Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

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, 2024. 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 December 20, 2024, the Company announced that it had entered into a definitive agreement for a strategic investment of $775 million from Tether, the largest company in the digital assets industry and the most widely used dollar stablecoin across the world. The transaction closed on February 7, 2025, with Tether purchasing 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 (the "Tender Offer") for a total of $525 million, excluding fees and expenses related to the Tender Offer. The Company will use $250 million of the proceeds, less transaction costs, to support growth initiatives.

On November 10, 2025, the Company and Northern Data signed a business combination agreement. Refer to Note 19, Subsequent Events, to our condensed consolidated interim financial statements included elsewhere in this Quarterly Report.

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. Digital video and display advertisements are placed on Rumble websites or mobile applications. Customers pay for advertisements either directly or through relationships with advertising agencies or resellers, based on the number of impressions delivered or the number of actions, such as clicks or purchases, taken by our users.

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.

Refer to Note 2, Summary of Significant Accounting Policies, to the Company's annual consolidated financial statements for the year ended December 31, 2024 (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, change in fair value of digital assets, and changes in fair value of contingent consideration. 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, 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.

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.

Change in Fair Value of Contingent Consideration

Certain contingent consideration associated with the Callin acquisition does 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 contingent consideration 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

Non-Operating Income and Other Items

Interest Income

Interest income consists of interest earned on our cash, cash equivalents, and marketable securities. 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 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.

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."¹ 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 GA4,² 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,³ 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,⁴ which allows us to measure our total user base calculated from data provided by Google.⁵ 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."⁶ In general, the implementation of a cookie consent banner, which is required under the laws of certain jurisdictions, may disproportionately affect certain user demographics or geographic regions, potentially leading to uneven reporting of MAUs.

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 accounts, which we expect will reduce the number of Locals users not included in our 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.

1

Google, "[UA→GA4] Comparing Metrics: Google Analytics 4 vs. Universal Analytics, https://support.google.com/analytics/answer/11986666#zippy=%2Cin-this-article (last accessed Oct. 8, 2025) [hereinafter: "Google, Comparing Metrics."] (providing the technical criteria Google uses to calculate active users).

2

Id.

3

Id.

4

During the measurement period, Rumble was available on the following connected TV systems: Roku, Android TV, Amazon Fire, LG, and Samsung TVs.

5

Google provides additional information on its definition of an "active user," see Google, Comparing Metrics.

6

According to the GA4 dashboard, "[a]s of August 26, 2023, Analytics is estimating data that's missing due to factors such as cookie consent."

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.

Our MAUs (GA4) were 47 million on average in the third quarter of 2025, a decrease of 8% from the second quarter of 2025. We believe that the decrease continues to be in part the result of a slowdown of news and political commentary outside of a U.S. election cycle, combined with seasonality related to content creators who do not create content during the summer months.

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 $0.45 in the third quarter of 2025, an increase of 7% from the second quarter of 2025. The increase from the second quarter of 2025 is attributable to similar audience monetization revenue that came from fewer MAUs.

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.

Results of Operations

The following table sets forth our results of operations data for the periods presented:

Comparisons for three months ended September 30, 2025 and 2024:

The following table sets forth our unaudited condensed consolidated interim statements of operations for the three months ended September 30, 2025 and 2024 and the dollar and percentage change between the two periods:

