IZEA Reports Q2 2025 Revenue of $9.1 Million

Rhea-AI Summary

IZEA (NASDAQ: IZEA) reported its Q2 2025 financial results, marking its first profitable quarter in company history. The influencer marketing company achieved $9.1 million in revenue, representing an 11% growth in ongoing operations when excluding divested Hoozu revenue. The company reported net income of $1.2 million ($0.07 per share), compared to a net loss of $2.2 million in Q2 2024.

Notable achievements include a 30% reduction in total costs and expenses to $8.4 million and positive Adjusted EBITDA of $1.3 million. The company maintains a strong financial position with $50.6 million in cash and equivalents and no long-term debt. IZEA also continued its stock repurchase program, investing $0.3 million during Q2 2025.

The company secured new business from major brands including T. Marzetti, Corona, Kellogg's, and Nestlé, while producing work for high-profile clients like A Minecraft Movie and F1: The Movie.

Positive

• First profitable quarter in company history with $1.2M net income
• 11% revenue growth in ongoing operations (excluding Hoozu)
• 30% reduction in total costs and expenses to $8.4M
• Strong cash position of $50.6M with no long-term debt
• Improved gross margins with cost of revenue decreasing from 57% to 48%
• Secured new business from major brands like Kellogg's, Nestlé, and Corona

Negative

• Managed Services bookings declined to $5.6M from $10.3M year-over-year
• Total revenue remained flat at $9.1M year-over-year
• Operating expenses expected to increase gradually to support growth

Insights

Financial Analyst

IZEA achieves first-ever profitable quarter with $1.2M net income despite flat revenue, showing successful strategic pivot to profitability.

IZEA's Q2 2025 results mark a significant turnaround in the company's financial trajectory. While total revenue remained flat year-over-year at $9.1 million, the company achieved 11% growth in ongoing operations when excluding the divested Hoozu business. The most dramatic improvement came in profitability metrics, with IZEA reporting its first-ever profitable quarter with $1.2 million net income ($0.07 per share) compared to a $2.2 million loss in Q2 2024.

This profitability surge stems from IZEA's strategic shift toward higher-margin business and significant cost reductions. Total costs and expenses decreased by 30% to $8.4 million, with sales and marketing costs slashed by 70%. The cost of revenue improved from 57% to 48% of revenue, indicating better operational efficiency and margin management.

The $5.6 million in Managed Services bookings represents a substantial decline from $10.3 million in the prior year. However, management attributes this to deliberately shedding unprofitable business while focusing on larger, more profitable accounts that drive recurring revenue. This strategic pivot appears to be working, as evidenced by the company's first operational and net profit despite the booking decline.

The balance sheet remains exceptionally strong with $50.6 million in cash and equivalents and no long-term debt. The company is returning capital to shareholders through a share repurchase program, having bought back 121,788 shares at an average price of $2.29 during Q2. IZEA's positive cash flow from operations further reinforces the improved financial health.

The successful client roster expansion including major brands like Corona, Kellogg's, and Nestlé suggests IZEA's influencer marketing solutions remain competitive. The strategic restructuring implemented in Q4 2024 has clearly delivered early positive results, positioning IZEA for potentially sustainable profitability going forward.

Reporting $1.2 Million in Net Income, Achieving $0.07 per Share, Positive Cash from Operations

ORLANDO, Fla., Aug. 12, 2025 (GLOBE NEWSWIRE) -- IZEA Worldwide, Inc. (NASDAQ: IZEA), a leading influencer marketing company that makes Creator Economy solutions for marketers, reported its financial and operational results for the second quarter ended June 30, 2025.

Q2 2025 Financial Summary Compared to Q2 2024

• Total revenue $9.1 million in both comparative periods
• Revenue from on-going operations (excluding $0.8 million Q2 2024 Hoozu revenue) increased 11%
• Managed Services bookings totaled $5.6 million, compared to $10.3 million
• Total costs and expenses decreased 30% to $8.4 million, compared to $12.0 million
• Net income was $1.2 million, compared to a net loss of $2.2 million
• Adjusted EBITDA* for the quarter was $1.3 million, compared to $(2.2) million
• Cash and equivalents as of June 30, 2025 totaled $50.6 million; positive cash flow from operations
  

Q2 2025 Highlights

• Won new business from T. Marzetti, Shampoo Hotel, Corona, Revry, Kellogg’s, Nestlé, and more
• Produced new work for A Minecraft Movie, F1: The Movie, Jeep, Acer, and others
• Enhanced our technology platform with improvements to our workflow, analytics and TikTok API
• Recruited Cecilia Peralta, VP of Talent Acquisition, to attract top talent and elevate our brand

* 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
“Q2 was another exceptional quarter for IZEA. With 11% growth in on-going operations, strong margins, and the impact of lowering operating costs across the company, we produced the first profitable quarter, both from operations and net income, in our history. We are making good on our promise to accelerate our path to profitability,” commented Patrick Venetucci, CEO. “We executed a strategic shift toward larger, more profitable, and recurring accounts, while deemphasizing smaller, less profitable projects. We focused our sales and delivery teams on building a strong base for repeatable and profitable growth. While our bookings fell during the first half of 2025, the decline was largely in unprofitable business. We have a strong and growing pipeline that we believe will support profitable growth over the next twelve months. We anticipate that operating expenses will increase gradually to support this growth; however, we believe our current cost structure is better aligned to scale efficiently, limiting the recurrence of historical cash losses and reducing the strain on working capital as we expand our business. Taken together, this is strong evidence that the transformational changes we made in Q4 2024 are bearing fruit.”

