th quarter worth approximately $64,000. Finally, Janus Henderson Group PLC boosted its holdings in shares of Rumble by 413.8% during the 4th quarter. Janus Henderson Group PLC now owns 176,447 shares of the company’s stock worth $1,115,000 after purchasing an additional 142,107 shares during the last quarter. 26.15% of the stock is owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades

A number of research analysts recently weighed in on the stock. Weiss Ratings reaffirmed a “sell (d-)” rating on shares of Rumble in a research note on Friday, July 24th. Wall Street Zen upgraded Rumble from a “strong sell” rating to a “hold” rating in a research note on Saturday, May 16th. One investment analyst has rated the stock with a Sell rating, According to MarketBeat, the stock presently has an average rating of “Sell”.

About Rumble

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company’s primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.