For the three months ended September 30,		2025				2024				Variance ($)				Variance (%)
Revenues		$	24,762,445			$	25,056,904			$	(294,459	)			(1	)%
Expenses
Cost of services (content, hosting and other)		$	25,219,331			$	36,428,951			$	(11,209,620	)			(31	)%
General and administrative			10,492,008				9,710,935				781,073				8	%
Research and development			4,455,354				4,650,688				(195,334	)			(4	)%
Sales and marketing			5,076,937				3,955,552				1,121,385				28	%
Acquisition-related transaction costs			5,236,796				-				5,236,796				*NM
Amortization and depreciation			3,880,492				3,128,242				752,250				24	%
Changes in fair value of digital assets			(1,456,388	)			-				(1,456,388	)			*NM
Total expenses			52,904,530				57,874,368				(4,969,838	)			(9	)%
Loss from operations			(28,142,085	)			(32,817,464	)			4,675,379				(14	)%
Interest income			2,896,649				1,949,898				946,751				49	%
Other income (expense)			46,901				(304	)			47,205				(15,528	)%
Change in fair value of warrant liability			8,936,773				(756,700	)			9,693,473				(1,281	)%
Loss before income taxes			(16,261,762	)			(31,624,570	)			15,362,808				(49	)%
Income tax expense			-				85,157				(85,157	)			(100	)%
Net loss		$	(16,261,762	)		$	(31,539,413	)		$	15,277,651				(48	)%

*

NM - Percentage change not meaningful.

Revenues

Revenues decreased by $0.3 million to $24.8 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024, of which $0.5 million was attributable to a reduction in Audience Monetization revenues, offset by a $0.2 million increase in Other Initiatives revenues. The decrease in Audience Monetization revenues was due to a $4.9 million reduction in advertising revenue, offset by a $3.7 million increase in subscription fees as well as $0.7 million from licensing, tipping fees, and platform hosting fees. We are continuing to see progress in the uptake of new brands, but we are still at the early stages of that process. The increase in Other Initiatives revenue was due to a $0.1 million increase in cloud services offered and a $0.1 million increase in advertising inventory being monetized by our publisher network.

Cost of Services

Cost of services decreased by $11.2 million to $25.2 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was due to a reduction in programming and content costs of $11.9 million, offset by an increase in other costs of services of $0.7 million.

General and Administrative Expenses

General and administrative expenses increased by $0.8 million to $10.5 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was driven by a $1.2 million rise in administrative expenses, reflecting higher professional fees and other administrative services, offset by a decrease in payroll and related expenses of $0.4 million.

Research and Development Expenses

Research and development expenses decreased by $0.2 million to $4.5 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease resulted from a $0.2 million in costs associated with computer software, hardware, and other expenditures used in research and development-related activities.

Sales and Marketing Expenses

Sales and marketing expenses increased by $1.1 million to $5.1 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to a rise in marketing and public relations activities of $0.9 million and an increase in payroll and related expenses of $0.2 million.

Acquisition-related Transaction Costs

Acquisition-related transaction costs increased by $5.2 million to $5.2 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was driven by professional fees and other expenses incurred in connection with acquisition-related initiatives. These costs reflect the Company's continued evaluation of strategic opportunities to support growth.

Amortization and Depreciation

Amortization and depreciation increased by $0.8 million to $3.9 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to an increase of $0.3 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 $0.5 million.

Change in Fair Value of Digital Assets

Change in fair value of digital assets expense decreased by $1.5 million to $1.5 million, resulting in a gain of $1.5 million for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The change in fair value of digital assets reflects the remeasurement of our Bitcoin investment to its fair value at each reporting period. There were no investments in Bitcoin during the three months ended September 30, 2024.

Interest Income

Interest income increased by $0.9 million to $2.9 million in the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was due to the Company's investment in money market funds, treasury bills and term deposits.

Other Income (Expense)

Other income increased by $47.2 thousand to $46.9 thousand for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was driven by foreign currency rate fluctuations, as the majority of our cash balance was held in U.S. dollars, our functional currency, as of September 30, 2025.

Change in Fair Value of Warrant Liability

Change in fair value of warrant liability increased by $9.7 million, resulting in a gain of $8.9 million in the three months ended September 30, 2025. The warrant liability arose in connection with the warrants offered as part of the 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, 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 is directly attributable to changes in the trading price of Rumble's warrants.

Income Tax Expense

Income tax expense decreased by $85.2 thousand to $nil in the three months ended September 30, 2025 compared to the three months ended September 30, 2024.

