Enterprise-first strategy and optimized cost structure results in profit turnaround
with
FY 2025 Financial Summary Compared to FY 2024
- Revenue was
$31.2 million , compared to$35.9 million ;$3.4 million of the annual decline is Hoozu, which was divested in late 2024 - Revenue from core-enterprise accounts, which represent the majority of total revenue, grew above market growth rates in 2025
- Net income was
$42,326 compared to a loss of$18.9 million , which included$6.9 million in one-time charges - Adjusted EBITDA* was
$0.7 million , compared to a loss of$11.1 million
Q4 2025 Financial Summary Compared to Q4 2024
- Revenue from ongoing operations was
$6.1 million , compared to$9.8 million (excluding Hoozu) Managed Services bookings declined 18.7% to$9.0 million from$11.0 million in the prior year period (excluding Hoozu), reflecting our shift toward larger, recurring enterprise accounts. Approximately half of the decline reflects non-core customer activity exited in 2025.- Total costs and expenses decreased 46% to
$7.7 million , compared to$14.2 million - Net loss totaled
$1.2 million , compared to a net loss of$4.6 million - Adjusted EBITDA* for the quarter was
$(0.9) million , improving$1.1 million year-over-year - Cash and equivalents as of
December 31, 2025 totaled$50.9 million , compared to$51.1 million over the prior year, reflecting positive cash from operations
Q4 2025 Highlights
- Secured new business partnerships with major brands, including Netflix Games, Afeela, Lidl, and
Emmi Roth - Produced new work for Stellantis, Danone, Warner Brothers, Coursera, and many more clients
- Recruited
Lindsey Gamble , Vice President, Creator Strategy and Innovation, to bolster culture-first innovation and scale enterprise success in the Creator Economy
* Adjusted EBITDA and revenue from on-going operations are non-GAAP financial measures. Refer to the definition and reconciliation of these measures under “Use of Key Metrics and Non-GAAP Financial Measures."
Management Commentary
“2025 was a transformative year as we successfully reset our economic model through portfolio high-grading and disciplined cost optimization,” said
Q4 2025 Financial Results
Total revenue for the fourth quarter of 2025 was
Cost of revenue for the fourth quarter of 2025 was
Costs and expenses, excluding the cost of revenue, totaled
Net loss in the fourth quarter of 2025 was
Adjusted EBITDA (as defined below, a non-GAAP measure management used as a proxy for operating cash flow) totaled
As of
We previously announced our commitment to repurchase up to
Conference Call
IZEA will hold a conference call to discuss its fourth quarter 2025 results on
Date:
Time:
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1752772&tp_key=96c6c7b58d
Toll-free dial-in number: 1-877-407-4018
International dial-in number: 1-201-689-8471
Please call the conference telephone number five (5) minutes before the start time. An operator will register your name and organization. A call replay will be made available approximately 3 hours after the conference ends until
Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13758773
About
Use of Key Metrics and Non-GAAP Financial Measures
Managed Services Bookings is a key metric representing total sales orders received during a period, net of cancellations and refunds. Contracts vary by customer and scope, ranging from custom content projects to integrated marketing campaigns, and generally extend from several months up to a year. Managed Services Bookings provide a useful measure of overall demand but are not necessarily predictive of quarterly revenue, as the timing of revenue recognition varies with contract size, complexity, and customer arrangements. Certain customers enter into annual spend commitments that establish a defined budget for services to be performed throughout the year, while others engage the Company for specific campaigns or deliverables. These differing contract structures may influence the timing and distribution of bookings and related revenue. The Company uses this metric to evaluate customer and market trends, to plan operational staffing, and to inform product development initiatives.
