UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
(Mark One)
For the quarterly period ended
For the transition period from _________ to _________
Commission File Number:
| (Exact name of registrant as specified in its charter) |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| (Address of Principal Executive Offices, including zip code) |
| (Registrant’s telephone number, including area code) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||
| The | ||||
| The |
Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Indicate by check mark whether
the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T
(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit
such files).
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| ☐ Large accelerated filer | ☐ Accelerated filer | |
| ☒ | ||
If an emerging growth company,
indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial
accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether
the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐
No
As of May 8,
2026, the registrant had issued and outstanding (i)
RUMBLE INC.
Quarterly Report on Form 10-Q
TABLE OF CONTENTS
i
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains forward-looking statements regarding, among other things, our plans, strategies and prospects, both business and financial. These statements are based on the beliefs and assumptions of our management. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot provide assurance that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Investors should read statements that contain these words carefully because they discuss future expectations, contain projects of future results of operations or financial condition; or state other “forward-looking” information. Forward-looking statements are based on information available as of the date of this Quarterly Report and may involve significant judgments and assumptions, known and unknown risks and uncertainties and other factors, many of which are outside our control. There may be events in the future that management is not able to predict accurately or over which we have no control. We do not undertake any obligation to update to otherwise correct any forward-looking statements contained herein to reflect events or circumstances after the date they were made, whether as a result of new information, future events, inaccuracies that become apparent after the date hereof or otherwise, except as may be required under applicable laws. The risk factors and cautionary language contained in this Quarterly Report provide examples of risks, uncertainties, and events that may cause actual results to differ materially from the expectations described in such forward-looking statements, including, among other things:
| ● | our ability to grow and manage future growth profitably over time, maintain relationships with customers, compete within our industry and retain key employees; |
| ● | the possibility that we may be adversely impacted by economic, business, and/or competitive factors; |
| ● | our limited operating history makes it difficult to evaluate our business and prospects; |
| ● | we may not grow or maintain our active user base, and may not be able to achieve or maintain profitability; |
| ● | risks relating to our ability to attract new advertisers, or the potential loss of existing advertisers or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets; |
| ● | our cloud business may not achieve the intended results, which could adversely affect our financial condition and results of operations; |
| ● | negative media campaigns may adversely impact our financial performance, results of operations, and relationships with our business partners, including content creators and advertisers; |
| ● | spam activities, including inauthentic and fraudulent user activity, if undetected, may contribute, from time to time, to some amount of overstatement of our performance indicators; |
ii
| ● | the operation of our non-custodial crypto wallet exposes us to significant regulatory, operational, security, and market risks that could adversely affect our business, financial condition, results of operations, and reputation; |
| ● | we collect, store, and process large amounts of user video content and personal information of our users and subscribers. If our security measures are breached, our sites and applications may be perceived as not being secure, traffic and advertisers may curtail or stop viewing our content or using our services, our business and operating results could be harmed, and we could face governmental investigations and legal claims from users and subscribers; |
| ● | our Bitcoin treasury strategy exposes us to various risks associated with holding bitcoin; |
| ● | we may fail to comply with applicable privacy laws, subjecting us to liability and damages; |
| ● | our cloud services business operates in a highly regulated environment, subject to a complex and rapidly evolving array of domestic and international laws, regulations, and industry standards governing data privacy, cybersecurity, data localization, cross-border data transfers, and emerging technologies such as artificial intelligence; |
| ● | we are subject to cybersecurity risks and interruptions or failures in our information technology systems and as we grow and gain recognition, we will likely need to expend additional resources to enhance our protection from such risks. Notwithstanding our efforts, a cyber incident could occur and result in information theft, data corruption, operational disruption and/or financial loss; |
| ● | we may be found to have infringed on the intellectual property of others, which could expose us to substantial losses or restrict our operations; |
| ● | we may face liability for hosting a variety of tortious or unlawful materials uploaded by third parties, notwithstanding the liability protections of Section 230 of the Communications Decency Act of 1996 (“Section 230”); |
| ● | user-generated content could affect the quality of our services and deter existing or potential users from using our platforms, and we may face negative publicity for removing, or declining to remove, certain content, regardless of whether such content violates any law; |
| ● | paid endorsements by our content creators may expose us to regulatory risk, liability, and compliance costs, and, as a result, may adversely affect our business, financial condition and results of operations; |
| ● | our traffic growth, engagement, and monetization depend upon effective operation within and compatibility with operating systems, networks, devices, web browsers and standards, including mobile operating systems, networks, and standards that we do not control; |
| ● | our business depends on continued and unimpeded access to our content and services on the internet. If we or those who engage with our content experience disruptions in internet service, or if internet service providers are able to block, degrade or charge for access to our content and services, we could incur additional expenses and the loss of traffic and advertisers; |
| ● | we face significant market competition, and if we are unable to compete effectively with our competitors for traffic and advertising spend, our business and operating results could be harmed; |
| ● | we rely on data from third parties to calculate certain of our performance metrics. Real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; |
| ● | changes to our existing content and services could fail to attract traffic and advertisers or fail to generate revenue; |
| ● | we derive the majority of our revenue from advertising. The failure to attract new advertisers, the loss of existing advertisers, or the reduction of or failure by existing advertisers to maintain or increase their advertising budgets would adversely affect our business; |
iii
| ● | we depend on third-party vendors, including internet service providers, advertising networks, and data centers, to provide core services; |
| ● | hosting and delivery costs may increase unexpectedly; |
| ● | we have offered and intend to continue to offer incentives, including economic incentives, to content creators to join our platform, and these arrangements may involve fixed payment obligations that are not contingent on actual revenue or performance metrics generated by the applicable content creator but rather are based on our modeled financial projections for that creator, which if not satisfied may adversely impact our financial performance, results of operations and liquidity; |
| ● | we may be unable to develop or maintain effective internal controls; |
| ● | potential diversion of management’s attention and consumption of resources as a result of acquisitions of other companies, including the proposed business combination (the “ND Business Combination”) with Northern Data AG, a German stock corporation (Aktiengesellschaft) incorporated under the laws of Germany (“Northern Data”) and success in integrating and otherwise achieving the benefits of recent and potential acquisitions; |
| ● | we may fail to consummate the ND Business Combination or fail to realize the anticipated strategic and financial benefits sought from the ND Business Combination; |
| ● | we may fail to maintain adequate operational and financial resources or raise additional capital or generate sufficient cash flows; |
| ● | changes in tax rates, changes in tax treatment of companies engaged in e-commerce, the adoption of new tax legislation, or exposure to additional tax liabilities may adversely impact our financial results; |
| ● | compliance obligations imposed by new privacy laws, laws regulating online video sharing platforms, other online platforms, and online speech in certain jurisdictions in which we operate, or industry practices may adversely affect our business; and |
| ● | other risks and uncertainties indicated in this Quarterly Report and in other filings that we have made or will make with the Securities and Exchange Commission (the “SEC”), including the risk factors described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025 and, if the ND Business Combination is consummated, the risk factors related to Northern Data and its business and the business of the combined company as described under the caption “Risk Factors” in our Registration Statement on Form S-4 filed with the SEC on April 13, 2026 in connection with the ND Business Combination. |
iv
PART I - FINANCIAL INFORMATION
ITEM 1. UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
| Rumble Inc. | |
| Condensed Consolidated Interim Financial Statements | |
| (Expressed in U.S. Dollars) | |
| For the three months ended March 31, 2026 and 2025 |
1
| Rumble Inc. | |
| Condensed Consolidated Interim Financial Statements | |
| (Expressed in U.S. Dollars) | |
| For the three months ended March 31, 2026 and 2025 |
| Contents | |
| Condensed Consolidated Interim Financial Statements | |
| Condensed Consolidated Interim Statements of Operations | 3 |
| Condensed Consolidated Interim Balance Sheets | 4 |
| Condensed Consolidated Interim Statements of Shareholders’ Equity | 5 |
| Condensed Consolidated Interim Statements of Cash Flows | 6 |
| Notes to the Condensed Consolidated Interim Financial Statements | 7-24 |
2
Rumble Inc. |
| Condensed Consolidated Interim Statements of Operations |
| (Expressed in U.S. Dollars) |
| (Unaudited) |
| For the three months ended March 31, | 2026 | 2025 | ||||||
| Revenues | $ | $ | ||||||
| Expenses | ||||||||
| Cost of services (content, hosting and other) | $ | $ | ||||||
| General and administrative | ||||||||
| Research and development | ||||||||
| Sales and marketing | ||||||||
| Acquisition-related transaction costs | ||||||||
| Amortization and depreciation | ||||||||
| Change in fair value of digital assets | ||||||||
| Total expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Interest income | ||||||||
| Other expense | ( | ) | ( | ) | ||||
| Changes in fair value of warrant liability | ||||||||
| Changes in fair value of derivative | ||||||||
| Loss before income taxes | ( | ) | ( | ) | ||||
| Income tax expense | ( | ) | ( | ) | ||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
| Loss per share – basic and diluted | $ | ( | ) | $ | ( | ) | ||
| Weighted-average number of common shares used in computing net loss per share - basic and diluted | ||||||||
| Share-based compensation expense included in expenses: | ||||||||
| Cost of services (content, hosting, and other) | $ | $ | ||||||
| General and administrative | ||||||||
| Research and development | ||||||||
| Sales and marketing | ||||||||
| Total share-based compensation expense | $ | $ | ||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
3
Rumble Inc.