Comparisons for nine months ended September 30, 2025 and 2024:

The following table sets forth our unaudited condensed consolidated interim statements of operations for the nine months ended September 30, 2025 and 2024 and the dollar and percentage change between the two periods:

For the nine months ended September 30,		2025				2024				Variance ($)				Variance (%)
Revenues		$	73,553,866			$	65,259,903			$	8,293,963				13	%
Expenses
Cost of services (content, hosting and other)		$	81,797,812			$	103,949,438			$	(22,151,626	)			(21	)%
General and administrative			38,792,062				29,448,330				9,343,732				32	%
Research and development			14,070,349				14,497,709				(427,360	)			(3	)%
Sales and marketing			16,607,389				13,527,043				3,080,346				23	%
Acquisition-related transaction costs			7,624,901				-				7,624,901				*NM
Amortization and depreciation			10,775,361				9,118,603				1,656,758				18	%
Changes in fair value of digital assets			(4,949,413	)			-				(4,949,413	)			*NM
Changes in fair value of contingent consideration			-				1,354,357				(1,354,357	)			(100	)%
Total expenses			164,718,461				171,895,480				(7,177,019	)			(4	)%
Loss from operations			(91,164,595	)			(106,635,577	)			15,470,982				(15	)%
Interest income			7,979,880				6,646,015				1,333,865				20	%
Other expense			(476	)			(73,881	)			73,405				(99	)%
Change in fair value of warrant liability			24,379,616				(1,480,395	)			25,860,011				(1,747	)%
Change in fair value of derivative			9,700,000				-				9,700,000				*NM
Loss before income taxes			(49,105,575	)			(101,543,838	)			52,438,263				(52	)%
Income tax expense			(31,310	)			(66,315	)			35,005				(53	)%
Net loss		$	(49,136,885	)		$	(101,610,153	)		$	52,473,268				(52	)%

*	NM - Percentage change not meaningful.

Revenues

Revenues increased by $8.3 million to $73.6 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024, of which $5.8 million was attributable to an increase in Audience Monetization revenues, in addition to higher Other Initiatives revenues of $2.5 million. The increase in Audience Monetization revenues was driven by $11.8 million in higher subscription fees and $2.5 million from licensing, tipping fees, and platform hosting fees, offset by an $8.5 million decrease in advertising. We are continuing to see progress in the uptake of new brands, but we are still at the early stages of that process. The increase in Other Initiative revenue was due to a $1.2 million increase in cloud services offered and a $1.3 million increase in advertising inventory being monetized by our publisher network.

Cost of Services

Cost of services decreased by $22.2 million to $81.8 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was due to a reduction in programming and content costs of $25.1 million, offset by an increase in other costs of services of $2.9 million.

General and Administrative Expenses

General and administrative expenses increased by $9.3 million to $38.8 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to an increase of $5.4 million in payroll and related expenses and $3.9 million in other administrative expenses. The increase in payroll and related expense is driven by: a one-time $4.8 million increase in compensation costs related to the departures of an executive and director; a one-time $2.3 million increase in payroll taxes associated with stock options exercised related to the tender offer stemming from the strategic investment from Tether; and an increase in share-based compensation related to previously and newly granted restricted stock units and stock options for certain employees and executives; offset by a $2.3 million decrease in share-based compensation related to the recognition of contingent shares issued in connection with the Callin acquisition that were accounted for as a post-combination expense. The increase in other administrative expenses of $3.9 million was due to a rise in expenses related to public company-related costs, including legal, accounting, and other administrative services.

Research and Development Expenses

Research and development expenses decreased by $0.4 million to $14.1 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease resulted from a $0.6 million reduction in costs associated with computer software, hardware, and other expenditures used in research and development-related activities, offset by an increase in payroll and related expenses of $0.2 million.

Sales and Marketing Expenses

Sales and marketing expenses increased by $3.1 million to $16.6 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to a rise in marketing and public relations activities of $2.7 million and an increase in payroll and related expenses of $1.0 million, offset by a reduction in consulting services of $0.6 million.

