Rumble (NASDAQ:RUM) Announces 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 for the quarter, compared to the consensus estimate of $31.23 million. Rumble had a negative return on equity of 42.47% and a negative net margin of 106.91%.The firm’s revenue for the quarter was up 61.0% on a year-over-year basis. During the same period in the prior year, the business earned ($0.12) earnings per share.

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 Price Performance

Shares of Rumble stock traded down $0.18 during trading on Monday, reaching $6.21. 3,437,563 shares of the company traded hands, compared to its average volume of 2,692,115. The firm has a market capitalization of $2.71 billion, a PE ratio of -14.44 and a beta of 1.14. Rumble has a 1-year low of $4.62 and a 1-year high of $10.54. The company has a 50 day moving average price of $6.64 and a 200-day moving average price of $6.36.

Institutional Investors Weigh In On Rumble

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Royal Bank of Canada increased its holdings in shares of Rumble by 136.7% during the first quarter. Royal Bank of Canada now owns 210,665 shares of the company’s stock valued at $1,490,000 after acquiring an additional 121,650 shares in the last quarter. AQR Capital Management LLC bought a new position in shares of Rumble in the 1st quarter worth $163,000. JPMorgan Chase & Co. grew its position in Rumble by 24,888.7% in the 2nd quarter. JPMorgan Chase & Co. now owns 37,483 shares of the company’s stock valued at $337,000 after purchasing an additional 37,333 shares during the period. Legal & General Group Plc grew its position in Rumble by 82.4% in the 2nd quarter. Legal & General Group Plc now owns 91,844 shares of the company’s stock valued at $825,000 after purchasing an additional 41,490 shares during the period. Finally, Rhumbline Advisers bought a new stake in Rumble during the 2nd quarter valued at $1,041,000. 26.15% of the stock is owned by institutional investors.

Analysts Set New Price Targets

RUM has been the topic of a number of analyst reports. Wall Street Zen upgraded Rumble from a “strong sell” rating to a “hold” rating in a research report on Saturday, May 16th. Weiss Ratings restated a “sell (d-)” rating on shares of Rumble in a research report on Friday, July 24th. One analyst has rated the stock with a Sell rating, Based on data from MarketBeat, the company has an average rating of “Sell”.

Rumble Company Profile

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.