Banzai Reports First Quarter 2026 Financial Results
Rhea-AI Summary
Banzai (NASDAQ: BNZI) reported Q1 2026 revenue of $2.7 million, down 20.2% year-over-year and 4% sequentially. Gross profit was $2.2 million with 80.7% gross margin. Net loss was $8.4 million and Adjusted EBITDA loss was $1.9 million.
Banzai reduced debt by $4.5 million in Q1 2026 and $7.4 million year to date, while stockholder’s equity was $8.1 million. Cash totaled $0.1 million. The company signed a non-binding LOI to acquire ConnectAndSell assets, expected to increase revenue and expand AI platform capabilities.
AI-generated analysis. Not financial advice.
Positive
- Q1 2026 gross margin of 80.7% on $2.2 million gross profit
- Debt reduced by $4.5 million in Q1 2026 and $7.4 million year to date
- Stockholder’s equity of $8.1 million as of March 31, 2026
- Raised $3.3 million of equity and converted $3.8 million of debt to equity since December 31, 2025
- Customer base over 150,000 purchasers or subscribers as of March 31, 2026
- Signed non-binding LOI to acquire ConnectAndSell assets, expected to increase annual revenue and AI capabilities
Negative
- Q1 2026 revenue $2.7 million, down 20.2% year-over-year and 4% sequentially
- Consumer direct products showed the largest revenue declines versus enterprise products
- Q1 2026 net loss $8.4 million versus adjusted $7.9 million in Q1 2025 and $5.0 million in Q4 2025
- Adjusted EBITDA loss widened to $1.9 million from $1.7 million year-over-year and $1.6 million sequentially
- Operating expenses rose to $8.0 million, up from $7.7 million year-over-year and $7.1 million in Q4 2025
- Net cash used in operations $5.5 million versus $5.0 million a year ago and $2.3 million in Q4 2025
- Cash balance of $0.1 million as of March 31, 2026, down from $0.8 million a year earlier
Key Figures
Market Reality Check
Peers on Argus
BNZI is up 29.31% while close software peers show mixed moves (e.g., IFBD -4.53%, FTFT +5.93%, JTAI +7.55%, MASK -5.24%). Momentum scans only flag one other name, suggesting a stock-specific reaction.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | FY25 earnings | Positive | -10.6% | Reported strong FY2025 growth and margins with ConnectAndSell LOI. |
| Nov 14 | Q3 2025 earnings | Positive | -11.6% | Q3 2025 showed strong YoY growth and narrowed net loss. |
| Aug 14 | Q2 2025 earnings | Positive | -7.8% | Q2 2025 delivered >200% revenue growth and higher gross margin. |
| May 15 | Q1 2025 earnings | Positive | -10.9% | Q1 2025 posted strong revenue, ARR growth and margin gains. |
| Mar 12 | Prelim 2024 results | Positive | +3.8% | Preliminary FY2024 revenue beat guidance and equity improved sharply. |
Earnings releases have usually been followed by negative price reactions despite positive-operational framing; only one of the last five earnings-type updates saw a positive next-day move.
Over the past year, Banzai’s earnings updates have highlighted rapid revenue growth, high gross margins, and expanding ARR, alongside continued net losses and financing activity. Key milestones included preliminary FY2024 results on Mar 12, 2025, strong Q1, Q2, and Q3 2025 reports, and FY2025 results on Mar 31, 2026. Despite these positives, shares typically fell after earnings. Today’s Q1 2026 report, with revenue of $2.7M and an $8.4M net loss, fits the pattern of operational strength mixed with ongoing losses, but the market reaction is notably more positive.
Historical Comparison
In the past 5 earnings-related releases, BNZI’s average next-day move was -7.44%. Today’s +29.31% reaction to Q1 2026 results stands out as a sharp positive outlier versus that pattern.
Earnings updates progressed from preliminary FY2024 results to Q1, Q2, Q3 2025, and FY2025, showing rapid revenue and ARR growth with high margins but persistent losses and heavy financing, setting context for Q1 2026.
Regulatory & Risk Context
The company has an effective Form S-3/A shelf registration dated Aug 6, 2025 with recorded usage via multiple prospectus supplements, including recent 424B3 filings, indicating an established mechanism to issue or register securities.
Market Pulse Summary
This announcement detailed Q1 2026 revenue of $2.7M, an $8.4M net loss, and strong 80.7% gross margin, alongside $4.5M of debt reduction but only $0.1M in cash. Management highlighted ongoing cost actions and a non-binding LOI to acquire ConnectAndSell to bolster AI capabilities. Investors may watch future earnings for revenue stabilization, cash runway developments, execution on acquisitions, and the impact of ongoing SEPA, ATM, and convertible financing.
Key Terms
adjusted ebitda financial
non-gaap financial
spac financial
sepa financial
convertible debt financial
convertible notes financial
letter of intent financial
AI-generated analysis. Not financial advice.