Acquisition-related Transaction Costs

Acquisition-related transaction costs increased by $7.6 million to $7.6 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily driven by professional fees and other expenses incurred in connection with acquisition-related initiatives. These costs reflect the Company's continued evaluation of strategic opportunities to support growth.

Amortization and Depreciation

Amortization and depreciation increased by $1.7 million to $10.8 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to an increase of $1.3 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 $0.4 million.

Change in Fair Value of Digital Assets

Change in fair value of digital assets expense decreased by $4.9 million to $4.9 million for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The change in fair value of digital assets reflects the remeasurement of our Bitcoin investment to its fair value at each reporting period. There were no investments in Bitcoin during the nine months ended September 30, 2024.

Change in Fair Value of Contingent Consideration

Change in fair value of contingent consideration decreased by $1.4 million to $nil for the nine months ended September 30, 2025. The contingent consideration liability arose in connection with the Callin acquisition and the fair value of this contingent consideration was measured using the fair value of the expected number of shares to be issued and the Company's share price at closing. The change in fair value of contingent consideration for the nine months ended September 30, 2025 was directly attributable to changes in the Company's share price since the closing and the probability of contingencies being met. No comparable change occurred following the derecognition and reclassification of the contingent consideration to equity on May 15, 2024.

Interest Income

Interest income increased by $1.3 million to $8.0 million in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was due to the Company's investment in money market funds, treasury bills and term deposits.

Other Expense

Other expenses decreased by $73.4 thousand to an immaterial amount for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was driven by foreign currency rate fluctuations, as the majority of our cash balance was held in U.S. dollars, our functional currency, as of September 30, 2025.

Change in Fair Value of Warrant Liability

Change in fair value of warrant liability increased by $25.9 million, resulting in a gain of $24.4 million in the nine months ended September 30, 2025. The warrant liability arose in connection with the warrants offered as part of the 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, 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 increase in the change in fair value of warrant liability is directly attributable to changes in the trading price of Rumble's warrants.

Change in Fair Value of Derivative

Change in fair value of derivative increased by $9.7 million, resulting in a gain of $9.7 million in the nine months ended September 30, 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 increase relates to the revaluation of the forward purchase contracts in connection with the Tether transaction.

Income Tax Expense

Income tax expense decreased by $35.0 thousand to $31.3 thousand in the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

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 September 30, 2025, our cash and cash equivalents balance was $269.8 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 September 30, 2025, our digital asset holdings were valued at $24.0 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. As of September 30, 2025, we are party to programming and content agreements with a minimum contractual cash commitment of $32 million. A significant amount of these minimum contractual cash commitments will be paid over 12 to 36 months, commencing in 2025.

The following table presents a summary of the unaudited condensed consolidated interim statement of cash flows for the nine months ended September 30, 2025 and 2024:

		Nine months ended September 30,
Net cash provided by (used in):		2025				2024				Variance ($)
Operating activities		$	(41,004,032	)		$	(74,652,655	)		$	33,648,623
Investing activities			(22,894,527	)			(11,281,908	)			(11,612,619	)
Financing activities			219,636,809				(1,619,412	)			221,256,222

Operating Activities

Net cash used in operating activities for the nine months ended September 30, 2025 primarily consisted of net loss adjusted for certain non-cash items, including $39.0 million in gains from the changes in fair value of warrants, derivatives and digital assets, partially offset by a $19.5 million change in share-based compensation, $10.8 million in changes in amortization and depreciation, $1.3 million in changes in 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 nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 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 nine months ended September 30, 2025 consisted of $19.1 million in purchases of digital assets and $3.8 million in purchases of property plant and equipment and intellectual property. The increase in net cash used in investing activities during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 was due to the investment in digital assets, offset by a decrease in purchases of property, equipment and intangible assets. Additionally, the cash paid to non-accredited investors related to the Callin acquisition and cash paid in connection with the North River acquisition in the nine months ended September 30, 2024 contributed to the decrease in net cash used in investing activities.

