NASDAQ:RUM

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RUM Group Jumps 14% as AI Infrastructure Drives Record Revenue and First Positive Adjusted EBITDA Quarter

RUM Group (NASDAQ: RUM) shares surged about 14% after the company reported record third-quarter revenue, strong GPU utilization and its first profitable quarter on an adjusted EBITDA basis.

Third-quarter revenue jumped 290% year over year to $96.6 million, also rising 139% sequentially and coming in 3.8% above the top end of company guidance. Quake AI contributed $68.2 million, representing more than 70% of total revenue in its first full quarter of consolidated results.

Demand for the company’s AI infrastructure remained strong. Quake AI operated approximately 22,000 NVIDIA GPUs at roughly 85% utilization during the quarter, with management describing the fleet as nearly sold out.

The quarter also marked RUM Group’s first positive adjusted EBITDA result, an important profitability milestone as the company shifts more heavily toward AI infrastructure. Rumble’s core business also recorded higher advertising revenue, although subscription and other services revenue declined.

RUM Group ended September with $142.3 million of liquidity, including $134.4 million in cash and cash equivalents and 94.68 Bitcoin valued at $7.9 million.

The company also increased its ownership of Northern Data to approximately 98% and expects to reach full ownership through a squeeze-out process in early 2027. However, management cautioned that part of its previously targeted 250 MW of unmonetized capacity for 2027 could be delayed beyond next year because of market conditions.

For the fourth quarter, RUM Group expects revenue of $88 million to $94 million, below the Q3 level.

The 14% rally appears to reflect the much stronger-than-expected revenue growth, high GPU utilization and first positive adjusted EBITDA quarter, which outweighed the softer sequential Q4 revenue outlook and potential delays to additional capacity deployment.
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Author
The Investor 11-11-26
Rumble Slips 6% in Premarket as Thin Revenue and Northern Data Dilution Concern Investors

May 14, 2026 | NASDAQ: RUM

Rumble is under pressure in premarket despite reporting record first-quarter revenue, as the market focuses on the persistent gap between the platform's ambitions and its financial reality, compounded by the dilutive mechanics of the pending Northern Data acquisition.

Revenue grew 7% year-on-year to $25.5 million — a record for any first quarter — but the absolute number remains tiny for a company with significant infrastructure costs. Cost of services alone was $27 million, meaning Rumble is still generating negative gross profit on its core platform operations. G&A expenses fell 37% to $10.4 million as headcount rationalization took effect, which is a genuine positive, but sales and marketing jumped 134% to $8.5 million as the company invests to grow its user base. Total operating expenses of $51.7 million against $25.5 million in revenue means the cash burn remains substantial — the company ended Q1 with $233.4 million in liquidity, including 210.82 Bitcoin valued at $14.4 million.

MAUs reached 56 million, up 8% sequentially, driven by Rumble Shorts and international expansion — encouraging momentum that management will need to monetize more effectively over time. The Rumble Wallet launch in partnership with Tether, exclusive streaming rights to The Dan Bongino Show, and the new CFO appointment from Intel's VP of Product Management are all strategic moves but near-term revenue neutral.

The Northern Data acquisition is likely the primary driver of today's 5% decline. Rumble has secured approximately 81.3% of Northern Data shares through its exchange offer, with closing expected in mid-June at a ratio of 2.0281 new Rumble shares per Northern Data share — a meaningful dilution event for existing shareholders. Northern Data's Q1 revenue of EUR 43 million with GPU utilization reaching 85% in March is operationally encouraging and would bring pro forma combined revenue to approximately $75 million — nearly triple Rumble's standalone figure. But investors are weighing whether the AI cloud infrastructure pivot is the right use of Rumble's capital and shareholder equity.

The 5% drop reflects a market that sees a money-losing video platform taking on a leveraged AI infrastructure business through a dilutive share exchange, while still searching for a clear path to profitability on either front.
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Author
Global Finance News 05-15-26
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11-11-25The Investor
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10-03-25The Investor