Revenue of
Signed Non-Binding Letter of Intent to Acquire Assets of ConnectAndSell, Inc. ("ConnectAndSell"), Expected to Increase Revenue and Expand AI Platform Capabilities
Management to Host First Quarter 2026 Results Conference Call Today, Friday, May 15, 2026 at 4:30 p.m. Eastern Time
SEATTLE, May 15, 2026 (GLOBE NEWSWIRE) -- Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading AI-powered sales & marketing technology company, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 and Key Financial & Operational Highlights
- Maintained revenue of
$2.7 million for Q1 2026, which represented a decrease of4% from Q4 2025, primarily due to one-time revenue. - Gross profit of
$2.2 million for Q1 2026, a decrease of$0.1 million compared to Q4 2025. Gross margin was80.7% for Q1 2026 compared to81.9% in Q4 2025. - Net Loss for Q1 2026 was
$8.4 million , compared to Q4 2025 Net Loss of$5.0 million . - Q1 2026 Adjusted EBITDA Loss increased to
$1.9 million , compared to an Adjusted EBITDA Loss of$1.6 million in fourth quarter 2025. - Reduced debt by
$4.5 million compared to December 31, 2025. Year to date, we have reduced debt by$7.4 million . - Stockholder’s Equity remained at
$8.1 million as of March 31, 2026; converted$3.8 million of debt to equity, and raised an additional$3.3 million from the SEPA and ATM since December 31, 2025. - Customer base includes over 150,000 total customers who have purchased or subscribed to Banzai products as of March 31, 2026.
- Signed a Non-binding Letter of Intent to acquire assets of ConnectAndSell, expected to increase annual revenue and expand AI Platform capabilities, continuing to negotiate terms.
“Overall, our revenue remained relatively flat compared to Q4 2025. We saw many bright spots including consistently high gross margin, and made substantial efforts to increase our enterprise pipeline, and
“During the quarter, we strengthened our balance sheet by retiring debt totaling
“We have taken actions to manage our cost structure, resulting in substantial improvements. Additionally, I am pleased that Banzai's management has committed to further cost management actions, which we expect will materially reduce operating expenses.
“Looking ahead, we are focused on building upon the foundation established in 2025 by deepening relationships with enterprise and mid-market customers and driving broader adoption across high-value verticals. We will continue investing in our AI capabilities to find new ways to deliver customer value. We believe these efforts will allow us to deliver long-term value for shareholders while supporting our customers’ evolving needs.
“We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience and can leverage our AI platform and experience to add value and strategic operational acceleration. Recent balance sheet improvements are expected to enable new growth as we maintain operational discipline and the path to sustainable profitability,” concluded Davy.
First Quarter 2026 Financial Results
Total revenue for the three months ended March 31, 2026 decreased
Total cost of revenue for the three months ended March 31, 2026 was
Gross profit for the three months ended March 31, 2026 was
Total operating expenses for the three months ended March 31, 2026 were
Net Loss for the three months ended March 31, 2026 was
Adjusted EBITDA Loss for the three months ended March 31, 2026 increased to
Net cash used in operating activities for the three months ended March 31, 2026 was
We signed a Non-binding Letter of Intent to acquire assets of ConnectAndSell, an AI-powered sales enablement platform serving B2B organizations across financial services, healthcare, technology, and other industries. The acquisition is expected to increase Banzai’s annual revenue and expand our AI Platform capabilities. The two companies have executed a non-binding letter of intent and continue to negotiate material terms of the transaction. Since the transaction is subject to execution of a definitive agreement and closing conditions, we cannot accurately estimate the closing date at this time. There can be no assurance that we will be able to complete this acquisition.
Cash totaled
During first quarter 2026, we continued to fund our operations through a combination of equity and debt financings, and most notably, closed an additional tranche of convertible debt, totaling approximately
Management has continued to strengthen the balance sheet and reduced net debt by
First Quarter 2026 Results Conference Call
Banzai Founder & CEO Joe Davy and CFO Dean Ditto will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Friday, May 15, 2026 |
| Time: | 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
| Webcast Registration: | Banzai Q1 2026 Financial Results Conference Call |
A replay of the webcast and the presentation utilized during the call will be available in the Company’s investor relations section here.
Note About Non-GAAP Financial Measures
Adjusted EBITDA
In addition to our results determined in accordance with U.S. GAAP, we believe that Adjusted EBITDA, a non-GAAP measure as defined below, is useful in evaluating our operational performance distinct and apart from certain irregular, non-cash, and non-operational expenses. We use this information for ongoing evaluation of operations and for internal planning purposes. We believe that non-GAAP financial information, when taken collectively with results under GAAP, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies.
