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Rumble Inc (RUM)
:RUM
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Rumble (RUM) AI Stock Analysis

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RUM

Rumble

(NASDAQ:RUM)

Rating:48Neutral
Price Target:
$9.00
▲(11.66%Upside)
Rumble's overall stock score reflects significant financial challenges, including negative profitability and cash flow metrics. While the earnings call highlighted strong user growth and strategic partnerships, ongoing losses and valuation concerns weigh heavily. Technical indicators and valuation metrics provide limited support, resulting in a cautious outlook.
Positive Factors
Financial Performance
Rumble reported strong 1Q25 results ahead of expectations on revenue and reaffirmed the 2025 goal of reaching adjusted EBITDA breakeven.
Partnerships
Numerous impressive client wins as monetization efforts accelerate, with partnerships announced with Netflix, Crypto.com, and Chevron.
Negative Factors
EBITDA Performance
Adjusted EBITDA was a loss greater than expected, due to one-off items including payroll expenses and charges related to executive departures.
Financial Guidance
The company introduced 1Q25 revenue guidance of at least 25% year-over-year, below consensus of 41% growth.

Rumble (RUM) vs. SPDR S&P 500 ETF (SPY)

Rumble Business Overview & Revenue Model

Company DescriptionRumble Inc. (RUM) is a video-sharing platform that positions itself as a free and open internet alternative to mainstream media sites. Founded with the mission to restore free speech online, Rumble provides a platform for content creators to reach their audiences without the fear of censorship. It operates primarily in the digital media and technology sectors, offering services that allow creators to upload, share, and monetize their video content.
How the Company Makes MoneyRumble generates revenue primarily through advertising and subscription services. The platform offers a monetization program that shares a portion of the advertising revenue with content creators, encouraging more creators to join and engage with the platform. Additionally, Rumble offers premium subscription services that provide users with an ad-free experience and access to exclusive content. Partnerships with various media companies and organizations also contribute to its revenue streams by expanding its content distribution network and audience reach.

Rumble Earnings Call Summary

Earnings Call Date:May 08, 2025
(Q1-2025)
|
% Change Since: 3.60%|
Next Earnings Date:Aug 18, 2025
Earnings Call Sentiment Positive
The earnings call for Rumble Incorporated presented an optimistic outlook with strong user growth, increased revenue, and notable brand partnerships, despite challenges such as decreased ARPU and ongoing adjusted EBITDA losses. The significant increase in cash reserves and strategic plans for international expansion highlight a positive trajectory.
Q1-2025 Updates
Positive Updates
Record User Retention and Growth
Rumble achieved an 87% user retention rate in Q1 2025, significantly improving from the 60% retention rate in Q1 2023, amidst a continuous streak of over 40 million MAUs for 13 consecutive quarters and over 50 million MAUs for 7 consecutive quarters.
Revenue and Monetization Increase
Reported revenues of $23.7 million for Q1 2025, marking a 34% increase compared to the same quarter last year, driven by higher audience monetization and other initiatives.
Brand Partnerships and Advertising Growth
Secured new brand partnerships with Netflix, Crypto.com, and Chevron, marking a significant step forward in the advertising business.
Cloud and International Expansion
Announced a cloud partnership with the Government of El Salvador and plans for the Rumble Wallet to position the company for international market expansion.
Improved Financial Flexibility
Ended Q1 2025 with $301.3 million in cash and cash equivalents, a substantial increase due to the Tether investment.
Negative Updates
Decreased ARPU
ARPU decreased to $0.34 for Q1 2025 compared to $0.39 in Q4 2024, attributed to lower advertising revenue despite higher subscription revenue.
Adjusted EBITDA Loss
Adjusted EBITDA loss for Q1 2025 was $22.7 million, though it represents a 14% improvement compared to Q1 2024.
One-Time High G&A Expenses
General and administrative expenses increased by $7.3 million compared to Q1 2024 due to one-time payroll and related events, including the amicable departure of an executive and a director.
Company Guidance
During Rumble Incorporated's First Quarter 2025 earnings call, the company provided an optimistic outlook, highlighting multiple key metrics. Rumble achieved 59 million Monthly Active Users (MAUs), marking a significant 87% retention rate from the previous quarter, and a notable improvement from the 60% retention post-midterm elections in 2023. Rumble reported a 34% year-over-year revenue growth, amounting to $23.7 million, driven largely by audience monetization and advertising initiatives. The company also announced brand partnerships with Netflix, Crypto.com, and Chevron, emphasizing the start of positive traction in their advertising business. Furthermore, Rumble is set to launch the Rumble Wallet in Q3 2025, aiming to enhance international market monetization and provide unique offerings in the creator economy. Additionally, Rumble Cloud has expanded with a new partnership with the Government of El Salvador, reflecting growing interest in their cloud solutions. CEO Chris Pavlovski emphasized the company's continued focus on M&A strategies to further strengthen its market position.