Condensed Consolidated Interim Balance Sheets
(Expressed in U.S. Dollars)
(Unaudited)
| March 31, 2026 | December 31, 2025 | |||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | $ | ||||||
| Accounts receivable, net | ||||||||
| Prepaid expenses and other | ||||||||
| Other non-current assets | ||||||||
| Digital assets | ||||||||
| Property and equipment, net | ||||||||
| Right-of-use assets, net | ||||||||
| Intangible assets, net | ||||||||
| Goodwill | ||||||||
| $ | $ | |||||||
| Liabilities and Shareholders’ Equity | ||||||||
| Current liabilities | ||||||||
| Accounts payable and accrued liabilities | $ | $ | ||||||
| Deferred revenue | ||||||||
| Lease liabilities | ||||||||
| Lease liabilities, net of current portion | ||||||||
| Warrant liability | ||||||||
| Other liability | ||||||||
| Commitments and contingencies (Note 13) | ||||||||
| Shareholders’ equity (deficit) | ||||||||
| Preferred shares ($ | ||||||||
| Common shares ($ | ||||||||
| Accumulated deficit | ( | ) | ( | ) | ||||
| Additional paid-in capital | ||||||||
| $ | $ | |||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
4
Rumble Inc.
Condensed Consolidated Interim Statements of Shareholders’ Equity
(Expressed in U.S. Dollars)
(Unaudited)
| For the three months ended March 31, 2026 | ||||||||||||||||||||||||||||||||||||
| Number of Common Stock | ||||||||||||||||||||||||||||||||||||
| Class A | Class C (and corresponding ExchangeCo Share) | Class D | Class A | Class C | Class D | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||||||
| Balance December 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||
| Issuance of Class A Common Stock upon exercise of stock options and warrants as well as vesting of restricted stock units | - | - | ||||||||||||||||||||||||||||||||||
| Share-based compensation | - | - | - | |||||||||||||||||||||||||||||||||
| Loss for the year | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Balance March 31, 2026 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||
| For the three months ended March 31, 2025 | ||||||||||||||||||||||||||||||||||||
| Number of Common Stock | ||||||||||||||||||||||||||||||||||||
| Class A | Class C (and corresponding ExchangeCo Share) | Class D | Class A | Class C | Class D | Additional Paid-in Capital | Accumulated Deficit | Total | ||||||||||||||||||||||||||||
| Balance December 31, 2024 | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||||||||||||||
| Issuance of Class A Common Stock in exchange for Class C Common Stock (and corresponding ExchangeCo Share) | ( | ) | - | ( | ) | |||||||||||||||||||||||||||||||
| Cancellation of Class D Common Stock | - | - | ( | ) | ( | ) | ||||||||||||||||||||||||||||||
| Issuance of Class A Common Stock | - | - | ||||||||||||||||||||||||||||||||||
| Issuance of Class A Common Stock upon exercise of stock options and warrants as well as vesting of restricted stock units | - | - | ||||||||||||||||||||||||||||||||||
| Net share settlement on restricted stock units | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Share issuance costs | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Share-based compensation | - | - | - | |||||||||||||||||||||||||||||||||
| Loss for the year | - | - | - | ( | ) | ( | ) | |||||||||||||||||||||||||||||
| Balance March 31, 2025 | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||||||||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
5
Rumble Inc.
Condensed Consolidated Interim Statements of Cash Flows
(Expressed in U.S. Dollars)
(Unaudited)
| For the three months ended March 31, | 2026 | 2025 | ||||||
| Cash flows provided by (used in) | ||||||||
| Operating activities | ||||||||
| Net loss for the period | $ | ( | ) | $ | ( | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
| Amortization and depreciation | ||||||||
| Share-based compensation | ||||||||
| Provision for credit losses | ||||||||
| Non-cash lease expense | ||||||||
| Net trade and barter revenue and expense | ( | ) | ||||||
| Change in fair value of warrants | ( | ) | ( | ) | ||||
| Change in fair value of derivative | ( | ) | ||||||
| Change in fair value of digital assets | ||||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | ( | ) | ( | ) | ||||
| Prepaid expenses and other | ||||||||
| Accounts payable and accrued liabilities | ( | ) | ||||||
| Deferred revenue | ( | ) | ||||||
| Operating lease liabilities | ( | ) | ( | ) | ||||
| Net cash used in operating activities | ( | ) | ( | ) | ||||
| Investing activities | ||||||||
| Purchase of property and equipment | ( | ) | ( | ) | ||||
| Purchase of digital assets | ( | ) | ||||||
| Purchase of intangible assets | ( | ) | ( | ) | ||||
| Net cash used in investing activities | ( | ) | ( | ) | ||||
| Financing Activities | ||||||||
| Taxes paid from net share settlement for share-based compensation | ( | ) | ||||||
| Proceeds from the exercise of warrants and stock options | ||||||||
| Proceeds from issuance of Class A Common Stock | ||||||||
| Repurchase of Class A Common Stock | ( | ) | ||||||
| Share issuance costs | ( | ) | ||||||
| Net cash provided by financing activities | ||||||||
| (Decrease) increase in cash and cash equivalents during the period | ( | ) | ||||||
| Cash and cash equivalents, beginning of period | ||||||||
| Cash and cash equivalents, end of period | $ | $ | ||||||
| Supplemental cash flow information: | ||||||||
| Cash paid for lease liabilities | $ | $ | ||||||
| Cash paid for income taxes | ||||||||
| Non-cash investing and financing activities: | ||||||||
| Property and equipment in accounts payable and accrued liabilities | ||||||||
| Share-based compensation capitalized related to intangible assets | ||||||||
The accompanying notes are an integral part of these condensed consolidated interim financial statements.
6
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 1. | Overview and Basis of Presentation |
Nature of Operations
Rumble Inc. (“Rumble” or the “Company”) is a high growth, video sharing platform and cloud services provider designed to help content creators manage, distribute, and monetize their content by connecting them with brands, publishers, and directly to their subscribers and followers. The Company’s registered office is located at 444 Gulf of Mexico Drive, Longboat Key, Florida, 34228. The Company’s shares of Class A common stock and warrants are traded on The Nasdaq Global Market (“Nasdaq”) under the symbol “RUM” and “RUMBW”, respectively.
Basis of Presentation
The accompanying unaudited condensed consolidated interim financial statements (the “financial statements”) are prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the results of the Company and its wholly-owned subsidiaries. Any reference in these notes to applicable guidance is meant to refer to the authoritative guidance found in the Accounting Standards Codification (“ASC”) and Accounting Standards Update (“ASU”). All intercompany balances and transactions have been eliminated upon consolidation. These financial statements are presented in U.S. dollars, which is the functional currency of the Company.
These financial statements should be read in conjunction with the Company’s annual consolidated financial statements for the year ended December 31, 2025 (the “Annual Financial Statements”). These financial statements have been prepared using the same accounting policies that were described in Note 2 to the Annual Financial Statements.
Use of Estimates
The preparation of these financial statements in conformity with U.S. GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and the disclosure of contingent assets and liabilities, as of the date of the financial statements, as well as the reported amounts of revenues and expenses during the reporting period. On an ongoing basis, the Company evaluates the estimates used, which include but are not limited to: provision for credit losses; valuation of share-based compensation awards; probability of achievement associated with performance-based awards; fair value of financial instruments including digital assets, warrant liability, and derivative; discount rate in determining lease liabilities; valuation of long-lived assets and their associated useful lives, valuation of goodwill; the realization of tax assets, estimates of tax liabilities, and valuation of deferred taxes; estimates of the standalone selling prices used in the recognition of revenue; and estimates in the determination of the fair value of non-cash consideration earned in trade and barter transactions. These estimates, judgments, and assumptions are reviewed periodically and the impact of any revisions are reflected in the financial statements in the period in which such revisions are made. Actual results could differ materially from those estimates, judgments, or assumptions, and such differences could be material to the Company’s consolidated financial position and results of operations.
7
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 2. | Summary of Significant Accounting Policies |
Trade and Barter Transactions
The Company engages in trade and barter
transactions whereby the Company and its counterparty exchange media campaigns or other promotional services. The Company reviews each
transaction to ensure the advertising it receives has economic substance and records revenue in an amount equal to the fair value of the
products and services received unless this is not reasonable to estimate, in which case the consideration is measured based on the standalone
selling price of the advertising inventory promised or delivered to the customer. Trade and barter revenue is recognized when the performance
obligation is fulfilled and follows the same pattern of recognition as the Company’s normal advertising revenue. Trade and barter
expense is recorded when goods or services are consumed. Trade and barter revenue was $ and $
Recent Accounting Pronouncements
The following amendments to existing standards have been issued up to and including the date of issuance of these financial statements, however are not yet effective for the Company:
| ● | Accounting Standards Updates 2025-01 and 2024-03, Income statement – Reporting Comprehensive Income – Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expense. The amendments in this update require public business entities to disclose, on an annual and interim basis, disaggregated information about certain income statement expense line items in the notes to the financial statements. Public business entities are required to apply the guidance prospectively and may elect to apply it retrospectively. This ASU is effective for fiscal years beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. |
| ● | Accounting Standards Updates 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This ASU removes all references to software development project stages so that the guidance is neutral to different software development methods, including methods that entities may use to develop software in the future. Therefore, this ASU requires that an entity capitalize software costs when both: management has authorized and committed to funding the software project; and it is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”). In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software. This ASU is effective for fiscal years beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. |
8
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 2. | Summary of Significant Accounting Policies (Continued) |
Recent Accounting Pronouncements (Continued)
| ● | Accounting Standards Updates 2025-11, Interim Reporting: Narrow-Scope Improvements (Topic 270): This ASU clarifies interim disclosure requirements and the applicability of Topic 270. It provides a comprehensive list of interim disclosures currently required under U.S. GAAP and introduces a disclosure principle requiring entities to disclose events since the end of the last annual reporting period that have a material impact. The ASU also clarifies the types of interim reporting, and the form and content of interim financial statements in accordance with U.S. GAAP, enhancing consistency in interim reporting. This ASU is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. |
The Company is still evaluating the potential impact of implementing the above amendments to its consolidated financial statements.
| 3. | Revenue from Contracts with Customers |
The following table presents revenues disaggregated by type:
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Audience Monetization | $ | $ | ||||||
| Other Initiatives | ||||||||
| Total revenues | $ | $ | ||||||
The Company recognizes revenue either at a point in time or over time, depending upon the characteristics of the contract.
