Izea Worldwide Q3 2025 Earnings Report

Izea Worldwide EPS Results

• Actual EPS: $0.01
• Consensus EPS: $0.10
• Beat/Miss: Missed by -$0.09
• One Year Ago EPS: N/A

Izea Worldwide Revenue Results

• Actual Revenue: $8.04 million
• Expected Revenue: $10.00 million
• Beat/Miss: Missed by -$1.96 million
• YoY Revenue Growth: N/A

Izea Worldwide Announcement Details

• Quarter: Q3 2025
• Date: 11/12/2025
• Time: After Market Closes
• Conference Call Date: Wednesday, November 12, 2025
• Conference Call Time: 5:00PM ET

Izea Worldwide (NASDAQ:IZEA) (NASDAQ: IZEA) is a technology and services company that operates in the creator economy and influencer marketing industry. The company helps brands and agencies identify, engage and compensate social media creators and other content producers for marketing campaigns.

IZEA provides software and managed services designed to support influencer and creator marketing programs, including campaign planning, creator discovery, content development, workflow management, payments and performance measurement. Its offerings are intended to connect marketers with creators across social media platforms and other digital channels, while also supporting the production of branded content.

Founded in 2006, IZEA serves brands, advertising agencies and creators, primarily through its operations in the United States and international markets. The company was founded by Ted Murphy, who has served as its chief executive officer and chairman. IZEA has expanded its capabilities through acquisitions and the development of technology platforms for managing creator campaigns and branded content.

Izea Worldwide Q3 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Third consecutive quarter of financial improvement — Q3 net income of $0.1M, adjusted EBITDA of $0.4M, operating expenses down 67%, and cash increased to $51.4 million.
• Negative Sentiment: Total revenue declined 8% to $8.1M as the company shed unprofitable, non-recurring project work and saw softness in government and retail, while managed-services bookings (excluding Hoozu) fell 26% year-to-date and backlog dropped to $7.1M.
• Positive Sentiment: Strategic shift to enterprise customers is showing traction — managed services revenue excluding Hoozu is up 14% year-to-date, the pipeline reached a yearly high, and the company added clients like Amazon and General Motors.
• Neutral Sentiment: IZEA is investing in its technology platform and has rolled out AI-powered features to provide strategic insights, but management has not quantified the near-term revenue impact.
• Neutral Sentiment: Strong liquidity and no debt with $51.4M in cash and investments support growth and M&A optionality, though the $10M share repurchase program has seen only $1.4M deployed and no buys in Q3.

Presentation

[Operator]

Ladies and gentlemen, greetings and welcome to the IZEA's Third Quarter 2025 Earnings Conference Call. At this time, all participants are in listen-only mode. A brief question-and-answer session will follow the formal presentation. If anyone requires operator assistance during the conference call, please signal the operator by pressing Star and Zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Sandra Carbone, SVP and General Counsel at IZEA. Please go ahead.

[Sandra Carbone, SVP and General Counsel at IZEA Worldwide, Inc.]

Good afternoon, everyone, and welcome to IZEA's Earnings Call covering the Third Quarter of 2025. I'm Sandra Carbone, SVP General Counsel at IZEA, and joining me on the call are IZEA's Chief Executive Officer, Patrick Venetucci, and IZEA's Chief Financial Officer, Peter Biere. Thank you for being with us today. Earlier this afternoon, the company issued a press release detailing IZEA's performance during Q3 2025. If you would like to review those details, please visit our investor relations website at izea.com/investors. Before we begin, please take note of the safe harbor paragraph included in today's press release covering IZEA's financial results, and be advised that some of the statements that we make today regarding our business, operations, and financial performance may be considered forward-looking, and such statements involve a number of risks and uncertainties that could cause actual results to differ materially.

[Sandra Carbone, SVP and General Counsel at IZEA Worldwide, Inc.]

We encourage you to consider the disclosures contained in our SEC filings for a detailed discussion of these factors. Our commentary today will also include the non-GAAP financial measures of adjusted EBITDA and revenues excluding divested operations. Reconciliations between GAAP and non-GAAP metrics for our reported results can also be found in our earnings release issued earlier today and in our publicly available filings. With that, I would now like to introduce and turn the call over to IZEA's Chief Executive Officer, Patrick Venetucci. Patrick.

