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

Rumble (NASDAQ:RUM) issued its quarterly earnings data on Wednesday. The company reported ($0.19) earnings per share for the quarter, missing analysts’ consensus estimates of ($0.11) by ($0.08), Briefing.com reports. Rumble had a negative net margin of 134.60% and a negative return on equity of 22.77%. Rumble’s revenue for the quarter was up 289.5% compared to the same quarter last year. During the same period in the prior year, the company posted ($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 Price Performance

Shares of Rumble stock traded up $0.66 during mid-day trading on Wednesday, reaching $5.76. 6,336,944 shares of the stock traded hands, compared to its average volume of 3,317,609. The stock has a market capitalization of $2.86 billion, a PE ratio of -9.86 and a beta of 1.35. The business has a 50-day moving average of $6.98 and a 200 day moving average of $6.67. Rumble has a fifty-two week low of $4.49 and a fifty-two week high of $10.60. The company has a quick ratio of 2.12, a current ratio of 2.12 and a debt-to-equity ratio of 0.25.

Wall Street Analysts Forecast Growth

A number of analysts have recently weighed in on RUM shares. Wall Street Zen cut shares of Rumble from a “hold” rating to a “sell” rating in a report on Saturday, August 15th. Weiss Ratings restated a “sell (d-)” rating on shares of Rumble in a research note on Thursday, October 22nd. Zacks Research cut Rumble from a “hold” rating to a “strong sell” rating in a research note on Monday, October 12th. Finally, Lake Street Capital initiated coverage on shares of Rumble in a research note on Tuesday, October 6th. They set a “hold” rating and a $25.00 price objective for the company. One research analyst has rated the stock with a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, Rumble has a consensus rating of “Sell” and an average target price of $25.00.

Top Rumble Stories

Here are a few of the latest stories about RUM:

• Positive Sentiment: Trading activity included 25,642 call options, 182% above the typical daily volume. This may reflect increased bullish positioning, though options activity alone does not confirm investor expectations.
• Neutral Sentiment: Fourth-quarter revenue guidance is $88 million–$94 million, a range that spans the $92.2 million analyst consensus; its midpoint is slightly below that estimate.
• Negative Sentiment: Rumble reported a third-quarter loss of $0.19 per share, worse than the $0.11 consensus loss cited in one report. The loss also widened from $0.08 per share a year earlier, raising concerns about profitability despite revenue growth. Earnings report and call

About Rumble

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.