"Adjusted EBITDA" is a non-GAAP financial measure under the Securities and Exchange Commission rules. EBITDA is commonly defined as "earnings before interest income and expense, taxes, depreciation, and amortization." IZEA defines “Adjusted EBITDA” as earnings or loss before interest expense, interest income, taxes, depreciation and amortization, non-cash stock-based compensation, gain or loss on asset disposals or impairment, and certain other unusual or non-cash income and expense items such as gains or losses on settlement of liabilities and exchanges, and changes in the fair value of derivatives, if applicable. We believe that Adjusted EBITDA provides useful information to investors as it primarily excludes non-cash and non-operating transactions, and it provides consistency to facilitate period-to-period comparisons.
Revenue from on-going operations and associated costs of revenue and other costs and expenses from on-going operations excludes revenue from and costs attributable to Hoozu in the prior year period. Hoozu was divested by the Company in
All companies do not calculate bookings and Adjusted EBITDA in the same manner. These metrics and financial measures, as presented by IZEA, may not be comparable to those presented by other companies. Moreover, these metrics and financial measures have limitations as analytical tools. You should not consider them in isolation or as a substitute for an analysis of our results of operations or, with respect to non-GAAP financial measures, as reported under GAAP. A reconciliation of Adjusted EBITDA and revenue and costs from on-going operations to the most directly comparable GAAP measures are presented in the financial tables included in this press release.
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies, and expectations, can generally be identified by the use of forward-looking terms such as “may,” “will,” “would,” “could,” “should,” “expect,” “anticipate,” “hope,” “estimate,” “optimistic,” “believe,” “intend,” “ought to,” "likely," "projects," “plans,” "pursue," "strategy" or "future," or the negative of these words or other words or expressions of similar meaning. Examples of forward-looking statements include, among others, statements we make regarding expectations concerning product development and platform launches, future financial performance and operating results, including regarding recognition of bookings as revenues, the share repurchase authorization and any use of such authorization, growth, or maintenance of customer relationships, and expectations concerning IZEA’s business strategy. Forward-looking statements involve inherent risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements as a result of various factors, including, among others, the following: competitive conditions in the content and social sponsorship segment in which IZEA operates; failure to popularize one or more of the marketplace platforms of IZEA; our ability to maintain disclosure controls and procedures and internal control over financial reporting; our ability to satisfy the requirements for continued listing of our common stock on the Nasdaq Capital Market; changing economic conditions that are less favorable than expected; and other risks and uncertainties described in IZEA’s periodic reports filed with the Securities and Exchange Commission. The forward-looking statements made in this release speak only as of the date of this release, and IZEA assumes no obligation to update any such forward-looking statements to reflect actual results or changes in expectations, except as otherwise required by law.
Press Contact