[Patrick Venetucci, CEO at IZEA Worldwide, Inc.]

Thank you, Sandra, and good afternoon, everyone. In Q2, I proudly announced that for the first time in the history of this company, we were profitable. This quarter, I'm pleased to announce that Q3 marks our third consecutive quarter of financial improvement. While total revenue for the quarter decreased 8% to $8.1 million as a result of our choosing to shed unprofitable, non-recurring project work and some softness in government and retail accounts, the underlying health of our business is strong. Managed service revenue excluding Hoozu increased 5%, total operating expenses decreased by 67%, net income totaled $0.1 million compared to a net loss of $8.8 million during Q3 last year, and cash increased by $0.8 million to $51.4 million. Year-to-date, our managed services revenue is up 14%, and net income totaled $1.2 million.

[Patrick Venetucci, CEO at IZEA Worldwide, Inc.]

Three consecutive quarters of continuous improvement underscore that our strategic direction and transformation towards sustainable, profitable growth is firmly taking hold. Since I stepped in as CEO, our objective has been clear: fortify, simplify, and focus. During the first half of the year, we fortified our business in America, simplified many aspects of our go-to-market, and focused on our managed services. We segmented our managed services accounts focusing on enterprise customers with recurring revenue and high growth potential instead of the long tail of transactional customers with small projects and high churn rates. As we've strengthened and expanded our relationships with enterprise clients, we've been rewarded with more business. Our enterprise accounts are now growing at double-digit rates that are well above the industry average, and a few at triple-digit rates. Our sales and marketing efforts are attracting new clients such as Amazon, General Motors, and Owens Corning.

[Patrick Venetucci, CEO at IZEA Worldwide, Inc.]

Plus, our pipeline reached a new high for the year, with invitations to larger pitches growing. Lastly, we produced new work for Kellogg's, Clorox, Nestlé, Danone, and many more clients. To bolster our enterprise growth strategy and momentum, we hired Steve Bunnell, EVP Account Management, who joined us from Publix, where he has a track record of rapidly growing large enterprise accounts such as McDonald's and Samsung. We also hired John Francis, VP Marketing and Revenue Operations, who joined our team from private equity-backed marketing services firms, where he built effective B2B growth programs. Although we have been highly focused on services this year, we continue to invest in our technology platform. Earlier this year, we began simplifying our tech product offerings by focusing on fewer products, consolidating features, and delivering a more intuitive customer experience.

[Patrick Venetucci, CEO at IZEA Worldwide, Inc.]

In Q3, we infused our technology platform with AI-powered features that provide clients with strategic insights and campaign performance. We will be announcing more about our technology development soon. With all of this momentum and opportunity ahead of us, I am optimistic about the future of this company and our ability to deliver additional value to all of our stakeholders, shareholders, clients, and employees alike. With that, I'll turn the call over to Peter Biere, our Chief Financial Officer, for a closer look at the financial results.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

Thank you, Patrick, and good afternoon, everyone. This afternoon, we released our results for the third quarter and filed our quarterly report on Form 10Q with the Securities and Exchange Commission. Today, I'll review our operating results for the quarter ended September 30, 2025, with year-over-year and year-to-date comparisons, highlight key balance sheet items, and provide an update on our stock repurchase activity. Beginning in early 2025, we implemented a new account management model, focusing our resources toward larger, more profitable recurring accounts while scaling back selling and delivery efforts previously devoted to lower-value project-based accounts with limited repeat business. This strategic realignment reduced current-year contract bookings, but it's materially improved profitability and strengthened our foundation for sustainable growth. Managed services bookings represent a total of sales orders received during a period, net of cancellations and refunds.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

They are an indicator of overall demand but are not necessarily predictive of quarterly revenue, as timing varies with contract size, complexity, and customer arrangements. As we continue to emphasize enterprise accounts, individual bookings are expected to become higher in value but less consistent in timing, which can impact comparability. For the nine months ended September 30, 2025, managed services bookings, excluding Hoozu, declined 26% to $18.2 million compared to the prior year period, and contract backlog decreased from $15.5 million at the beginning of the year to $7.1 million at quarter end. The decline primarily reflects the company's strategic focus on higher quality recurring accounts, along with more cautious marketing spend among certain enterprise and agency clients amid broader economic uncertainty, including tariff impacts.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