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Point in time | $ | $ | ||||||
| Over time | ||||||||
| Total revenues | $ | $ | ||||||
Deferred Revenue
Deferred revenue recorded at March
31, 2026 is expected to be fully recognized by March 31, 2027. The deferred revenue balance was $
9
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 4. | Cash and Cash Equivalents |
Cash and cash equivalents consist of the following:
| Contracted Maturity | As of March 31, | As of December 31, | ||||||||
| Cash | $ | $ | ||||||||
| Treasury bills, money market funds and term deposits | ||||||||||
| $ | $ | |||||||||
As of March 31, 2026 and December 31,
2025, the Company entered into a guarantee/ standby letter of credit in the amount of $
| 5. | Digital Assets |
The Company’s digital assets holdings consist of the following:
| As of March 31, 2026 | As of December 31, 2025 | |||||||||||||||||||||||
| Units | Cost Basis | Fair Value | Units | Cost Basis | Fair Value | |||||||||||||||||||
| Bitcoin | $ | $ | $ | $ | ||||||||||||||||||||
| $ | $ | $ | $ | |||||||||||||||||||||
The following table presents a reconciliation of the Company’s digital asset holdings:
| Bitcoin | ||||
| December 31, 2025 | $ | |||
| Change in fair value | ( | ) | ||
| March 31, 2026 | $ | |||
10
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 6. | Property and Equipment |
As of March 31, | As of December 31, | |||||||
| Computer hardware | $ | $ | ||||||
| Furniture and fixtures | ||||||||
| Leasehold improvements | ||||||||
| Accumulated depreciation | ( | ) | ( | ) | ||||
| Net carrying value | $ | $ | ||||||
Depreciation expense on property and
equipment for the three months ended March 31, 2026 and 2025 were $
| 7. | Right-of-Use Assets and Lease Liabilities |
The Company leases several facilities
and data centers under non-cancelable operating leases. These leases have original lease periods expiring between 2026 and 2027.
| As of March 31, 2026 | As of December 31, 2025 | |||||||||||||||
| Accumulated | Accumulated | |||||||||||||||
| Cost | Amortization | Cost | Amortization | |||||||||||||
| Right-of-use assets | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
| Net carrying value | $ | $ | ||||||||||||||
Operating lease costs for the
three months ended March 31, 2026 and 2025 were $
Supplemental balance sheet information related to the operating lease liabilities is as follows:
As of March 31, | As of December 31, | |||||||
| Weighted-average remaining lease term | | |||||||
| Weighted-average incremental borrowing rate | % | % | ||||||
11
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 7. | Right-of-Use Assets and Lease Liabilities (Continued) |
The following shows the future minimum lease payments for the remaining years under the lease arrangement as of March 31, 2026:
| 2026 | $ | |||
| 2027 | ||||
| Less: imputed interest* | ( | ) | ||
| Current portion | $ | |||
| Long-term portion | $ |
| * |
| 8. | Intangible Assets |
| As of March 31, 2026 | ||||||||||||
| Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
| Intellectual property | $ | $ | ( | ) | $ | |||||||
| Domain name | ( | ) | ||||||||||
| Brand | ( | ) | ||||||||||
| Software and technology | ( | ) | ||||||||||
| Internal software development | ( | ) | ||||||||||
| $ | $ | ( | ) | $ | ||||||||
| As of December 31, 2025 | ||||||||||||
| Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||
| Intellectual property | $ | $ | ( | ) | $ | |||||||
| Domain name | ( | ) | ||||||||||
| Brand | ( | ) | ||||||||||
| Software and technology | ( | ) | ||||||||||
| Internal software development | ( | ) | ||||||||||
| Assembled workforce | ( | ) | ||||||||||
| $ | $ | ( | ) | $ | ||||||||
12
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 8. | Intangible Assets (Continued) |
Amortization expense related to intangible
assets for the three months ended March 31, 2026 and 2025 were $
For intangible assets held as of March 31, 2026, future amortization expense is as follows:
| 2026 | $ | |||
| 2027 | ||||
| 2028 | ||||
| 2029 | ||||
| 2030 | ||||
| Thereafter | ||||
| $ |
| 9. | Accounts Payable and Accrued Liabilities |
The Company’s accounts payable and accrued liabilities consist of the following:
| As of March 31, 2026 |
As of December 31, 2025 |
|||||||
| Trade accounts payable | $ | $ | ||||||
| Accrued programming and content costs | ||||||||
| Accrued compensation and benefits | ||||||||
| Accrued professional fees | ||||||||
| Other accrued expenses | ||||||||
| $ | $ | |||||||
| 10. | Shareholders’ Equity |
The Company has
| (i) |
| (ii) |
| (iii) |
| (iv) |
13
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 10. | Shareholders’ Equity (Continued) |
The Company’s indirect, wholly
owned Canadian subsidiary 1000045728 Ontario Inc. (“ExchangeCo”) has
Former holders of Legacy Rumble’s
(as defined below) common shares are eligible to receive up to an aggregate of
| 11. | Share-Based Compensation Expense |
The Company’s stock award plans consist of:
Rumble Inc. Amended and Restated Stock Option Plan
The Company maintains a long-term incentive plan, the Rumble Inc. Amended and Restated Stock Option Plan (the “Stock Option Plan”). The Stock Option Plan governs the terms and conditions of the outstanding awards previously granted under the Stock Option Plan, as well as all options to purchase Legacy Rumble Class A common shares or Legacy Rumble Class B common shares which were converted into options to purchase shares of Class A Common Stock in connection with the business combination (the “Business Combination”) contemplated by that certain business combination agreement, dated December 1, 2021, by and between CF Acquisition Corp. VI, a Delaware corporation, and Rumble Inc., a corporation formed under the laws of the Province of Ontario Canada (“Legacy Rumble).
Rumble Inc. 2022 Stock Incentive Plan
The Rumble Inc. 2022 Stock Incentive
Plan (the “Stock Incentive Plan”) was approved by the board of directors and the stockholders of the Company, and became effective
on September 16, 2022. The Company initially reserved
14
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 11. | Share-Based Compensation Expense (Continued) |
Rumble Inc. 2024 Employee Stock Purchase Plan
The Rumble Inc. 2024 Employee Stock
Purchase Plan (the “Employee Stock Purchase Plan”) was approved by the board of directors and the stockholders of the Company,
and became effective on March 26, 2024. The Company initially reserved
Share-based compensation expenses are summarized as follows:
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Restricted stock units | $ | $ | ||||||
| Stock options | ||||||||
| Employee stock purchase plan | ||||||||
| Pre-funded warrants | ||||||||
| $ | $ | |||||||
Restricted Stock Units
The following tables reflect the continuity of unvested restricted stock units (“RSUs”) transactions:
| Service Conditions | ||||||||
| Number | Weighted Average Grant Date Fair Value |
|||||||
| Outstanding, December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Vested | ( |
) | ||||||
| Forfeited | ( |
) | ||||||
| Cancelled | ||||||||
| Outstanding, March 31, 2026 | $ | |||||||
| Market Conditions | ||||||||
| Number | Weighted Average Grant Date Fair Value | |||||||
| Outstanding, December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Vested | ||||||||
| Forfeited | ||||||||
| Cancelled | ||||||||
| Outstanding, March 31, 2026 | $ | |||||||
As of March 31, 2026, the Company has RSUs outstanding that have market-based vesting conditions if the closing price of the Company’s Class A Common Stock is greater than or equal to a specified price for a period of 20 trading days during any 30 trading-day period.
15
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 11. | Share-Based Compensation Expense (Continued) |
Restricted Stock Units (Continued)
| Performance Conditions | ||||||||
| Number | Weighted Average Grant Date Fair Value |
|||||||
| Outstanding, December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Vested | ||||||||
| Forfeited | ( |
) | ||||||
| Cancelled | ||||||||
| Outstanding, March 31, 2026 | $ | |||||||
As of March 31, 2026, the Company has determined that it is not probable that the conditions related to the performance-based restricted stock units will be met, and therefore, the Company has not recognized the related expense in the condensed consolidated interim statement of operations.
The following table reflects additional information related to RSUs:
| As of March 31, 2026 | ||||||||||||
| Service Conditions | Market Conditions | Performance Conditions | ||||||||||
| Unrecognized compensation cost | $ | $ | $ | |||||||||
| Weighted-average service period for unrecognized compensation cost | ||||||||||||
| Grant date fair value of RSUs | $ | $ | $ | |||||||||
Stock Options
The fair value of the stock options was determined using Black-Scholes option pricing model. The following table reflects the assumptions made:
| Three months ended March 31, 2026 | ||||
| Share price | $ | |||
| Risk-free interest rate | ||||
| Volatility | ||||
| Expected life | ||||
| Dividend rate | ||||
16
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 11. | Share-Based Compensation Expense (Continued) |
Stock Options (Continued)
The following tables reflect the continuity of stock option transactions:
| Service Conditions | ||||||||
| Number | Weighted Average Exercise Price | |||||||
| Outstanding, December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Exercised | ( | ) | ||||||
| Forfeited | ( | ) | ||||||
| Cancelled | ( | ) | ||||||
| Outstanding, March 31, 2026 | $ | |||||||
| Vested and exercisable | $ | |||||||
During the three months ended March
31, 2026 and 2025, the Company recorded incremental share-based compensation expense of $ and $
The aggregate intrinsic value of stock
options is calculated as the difference between the exercise price of the stock options and the fair value of the Company’s Class
A Common Stock for those stock options that had exercise prices lower than the fair value of the Company’s Class A Common Stock.