Q2 2025 Financial Results
Total revenue in the second quarter of 2025 totaled $9.1 million, a 0.4% increase compared to the prior year quarter. Excluding Hoozu, which was divested in December 2024, revenue grew 11% compared to the second quarter of 2024.

Cost of revenue in the second quarter of 2025 totaled to $4.4 million, or 48% of revenue, compared to $5.2 million, or 57%, in the prior-year quarter. Excluding Hoozu, the cost of revenue grew 1% compared to the second quarter of 2024.

Costs and expenses, excluding the cost of revenue, totaled $4.0 million for the second quarter of 2025, representing a 41% decrease from the prior-year quarter of $2.8 million. Sales and marketing costs were $1.0 million during the second quarter of 2025, representing a 70% decrease from $3.2 million in the prior-year quarter. The decrease was largely due to reduced costs resulting from our targeted workforce reduction, as well as a temporary pause in advertising spending and lower general contractor fees. General and administrative costs totaled $2.9 million during the quarter, a $0.5 million, or 14%, decrease compared to the prior-year quarter. General and administrative expenses decreased mainly due to reduced employee-related expenses related to our targeted workforce reduction, reduced use of external contractors, and lower spending on professional services and software licensing.

Net income in the second quarter of 2025 was $1.2 million, or $0.07 per share, as compared to a net loss of $2.2 million, or $(0.13) per share in the second quarter of 2024, based on 17.8 million and 16.4 million average shares outstanding, respectively.

Adjusted EBITDA (as defined below, a non-GAAP measure management used as a proxy for operating cash flow) totaled $1.3 million in the second quarter of 2025, compared with $(2.2) million in the comparative period.

As of June 30, 2025, our cash, cash equivalents, and investments totaled $50.6 million. The company has no outstanding long-term debt.

We previously announced our commitment to repurchase up to $10.0 million of our stock in the open market, subject to certain restrictions. During the second quarter of 2025, we purchased a total of 121,788 shares at an average share price of $2.29 under our program for an aggregate investment of $0.3 million. Through August 8, 2025, we’ve purchased 523,268 shares, investing $1.3 million under the repurchase program.

Conference Call
IZEA will hold a conference call to discuss its second quarter 2025 results on Tuesday, August 12, 2025, at 5:00 p.m. EDT. IZEA's CEO Patrick Venetucci and CFO Peter Biere will host the call, followed by a question and answer period.

Date: Tuesday, August 12, 2025
Time: 5:00 p.m. EDT
Webcast link: https://viavid.webcasts.com/starthere.jsp?ei=1727723&tp_key=0f55fcfc8d
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 Tuesday, August 19, 2025, at 11:59 p.m. EDT.

Toll-free replay number: 1-844-512-2921
International replay number: 1-412-317-6671
Replay ID: 13754979

About IZEA Worldwide, Inc.
IZEA Worldwide, Inc. (“IZEA”), is an influencer marketing company with a mission to make creator economy solutions for marketers. We do this by lighting up the Creator Economy with IZEAs—our strategies, campaigns, and solutions that build brands and drive demand. Since launching the industry’s first-ever influencer marketing platform in 2006, IZEA has facilitated nearly 4 million collaborations between brands and creators.

Use of Key Metrics and Non-GAAP Financial Measures
Managed Services bookings measure all sales orders received during a period less cancellations received, or refunds given during the same period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts to twelve months for larger contracts. We recognize revenue from our Managed Services contracts based on a percentage of completion basis as we deliver the content or services over time, which can vary greatly from a few weeks to a year. For this reason, Managed Services bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments.

Managed Services bookings is a useful metric as it reflects the amount of orders received in one period, even though revenue may be reflected over time. Management uses the Managed Services bookings metric to plan its operating staff, identify key customer group trends, enlighten go-to-market activities, and inform its product development efforts.

"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 excludes revenue from Hoozu in the prior year period. Hoozu was divested by the Company in December 2024. We believe this is useful to investors to facilitate period to period comparisons.

