Education
About Us
Working with TipRanks
Follow Us
IZEA Worldwide (IZEA)
NASDAQ:IZEA
Top Page
IZEA Worldwide
(NASDAQ:IZEA)
Select Model
Select Model
Rating:54Neutral
Price Target:
$4.00
▼(-26.61% Downside)
Action:ReiteratedDate:03/18/26
The score is primarily supported by improved 2025 cash generation and a low-risk balance sheet with no debt, reinforced by a cautiously positive earnings-call outlook for bookings and revenue recovery. These are tempered by ongoing operating weakness and declining revenue/bookings, while valuation is a major drag due to the extremely high P/E and technicals remain largely neutral.
Positive Factors
Strong balance sheet & liquidity
Zero reported debt and a sizeable cash/investment balance provide durable financial flexibility. This reduces refinancing and leverage risk, supports operations through cyclical revenue pressure, and preserves optionality for selective M&A or targeted investment as recovery progresses.
Sustained cash-generation improvement
A return to positive operating and free cash flow after prior multi-year burn reflects meaningful structural cost discipline. Sustained positive cash generation reduces external funding reliance, enables reinvestment in growth, and makes profitability outcomes more attainable if revenue re-acceleration follows.
Higher-quality enterprise account growth
Concentration into larger enterprise clients creates more recurring, stickier revenue and improves lifetime value. Enterprise expansion supports better gross margins and predictable bookings, aiding long-term revenue stability and enabling scalable managed-services economics as these accounts grow.
Negative Factors
Declining revenue and bookings
Material declines in revenue and bookings undermine scale and operating leverage. Given the seven-month lag from bookings to managed-services revenue, the drop creates multi-quarter headwinds to top-line recovery and constrains margin improvement until new bookings convert into revenue.
Core operating profitability still negative
Persistent negative operating EBITDA indicates the business has not yet achieved durable underlying profitability. Even with cost cuts, operating losses limit internal reinvestment capacity and leave outcomes sensitive to client churn or slower-than-expected revenue recovery.
Cash/asset volatility from prior burn
The asset decline and prior multi-year negative cash flow highlight volatility in capital resilience. While 2025 improved, the history of drawdown signals potential limits on aggressive growth spending and raises risk that future shocks could more quickly erode liquidity absent sustained revenue momentum.
IZEA Worldwide (IZEA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$60.50M
Dividend YieldN/A
Average Volume (3M)130.47K
Price to Earnings (P/E)1786.3
Beta (1Y)0.94
Revenue Growth7.12%
EPS Growth78.68%
CountryUS
Employees110
SectorCommunication Services
Sector Strength97
IndustryInternet Content & Information
Share Statistics
EPS (TTM)-0.07
Shares Outstanding17,336,120
10 Day Avg. Volume56,530
30 Day Avg. Volume130,475
Financial Highlights & Ratios
PEG Ratio-17.82
Price to Book (P/B)1.55
Price to Sales (P/S)2.42
P/FCF Ratio31.85
Enterprise Value/Market Cap0.15
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.59
Enterprise Value/Ebitda-7.27
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.12
Revenue Forecast (FY)$37.00M
IZEA Worldwide Business Overview & Revenue Model
Company DescriptionIZEA Worldwide, Inc., together with its subsidiaries, creates and operates online marketplaces that connect marketers and content creators. Its technology solutions enable the management of content workflow, creator search and targeting, bidding, analytics, and payment processing. The company uses its platform to manage influencer marketing campaigns on behalf of the company's marketers. It primarily sells influencer marketing and custom content campaigns through sales team and platforms, as well as IZEA Exchange BrandGraph, and Shake platforms. The company was formerly known as IZEA, Inc. and changed its name to IZEA Worldwide, Inc. in August 2018. IZEA Worldwide, Inc. was founded in 2006 and is headquartered in Orlando, Florida.
How the Company Makes MoneyIZEA primarily makes money by selling influencer marketing and content marketing services to brands and agencies through a mix of managed campaigns and software-based offerings. A significant revenue stream comes from managed services in which IZEA designs and runs campaigns (e.g., sourcing creators, negotiating terms, coordinating content creation, ensuring deliverables, and reporting/measurement) and charges clients campaign fees; IZEA typically pays creators for their work and retains a margin and/or service fee. Another revenue stream comes from its software/platform products that support influencer discovery, campaign workflow, and analytics; these offerings are generally monetized via subscription and/or platform usage fees depending on the product and contract structure. Additional revenue can come from add-on services such as strategy, creative guidance, content licensing/usage rights, and amplification/measurement components bundled into campaign agreements. Specific details such as current pricing, margin structure by product line, and named material partnerships are null.