As of March 31, 2026, the aggregate intrinsic value of options outstanding was $
The following table reflects additional information related to options:
| As of March 31, 2026 | ||||
| Service Conditions | ||||
| Unrecognized compensation cost | $ | |||
| Weighted-average service period for unrecognized compensation cost | ||||
| Weighted-average grant date fair value of options outstanding | $ | |||
Employee Stock Purchase Plan
The Employee Stock Purchase Plan allows
eligible employees to purchase shares of the Company’s Class A Common Stock at a discount through payroll deductions of up to
17
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 11. | Share-Based Compensation Expense (Continued) |
Employee Stock Purchase Plan (Continued)
The fair value of the Employee Stock Purchase Plan was determined using Black-Scholes option pricing model. The following table reflects the assumptions made:
| Three months ended March 31, 2026 | ||||
| Share price | $ | |||
| Risk-free interest rate | % | |||
| Volatility | % | |||
| Expected life | ||||
| Dividend rate | % | |||
The following table reflects additional information related to options:
| As of March 31, 2026 | ||||
| Service Conditions | ||||
| Unrecognized compensation cost | $ | |||
| Weighted-average service period for unrecognized compensation cost | ||||
| Grant date fair value of ESPPs | $ | |||
Pre-funded Warrants
The Company issued pre-funded warrants in connection with a service agreement. The pre-funded warrants is exercisable for shares of the Company’s Class A Common Stock at a nominal exercise price and vests in equal quarterly installments over a three-year period, subject to continued performance of services.
| Service Conditions | ||||||||
| Number | Weighted Average Exercise Price |
|||||||
| Outstanding, December 31, 2025 | $ | |||||||
| Granted | ||||||||
| Exercised | ||||||||
| Forfeited | ||||||||
| Cancelled | ||||||||
| Outstanding, March 31, 2026 | $ | |||||||
| Vested | $ | |||||||
| Exercisable | ||||||||
18
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 11. | Share-Based Compensation Expense (Continued) |
Pre-funded Warrants (continued)
The following table reflects additional information related to the pre-funded warrant:
| As of March 31, 2026 | ||||
| Service Conditions | ||||
| Unrecognized compensation cost | $ | |||
| Weighted-average service period for unrecognized compensation cost | ||||
| Grant date fair value of pre-funded warrants | $ | |||
| 12. | Loss per Share |
When taken together, an ExchangeCo Share and a share of Class C Common Stock are economically similar to a share of Class A Common Stock. As a result, the Company computed basic loss per share by dividing net loss attributable to the Company by the weighted-average number of Class A and ExchangeCo Shares issued and outstanding, excluding those held in escrow as these are contingently issuable shares and have been excluded from the calculation during the three months ended March 31, 2026, and 2025. Shares of Class D Common Stock do not share in earnings and are not participating securities (i.e., non-economic shares) and therefore, have been excluded from the calculation of weighted-average number of shares outstanding.
Diluted loss per share is computed giving effect to all potentially dilutive shares. Diluted loss per share for all periods presented is the same as basic loss per share as the inclusion of potentially issuable shares would be antidilutive.
| 13. | Commitments and Contingencies |
Commitments - Acquisition of Northern Data AG (“Northern Data”)
On November 10, 2025, the Company signed
a business combination agreement with Northern Data, a German stock corporation (Aktiengesellschaft) incorporated under the laws of Germany.
Subject to the terms and conditions of the agreement, the Company will submit a voluntary public exchange offer to all shareholders of
Northern Data. Each Northern Data shareholder that tenders will receive
Tether Investments, S.A. De C.V (“Tether”),
an affiliate of a significant shareholder of the Company, along with shareholders affiliated with Northern Data’s co-CEO and another
shareholder, collectively owning Northern data shares representing approximately
The launch of the Exchange Offer occurred subsequent to quarter end and the transaction is expected to close in the second quarter of 2026, subject to satisfaction of closing conditions and regulatory approvals.
In addition to the business combination,
the Company has entered into a GPU agreement with Tether, subject to closing of the exchange offer, representing an initial commitment
by Tether to purchase up to $
19
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 13. | Commitments and Contingencies (Continued) |
The Company also announced a $
Commitments - Other
The Company has non-cancelable contractual
commitments of approximately $
Legal Proceedings
In the normal course of business, to facilitate transactions in services and products, the Company indemnifies certain parties. The Company has agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. Several of these agreements limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors, and its bylaws contain similar indemnification obligations to its agents.
Furthermore, many of the Company’s agreements with its customers and partners require the Company to indemnify them for certain intellectual property infringement claims against them, which would increase costs as a result of defending such claims, and may require that we pay significant damages if there were an adverse ruling in any such claims. Customers and partners may discontinue the use of the Company’s services and technologies as a result of injunctions or otherwise, which could result in loss of revenues and adversely impact the business.
It is not possible to make a reasonable estimate of the maximum potential amount under these indemnification agreements due to the unique facts and circumstances involved in each particular agreement. As of March 31, 2026, there were material indemnification claims that were probable or reasonably possible.
From time to time, the Company may become involved in litigation and other legal action. The Company estimates a range of liability related to any pending litigation where the amount and range of loss can be estimated. As of March 31, 2026, we cannot reasonably estimate the possible loss or range of loss, if any, in respect of pending legal proceedings against the Company and accordingly no liability has been recorded.
20
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 14. | Fair Value Measurements |
The following table summarizes the assets and liabilities measured at fair value on a recurring basis:
| Level 1 | Level 2 | |||||||
| Digital Assets | Warrant Liability | |||||||
| December 31, 2025 | $ | $ | ||||||
| Change in fair value | ( | ) | ( | ) | ||||
| March 31, 2026 | $ | $ | ||||||
Digital Assets
Digital assets arose from our bitcoin investment. Changes in fair value of digital assets reflect gains or losses arising from the remeasurement of our bitcoin investment based on an exchanged quoted price. Refer to Note 5.
Warrant Liability
Warrant liability
consists of warrants issued by the Company in public offerings, private placements, and forward purchase contracts. As of March 31, 2026
and December 31, 2025, the number of warrants outstanding was
| 15. | Credit and Concentration Risks |
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. The Company is exposed to credit risk resulting from the possibility that a customer or counterparty to a financial instrument defaults on their financial obligations or if there is a concentration of transactions carried out with the same counterparty. Financial instruments that potentially subject the Company to concentrations of credit risk include cash, cash equivalents, and accounts receivable.
The Company’s cash and cash equivalents are held in reputable banks in its country of domicile and management believes the risk of loss to be remote. We maintain cash balances that exceed the insured limits by the Federal Deposit Insurance Corporation and the Canada Deposit Insurance Corporation.
The Company is exposed to credit risk
in the event of default by its customers. Accounts receivables are recorded at the invoiced amount, do not bear interest, and do not require
collateral. For the three months ended March 31, 2026 and 2025, no single customer represented 10% or more of the Company’s total
revenue. As of March 31, 2026, one customer accounted for
21
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 16. | Related Party Transactions |
The Company’s related parties include directors, shareholders and key management.
The Company is party to a secondment
arrangement under which certain members of key management personnel are assigned to perform services for a subsidiary. In connection with
this arrangement, the Company paid payroll taxes of $
As discussed in Note 13, the Company
signed a business combination agreement with Northern Data that, upon close, will result in Northern Data becoming a majority-owned subsidiary
of the Company. Tether owns more than
The Company entered into a transaction
support agreement with Tether to ensure that all of the shares of Northern Data owned by Tether as of immediately prior to the closing
of the voluntary public exchange offer (
At the same time, the Company entered
into a GPU agreement with Tether whereby Tether will purchase up to $
Separate from the agreements above
related to the business combination with Northern Data, the Company entered into an advertising and marketing services agreement with
Tether to provide advertising services of $
The Company is the licensee under a limited-use license agreement with a significant shareholder under which it is provided, for nil consideration, certain source code that is used in operations.
The Company has a vendor relationship
with Cosmic Inc. and Kosmik Development Skopje doo (“Cosmic”) to provide content moderation and software development services.
Cosmic is controlled by Mr. Pavlovski and Mr. Milnes, each of whom holds a significant number of Rumble shares. The Company incurred related
party expenses for these services of $
22
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 17. | Segment and Geographic Information |
The Company operates as
The following presents selected financial information with respect to the Company’s single operating segment:
| Three months ended March 31 | ||||||||
| 2026 | 2025 | |||||||
| Revenues | $ | $ | ||||||
| Expenses | ||||||||
| Programming and content | $ | $ | ||||||
| Other cost of services | ||||||||
| General and administrative | ||||||||
| Research and development | ||||||||
| Sales and marketing | ||||||||
| Acquisition-related transaction costs | ||||||||
| Amortization and depreciation | ||||||||
| Changes in fair value of digital assets | ||||||||
| Total expenses | ||||||||
| Loss from operations | ( | ) | ( | ) | ||||
| Interest income | ||||||||
| Other expense | ( | ) | ( | ) | ||||
| Changes in fair value of warrant liability | ||||||||
| Changes in fair value of derivative | ||||||||
| Loss before income taxes | ( | ) | ( | ) | ||||
| Income tax expense | ( | ) | ( | ) | ||||
| Net loss | $ | ( | ) | $ | ( | ) | ||
23
Rumble Inc.
