Banzai International (NASDAQ:BNZI) reported first-quarter 2026 revenue of $2.7 million, down 20% from the prior-year period, as management pointed to a comparatively flat sequential performance and said it is pursuing acquisitions, cost controls and product expansion to support longer-term growth.
Chief Executive Officer Joe Davy said revenue in the quarter was “relatively flat” compared with the fourth quarter of 2025 on a run-rate basis, while Chief Financial Officer Dean Ditto attributed the year-over-year revenue decline to “some one-time CreateStudio revenue” recorded in the first quarter of 2025. Davy also said March revenue increased 11% compared with February, which he described as a promising sign within the quarter.
First-quarter results
For the quarter ended March 31, 2026, Banzai reported gross profit of $2.2 million, compared with $2.8 million in the first quarter of 2025. Gross margin was 80.7%, which Ditto said remained relatively stable.
Total operating expenses were $8 million, up from $7.7 million in the prior-year quarter. Ditto said the increase was primarily tied to people expenses, reflecting investments in the leadership team and key sales and marketing roles. He said those costs were partially offset by reductions in professional fees, marketing expenses and administrative expenses.
Net loss was $8.4 million, compared with a net loss of $3.6 million in the first quarter of 2025. Ditto noted that the prior-year quarter included a one-time non-cash gain from negotiated reductions in SPAC-related costs. On an adjusted basis, he said the first-quarter 2025 loss would have been $7.9 million, compared with the $8.4 million loss in the most recent quarter.
Adjusted EBITDA was a loss of $1.9 million, compared with a loss of $1.7 million in the first quarter of 2025. Net cash used in operations was $5.5 million, compared with $5 million in the prior-year period.
Cash totaled $0.1 million as of March 31, 2026, compared with $0.3 million as of Dec. 31, 2025. During the quarter, the company funded operations through equity and debt financing, including an additional tranche of convertible debt totaling approximately $2.3 million and an additional $3.3 million of equity.
Balance sheet and cost controls
Davy said the company continued reducing debt in the first quarter and believes its balance sheet is in a stronger position for future strategic growth. Stockholders’ equity remained at $8.1 million as of March 31, 2026.
Management said Banzai has begun implementing additional cost-management actions that it believes will materially reduce annual operating costs. Davy said the company would track and report those savings in future announcements.
Ditto said the company’s financial plan is to reduce debt through cash payments and selective conversions while operating “in a very cost efficient manner.” Davy added that the company’s debt facility remains available to support acquisitions and ongoing operations if needed.
Acquisition strategy remains central
Davy highlighted Banzai’s acquisition strategy as a key part of its plan to scale. Since December 2024, he said the company has closed acquisitions of OpenReel, Vidello and Superblocks. He also discussed Banzai’s previously announced non-binding letter of intent to acquire the assets of ConnectAndSell Inc., an AI-powered sales enablement platform.
According to Davy, the proposed ConnectAndSell acquisition is expected to increase Banzai’s annual revenue by approximately $15 million. He said ConnectAndSell has gross margin of 86%, approximately 250 enterprise customers and more than 10 issued and pending patents.
Davy said Banzai and ConnectAndSell continue to negotiate material terms of the transaction. Because the deal remains subject to a definitive agreement and closing conditions, he said the company cannot estimate a closing date.
ConnectAndSell’s platform is designed to improve seller productivity by helping sales teams spend more time in live conversations with qualified decision-makers, Davy said. He added that the acquisition would broaden Banzai’s platform across more of the go-to-market process and create potential cross-selling opportunities across both companies’ customer bases.
During the question-and-answer portion of the call, Davy said Banzai has “a really strong pipeline of M&A targets” and described the current valuation environment as attractive. He said the company is focused on ConnectAndSell but is also evaluating other opportunities.
Product and market focus
Davy said Banzai now has more than 150,000 total customers who have purchased or subscribed to its products. He said the company serves customers in more than 90 countries and named Amazon, Dell, Salesforce, Aflac, Thermo Fisher Scientific, RBC and Fitch Group among its customers and partners.
The company is also focusing on healthcare, banking, financial services and insurance customers. Davy said Banzai serves more than 250 enterprise and mid-market customers in healthcare, medical technology and related regulated industries. He said those sectors require precision targeting, compliant engagement and measurable outcomes, and added that their regulatory complexity may create a competitive barrier for new entrants.
Davy said Banzai expects to complete and obtain ISO 27001 certification by the end of the second quarter of 2026. He said the certification is strategically important because it could help the company access customers that require that level of security compliance.
Banzai also discussed its November acquisition of Superblocks, an agentic AI platform for developing and hosting SEO-optimized websites, landing pages and related web assets. Davy said Superblocks allows users to describe what they want in natural language and have the AI generate and host the website or application. A new version featuring AI-powered starting point templates is expected to launch soon, he said.
Pipeline commentary
In response to a question about enterprise marketing technology spending, Davy said Banzai saw some acceleration in its pipeline during the first and second quarters. He said new demand-generation efforts started in late 2024 led to closes in the first quarter, and the company has continued to see new customer closes in the second quarter.
Davy also said acquisitions can temporarily slow efficiency as companies integrate websites, sales and marketing processes, compensation plans and personnel. He said he was proud of the team’s work stabilizing the OpenReel business in 2025 and said he hopes it can show meaningful growth in 2026.
“We’re focused on generating sustainable value for our shareholders,” Davy said, adding that management plans to provide further updates during the year.
About Banzai International (NASDAQ:BNZI)
Banzai International, Inc, a marketing technology company, provides data-driven marketing and sales solutions for various businesses in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Its products include Demio, a browser-based webinar platform with data and marketing features designed to help businesses engage with their audience through live events and on-demand, interactive video content; Boost, a software-as-a-service (SaaS) solution for social sharing by event registrants; and Reach, a SaaS and managed service to increase registration and attendance of marketing events.