IZEA Worldwide Earnings Call Summary
Earnings Call Date:Mar 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 18, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive strategic and financial reset: management executed a deliberate pivot away from lower-margin, noncore customers and achieved a meaningful turnaround—breakeven net income, improved cash operating profit, a strong cash balance, a 40%+ reduction in operating costs, and scaled enterprise accounts with double- or triple-digit growth. These positives offset short-term revenue declines (FY revenue down 13%, Q4 down 45%, bookings down 27%) that were largely strategic and expected to depress near-term comparables. Management guides for bookings recovery in early 2026 and revenue growth in H2 2026. Overall, the narrative emphasizes durable breakeven economics, sustained cash strength, and a path to scalable profitability despite transitory headwinds from client rationalization and external market disruptions.Q4-2025 Updates
Positive Updates
Return to Profitability and Net Profit Swing
Delivered breakeven net income for FY2025 and achieved a net profit swing of $18.9 million year-over-year, marking a first for the company and a notable microcap turnaround.
Operating Cost Reduction
Reduced annual cash operating costs by over 40% (approximately $10 million), resulting in a restructured cost base and sustainable operating discipline.
Positive Cash Operating Profit
Recovered cash operating profit to $0.7 million for the year compared to a $11.1 million cash operating loss in the prior year, ending the cash burn.
Strong Cash Position and No Debt
Ended FY2025 with $50.9 million in cash and cash equivalents (down only $0.2 million year-over-year) and continued to operate with zero debt, providing balance sheet flexibility for M&A and growth.
Enterprise Account Expansion
Scaled five enterprise accounts to exceed $1 million each, with each account delivering double- or triple-digit growth, and overall enterprise account growth materially outpacing the market.
Stabilized Managed Services (Excluding Hoozu)
Managed services revenue (excluding divested Hoozu) finished the year down a modest 2%, demonstrating relative stability despite strategic portfolio changes and macro headwinds.
Improved Quarterly Profitability Metrics
Q4 results showed material improvement: operating expenses down to $4.4 million (40% YoY decline), Q4 net loss narrowed to $1.2 million ($0.07/share) from $4.6 million ($0.27/share) prior year, and adjusted EBITDA improved to negative $0.9 million from negative $2.0 million.
Pipeline and Strategic M&A Activity
Sales pipeline reached a year-high with larger pitch invitations; management is actively pursuing M&A targets to accelerate enterprise capabilities and expects acquisitions could be accretive given current low operating margins.
Negative Updates
Annual Revenue Decline
Full-year revenue declined to $31.2 million, representing a 13% year-over-year decrease driven by a deliberate strategic pivot away from lower-margin, noncore customers and broader macroeconomic headwinds.
Sharp Q4 Revenue Contraction
Fourth quarter revenue was $6.1 million, down 45% year-over-year; managed services revenue in Q4 was $6.0 million versus $9.8 million in the prior year quarter (approximately a 38.8% decline), with more than half of the variance attributed to strategic client rationalization.
Significant Decline in Contract Bookings
Contract bookings declined by $10.3 million, a 27% year-over-year drop, reflecting the intentional reduction in noncore customer activity and contributing to near-term revenue headwinds.
Near-Term Revenue Recognition Lag
Managed services revenue recognition typically lags bookings by ~7 months; as a result, FY2026 comparisons are expected to be lower in H1 (carryover runoff from pre-reset noncore contracts) with recovery targeted for H2 2026.
External Market Disruptions
Government-induced disruptions (including trade policies and impacts noted as [DOGE]) and a cautious holiday marketing environment negatively impacted government and retail accounts and contributed to delayed enterprise bookings.
Remaining Quarterly Loss and Negative Adjusted EBITDA
Despite improvement, Q4 still posted a net loss of $1.2 million and adjusted EBITDA remained negative ($0.9 million), indicating profitability progress is not yet consistent quarter-to-quarter.
Short-Term Revenue Tradeoffs from Strategic Rationalization
The deliberate off-boarding of international markets and lower-margin SMB accounts reduced near-term revenue and contract bookings, creating transitional performance volatility even as the company shifts to higher-quality, enterprise recurring revenue.