Notes to the Condensed Consolidated Interim Financial Statements
(Expressed in U.S. Dollars)
(Unaudited)
For the three months ended March 31, 2026 and 2025
| 17. | Segment and Geographic Information (Continued) |
The following presents revenue by geographic region:
| Three months ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| United States | $ | $ | ||||||
| Canada | ||||||||
| Other | ||||||||
| $ | $ | |||||||
The Company tracks assets by physical location. Long-lived assets consists of property and equipment, net, and right-of-use assets, net, are shown below:
As of March 31, | As of December
31, | |||||||
| United States | $ | $ | ||||||
| Canada | ||||||||
| $ | $ | |||||||
| 18. | Subsequent Events |
On April 13, 2026, the Company launched its previously announced exchange offer to acquire all outstanding shares of Northern Data AG.
In accordance with ASC 855, the Company’s management reviewed all material events through May 14, 2026, and there were no material subsequent events other than those disclosed above.
24
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion and analysis of our financial condition and results of operations should be read in conjunction with Rumble Inc.’s (“Rumble” or the “Company”) unaudited condensed consolidated interim financial statements and the related notes included in Item 1 of Part I of this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025. This discussion contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from such forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those identified below and those discussed in the sections titled “1A. Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” included elsewhere in this Quarterly Report and those discussed in our other filings with the SEC. Additionally, our historical results are not necessarily indicative of the results that may be expected in any future period. Amounts are presented in U.S. dollars.
Overview
We are a high growth video sharing and cloud services provider platform designed to help content creators manage, distribute, and monetize their content by connecting them with brands, publishers, and directly to their subscribers and followers. Our registered office is 444 Gulf of Mexico Drive, Longboat Key, Florida, 34228. Our shares of Class A common stock and warrants are traded on The Nasdaq Global Market (“Nasdaq”) under the symbols “RUM” and “RUMBW”, respectively.
Significant Events and Transactions
On February 7, 2025, Tether, the largest company in the digital assets industry and the most widely used dollar stablecoin across the world, purchased 103,333,333 shares of Class A Common Stock at a price per share of $7.50, totaling $775 million in gross proceeds to Rumble. As part of the closing of the transaction, the Company completed a tender offer to purchase 70,000,000 shares of its Class A Common Stock at a price of $7.50 per share for a total of $525 million, excluding fees and expenses related to the tender offer.
On November 10, 2025, the Company entered into the ND Business Combination Agreement. Subject to the satisfaction or waiver of the terms and conditions of the ND Business Combination Agreement, the Company will submit the Exchange Offer to all shareholders of Northern Data to acquire each Northern Data Share in exchange for certain shares of Class A Common Stock. Each Northern Data Share that is validly tendered and accepted for exchange will be exchanged for 2.0281 newly issued shares of our Class A Common Stock (with customary settlement mechanisms for fractional shares), subject to the satisfaction or waiver of the conditions to the Exchange Offer.
Tether, along with an affiliate of Northern Data’s current co-CEO (Aroosh Thillainathan) and another significant shareholder, collectively holding Northern Data shares representing approximately 72% of the outstanding Northern Data Shares, have entered into the Transaction Support Agreements pursuant to which they will exchange their Northern Data Shares at the same Exchange Ratio contemporaneously with the closing of the Exchange Offer.
On April 13, 2026, the launch of the Exchange Offer occurred, and the ND Business Combination is expected to close in the second quarter of 2026, subject to satisfaction of closing conditions and regulatory approvals.
Additionally, the Company has entered into a significant agreement with Tether, which includes an initial commitment by Tether to purchase up to $150 million of GPU services over a two-year period following the closing of the ND Business Combination.
The Company also announced a $100 million advertising commitment from Tether, representing $50 million per year over a two-year period beginning in 2026. This commitment is not contingent upon the completion of the ND Business Combination.
25
Revenues
We generate revenues from Audience Monetization and Other Initiatives.
Audience Monetization includes advertising fees on the Rumble platform; subscription fees earned primarily from consumer product offerings such as Rumble Premium; Locals and badges; revenues generated from content that is licensed by third parties; pay-per-view; and fees from tipping and platform hosting fees. Advertising fees are generated by delivering digital video and display advertisements as well as cost-per-message-read advertisements.
Other Initiatives includes digital advertisements that are placed on Rumble’s network of third-party publisher websites or mobile applications; and cloud. Cloud includes consumption-based fees, subscriptions for infrastructure and professional services, and license agreements related to Rumble Player.
Refer to Note 2, Summary of Significant Accounting Policies, to the Company’s annual consolidated financial statements for the year ended December 31, 2025 (the “Annual Financial Statements”)
Expenses
Expenses primarily include cost of services, general and administrative, research and development, sales and marketing, acquisition-related transaction costs, amortization and depreciation, and change in fair value of digital assets. The most significant components of our expenses on an ongoing basis are programming and content, service provider costs, and staffing-related costs.
We expect to continue to invest substantial resources to support our growth and anticipate that each of the following categories of expenses will increase in absolute dollar amounts for the foreseeable future.
Cost of Services (Exclusive of Amortization and Depreciation)
Cost of services consists of costs related to obtaining, supporting and hosting the Company’s product offerings. These costs primarily include:
| ● | Programming and content costs related to compensation to content providers, including share-based compensation, from whom video and other content are licensed. These costs are paid to these providers based on revenues generated or in fixed amounts. In certain circumstances, we incur additional costs related to incentivizing top content creators to promote and join our platform; and |
| ● | Other cost of services, such as third-party service provider costs, including data center and networking costs, as well as payment processing fees and costs paid to publishers. |
General and Administrative Expenses
General and administrative expenses consist primarily of payroll and related expenses, which include bonuses and share-based compensation for our executives and certain other employees. General and administrative expenses also include legal and professional fees, business insurance costs, operating lease costs and other costs. As a public company, we expect to continue to incur material costs related to compliance with applicable laws and regulations, including audit and accounting fees, legal, insurance, investor relations and other costs.
Research and Development Expenses
Research and development expenses consist primarily of payroll and related expenses, which include bonuses and share-based compensation for our employees on our engineering and development teams. Research and development expenses also include consultant fees related to our development activities to originate, develop and enhance our platforms.
26
Sales and Marketing Expenses
Sales and marketing expenses consist primarily of payroll and related expenses, which include bonuses and share-based compensation for our employees associated with our sales and marketing functions. Sales and marketing expenses also include consultant fees and direct marketing costs related to the promotion of our platforms and solutions. We expect our sales and marketing expenses to increase over time as we promote our platform and brand, increase marketing activities, and grow domestic and international operations.
Acquisition-Related Transaction Costs
Acquisition-related transaction costs consist of professional fees and other expenses incurred in connection with acquisition-related initiatives.
Amortization and Depreciation
Amortization and depreciation represent the recognition of costs of assets used in operations, including property and equipment and intangible assets, over their estimated service lives.
Change in Fair Value of Digital Assets
Changes in fair value of digital assets reflect gains or losses arising from the remeasurement of our bitcoin investment.
Non-Operating Income and Other Items
Interest Income
Interest income consists of interest earned on our cash and cash equivalents. We invest in highly liquid securities such as money market funds, treasury bills and term deposits.
Other Income (Expense)
Other income (expense) consists of miscellaneous income earned and expenses incurred outside of the normal course of business as well as foreign exchange gains and losses on transactions denominated in currencies other than the U.S. dollar.
Change in Fair Value of Warrant Liability
We account for our outstanding warrants in accordance with ASC 815-40, under which the warrants issued in connection with the CF Business Combination do not meet the criteria for equity classification, and must be recorded as liabilities. As these warrants meet the definition of a liability under ASC 815, they are measured at fair value at inception and at each reporting date in accordance with the guidance in ASC 820, with any subsequent changes in fair value recognized in the consolidated statement of operations in the applicable period of change.
Change in Fair Value of Derivative
The forward purchase contracts in connection with the Tether transaction do not meet the criteria for equity classification, and must be recorded as a liability in accordance with guidance contained in ASC 815-40, Derivatives and Hedging Contracts in Entity’s Own Equity (“ASC 815-40”). Because the derivative meets the definition of a liability under ASC 815, Derivatives and Hedging (“ASC 815”), it is measured at fair value at inception and at each reporting date in accordance with the guidance in ASC 820, Fair Value Measurement (“ASC 820”), with any subsequent changes in fair value recognized in the consolidated statement of operations in the applicable period of change.
27
Income Tax (Expense) Benefit
Income tax (expense) benefit consists of the estimated federal, state, and foreign income taxes incurred in the U.S. and other jurisdictions in which we operate.
Key Business Metrics
To analyze our business performance, determine financial forecasts and help develop long-term strategic plans, we review the key business metrics described below.
Monthly Active Users (“MAUs”)
We use MAUs as a measure of audience engagement to help us understand the volume of users engaged with our content on a monthly basis. MAUs represent the total web, mobile app, and connected TV users of Rumble for each month, which allows us to measure our total user base calculated from data provided by Google, a third-party analytics provider. Google defines “active users” as the “[n]umber of distinct users who visited your website or application.” We have used the Google analytics systems since we first began publicly reporting MAU statistics, and the resulting data have not been independently verified.
As of July 1, 2023, Universal Analytics (“UA”), Google’s analytics platform on which we historically relied for calculating MAUs using company-set parameters, was phased out by Google and ceased processing data. At that time, Google Analytics 4 (“GA4”) succeeded UA as Google’s next-generation analytics platform, which has been used to determine MAUs since the third quarter of 2023 and which we expect to continue to use to determine MAUs in future periods. Although Google has disclosed certain information regarding the transition to GA4, Google does not currently make available sufficient information relating to its new GA4 algorithm for us to determine the full effect of the switch from UA to GA4 on our reported MAUs. Because Google has publicly stated that metrics in UA “may be more or less similar” to metrics in GA4, and that “[i]t is not unusual for there to be apparent discrepancies” between the two systems, we are unable to determine whether the transition from UA to GA4 has had a positive or negative effect, or the magnitude of such effect, if any, on our reported MAUs. It is therefore possible that MAUs that we reported based on the UA methodology (“MAUs (UA)”) for periods prior to July 1, 2023, cannot be meaningfully compared to MAUs based on the GA4 methodology (“MAUs (GA4)”) in subsequent periods.