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We endeavor to compensate for the limitation of Adjusted EBITDA, by also providing the most directly comparable GAAP measure, which is net loss, and a description of the reconciling items and adjustments to derive the non-GAAP measure.
Adjusted EBITDA should only be considered alongside results prepared in accordance with GAAP, including various cash-flow metrics, net income (loss) and our other GAAP results and financial performance measures.
| BANZAI INTERNATIONAL, INC. | ||||||||||||||||
| Net Income (Loss) to Adjusted EBITDA Reconciliation | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Three Months Ended March 31, | Period-over-Period | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | $ | (4,773 | ) | (131.0 | %) | |||||
| Interest income | (3 | ) | — | (3 | ) | NM | ||||||||||
| Interest expense | 9 | — | (9 | ) | NM | |||||||||||
| Interest expense – related party | 194 | 358 | 164 | 45.8 | % | |||||||||||
| Income tax expense (benefit) | (52 | ) | 74 | 126 | 170.3 | % | ||||||||||
| Depreciation and amortization expense | 305 | 247 | (58 | ) | (23.5 | %) | ||||||||||
| Stock based compensation | 1,308 | 337 | (971 | ) | (288.1 | %) | ||||||||||
| Gain on extinguishment of liabilities | — | (4,343 | ) | 4,343 | 100.0 | % | ||||||||||
| Loss on debt issuance | 49 | 274 | 225 | 82.1 | % | |||||||||||
| Loss on Private Placement Issuance | 1,598 | — | (1,598 | ) | NM | |||||||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | 1,764 | 99.7 | % | |||||||||||
| Change in fair value of financial instruments | 608 | 140 | (468 | ) | (334.3 | %) | ||||||||||
| Change in fair value of financial instruments – related party | 22 | 45 | 23 | 51.1 | % | |||||||||||
| Change in fair value of convertible notes | (372 | ) | 159 | 531 | 334.0 | % | ||||||||||
| Loss on Yorkville SEPA advances | 28 | 385 | 357 | 92.7 | % | |||||||||||
| Other (income) expense, net | 550 | (125 | ) | (675 | ) | (540.0 | %) | |||||||||
| Transaction related expenses | 2,259 | 2,582 | 323 | 12.5 | % | |||||||||||
| Adjusted EBITDA | $ | (1,908 | ) | $ | (1,741 | ) | $ | (167 | ) | (9.6 | %) | |||||
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,
Banzaimedia@banzai.io
| BANZAI INTERNATIONAL, INC. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
| As of | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 137 | $ | 259 | ||||
| Accounts receivable, net | 668 | 709 | ||||||
| Prepaid expenses and other current assets | 855 | 445 | ||||||
| Total current assets | 1,660 | 1,413 | ||||||
| Property and equipment, net | — | 8 | ||||||
| Intangible assets, net | 7,737 | 8,027 | ||||||
| Goodwill | 21,992 | 21,992 | ||||||
| Operating lease right-of-use assets | 49 | 56 | ||||||
| Bifurcated embedded derivative asset – related party | — | 9 | ||||||
| Deferred offering costs | 32 | 122 | ||||||
| Other assets | 4 | 4 | ||||||
| Total assets | 31,474 | 31,631 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Accounts payable | 2,971 | 2,494 | ||||||
| Accrued expenses and other current liabilities | 4,068 | 4,354 | ||||||
| Convertible notes – related party | 5,117 | 4,923 | ||||||
| Convertible notes, carried at fair value | 1,890 | 1,856 | ||||||
| Convertible notes (Yorkville) | 571 | 1,200 | ||||||
| Notes payable, carried at fair value | 2,258 | 2,591 | ||||||
| Private placement warrant liability | 1,250 | 296 | ||||||
| Financial instruments – related party | 13 | — | ||||||
| Earnout liability | 500 | 991 | ||||||
| Deferred revenue | 3,547 | 3,642 | ||||||
| Operating lease liabilities, current | 30 | 23 | ||||||
| Total current liabilities | 22,215 | 22,370 | ||||||
| Deferred revenue, non-current | 117 | 94 | ||||||
| Deferred tax liability | 1,026 | 1,078 | ||||||
| Operating lease liabilities, non-current | 19 | 34 | ||||||
| Total liabilities | 23,377 | 23,576 | ||||||
| Stockholders' equity: | ||||||||
| Additional paid-in capital | 117,346 | 108,912 | ||||||
| Accumulated other comprehensive (loss) income | (60 | ) | (85 | ) | ||||
| Accumulated deficit | (109,189 | ) | (100,772 | ) | ||||
| Stockholders' equity | 8,097 | 8,055 | ||||||
| Total liabilities and stockholders' equity | $ | 31,474 | $ | 31,631 | ||||
| BANZAI INTERNATIONAL, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||
| (in thousands) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Operating income: | ||||||||
| Revenue | $ | 2,696 | $ | 3,379 | ||||