Company Guidance
Guidance centered on a near-term bookings recovery and a two-phase revenue outlook: management expects contract bookings to return to year‑over‑year growth in early 2026 (after a 2025 bookings decline of $10.3M, or 27%), but because managed‑services revenue typically lags bookings by roughly seven months they expect year‑over‑year revenue comparisons to be lower in the first half of 2026 and to resume growth in the second half of 2026; they did not provide specific gross‑margin targets but said margins have improved versus prior years and emphasized net‑revenue growth. Key metrics underpinning the guidance include a 2025 contract backlog of $10.1M, full‑year revenue of $31.2M (down 13%), Q4 revenue of $6.1M (down 45% YoY) with Q4 managed‑services revenue of $6.0M versus $9.8M a year ago and managed services ex‑Hoozu down a modest 2% for the year. The company highlighted a materially strengthened financial position to support the plan—operating expenses cut ~40% (about $10M), cash operating profit of $0.7M versus an $11.1M loss in 2024, a net profit swing of $18.9M, Q4 net loss of $1.2M ($0.07/share on 17.1M shares) versus $4.6M ($0.27) prior, Q4 adjusted EBITDA of -$0.9M (vs -$2.0M), $0.4M of Q4 interest income, $50.9M in cash and investments (down $0.2M YTD), no debt, and an active but disciplined $10M share‑repurchase authorization (561,950 shares repurchased for $1.4M through 12/31/25).IZEA Worldwide Financial Statement Overview
Summary
Balance sheet strength is the key support (no debt and sizeable equity), and cash flow rebounded in 2025 with positive operating cash flow/free cash flow (~$2.4M). Offsetting this, revenue declined in 2025 (~-13.7%) and operating profitability remains weak with negative EBIT/EBITDA, suggesting the turnaround is not yet durable.Income Statement
Revenue has trended down recently (2025 annual revenue down ~13.7% after a roughly flat 2024), which pressures scale and operating leverage. Profitability is mixed: gross profit dollars were relatively steady (about $14.6–$15.0M in 2024–2025), and 2025 annual net income turned slightly positive (~$0.04M) after a large 2024 loss (~-$18.9M). However, operating results remain weak with negative EBIT/EBITDA in 2024–2025, indicating the core business still isn’t consistently profitable despite the net income improvement.46
Neutral
Balance Sheet
The balance sheet is conservatively financed with essentially no debt (2025 total debt $0; very low in prior years as well) and a large equity base (~$48.9M in 2025). Assets declined versus 2023–2025 (from ~$79.4M in 2023 to ~$57.5M in 2025), which may reflect cash burn in prior periods or balance sheet contraction, but leverage risk is minimal given the near-zero debt load.78
Positive
Cash Flow
Cash generation improved meaningfully in 2025 with positive operating cash flow and free cash flow (~$2.4M each) versus sizable negative cash flow in 2024 (operating cash flow about -$11.5M; free cash flow about -$12.3M). The main weakness is volatility: cash flow has been negative for multiple years before the 2025 rebound, and the free cash flow growth figure in 2025 is sharply negative, highlighting how uneven the cash profile has been.52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Mar 2024 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 31.24M | 35.88M | 36.21M | 41.10M | 30.02M |
| Gross Profit | 15.01M | 14.68M | 14.59M | 16.36M | 15.56M |
| EBITDA | -1.22M | -18.08M | -6.63M | -3.64M | -2.03M |
| Net Income | 42.33K | -18.85M | -7.35M | -4.47M | -3.14M |
Balance Sheet | |||||
| Total Assets | 57.48M | 62.22M | 79.43M | 85.67M | 90.80M |
| Cash, Cash Equivalents and Short-Term Investments | 50.89M | 51.07M | 54.57M | 40.71M | 75.43M |
| Total Debt | 9.11K | 63.42K | 122.81K | 105.03K | 75.46K |
| Total Liabilities | 8.56M | 13.44M | 14.11M | 15.41M | 15.97M |
| Stockholders Equity | 48.92M | 48.78M | 65.31M | 70.27M | 74.83M |
Cash Flow | |||||
| Free Cash Flow | 2.37M | -12.32M | -5.84M | -4.61M | -2.85M |
| Operating Cash Flow | 2.43M | -11.46M | -4.83M | -3.06M | -2.57M |
| Investing Cash Flow | 5.57M | 19.78M | 18.82M | -47.70M | -26.17K |
| Financing Cash Flow | -1.60M | -1.10M | -1.14M | -76.32K | 44.98M |
IZEA Worldwide Technical Analysis
Negative
5.45
Price Trends
3.74
Negative
4.32
Negative
3.98
Negative
Market Momentum
-0.01
Negative
48.11
Neutral
30.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IZEA, the sentiment is Negative. The current price of 5.45 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.74, and above the 200-day MA of 3.98, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.11 is Neutral, neither overbought nor oversold. The STOCH value of 30.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IZEA.
IZEA Worldwide Risk Analysis
IZEA Worldwide disclosed 38 risk factors in its most recent earnings report. IZEA Worldwide reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IZEA Worldwide Peers Comparison
UnderperformOutperform
Sector (60)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $564.95M | 9.83 | 54.21% | ― | 57.83% | 293.63% | |
61 Neutral | $879.99M | 33.98 | 4.51% | ― | 10.96% | ― | |
60 Neutral | $48.67B | 4.58 | -11.27% | 4.14% | 2.83% | -41.78% | |
58 Neutral | $121.45M | -6.82 | 0.14% | ― | -10.73% | ― | |
54 Neutral | $60.50M | 1,786.29 | 0.09% | ― | 7.12% | 78.68% | |
49 Neutral | $258.50M | -15.44 | 2.48% | ― | -23.61% | ― | |
43 Neutral | $65.56M | -0.03 | -51.54% | ― | -16.83% | -485.31% |
* Communication Services Sector Average
IZEA
IZEA Worldwide
3.49
1.25
55.80%
EVER
EverQuote
15.68
-12.37
-44.10%
THRY
Thryv Holdings
2.75
-12.32
-81.75%
SEAT
Vivid Seats
6.09
-54.11
-89.88%
TBLA
Taboola.com
3.17
0.19
6.38%
ZH
Zhihu
2.90
-1.57
-35.12%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.