MAUs (GA4) represent the total web, mobile app, and connected TV users of Rumble for each month, which allows us to measure our total user base calculated from data provided by Google. Connected TV users were not counted within MAUs within MAUs (UA) for periods prior to July 1, 2023, and we believe the number of such users was immaterial in those prior periods. We also believe that fewer than 1 million MAUs in the current period are from connected TV, making them similarly immaterial. Google’s parameters for measuring “active users” appear to exclude many, but not all, users who access content on Rumble through “embedded” videos on domains other than rumble.com, and we are unable to determine the exact number of users who access “embedded” content within our total number of MAUs. In addition, MAUs (GA4) may rely on statistical sampling and may be based on estimates of data that Google is missing “due to factors such as cookie consent.”
As with our earlier MAU reporting, there is a potential for minor overlap in the resulting data due to users who access Rumble’s content through the web, our mobile apps, and connected TVs in a given measurement period; however, given that we believe this minor overlap to be immaterial, we do not separately track or report “unique users” as distinct from MAUs. Our reported MAUs have not historically included users of Locals, however, starting in mid-May 2024, Locals users began using Rumble’s single sign-on technology to access their account, which we expect will reduce the number of Locals users not included in our Rumble MAU reporting. We also do not separately report the number of users who register for accounts in any given period, which is different from MAUs.
Like many other major online platforms, we rely on significant paid advertising in order to attract users to our platform; however, we cannot be certain that all or substantially all activity that results from such advertising is genuine. Spam activity, including inauthentic and fraudulent user activity, if undetected, may contribute to some amount of overstatement of our performance indicators, including reporting of MAUs by Google. We continually seek to improve our ability to estimate the total number of spam-generated users, and we eliminate material activity that is substantially likely to be spam from the calculation of our MAUs. We will not, however, succeed in identifying and removing all spam.
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MAUs (GA4) were 56 million on average in the first quarter of 2026, an increase of 8% from the fourth quarter of 2025. We believe that the increase is driven by investment in Rumble Shorts and international expansion.
Average Revenue Per User (“ARPU”)
We use ARPU as a measure of our ability to monetize our user base. Quarterly ARPU is calculated as quarterly Audience Monetization revenue divided by MAUs for the relevant quarter (as reported by Google Analytics). ARPU does not include Other Initiatives revenue.
ARPU was $0.40 in the first quarter of 2026, a decrease of 13% from the fourth quarter of 2025. The decrease from the fourth quarter is reflecting MAUs growing more rapidly than revenue, partially reflecting MAU growth from Rumble Shorts, which is currently not monetized.
We regularly review, have adjusted in the past, and may in the future adjust our processes for calculating our key business metrics to improve their accuracy, including through the application of new data or technologies or product changes that may allow us to identify previously undetected spam activity. As a result of such adjustments, our key business metrics may not be comparable period-over-period.
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Results of Operations
The following table sets forth our unaudited condensed consolidated interim statements of operations for the three months ended March 31, 2026 and 2025 and the dollar and percentage change between the two periods:
| For the three months ended March 31, | 2026 | 2025 | $ Change | % Change | ||||||||||||
| Revenues | $ | 25,459,796 | $ | 23,706,790 | $ | 1,753,006 | 7 | % | ||||||||
| Expenses | ||||||||||||||||
| Cost of services (content, hosting and other) | $ | 26,997,183 | $ | 30,036,174 | $ | (3,038,991 | ) | (10 | )% | |||||||
| General and administrative | 10,396,560 | 16,633,723 | (6,237,163 | ) | (37 | )% | ||||||||||
| Research and development | 5,739,914 | 4,789,111 | 950,803 | 20 | % | |||||||||||
| Sales and marketing | 8,532,481 | 3,638,926 | 4,893,555 | 134 | % | |||||||||||
| Acquisition-related transaction costs | 4,847,007 | - | 4,847,007 | *NM | ||||||||||||
| Amortization and depreciation | 3,977,870 | 3,292,709 | 685,161 | 21 | % | |||||||||||
| Change in fair value of digital assets | 4,065,603 | 1,699,416 | 2,366,187 | 139 | % | |||||||||||
| Total expenses | 64,556,618 | 60,090,059 | 4,466,559 | 7 | % | |||||||||||
| Loss from operations | (39,096,822 | ) | (36,383,269 | ) | (2,713,553 | ) | 7 | % | ||||||||
| Interest income | 1,885,443 | 2,184,286 | (298,843 | ) | (14 | )% | ||||||||||
| Other expense | (36,386 | ) | (24,604 | ) | (11,782 | ) | 48 | % | ||||||||
| Change in fair value of warrant liability | 7,000,386 | 21,904,704 | (14,904,318 | ) | (68 | )% | ||||||||||
| Change in fair value of derivative | - | 9,700,000 | (9,700,000 | ) | (100 | )% | ||||||||||
| Loss before income taxes | (30,247,379 | ) | (2,618,883 | ) | (27,628,496 | ) | 1,055 | % | ||||||||
| Income tax expense | (22,991 | ) | (31,310 | ) | 8,319 | (27 | )% | |||||||||
| Net loss | $ | (30,270,370 | ) | $ | (2,650,193 | ) | $ | (27,620,177 | ) | 1,042 | % | |||||
| * | NM- Percentage change not meaningful. |
Revenues
Revenues increased by $1.8 million to $25.5 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025, of which $2.6 million was attributable to an increase in Audience Monetization revenues, offset by a $0.8 million decrease in Other Initiatives revenues. The increase in Audience Monetization revenues was driven by $1.2 million in higher subscription revenue, $1.1 million from advertising revenue, and $0.3 million from licensing and tipping fees. The decrease in Other Initiatives revenue was due to a $1.0 million reduction in advertising inventory being monetized by our publisher network, offset by $0.2 million in higher cloud services offered.
Cost of Services
Cost of services decreased by $3.0 million to $27.0 million in the three months ended March 31, 2026, compared to the three months ended March 31, 2025. The decrease was due to a reduction in programming and content costs of $2.3 million as well as a decrease in other cost of services of $0.7 million.
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General and Administrative Expenses
General and administrative expenses decreased by $6.2 million to $10.4 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily driven by a $6.7 million reduction in payroll and related expenses and a $0.4 million reduction in professional fees, partially offset by a $0.9 million increase in other administrative expenses. The decrease in payroll and related expense is attributable to the absence of prior-year one-time items, including a one-time $4.8 million increase in compensation costs related to the departures of an executive and a director; a one-time $2.3 million increase in payroll taxes associated with stock options exercised related to the tender offer in the first quarter of 2025 stemming from the strategic investment from Tether; offset by a $1.7 million decrease in share-based compensation in the first quarter of 2025 related to contingent shares issued in connection with the Callin acquisition. The remaining variance is attributable to lower other payroll and related expenses.
Research and Development Expenses
Research and development expenses increased by $1.0 million to $5.7 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to an increase in payroll and related expenses of $0.6 million and higher costs associated with computer software, hardware, and other expenditures used in research and development-related activities of $0.4 million.
Sales and Marketing Expenses
Sales and marketing expenses increased by $4.9 million to $8.5 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was attributable to higher marketing and public relations spend of $3.8 million, increased payroll and related expenses of $0.8 million, and higher consulting costs of $0.3 million.
Acquisition-Related Transaction Costs
Acquisition-related transaction costs increased by $4.8 million to $4.8 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was driven by professional fees and other expenses incurred in connection with acquisition-related initiatives.
Amortization and Depreciation
Amortization and depreciation increased by $0.7 million to $4.0 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to an increase of $0.6 million from depreciation on our property and equipment as we continue to build out our infrastructure, as well as an increase in amortization from intangible assets of $0.1 million.
Change in Fair Value of Digital Assets
Change in fair value of digital assets expense increased by $2.4 million to $4.1 million for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The change in fair value of digital assets reflects the remeasurement of our bitcoin investment to its fair value at each reporting period.
Interest Income
Interest income decreased by $0.3 million to $1.9 million in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was due to the Company’s investment in market funds, treasury bills, and term deposits.
Other Expense
Other expense increased by $11.8 thousand to $36.3 thousand for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was driven by lower foreign currency rate fluctuation as we maintained the majority of our cash balance in U.S. dollars, which is our functional currency, as of March 31, 2025.
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Change in Fair Value of Warrant Liability
Change in fair value of warrant liability decreased by $14.9 million, resulting in a gain of $7.0 million in the three months ended March 31, 2026. The warrant liability arose in connection with the warrants offered as part of the CF Business Combination. As these warrants meet the classification of a financial liability in accordance with ASC 815-40, the related warrant liability is measured at its fair value, and determined in accordance with ASC 820, at each reporting period. The fair value of this warrant liability was measured using the fair value of the Company’s warrants listed on the Nasdaq. The decrease in the change in fair value of warrant liability was directly attributable to changes in the trading price of Rumble’s warrants.
Change in Fair Value of Derivative
Change in fair value of derivative decreased by $9.7 million to $nil in the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The derivative arose in connection with the forward purchase contracts related to the Tether transaction. As the forward purchase contracts meet the classification of a financial liability in accordance with ASC 815-40, the related derivative is measured at its fair value, determined in accordance with ASC 820, at each reporting period. The fair value of this forward purchase contract was measured using a Monte Carlo simulation methodology that includes simulating the stock price using a risk-neutral Geometric Brownian Motion-based pricing model. The decrease relates to the revaluation of the forward purchase contracts in connection with the Tether transaction.