| Cost of revenue | 521 | 606 | ||||||
| Gross profit | 2,175 | 2,773 | ||||||
| Operating expenses: | ||||||||
| General and administrative expenses | 7,650 | 7,433 | ||||||
| Depreciation and amortization expense | 305 | 247 | ||||||
| Total operating expenses | 7,955 | 7,680 | ||||||
| Operating loss | (5,780 | ) | (4,907 | ) | ||||
| Other expenses (income): | ||||||||
| Interest income | (3 | ) | — | |||||
| Interest expense | 9 | — | ||||||
| Interest expense – related party | 194 | 358 | ||||||
| Gain on extinguishment of liabilities | — | (4,343 | ) | |||||
| Loss on debt issuance | 49 | 274 | ||||||
| Loss on Private Placement Issuance | 1,598 | — | ||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | ||||||
| Change in fair value of financial instruments | 608 | 140 | ||||||
| Change in fair value of financial instruments – related party | 22 | 45 | ||||||
| Change in fair value of convertible notes | (372 | ) | 159 | |||||
| Loss on Yorkville SEPA advances | 28 | 385 | ||||||
| Other (income) expense, net | 550 | (125 | ) | |||||
| Total other expenses, net | 2,689 | (1,337 | ) | |||||
| Loss before income taxes | (8,469 | ) | (3,570 | ) | ||||
| Income tax expense (benefit) | (52 | ) | 74 | |||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | ||
| Net loss attributable to common shareholders | (8,417 | ) | (3,644 | ) | ||||
| Net loss per share attributable to common shareholders | ||||||||
| Basic and diluted | $ | (11.69 | ) | $ | (30.37 | ) | ||
| Weighted average common shares outstanding (in thousands) | ||||||||
| Basic and diluted | 720 | 120 | ||||||
| BANZAI INTERNATIONAL, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | — | — | ||||||
| Depreciation and amortization expense | 305 | 247 | ||||||
| Provision for credit losses on accounts receivable | (15 | ) | (10 | ) | ||||
| Non-cash shares issued for consulting expenses | — | 233 | ||||||
| Discount at issuance on notes carried at fair value | — | 16 | ||||||
| Non-cash interest expense - related party | 194 | 336 | ||||||
| Amortization of operating lease right-of-use assets | 7 | 6 | ||||||
| Stock based compensation expense | 1,308 | 337 | ||||||
| Gain on extinguishment of liability | — | (4,343 | ) | |||||
| Loss on debt issuance | 49 | 274 | ||||||
| Loss on Private Placement Issuance | 1,598 | — | ||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | ||||||
| Other (gains) losses | (7 | ) | — | |||||
| Loss on SEPA issuance | — | 385 | ||||||
| Change in fair value of financial instruments | 608 | 140 | ||||||
| Change in fair value of financial instruments – related party | 22 | 45 | ||||||
| Change in fair value of convertible notes, carried at fair value | (373 | ) | 159 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 56 | (82 | ) | |||||
| Prepaid expenses and other current assets | (410 | ) | (188 | ) | ||||
| Other assets | — | (3 | ) | |||||
| Accounts payable | 477 | (610 | ) | |||||
| Deferred revenue | (95 | ) | 37 | |||||
| Accrued expenses | (286 | ) | (213 | ) | ||||
| Operating lease liabilities | (8 | ) | (5 | ) | ||||
| Earnout liability | (491 | ) | 170 | |||||
| Deferred revenue – long-term | 23 | (6 | ) | |||||
| Deferred tax liability | (52 | ) | (25 | ) | ||||
| Net cash used in operating activities | (5,501 | ) | (4,974 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash paid for acquisition of Vidello, net of cash acquired | — | (2,677 | ) | |||||
| Net cash used in investing activities | — | (2,677 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Payment of GEM commitment fee promissory note | — | (215 | ) | |||||
| Repayment of convertible notes (Yorkville) | (647 | ) | (1,877 | ) | ||||
| Proceeds from term notes, net of issuance costs | 504 | 4,000 | ||||||
| Repayment of term notes | (54 | ) | (3,686 | ) | ||||
| Partial repayment of convertible notes - related party | — | (870 | ) | |||||
| Proceeds from issuance of convertible notes, net of issuance costs | 2,121 | 3,258 | ||||||
| Proceeds from issuance of shares to Yorkville under the SEPA | 697 | 6,687 | ||||||
| Proceeds from shares issued to Verista | — | 50 | ||||||
| Proceeds from issuance of common stock and warrants | 2,726 | — | ||||||
| Net cash provided by financing activities | 5,347 | 7,347 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 32 | — | ||||||
| Net decrease in cash | (122 | ) | (304 | ) | ||||
| Cash at beginning of period | 259 | 1,087 | ||||||
| Cash at end of period | $ | 137 | $ | 783 | ||||