Revenue from managed services, excluding Hoozu, increased 14% for the nine months ended September 30, 2025, compared to the prior year period, while overall growth slowed 5% in the current quarter. Growth in both comparative periods was driven by expansion among enterprise customers, partly offset by a reduction in smaller non-strategic accounts that we intentionally de-emphasized. Our total cost of revenue, including both external creative and internal labor costs, totaled $4.2 million, or 51% of revenue in the third quarter of 2025, compared to $5.2 million, or 59% of revenue in the same quarter of the prior year. Excluding Hoozu, the cost of revenue declined approximately 5% year-over-year, reflecting improved margin mix in the current period. Operating expenses other than the cost of revenue totaled $4.3 million for the third quarter, down $8.7 million, or 67%, compared to $13 million in the prior year quarter.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

Sales and marketing expenses were $1.1 million, down 62% from the prior year period, reflecting workforce reductions and a temporary pause in certain marketing initiatives. General and administrative expenses declined 49% to $3 million, primarily due to lower employee-related costs, reduced use of external contractors, and decreased spending on professional services, software licenses, and data storage. The prior year period also included a $4 million non-cash charge related to goodwill impairment from an acquisition we made in 2019. We achieved profitability for the third quarter, generating net income of $0.1 million, or 1 cent per share, on $18.7 million shares, compared to a net loss of $8.8 million, or negative 52 cents per share on $17 million shares in the third quarter of 2024.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

This marks only the second quarter in the company's history in which profitability was achieved through operating performance, and the third consecutive quarter of financial improvement, underscoring that our transformation continues to be underway. Adjusted EBITDA for the third quarter of 2025 was $0.4 million, compared to negative $3.4 million in the prior year quarter. As a reminder, we revised our non-GAAP definition of adjusted EBITDA in late 2024, excluding non-operating items such as interest income from our investment portfolio, and restated prior year results for comparability. A reconciliation of adjusted EBITDA to net income is available at the bottom of our earnings release. As of September 30, 2025, we had $51.4 million in cash and investments, an increase of $0.3 million from the beginning of the year.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

This modest increase contrasts with an $8.8 million reduction in cash in the prior year period and reflects the benefits of improved operating performance and disciplined cost management. Operating cash flow is positive for the year-to-date period, inclusive of normal working capital timing variances. In September 2024, we announced a commitment to repurchase up to $10 million of our common stock in the open market, subject to customary restrictions, including regulatory limits on daily trading volume and company-imposed share price thresholds. Through September 30, 2025, cumulative repurchases totaled 561,950 shares for an aggregate investment of $1.4 million under the program. No purchases were made during the third quarter. We also earned $0.5 million of interest on our investments during the recent quarter, and finally, we continue to operate with no debt on our balance sheet.

[Peter Biere, CFO at IZEA Worldwide, Inc.]

With cash on hand and liquidity, we remain well-positioned to support organic business growth initiatives and pursue strategic acquisition opportunities. Thank you for your time today, and at this time, we invite our investors and analysts to share their questions so that we can provide clarity and insight.

[Operator]

Thank you. Ladies and gentlemen, we will now begin the question and answer session. If you would like to ask a question, please press Star and 1 on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star and 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the Star keys. Ladies and gentlemen, we will wait for a moment while we poll for questions. Ladies and gentlemen, if you wish to ask a question, please press Star and 1. A reminder, ladies and gentlemen, if you wish to ask a question, please press Star and 1. As there are no questions in the queue, I now hand the conference over to IZEA's SVP and General Counsel, Sandra Carbone, for closing comments.

[Sandra Carbone, SVP and General Counsel at IZEA Worldwide, Inc.]

Thanks so much, Ryan, and thank you, everyone, for joining us this afternoon. As a reminder, a replay of today's call will be available shortly on our website, izea.com/investors. We appreciate your continued interest and support and hope you'll join us for our next conference call to discuss our fourth quarter 2025 results.

[Operator]

Thank you. Ladies and gentlemen, the conference of IZEA has now concluded. Thank you for your participation. You may now disconnect your lines.

Participants

Analysts

• Patrick Venetucci, CEO at IZEA Worldwide, Inc.
• Peter Biere, CFO at IZEA Worldwide, Inc.
• Sandra Carbone, SVP and General Counsel at IZEA Worldwide, Inc.