Income Tax Expense
Income tax expense decreased by $8.3 thousand to $23.0 thousand in the three months ended March 31, 2026 compared to the three months ended March 31, 2025.
Liquidity and Capital Resources
Our principal sources of liquidity are cash generated from operating activities and funds previously raised. The primary short-term requirements for liquidity and capital are to fund general working capital and capital expenditures.
As of March 31, 2026, our cash and cash equivalents balance was $219.0 million. Cash and cash equivalents consist of cash on deposit with banks and amounts held in money market funds, treasury bills, and term deposits.
As of March 31, 2026, our digital asset holdings were valued at $14.4 million and consisted of 210.82 bitcoin. Our corporate treasury diversification strategy of allocating a portion of the Company’s excess cash reserves to bitcoin emphasizes our belief in bitcoin as a valuable tool for strategic planning and is designed to accelerate the Company’s expansion into cryptocurrency.
As we have consistently stated, we are using a substantial portion of funds to acquire content by providing economic incentives to a small number of content creators, including sports leagues. As of March 31, 2026, we had entered into programming and content agreements with a minimum contractual cash commitment of $40.2 million. A significant amount of these minimum contractual cash commitments will be paid over 12 to 36 months, commencing in 2026.
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The following table presents a summary of the condensed consolidated interim statement of cash flows for the three months ended March 31, 2026 and 2025:
| Three months ended March 31, | ||||||||||||
| Net cash provided by (used in): | 2026 | 2025 | $ Change | |||||||||
| Operating activities | $ | (16,607,630 | ) | $ | (14,492,109 | ) | $ | (2,115,521 | ) | |||
| Investing activities | (2,269,784 | ) | (19,846,379 | ) | 17,576,595 | |||||||
| Financing activities | 463 | 221,607,754 | (221,607,291 | ) | ||||||||
Operating Activities
Net cash used in operating activities for the three months ended March 31, 2026 consisted of net loss adjusted for certain non-cash items, including $7.0 million gain on the changes in fair value of warrants, partially offset by $5.2 million in changes in share-based compensation, $4.0 million in changes in amortization and depreciation, $4.1 million loss in the changes in fair value of digital assets, and $1.0 million in changes in net trade and barter revenue and expense, as well as changes in operating assets and liabilities. The decrease in net cash used in operating activities during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due to changes in net loss adjusted for certain non-cash items, offset in part by changes in operating assets and liabilities.
Investing Activities
Net cash used in investing activities for the three months ended March 31, 2026 consisted of $2.3 million in purchases of property, equipment and intellectual property. The decrease in net cash used in investing activities during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due to a reduction in the purchase of digital assets, offset by an increase in purchases of property, equipment, and intangible assets.
Financing Activities
Net cash provided by financing activities for the three months ended March 31, 2026 consisted of proceeds related to the warrants and stock options exercised. The decrease in net cash used in financing activities during the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was due to the absence of significant prior-year financing transactions, including the issuance of $775 million in shares of Class A Common Stock and the corresponding $525 million share repurchase completed in connection with the tender offer related to the strategic investment from Tether, as well as $1.0 million of net proceeds from stock options exercised.
Summary of Quarterly Results
Information for the most recent quarters presented are as follows:
| Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | |||||||||||||
| Total revenue | $ | 25,459,796 | $ | 27,068,454 | $ | 24,762,445 | $ | 25,084,631 | ||||||||
| Net loss | $ | (30,270,370 | ) | $ | (32,693,477 | ) | $ | (16,261,762 | ) | $ | (30,224,930 | ) | ||||
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | |||||||||||||
| Total revenue | $ | 23,706,790 | $ | 30,228,287 | $ | 25,056,904 | $ | 22,469,543 | ||||||||
| Net loss | $ | (2,650,193 | ) | $ | (236,752,626 | ) | $ | (31,539,413 | ) | $ | (26,780,700 | ) | ||||
Non-U.S. GAAP Financial Measures
To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-U.S. GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-U.S. GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented to enhance investors’ overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with U.S. GAAP. We use the non-U.S. GAAP financial measure of Adjusted EBITDA, which is defined as net income (loss) excluding interest income (expense), net, other income (expense), net, provision for income taxes, depreciation and amortization, share-based compensation expense, acquisition-related expense, change in fair value of warrants, change in fair value of digital assets, and change in the fair value of derivative. The Company’s management believes that it is important to consider Adjusted EBITDA, in addition to net income (loss), as it helps identify trends in our business that could otherwise be masked by the effect of the gains and losses that are included in net income (loss) but excluded from Adjusted EBITDA.
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Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with U.S. GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), the nearest U.S. GAAP equivalent. As a result of these limitations, you should consider Adjusted EBITDA alongside other financial performance measures, including net income (loss) and our other financial results presented in accordance with U.S. GAAP. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with U.S. GAAP, to Adjusted EBITDA:
Reconciliation of Adjusted EBITDA
| For the three months ended March 31, | 2026 | 2025 | ||||||
| Net loss | $ | (30,270,370 | ) | $ | (2,650,193 | ) | ||
| Adjustments: | ||||||||
| Amortization and depreciation | 3,977,870 | 3,292,709 | ||||||
| Share-based compensation expense | 5,234,117 | 8,684,803 | ||||||
| Interest income | (1,885,443 | ) | (2,184,286 | ) | ||||
| Other expense | 36,386 | 24,604 | ||||||
| Income tax expense (benefit) | 22,991 | 31,310 | ||||||
| Change in fair value of warrants liability | (7,000,386 | ) | (21,904,704 | ) | ||||
| Change in fair value of derivative | - | (9,700,000 | ) | |||||
| Change in fair value of digital assets | 4,065,603 | 1,699,416 | ||||||
| Acquisition-related transaction costs | 4,847,007 | - | ||||||
| Adjusted EBITDA | $ | (20,972,225 | ) | $ | (22,706,341 | ) | ||
Critical Accounting Policies and Estimates
We prepare our unaudited condensed consolidated interim financial statements in accordance with accounting principles generally accepted in the United States of America. The preparation of the unaudited condensed consolidated interim financial statements also requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We evaluate our estimates on a continuous basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from the estimates made by our management. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected.
We believe that the following key accounting policies require significant judgments and estimates used in the preparation of our unaudited condensed consolidated interim financial statements. Critical accounting policies and estimates are those that we consider the most important to the portrayal of our financial condition and results of operations because they require our most difficult, subjective or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. Accordingly, we believe that these are the most critical to aid in fully understanding and evaluating our financial condition and results of operations.
For further information on the summary of significant accounting policies and the effect on our unaudited condensed consolidated interim financial statements, see Note 2, Summary of Significant Accounting Policies, to the Annual Financial Statements.
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Share-based Compensation
The Company issues equity awards such as stock options and restricted stock units to certain of its employees, directors, officers and consultants. We account for equity awards by recognizing the fair value of share-based compensation expense on a straight-line basis over the service period of the award.
For equity awards with a service condition, the fair value is estimated on the grant date using the Black-Scholes option pricing model, which takes into account the following inputs: stock price, expected term, volatility, and risk-free interest rate.
For equity awards with a market condition, the fair value is estimated on the grant date using a Monte Carlo simulation methodology that includes simulating the stock price using a risk-neutral Geometric Brownian Motion-based pricing model. Changes in the estimated inputs or using other option valuation methods may result in materially different option values and share-based compensation expense.
For equity awards with a performance condition, the Company assesses the likelihood of the performance condition underlying an award being met and recognizes a share-based compensation expense associated with that award only if it is probable the performance condition will be met. Where the performance condition underlying an award is a change in control, the Company considers the performance condition to be probable only when it occurs.
Income Taxes
The Company is subject to income taxes in the United States and other foreign jurisdictions. Significant judgment is required in determining our provision for income taxes and income tax assets and liabilities, including evaluating uncertainties in the application of accounting principles and complex tax laws.
Uncertain tax positions are accounted for using a comprehensive model for the manner in which a company should recognize, measure, present and disclose in its financial statements all material uncertain income tax positions. The Company reviews its nexus in various tax jurisdictions and the Company’s tax positions related to all open tax years for events that could change the status of its tax liability, if any, or require an additional liability to be recorded. Such events may be the resolution of issues raised by a taxing authority, expiration of the statute of limitations for a prior open tax year or new transactions for which a tax position may be deemed to be uncertain. Those positions, for which management’s assessment is that there is more than a 50 percent probability of sustaining the position upon challenge by a taxing authority based upon its technical merits, are subjected to the measurement criteria.
Trade and Barter Transactions
The Company engages in trade
and barter transactions whereby the Company and its counterparty exchange media campaigns or other promotional services. The Company reviews
each transaction to ensure the advertising it receives has economic substance and records revenue in an amount equal to the fair value
of the products and services received unless this is not reasonable to estimate, in which case the consideration is measured based on
the standalone selling price of the advertising inventory promised or delivered to the customer. Trade and barter revenue is recognized
when the performance obligation is fulfilled and follows the same pattern of recognition as the Company’s normal advertising revenue.
Trade and barter expense is recorded when goods or services are consumed. The trade and barter expense is recorded in sales and marketing
expense in the consolidated statement of operations.
New Accounting Pronouncements
See Note 2, Summary of Significant Accounting Policies, to our Annual Financial Statements for the years ended December 31, 2025 and 2024.
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JOBS Act Accounting Election
We are an emerging growth company, as defined in the JOBS Act. Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. We intend to elect to adopt new or revised accounting standards under private company adoption timelines. Accordingly, the timing of our adoption of new or revised accounting standards will not be the same as other public companies that are not emerging growth companies or that have opted out of using such extended transition period and our financial statements may not be comparable to the financial statements of public companies that comply with such new or revised accounting standards.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to certain market risks as part of our ongoing business operations.
