Banzai International, Inc. Announces $5.5 Million in Operating Cost Reductions 

Banzai International (NASDAQ: BNZI) announced an operating cost reduction initiative expected to improve annualized operating profits by $5.5 million.

Rhea-AI Summary

Banzai International (NASDAQ: BNZI) announced an operating cost reduction initiative expected to improve annualized operating profits by $5.5 million. Savings come from lower consulting and professional services costs, centralized financial systems, and selective headcount reductions.

Management estimates a roughly 40% cut in operating cash burn, with the full expense run rate benefit expected in Q3 2026.

Positive

• Planned annualized operating profit improvement of $5.5 million
• Estimated ~40% reduction in operating cash burn run rate
• Most cost reduction actions already implemented
• Full operating expense run rate benefits expected by Q3 2026
• Company targets savings without affecting planned revenue growth

Negative

• Savings plan includes selective headcount reduction, indicating workforce cuts

Argus May 28 session

+1.76% close to close Open Argus

Details

News Market Reaction – BNZI

On May 28, the day this news came out, BNZI closed 1.76% above the previous close.

Data tracked by StockTitan Argus for the May 28 session.

Key Figures

Operating profit improvement: $5.5 million Operating cash burn reduction: 40%

Operating profit improvement

$5.5 million

Annualized operating cost reduction initiative

Operating cash burn reduction

40%

Estimated reduction in operating cash burn on a run-rate basis

Historical Context

5 past events · Latest: May 20

5 events

1. May 20

   Strategic alliance

   24h Move

   -1.7%

   Alliance with Ingram Micro to expand distribution of OpenReel and Demio.

2. May 20

   Debt reduction

   24h Move

   -9.4%

   Announced elimination of approximately $7.8M of debt year to date.

3. May 15

   Q1 2026 earnings

   24h Move

   -33.7%

   Q1 revenue decline and net loss of $8.4M with limited cash balance.

4. May 12

   Earnings call notice

   24h Move

   +5.0%

   Scheduled Q1 2026 results conference call and webcast for investors.

5. May 06

   Reverse split

   24h Move

   -21.6%

   Implemented 1-for-20 reverse stock split for Class A and Class B shares.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

operating cost reduction, operating profits, operating cash burn, run rate

4 terms

operating cost reduction financial

"today announced an operating cost reduction initiative expected to improve..."

Operating cost reduction is the deliberate lowering of a company's routine expenses needed to keep the business running—things like labor, supplies, rent, energy, and administrative overhead. Investors care because reducing these costs can increase profit margins and free up cash for growth, debt reduction, or dividends; think of it as cutting household bills to boost savings, though overly deep cuts can hurt service quality or long‑term growth.

operating profits financial

"initiative expected to improve operating profits by $5.5 million..."

Operating profits are the money a company keeps from its normal business activities after paying the day-to-day costs of running the business—things like materials, worker pay, rent and utilities—but before paying interest and taxes. It matters to investors because it shows how well the core business is earning money independent of financing or tax choices; think of it as the engine’s performance gauge that reveals whether the business model runs efficiently and can fund growth or dividends.

operating cash burn financial

"these actions will reduce our operating cash burn by approximately 40%..."

Operating cash burn is the amount of cash a company uses to run its day-to-day business over a set period, excluding money spent on long-term projects or borrowed funds. For investors, it shows how quickly a company is using its available cash to stay in business—like a household’s monthly bills—and helps judge how soon the company might need new funding or cost cutting to avoid running out of cash.

run rate financial

"On a run rate basis, management estimates these actions will reduce..."

Run rate is an estimate of a company's future sales or earnings based on its current performance over a short period, projected out over a longer timeframe. Investors use it like extrapolating a monthly paycheck into a yearly salary to quickly gauge growth or scale, but it can be misleading if recent results are unusually high or low, seasonal, or affected by one-time events.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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SEATTLE, May 28, 2026 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading marketing technology company that provides essential marketing and sales solutions, today announced an operating cost reduction initiative expected to improve operating profits by $5.5 million on an annualized basis. The savings result from management-led initiatives including: reducing dependency on consultants, reducing the cost of professional services, centralizing financial systems and processes, and selective headcount reduction.

On a run rate basis, management estimates these actions will reduce our operating cash burn by approximately 40%, while not impacting planned revenue growth. The Company has already implemented most of the actions in the plan, and expects the monthly operating expense run rate to fully reflect the plan’s reductions in the third quarter.

“We expect these changes to our cost structure will significantly improve our burn rate and financial position without impacting our customers or planned revenue growth. Our team worked collaboratively to identify ways to operate the business more cost-effectively," said Joe Davy, Founder and CEO of Banzai. “We will continue to provide best-in-class customer service and support for our products. We look forward to reporting this cost reduction plan's progress in our future earnings releases.”

About Banzai

Banzai is a marketing technology company that provides AI-enabled marketing and sales solutions for businesses of all sizes. On a mission to help their customers grow, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai has over 150,000 customers including Amazon, Dell, Salesforce, Aflac, Thermo Fisher Scientific, RBC Wealth Management, and Fitch Group. Learn more at www.banzai.io. For investors, please visit ir.banzai.io.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.

Investor Relations
Dean Ditto
Chief Financial Officer, Banzai
206 414-1777
ir.banzai.io

Media
Nancy Norton
Chief Legal Officer, Banzai
media@banzai.io

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What cost reduction did Banzai International (NASDAQ: BNZI) announce on May 28, 2026?

Banzai International announced an operating cost reduction initiative expected to improve annualized operating profits by $5.5 million. According to Banzai, savings will come from lower consulting and professional services costs, centralized financial systems, and selective headcount reductions across the business.

How much will Banzai International (BNZI) reduce its operating cash burn?

Banzai International estimates its operating cost actions will reduce operating cash burn by about 40% on a run rate basis. According to Banzai, these reductions are designed to leave planned revenue growth and customer service levels unchanged.

When will Banzai International’s (BNZI) cost savings fully impact operating expenses?

Banzai International expects the monthly operating expense run rate to fully reflect its cost reduction plan in the third quarter of 2026. According to Banzai, most actions have already been implemented, with remaining benefits phasing in over the coming months.

Will Banzai International’s $5.5 million cost cuts affect revenue growth?

Banzai International expects its $5.5 million annualized cost reductions will not impact planned revenue growth. According to Banzai, the initiative targets efficiency gains in consulting, professional services, and financial processes while maintaining customer service and product support.

Does Banzai International’s (BNZI) cost reduction plan involve layoffs?

Banzai International’s plan includes selective headcount reduction as one savings lever. According to Banzai, workforce changes are part of broader efforts to reduce consulting and professional service spending and centralize financial systems to improve profitability and cash burn.