Rumble (RUMBW) Financials

Rumble Inc. (NASDAQ: RUMBW) has shown consistent patterns over the last four years based on quarterly financial data through Q1 2025. Below are key highlights and trends from the analysis of the income statements, cash flow statements, and balance sheets:

• Revenue Growth: Operating revenue increased from approximately $10.98 million in Q3 2022 to about $23.7 million in Q1 2025, indicating growth in the company's top-line over this period.
• Strong Cash Position: Cash and equivalents remained robust, with $301.3 million reported in Q1 2025, down from a peak of $356.7 million in Q3 2023 but still substantial for operational needs.
• Equity Growth: Total common equity increased substantially from $339 million in Q3 2022 to approximately $340 million by Q1 2025 after fluctuations, reflecting capital raises and retained capital.

• Operating Costs Above Revenue: Rumble has consistently reported operating costs of revenue exceeding operating revenue each quarter, resulting in negative gross profit margins.
• High Operating Expenses: Selling, General & Admin (SG&A), marketing, research & development, and depreciation expenses remain high and fluctuate, impacting profitability.
• Significant Non-Cash Adjustments: Quarterly cash flow statements show frequent large non-cash adjustments, affecting net income reconciliation and cash flows from operations.
• Share Dilution: Weighted average diluted shares outstanding have nearly doubled between early 2023 and 2025, which could dilute earnings per share despite the net loss.

• Repeated Net Losses: Rumble reported net losses in every quarter over the period, including $2.65 million loss in Q1 2025 and losses exceeding $20 million in several earlier quarters, indicating ongoing challenges in reaching profitability.
• Negative Operating and Pre-Tax Income: Operating income and pre-tax income remain negative, e.g., $-36.3 million operating income and $-2.6 million pre-tax income in Q1 2025, showing operational inefficiencies.
• Heavy Cash Burn from Operations and Investing: The company consistently generates negative cash flow from operating activities (e.g., -$14.5 million in Q1 2025) and significant outflows in investing activities, contributing to cash burn risks.
• Large Equity Repurchases and Issuances: Notably large financing activity in Q1 2025 with $775 million in equity issuance and a $554 million repurchase, resulting in volatile changes in financing cash flows and potential liquidity concerns.
• Accumulated Deficit: Retained earnings remain significantly negative throughout the period, reflecting accumulated losses and affecting shareholders' equity quality.

Summary: While Rumble is demonstrating revenue growth and maintains a strong cash position supported by financing activities, it faces substantial headwinds from sustained net losses, negative operating margins, and significant cash burn. Investors should be cautious regarding the company’s path to profitability and monitor how management controls expenses and operational efficiencies in upcoming quarters.