Credit and Concentration Risk
We are exposed to credit risk on our cash, cash equivalents, and accounts receivable. We place cash and cash equivalents with financial institutions with high credit standing, and we place excess cash in money market funds, treasury bills, and term deposits. We are exposed to credit risk on our accounts receivable in the event of default by a customer. We bill our customers under customary payment terms and review customers for their creditworthiness. The term between invoicing and payment due date is not significant. No single customer represented 10% or more of the total revenue for the three months ended March 31, 2026 and 2025. As of March 31, 2026, one customer accounted for 17% of accounts receivable. As of December 31, 2025, no single customer represented 10% or more of the total accounts receivable.
Interest Rate Risk
We are exposed to interest rate risk on our cash and cash equivalents. As of March 31, 2026, we had cash and cash equivalents of $219.0 million, consisting of investments in money market funds, treasury bills, and term deposits for which the fair market value would be affected by changes in the general level of interest rates. However, due to the short-term maturities and the low-risk profile of our investments, an immediate 10% change in interest rates would not have a material effect on the fair market value of our cash, cash equivalents and marketable securities.
ITEM 4. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our principal executive officer and principal financial officer, have reviewed and evaluated the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Quarterly Report. Based on this review and evaluation, our principal executive officer and principal financial officer concluded that, as of such date, our disclosure controls and procedures were effective to ensure that information required by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms and (ii) accumulated and communicated to management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosure.
Changes in Internal Controls over Financial Reporting
There were no changes in our internal control over financial reporting during the period covered by this Quarterly Report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting
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PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
We are, and from time to time may become, involved in various legal proceedings arising in the normal course of our business activities, such as copyright infringement and tort claims arising from user-uploaded content, patent infringement claims, breach of contract claims, government demands, putative class actions based upon consumer protection or privacy laws and other matters. The amounts that may be recovered in such matters may be subject to insurance coverage.
Proceedings as Plaintiff
In January 2021, we filed an antitrust lawsuit against Google in the U.S. District Court for the Northern District of California, alleging that Google unlawfully gives an advantage to its YouTube platform over Rumble in search engine results and in the mobile phone market. The lawsuit seeks compensatory damages and injunctive relief. In June 2021, Google filed a partial motion to dismiss the lawsuit and a motion to strike; in July 2022, the court denied Google’s motion. Discovery has concluded, and the court heard argument on Google’s motion for summary judgment in February 2025. The trial was scheduled for July 7, 2025. On May 21, 2025, the court granted Google’s motion for summary judgment on statute of limitations grounds and dismissed the case. The Company filed a notice of appeal to the U.S. Court of Appeals for the Ninth Circuit. In addition, the Company filed a notice of motion for an indicative ruling on a request for recusal and reassignment on the grounds that the District Court’s impartiality might reasonably be questioned in light of newly discovered facts. The District Court deferred to rule on that motion, leaving it to the Ninth Circuit Court of Appeals to render its determination. A determination has not yet been rendered.
In May 2024, we filed a second antitrust lawsuit against Google in the U.S. District Court for the Northern District of California related to Google’s monopolization of the online advertising market. This lawsuit is separate and distinct from the self-preferencing lawsuit filed in January 2021. The lawsuit seeks compensatory damages and injunctive relief. In August 2024, we filed an amended complaint, and in September 2024, Google filed a motion to dismiss. In December 2024, the U.S. Judicial Panel on Multidistrict Litigation (JPML) transferred the case to the existing proceeding, In re: Google Digital Advertising Antitrust Litigation (JPML No. 3010). After common questions of fact are resolved in the Multidistrict Litigation proceeding, this case would be transferred back to the Northern District of California for trial. A second amended complaint was filed in April 2025. Google sought leave to file a motion to dismiss, which motion was filed on August 1, 2025. The Company’s response to such motion to dismiss was filed on October 3, 2025. In January 2026, the Court granted in part and denied in part Google’s motion. The Company’s third amended complaint was filed on March 3, 2026. The case is ongoing.
Along with co-plaintiff Eugene Volokh, in December 2022, we filed a lawsuit in the U.S. District Court for the Southern District of New York to block the enforcement of New York State’s Social Media Law. In February 2023, the court granted our motion for a preliminary injunction, halting enforcement of the law. The New York Attorney General appealed that decision to the U.S. Court of Appeals for the Second Circuit. In its decision, the court certified certain questions regarding the interpretation of the law to the New York Court of Appeals. The Company’s brief was filed with the State of New York Court of Appeals on February 4, 2026. The case is ongoing and the injunction remains in place while the state court reviews.
In November 2024, we filed a lawsuit against the California Attorney General and Secretary of State in the U.S. District Court for the Eastern District of California to enjoin the enforcement of AB 2655, a recently enacted state law regulating online platforms. The law would require online platforms to receive reports about posts related to elections, public officials, and candidates for office that are deemed “materially deceptive,” then remove or label the content. Our lawsuit was consolidated with similar lawsuits filed by other affected online platforms and content creators, and the state of California has agreed to enjoin the enforcement of the law during the initial phases of the litigation. The plaintiffs’ summary judgment motions were filed on March 7, 2025. A further stay of enforcement was issued by the court through October 25, 2025. The summary judgment hearing took place on August 5, 2025. The judge granted our summary judgment motion from the bench. He ruled that Section 230 preempted all of AB 2655 and subsequently issued a permanent injunction against the enforcement of AB2655. The state of California filed its appeal brief on January 12, 2026, to which the Company filed its response on March 11, 2026. The case is ongoing.
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In February 2025, Rumble filed a complaint and a request for a Temporary Restraining Order (“TRO”) in the U.S. District Court for the Middle District of Florida against Brazilian Supreme Court Justice Alexandre de Moraes related to content blocking orders issued by him against Rumble. The court denied, without prejudice, Rumble’s motion for a TRO on the grounds that the matter was not ripe for judicial review. The court noted that Justice Moraes’s pronouncements and directives had not been properly served on Rumble, that Rumble was not obligated to comply with such pronouncements and directives, and that no U.S. entity was required to enforce them. We filed an amended complaint on June 6, 2025 and a motion for alternative service on February 2, 2026. The case is ongoing.
In April 2025, along with Rebel News, we filed a lawsuit in the Ontario Superior Court of Justice against Canada, Canada Lands Company, and others alleging that the defendants tried to block two lawful and peaceful public gatherings celebrating free speech in the Toronto area in 2024. Certain parties have been removed from the action. The case is ongoing.
Proceedings as Defendant
In January 2022, we received notification of a lawsuit filed by Kosmayer Investment Inc. (“KII”) against Rumble and Mr. Pavlovski in the Ontario Superior Court of Justice, alleging fraudulent misrepresentation in connection with KII’s decision to redeem its shares of Rumble in August 2020. KII is seeking rescission of such redemption such that, following such rescission, KII would own 20% of the issued and outstanding shares of Rumble or, in the alternative, damages for the lost value of the redeemed shares, which KII has alleged to be worth $419.0 million (based on the value ascribed to the shares of Rumble in the Business Combination), together with other damages including punitive damages and costs. The case is currently in discovery. A mediation session was held in April 2025. No settlement was reached. The case is ongoing.
In October 2024, plaintiff David Stebbins filed a lawsuit in the U.S. District Court for the District of Delaware naming Rumble Inc. and an unaffiliated entity doing business as “The Specter Report” as defendants. Mr. Stebbins, who is not represented by counsel, alleges six counts of copyright infringement and one count of slander and seeks injunctive relief and $900,000 in damages from Rumble. We were never formally served with the lawsuit. The court dismissed the case against the Company in May 2025. The plaintiff has since petitioned the court to reopen the case against the Company.
In June 2025, we were served with a lawsuit from an individual named Michael Goldstein, alleging that the Company violated the California Invasion of Privacy Act by improperly disclosing personally identifiable information by way of the Facebook Pixel. The case was brought in a California state court. The case was removed to federal court in the U.S. District Court for the Central District of California. The Company filed a motion to dismiss on August 18, 2025, which the Court granted, with leave to amend. On December 5, 2025, the Plaintiff filed his amended complaint and the Company filed its Motion to Dismiss on January 26, 2026. A hearing took place on April 20, 2026, pursuant to which the motion was denied. The Company’s answer is due May 22, 2026.
As to each of the above lawsuits, the Company believes it has meritorious defenses to the claims asserted and intends to defend itself vigorously. However, litigation is inherently unpredictable, and we cannot predict the outcome of these matters. At this time, we cannot reasonably estimate the possible loss or range of loss, if any, and accordingly no liability has been recorded.
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ITEM 1A. RISK FACTORS.
There have been no material changes to the risk factors described under the caption “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025. You should carefully consider the risks, uncertainties and cautionary statements described therein, together with the other disclosures in this Quarterly Report on Form 10-Q and in our other public filings with the SEC. Any such risks and uncertainties, as well as risks and uncertainties not currently known to us or that we currently deem to be immaterial, may materially adversely affect our business, financial condition and operating results.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
None.
Item 3. Defaults Upon Senior Securities.
Not applicable.
Item 4. Mine Safety DisclosureS.
Not applicable.
Item 5. Other Information.
During the quarter ended
March 31, 2026, none of our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act)
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ITEM 6. EXHIBITS.
The following exhibits are filed as part of, or incorporated by reference into, this Quarterly Report.
| * | Filed herewith |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| RUMBLE INC. | ||
| Date: May 14, 2026 | /s/ Chris Pavlovski | |
| Name: | Chris Pavlovski | |
| Title: | Chief Executive Officer and Chairman | |
| Date: May 14, 2026 | /s/ Michael Masci | |
| Name: | Michael Masci | |
| Title: | Chief Financial Officer | |
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