Financing Activities

Net cash provided by financing activities for the nine months ended September 30, 2025 consisted of the issuance of $775.0 million in shares of Class A Common Stock and a corresponding $525.0 million share repurchase completed in connection with the tender offer, both related to the strategic investment from Tether. The transaction incurred $29.4 million in share issuance costs. Additionally, the net cash provided by financing activities includes $2.3 million from proceeds related to stock options exercised and employee stock purchase plan contributions, offset by $3.3 million in taxes paid from the net share settlement of share-based compensation. The increase in net cash provided by financing activities compared to the nine months ended September 30, 2024 was due to the proceeds from the strategic investment from Tether as well as the proceeds from stock options exercised and employee stock purchase plan contributions. These inflows were partially offset by the share repurchases in connection with the tender offer and taxes paid from the net share settlement of share-based compensation.

Summary of Quarterly Results

Information for the most recent quarters presented are as follows:

		Sep 30, 2025				June 30, 2025				Mar 31, 2025				Dec 31, 2024
Total revenue		$	24,762,445			$	25,084,631			$	23,706,790			$	30,228,287
Net loss		$	(16,261,762	)		$	(30,224,930	)		$	(2,650,193	)		$	(236,752,626	)

		Sep 30, 2024				Jun 30, 2024				Mar 31, 2024				Dec 31, 2023
Total revenue		$	25,056,904			$	22,469,543			$	17,733,456			$	20,391,872
Net loss		$	(31,539,413	)		$	(26,780,700	)		$	(43,290,040	)		$	(29,277,227	)

Non-GAAP Financial Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our core operating performance. These non-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 GAAP. We use the non-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 transaction costs, change in fair value of warrants, change in fair value of digital assets, change in fair value of contingent consideration, 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.

Adjusted EBITDA should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. There are a number of limitations related to the use of Adjusted EBITDA rather than net income (loss), the nearest 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 GAAP. The following table presents a reconciliation of net income (loss), the most directly comparable financial measure calculated and presented in accordance with GAAP, to Adjusted EBITDA:

Reconciliation of Adjusted EBITDA

		Three months ended September 30,								Nine months ended September 30,
		2025				2024				2025				2024
Net loss		$	(16,261,762	)		$	(31,539,413	)		$	(49,136,885	)		$	(101,610,153	)
Adjustments:
Amortization and depreciation			3,880,492				3,128,242				10,775,361				9,118,603
Share-based compensation expense			5,383,691				6,157,765				19,447,788				17,478,041
Interest income			(2,896,649	)			(1,949,898	)			(7,979,880	)			(6,646,015	)
Other (income) expense			(46,901	)			304				476				73,881
Income tax (benefit) expense			-				(85,157	)			31,310				66,315
Change in fair value of warrants liability			(8,936,773	)			756,700				(24,379,616	)			1,480,395
Change in fair value of digital assets			(1,456,388	)			-				(4,949,413	)			-
Change in fair value of contingent consideration			-				-				-				1,354,357
Change in fair value of derivative			-				-				(9,700,000	)			-
Acquisition-related transaction costs			5,236,796				-				7,624,901				-
Adjusted EBITDA		$	(15,097,494	)		$	(23,531,457	)		$	(58,265,958	)		$	(78,684,576	)

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.

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 expenses in the unaudited condensed consolidated interim statements of operations.

Arrangement to Sell Shares to Tether (Unit of Account)

The Company applied judgment in determining whether the support agreements and agreement to sell shares to Tether were a single unit or multiple units of account. Given that the agreements were entered into contemporaneously and in contemplation of one another, the closing of the support agreements was contingent on the close of the sale of shares to Tether, and the agreements relate to the same underlying risk (the price risk of the Company's shares), the Company determined that the overall arrangement was one unit of account. As a result, the arrangement is accounted for as a derivative, initially and subsequently measured at fair value with changes through net loss. See Note 15 for information regarding the estimation of the fair value of the derivative.

New Accounting Pronouncements

See Note 2, Summary of Significant Accounting Policies, to our Annual Financial Statements for the years ended December 31, 2024 and 2023.

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.