Rumble (RUM)

Video sharing platform Rumble (NASDAQGM:RUM) missed Wall Street’s revenue expectations in Q3 CY2025, with sales falling 1.2% year on year to $24.76 million. Its GAAP loss of $0.06 per share was in line with analysts’ consensus estimates.

Company Overview

Founded in 2013 as a champion for content creator rights and free expression, Rumble (NASDAQ:RUM) is a video sharing platform that positions itself as a free speech alternative to mainstream platforms, offering creators more favorable revenue-sharing opportunities.

AI-driven content creation, personalized media experiences, and digital advertising are evolving, which could benefit companies investing in these themes. For example, companies with a portfolio of licensed visual content or platforms facilitating direct monetization models could see increased demand for years. On the other hand, headwinds include growing regulatory scrutiny on AI-generated content, with many publishers balking at anything that gets no human oversight. Additional areas to navigate include the phasing out of third-party cookies, which could make traditional ways of tracking the online behavior of consumers (a secret sauce in digital marketing) much less effective.

Rumble's primary competitors include major video sharing platforms like YouTube (owned by Alphabet, NASDAQ:GOOGL), TikTok (owned by ByteDance), and Vimeo (NASDAQ:VMEO), as well as alternative platforms like Odysee and BitChute that also position themselves as free speech havens.

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul.

With $103.8 million in revenue over the past 12 months, Rumble is a small player in the business services space, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and numerous distribution channels. On the bright side, it can grow faster because it has more room to expand.

As you can see below, Rumble’s sales grew at an incredible 85.5% compounded annual growth rate over the last four years. This is an encouraging starting point for our analysis because it shows Rumble’s demand was higher than many business services companies.

We at StockStory place the most emphasis on long-term growth, but within business services, a stretched historical view may miss recent innovations or disruptive industry trends. Rumble’s annualized revenue growth of 13.5% over the last two years is below its four-year trend, but we still think the results suggest healthy demand.

This quarter, Rumble missed Wall Street’s estimates and reported a rather uninspiring 1.2% year-on-year revenue decline, generating $24.76 million of revenue.

We also like to judge companies based on their projected revenue growth, but not enough Wall Street analysts cover the company for it to have reliable consensus estimates. This signals Rumble could be a hidden gem because it doesn’t get attention from professional brokers.

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Rumble’s high expenses have contributed to an average operating margin of negative 133% over the last five years. Unprofitable business services companies require extra attention because they could get caught swimming naked when the tide goes out.

Looking at the trend in its profitability, Rumble’s operating margin decreased by 95.4 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Rumble’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

This quarter, Rumble generated a negative 114% operating margin.

Although earnings are undoubtedly valuable for assessing company performance, we believe cash is king because you can’t use accounting profits to pay the bills.

Rumble’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 95.4%, meaning it lit $95.40 of cash on fire for every $100 in revenue.

Taking a step back, we can see that Rumble’s margin dropped by 46.7 percentage points during that time. It may have ticked higher more recently, but shareholders are likely hoping for its margin to at least revert to its historical level. If the longer-term trend returns, it could signal it’s in the middle of a big investment cycle.

Rumble burned through $12.04 million of cash in Q3, equivalent to a negative 48.6% margin. The company’s cash burn was similar to its $19.92 million of lost cash in the same quarter last year.

Businesses that maintain a cash surplus face reduced bankruptcy risk.

Rumble is a well-capitalized company with $269.8 million of cash and $2.25 million of debt on its balance sheet. This $267.5 million net cash position is 13.4% of its market cap and gives it the freedom to borrow money, return capital to shareholders, or invest in growth initiatives. Leverage is not an issue here.

While the company's revenue missed and its EPS was in line with Wall Street’s estimates, Rumble announced that together with Perplexity, the two companies launched a subscription bundle combining Rumble Premium and Perplexity Pro for $19.99 per month. The bundle builds on the companies’ previously announced partnership, which integrates Perplexity’s AI-powered search tools to enhance discoverability on Rumble.com. Overall, this was a softer quarter but the Perplexity announcement is exciting the market. The stock traded up 31% to $7.73 immediately after reporting.

Updated: December 3, 2025 at 11:27 PM EST

The latest quarterly earnings matters, sure, but we actually think longer-term fundamentals and valuation matter more. Investors should consider all these pieces before deciding whether or not to invest in Rumble.

Rumble is a fine business. First off, its revenue growth was exceptional over the last four years. Tread carefully with this one, however, as Rumble’s declining EPS over the last two years makes it a less attractive asset to the public markets.

Rumble’s forward price-to-sales ratio is 12.6x. Looking at the business services landscape right now, Rumble trades at a pretty interesting price. If you’re a fan of the business and management team, now is a good time to scoop up some shares.

Wall Street analysts have a consensus one-year price target of $22 on the company (compared to the current share price of $7.60), implying they see 190% upside in buying Rumble in the short term.