Rumble (NASDAQ:RUM) Misses Q3 Sales Expectations, But Stock Soars 31%
Video sharing platform Rumble (NASDAQGM:RUM) fell short of the markets revenue expectations in Q3 CY2025, with sales falling 1.2% year on year to $24.76 million. Its GAAP loss of $0.06 per share was in line with analysts’ consensus estimates.
Is now the time to buy Rumble? Find out in our full research report.
Rumble and Perplexity launched a subscription bundle combining Rumble Premium and Perplexity Pro for $19.99 per month, a limited time offer available through December 31, 2025. The bundle builds on the companies’ previously announced partnership, which integrates Perplexity’s AI-powered search tools to enhance discoverability on Rumble.com
Revenue: $24.76 million vs analyst estimates of $26.86 million (1.2% year-on-year decline, 7.8% miss)
EPS (GAAP): -$0.06 vs analyst estimates of -$0.06 (in line)
Operating Margin: -114%, up from -131% in the same quarter last year
Free Cash Flow was -$12.04 million compared to -$19.92 million in the same quarter last year
Market Capitalization: $2.00 billion
Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.
A company’s long-term sales performance can indicate its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years.
With $103.8 million in revenue over the past 12 months, Rumble is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.
As you can see below, Rumble’s sales grew at an incredible 85.5% compounded annual growth rate over the last four years. This is an encouraging starting point for our analysis because it shows Rumble’s demand was higher than many business services companies.
Rumble Quarterly Revenue
We at StockStory place the most emphasis on long-term growth, but within business services, a stretched historical view may miss recent innovations or disruptive industry trends. Rumble’s annualized revenue growth of 13.5% over the last two years is below its four-year trend, but we still think the results suggest healthy demand.
Rumble Year-On-Year Revenue Growth
This quarter, Rumble missed Wall Street’s estimates and reported a rather uninspiring 1.2% year-on-year revenue decline, generating $24.76 million of revenue.
We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. This signals Rumble could be a hidden gem because it doesn’t get attention from professional brokers.
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Rumble’s high expenses have contributed to an average operating margin of negative 133% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out.
Looking at the trend in its profitability, Rumble’s operating margin decreased by 95.4 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Rumble’s performance was poor no matter how you look at it – it shows that costs were rising and it couldn’t pass them onto its customers.
Rumble Trailing 12-Month Operating Margin (GAAP)
In Q3, Rumble generated a negative 114% operating margin.
If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills.
Rumble’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 95.4%, meaning it lit $95.40 of cash on fire for every $100 in revenue.
Taking a step back, we can see that Rumble’s margin dropped by 46.7 percentage points during that time. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal it’s in the middle of a big investment cycle.
Rumble Trailing 12-Month Free Cash Flow Margin
Rumble burned through $12.04 million of cash in Q3, equivalent to a negative 48.6% margin. The company’s cash burn was similar to its $19.92 million of lost cash in the same quarter last year.
While the company’s revenue missed and its EPS was in line with Wall Street’s estimates, Rumble announced that together with Perplexity, the two companies launched a subscription bundle combining Rumble Premium and Perplexity Pro for $19.99 per month. The bundle builds on the companies’ previously announced partnership, which integrates Perplexity’s AI-powered search tools to enhance discoverability on Rumble.com. Overall, this was a softer quarter but the Perplexity announcement is exciting the market. The stock traded up 31% to $7.73 immediately after reporting.
So should you invest in Rumble right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