Rumble Financial Statement Overview

Summary
Rumble faces significant financial challenges with negative profitability and cash flow metrics, alongside a weak balance sheet. While revenue is growing, the company struggles with substantial losses and liquidity issues, posing high financial risk.
Income Statement
15
Very Negative
Rumble showed significant revenue growth from 2020 to 2024, but profitability metrics such as gross profit margin and net profit margin are deeply negative, indicating substantial operational challenges. EBIT and EBITDA margins are also negative, reflecting high operating losses.
Balance Sheet
5
Very Negative
The balance sheet reveals a troubling scenario with a negative equity position in 2020, improving slightly but still weak in subsequent years. The debt-to-equity ratio is undefined due to zero equity in the latest year, highlighting potential financial instability.
Cash Flow
20
Very Negative
Rumble's cash flow performance is poor, with negative free cash flow and operating cash flow in several years. Despite some improvement in operating cash flow over time, the free cash flow remains negative, indicating ongoing liquidity challenges.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue95.49M80.96M39.38M9.47M4.56M
Gross Profit-42.98M-65.19M-4.36M2.27M1.84M
EBITDA-326.76M-131.47M-32.93M-10.37M-1.16M
Net Income-338.36M-116.42M-11.40M-13.41M-1.26M
Balance Sheet
Total Assets195.31M295.71M366.98M55.80M2.68M
Cash, Cash Equivalents and Short-Term Investments114.02M219.47M338.27M46.85M1.45M
Total Debt1.80M2.61M1.42M1.51M424.99K
Total Liabilities258.43M44.09M27.35M25.43M3.02M
Stockholders Equity-63.12M251.62M339.63M30.37M-340.94K
Cash Flow
Free Cash Flow-94.18M-110.40M-41.37M-7.03M-17.61K
Operating Cash Flow-87.01M-92.91M-32.33M-5.19M51.19K
Investing Cash Flow-15.64M-23.77M-10.14M1.58M-68.81K
Financing Cash Flow-1.67M-2.15M332.79M49.01M-423.52K

Rumble Technical Analysis

Technical Analysis Sentiment
Negative
Last Price8.06
Price Trends
50DMA
9.06
Negative
100DMA
8.57
Negative
200DMA
8.87
Negative
Market Momentum
MACD
-0.14
Positive
RSI
36.00
Neutral
STOCH
2.67
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RUM, the sentiment is Negative. The current price of 8.06 is below the 20-day moving average (MA) of 9.13, below the 50-day MA of 9.06, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.14 indicates Positive momentum. The RSI at 36.00 is Neutral, neither overbought nor oversold. The STOCH value of 2.67 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RUM.

Rumble Risk Analysis

Rumble disclosed 52 risk factors in its most recent earnings report. Rumble 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

Rumble Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
72
Outperform
$601.32M37.444.29%-0.05%23.22%
70
Neutral
$852.78M452.824.15%30.64%
67
Neutral
$539.69M131.131.94%3.62%-53.21%
58
Neutral
$3.41B-63.52%30.08%-196.62%
56
Neutral
$783.98M-46.57%-2.39%-2961.26%
55
Neutral
HK$63.09B-0.94-4.02%5.55%-3.40%-16.18%
48
Neutral
$3.50B-108.20%25.14%-123.03%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RUM
Rumble
8.06
2.15
36.38%
PUBM
PubMatic
11.12
-7.98
-41.78%
GRND
Grindr
17.36
6.43
58.83%
DSP
Viant Technology
13.63
3.86
39.51%
BMBL
Bumble
7.59
-0.52
-6.41%
VMEO
Vimeo
3.65
0.10
2.82%

Rumble Corporate Events

Executive/Board ChangesShareholder Meetings
Rumble Elects Directors at Annual Meeting
Neutral
Jun 18, 2025

Rumble Inc. held its 2025 Annual Meeting of Stockholders on June 12, 2025, where seven directors were elected to serve for one-year terms. The stockholders also ratified the selection of Baker Tilly US, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (RUM) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Rumble stock, see the RUM Stock Forecast page.

Legal ProceedingsBusiness Operations and StrategyFinancial Disclosures
Rumble Reports 34% Revenue Increase in Q1 2025
Positive
May 8, 2025

Rumble Inc. reported a 34% increase in revenue to $23.7 million for the first quarter of 2025, with improved user retention and a significant reduction in net loss compared to the previous year. The company secured a cloud services contract with El Salvador and announced partnerships with notable entities such as the Tampa Bay Buccaneers and the White House. Additionally, Rumble has been involved in legal actions advocating for free speech and is preparing for international expansion with the upcoming release of Rumble Wallet.

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.Date of analysis: Jul 29, 2025