Phone: 407-674-6911
Email: ir@izea.com
Consolidated Balance Sheets | |||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 50,886,850 | $ | 44,644,468 | |||
| Accounts receivable, net | 3,398,479 | 7,781,824 | |||||
| Prepaid expenses | 830,509 | 1,079,045 | |||||
| Short term investments | — | 6,427,488 | |||||
| Other current assets | 9,002 | 97,215 | |||||
| Total current assets | 55,124,840 | 60,030,040 | |||||
| Property and equipment, net of accumulated depreciation | 17,131 | 103,574 | |||||
| Software development costs, net of accumulated amortization | 2,335,745 | 2,086,660 | |||||
| Total assets | $ | 57,477,716 | $ | 62,220,274 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | 779,434 | 1,511,747 | |||||
| Accrued expenses | 3,050,995 | 3,734,123 | |||||
| Contract liabilities | 4,729,767 | 8,188,651 | |||||
| Total current liabilities | 8,560,196 | 13,434,521 | |||||
| Finance obligation, less current portion | — | 4,034 | |||||
| Total liabilities | 8,560,196 | 13,438,555 | |||||
| Commitments and Contingencies | — | — | |||||
| Stockholders’ equity: | |||||||
| Preferred stock; | — | — | |||||
| Common stock; | 1,815 | 1,752 | |||||
| (2,344,698 | ) | (1,622,065 | ) | ||||
| Additional paid-in capital | 155,568,812 | 154,593,800 | |||||
| Accumulated deficit | (104,254,729 | ) | (104,297,055 | ) | |||
| Accumulated other comprehensive income (loss) | (53,680 | ) | 105,287 | ||||
| Total stockholders’ equity | 48,917,520 | 48,781,719 | |||||
| Total liabilities and stockholders’ equity | $ | 57,477,716 | $ | 62,220,274 | |||
Consolidated Statements of Operations | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Revenue | $ | 6,063,878 | $ | 11,002,517 | $ | 31,237,853 | $ | 35,881,010 | |||||||
| Costs and expenses: | |||||||||||||||
| Cost of revenue | 3,286,559 | 6,848,525 | 16,227,120 | 21,204,204 | |||||||||||
| Sales and marketing | 1,137,453 | 2,982,476 | 4,316,615 | 12,125,066 | |||||||||||
| General and administrative | 3,074,193 | 3,747,136 | 11,916,572 | 16,743,046 | |||||||||||
| Depreciation and amortization | 176,052 | 489,378 | 636,386 | 1,159,161 | |||||||||||
| Impairment of goodwill | — | 113,755 | — | 4,130,477 | |||||||||||
| Total costs and expenses | 7,674,257 | 14,181,270 | 33,096,693 | 55,361,954 | |||||||||||
| Income (loss) from operations | (1,610,379 | ) | (3,178,753 | ) | (1,858,840 | ) | (19,480,944 | ) | |||||||
| Other income (expense): | |||||||||||||||
| Change in the fair value of digital assets | — | — | — | 28,414 | |||||||||||
| Interest expense | (1,311 | ) | (2,475 | ) | (6,403 | ) | (8,129 | ) | |||||||
| Loss on divestiture of assets | — | (2,286,083 | ) | — | (2,286,083 | ) | |||||||||
| Other income (expense), net | 444,003 | 590,100 | 1,907,569 | 2,499,835 | |||||||||||
| Total other income (expense), net | 442,692 | (1,698,458 | ) | 1,901,166 | 234,037 | ||||||||||
| Net income (loss) before income taxes | $ | (1,167,687 | ) | $ | (4,877,211 | ) | $ | 42,326 | $ | (19,246,907 | ) | ||||
| Tax benefit | — | 253,947 | — | 394,646 | |||||||||||
| Net income ( loss) | (1,167,687 | ) | (4,623,264 | ) | 42,326 | (18,852,261 | ) | ||||||||
| Weighted average common shares outstanding – basic | 17,074,681 | 16,965,350 | 17,261,755 | 17,067,995 | |||||||||||
| Basic income (loss) per common share | $ | (0.07 | ) | $ | (0.27 | ) | $ | — | $ | (1.10 | ) | ||||
| Weighted average common shares outstanding - diluted | 17,074,681 | 16,965,350 | 18,302,209 | 17,067,995 | |||||||||||
| Diluted income (loss) per common share | $ | (0.07 | ) | $ | (0.27 | ) | $ | — | $ | (1.10 | ) | ||||
