RUM Group Inc. quarterly report, Q1 FY2026

Rumble Inc. Q1 2026 10-Q Summary

Business Context and Reporting Period

This summary covers Rumble Inc.'s (RUM) unaudited financial results for the quarterly period ended March 31, 2026. Rumble operates as a high-growth video sharing platform and cloud services provider. The company is classified as an emerging growth company and a non-accelerated filer. As of May 8, 2026, the company had 216.4 million shares of Class A common stock, 123.7 million shares of Class C common stock, and 95.8 million shares of Class D common stock outstanding.

Key Financial Metrics

Metric Q1 2026 Q1 2025
Total Revenue $25.46 million $23.71 million
Net Loss $(30.27) million $(2.65) million
Loss Per Share (Basic & Diluted) $(0.12) $(0.01)
Operating Cash Flow $(16.61) million $(14.49) million
Cash and Cash Equivalents $219.04 million $301.29 million (End of Q1 2025)
Digital Assets (Bitcoin) $14.38 million $18.45 million (Dec 31, 2025)
Adjusted EBITDA $(20.97) million $(22.71) million

Material Changes vs. Prior Period

  • Revenue Growth: Revenue increased by 7% ($1.75 million) year-over-year, driven by a $2.6 million increase in Audience Monetization (subscriptions, advertising, licensing) partially offset by a $0.8 million decline in Other Initiatives (publisher network ads).
  • Expense Increases: Total expenses rose 7% to $64.56 million. Notable increases included:
    • Sales and Marketing: Up 134% ($4.9 million) due to higher marketing spend and payroll.
    • Acquisition-Related Costs: $4.85 million incurred in Q1 2026 compared to zero in Q1 2025, related to the Northern Data transaction.
    • Digital Asset Losses: Change in fair value of digital assets increased to a $4.07 million loss (vs. $1.70 million loss in Q1 2025) due to Bitcoin price fluctuations.
  • Expense Decreases: General and Administrative expenses dropped 37% ($6.24 million) primarily due to the absence of one-time executive compensation costs and payroll tax items present in Q1 2025.
  • Non-Operating Items: The company recorded a $7.0 million gain on the change in fair value of warrant liability, compared to a $21.9 million gain in Q1 2025. The $9.7 million gain on derivative fair value in Q1 2025 was non-existent in Q1 2026.

Guidance, Outlook, and Risks

  • Strategic Transactions: Rumble launched an exchange offer on April 13, 2026, to acquire Northern Data AG (expected to close Q2 2026). Tether has committed to purchasing up to $150 million in GPU services over two years post-closing and has a separate $100 million advertising commitment ($50M/year) starting February 2026.
  • Key Metrics: Monthly Active Users (MAUs) averaged 56 million in Q1 2026, an 8% increase from Q4 2025. However, Average Revenue Per User (ARPU) decreased 13% to $0.40, as user growth outpaced revenue growth, partly due to non-monetized Rumble Shorts.
  • Liquidity: The company holds $219 million in cash and equivalents. It has approximately $46 million in non-cancelable contractual commitments, primarily for content and leases.
  • Risks: Significant risks include the uncertainty of the Northern Data business combination, reliance on third-party analytics for MAU data, potential regulatory challenges regarding content moderation and privacy, and volatility in Bitcoin holdings.

Investor Verification Checklist

  • Transaction Closing: Verify the status and regulatory approval of the Northern Data AG acquisition and the associated $150M GPU commitment from Tether.
  • Content Commitments: Review the $40.2 million in minimum contractual cash commitments for programming and content to assess future cash burn.
  • Bitcoin Volatility: Monitor the fair value of the 210.82 Bitcoin holdings, which currently represent a significant unrealized loss on the balance sheet.
  • Legal Proceedings: Track the status of the antitrust lawsuit against Google (appeal pending) and the New York Social Media Law injunction.
  • MAU Methodology: Note the transition from Google Universal Analytics to GA4 and the potential impact on the comparability of user growth metrics.