Rumble (NASDAQ:RUM) Posts Quarterly Earnings Results, Misses Expectations By $0.08 EPS

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

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 Stock Down 4.1%

NASDAQ RUM traded down $0.23 during trading hours on Friday, reaching $5.47. 636,270 shares of the company traded hands, compared to its average volume of 3,325,483. The company has a 50 day moving average of $6.87 and a two-hundred day moving average of $6.67. The company has a current ratio of 2.12, a quick ratio of 2.12 and a debt-to-equity ratio of 0.25. Rumble has a 12 month low of $4.49 and a 12 month high of $10.60. The stock has a market capitalization of $2.71 billion, a PE ratio of -7.62 and a beta of 1.35.

Analyst Ratings Changes

Several research analysts recently weighed in on the stock. Zacks Research upgraded shares of Rumble from a “strong sell” rating to a “hold” rating in a research report on Tuesday. Wall Street Zen downgraded Rumble from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Lake Street Capital began coverage on Rumble in a research report on Tuesday, October 6th. They set a “hold” rating and a $25.00 target price on the stock. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Rumble in a research note on Thursday, October 22nd. Two analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently 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.