Consolidated Statements of Comprehensive Income (Loss) | ||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Net income (loss) | $ | (1,167,687 | ) | $ | (4,623,264 | ) | $ | 42,326 | $ | (18,852,261 | ) | |||||
| Other comprehensive income (loss) | ||||||||||||||||
| Unrealized gain (loss) on securities held | — | 27,138 | (12,209 | ) | 262,800 | |||||||||||
| Unrealized gain (loss) on currency translation | (3,415 | ) | 233,793 | (146,758 | ) | 127,296 | ||||||||||
| Reclassification of foreign currency translation adjustment to income | — | (34,218 | ) | — | (34,218 | ) | ||||||||||
| Total other comprehensive income (loss) | (3,415 | ) | 226,713 | (158,967 | ) | 355,878 | ||||||||||
| Total comprehensive income (loss) | $ | (1,171,102 | ) | $ | (4,396,551 | ) | $ | (116,641 | ) | $ | (18,496,383 | ) | ||||
Revenue Details
Revenue details by type:
| Three Months Ended | ||||||||||||||
| 2025 | 2024 | $ Change | % Change | |||||||||||
| Managed Services Revenue | ||||||||||||||
| On-Going Operations | $ | 6,027,710 | 99 | % | $ | 9,814,545 | 89 | % | $ | (3,786,835 | ) | (39 | )% | |
| Hoozu | — | — | % | 1,070,549 | 10 | % | (1,070,549 | ) | (100 | )% | ||||
| Total Managed Services Revenue | 6,027,710 | 99 | % | 10,885,094 | 99 | % | (4,857,384 | ) | (45 | )% | ||||
| SaaS Services Revenue | 36,168 | 1 | % | 117,423 | 1 | % | (81,255 | ) | (69 | )% | ||||
| Total Revenue | $ | 6,063,878 | 100 | % | $ | 11,002,517 | 100 | % | $ | (4,938,639 | ) | (45 | )% | |
| Twelve Months Ended | |||||||||||||
| 2025 | 2024 | $ Change | % Change | ||||||||||
| Managed Services Revenue | |||||||||||||
| On-Going Operations | $ | 31,024,581 | 99 | % | $ | 31,704,115 | 88 | % | $ | (679,534 | ) | (2 | )% |
| Hoozu | — | — | % | 3,353,908 | 9 | % | (3,353,908 | ) | (100 | )% | |||
| Total Managed Services Revenue | 31,024,581 | 99 | % | 35,058,023 | 98 | % | (4,033,442 | ) | (12 | )% | |||
| SaaS Services Revenue | 213,272 | 1 | % | 822,987 | 2 | % | (609,715 | ) | (74 | )% | |||
| Total Revenue | $ | 31,237,853 | 100 | % | $ | 35,881,010 | 100 | % | $ | (4,643,157 | ) | (13 | )% |
Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA | |||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net income (loss) from operations | $ | (1,167,687 | ) | $ | (4,623,264 | ) | $ | 42,326 | $ | (18,852,261 | ) | ||||
| Impairment of goodwill and intangible assets | — | 113,755 | — | 4,130,477 | |||||||||||
| Adjustment to fair market value of digital assets | — | — | — | (28,414 | ) | ||||||||||
| Non-cash stock-based compensation | 407,099 | 416,181 | 1,493,588 | 2,744,537 | |||||||||||
| Non-cash stock issued for payment of services | 90,009 | 90,007 | 360,000 | 319,070 | |||||||||||
| Depreciation and amortization | 176,052 | 489,378 | 636,386 | 1,159,161 | |||||||||||
| Interest expense | 1,311 | 2,475 | 6,403 | 8,129 | |||||||||||
| Loss on sale of subsidiary | — | 2,286,083 | — | 2,286,083 | |||||||||||
| Change in fair value of derivatives | — | 6,000 | — | — | |||||||||||
| Interest income | (442,962 | ) | (549,717 | ) | (1,872,254 | ) | (2,458,446 | ) | |||||||
| Non-recurring charges | — | 7,668 | — | 7,668 | |||||||||||
| Tax benefit | — | (260,051 | ) | — | (400,750 | ) | |||||||||
| Adjusted EBITDA(1) | $ | (936,178 | ) | $ | (2,021,485 | ) | $ | 666,449 | $ | (11,084,746 | ) | ||||
| Revenue | $ | 6,063,878 | $ | 11,002,517 | $ | 31,237,853 | $ | 35,881,010 | |||||||
| Operating EBITDA as a % of Revenue | (15.4 | )% | (18.4 | )% | 2.1 | % | (30.9 | )% | |||||||
(1) Adjusted EBITDA presentation varies from prior disclosure, primarily to exclude non-operating items such as interest income.