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 to the most directly comparable GAAP measure is 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
Matt Gray
IZEA Worldwide, Inc.
Phone: 407-674-6911
Email: ir@izea.com

IZEA Worldwide, Inc. Unaudited Consolidated Balance Sheets
	June 30, 2025				December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	50,643,015			$	44,644,468
Accounts receivable, net		6,177,880				7,781,824
Prepaid expenses		545,794				1,079,045
Short term investments		—				6,427,488
Other current assets		22,370				97,215
Total current assets		57,389,059				60,030,040
Property and equipment, net of accumulated depreciation		58,890				103,574
Software development costs, net of accumulated amortization		2,182,241				2,086,660
Total assets	$	59,630,190			$	62,220,274
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable		957,100				1,511,747
Accrued expenses		2,631,553				3,734,123
Contract liabilities		6,661,453				8,188,651
Total current liabilities		10,250,106				13,434,521
Finance obligation, less current portion		—				4,034
Total liabilities		10,250,106				13,438,555
Commitments and Contingencies		—				—
Stockholders’ equity:
Preferred stock; $.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding		—				—
Common stock; $0.0001 par value; $50,000,000 shares authorized; shares issued: $17,803,029 and $17,518,018, respectively, shares outstanding: $16,913,906 and $16,931,169, respectively.		1,780				1,752
Treasury stock at cost: 889,123 and 586,849 shares at June 30, 2025 and December 31, 2024, respectively		(2,344,698	)			(1,622,065	)
Additional paid-in capital		155,009,102				154,593,800
Accumulated deficit		(103,234,787	)			(104,297,055	)
Accumulated other comprehensive income (loss)		(51,313	)			105,287
Total stockholders’ equity		49,380,084				48,781,719
Total liabilities and stockholders’ equity	$	59,630,190			$	62,220,274

IZEA Worldwide, Inc. Unaudited Consolidated Statements of Operations
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
Revenue	$	9,133,232			$	9,093,816			$	17,101,595			$	16,046,699
Costs and expenses:
Cost of revenue		4,386,612				5,177,600				8,788,186				9,145,575
Sales and marketing		962,017				3,206,979				2,083,799				6,263,270
General and administrative		2,897,551				3,372,797				5,838,058				7,155,883
Depreciation and amortization		149,242				225,748				309,594				429,934
Total costs and expenses		8,395,422				11,983,124				17,019,637				22,994,662
Income (loss) from operations		737,810				(2,889,308	)			81,958				(6,947,963	)
Other income (expense):
Change in the fair value of digital assets		—				(26,043	)			—				80,116
Interest expense		(1,784	)			(1,999	)			(3,438	)			(4,000	)
Other income (expense), net		469,042				634,226				983,748				1,304,091
Total other income (expense), net		467,258				606,184				980,310				1,380,207
Net income (loss) before income taxes	$	1,205,068			$	(2,283,124	)		$	1,062,268			$	(5,567,756	)
Tax benefit		—				88,296				—				107,078
Net income ( loss)		1,205,068				(2,194,828	)			1,062,268				(5,460,678	)
Weighted average common shares outstanding – basic		16,947,527				16,437,460				16,980,960				16,470,467
Basic income (loss) per common share	$	0.07			$	(0.13	)		$	0.06			$	(0.33	)
Weighted average common shares outstanding - diluted		17,817,378				16,437,460				17,827,552				16,470,467
Diluted income (loss) per common share	$	0.07			$	(0.13	)		$	0.06			$	(0.33	)

IZEA Worldwide, Inc. Unaudited Consolidated Statements of Comprehensive Income (Loss)
		Three Months Ended June 30,								Six Months Ended June 30,
		2025				2024				2025				2024
Net income (loss)		$	1,205,068			$	(2,194,828	)		$	1,062,268			$	(5,460,678	)
Other comprehensive income (loss)
Unrealized gain (loss) on securities held			1,694				92,630				(12,209	)			150,807
Unrealized gain (loss) on currency translation			(34,932	)			(16,472	)			(144,391	)			(12,302	)
Total other comprehensive income (loss)			(33,238	)			76,158				(156,600	)			138,505
Total comprehensive income (loss)		$	1,171,830			$	(2,118,670	)		$	905,668			$	(5,322,173	)

IZEA Worldwide, Inc. Revenue Details
Revenue details by type:
	Three Months Ended June 30,
	2025						2024						$ Change				% Change
Managed Services Revenue
On-Going Operations	$	9,053,031		99	%		$	8,019,123		88	%		$	1,033,908			13	%
Hoozu		—		—	%			831,340		9	%			(831,340	)		(100	)%
Total Managed Services Revenue		9,053,031		99	%			8,850,463		97	%			202,568			2	%
SaaS Services Revenue		80,201		1	%			243,353		3	%			(163,152	)		(67	)%
Total Revenue	$	9,133,232		100	%		$	9,093,816		100	%		$	39,416			0	%

	Six Months Ended June 30,
	2025						2024						$ Change				% Change
Managed Services Revenue
On-Going Operations	$	16,960,441		99	%		$	14,218,349		89	%		$	2,742,092			19	%
Hoozu		—		—	%			1,328,656		8	%			(1,328,656	)		(100	)%
Total Managed Services Revenue		16,960,441		99	%			15,547,005		97	%			1,413,436			9	%
SaaS Services Revenue		141,154		1	%			499,694		3	%			(358,540	)		(72	)%
Total Revenue	$	17,101,595		100	%		$	16,046,699		100	%		$	1,054,896			7	%

IZEA Worldwide, Inc. Reconciliation of GAAP Net Income (Loss) to Non-GAAP Adjusted EBITDA
	Three Months Ended June 30,								Six Months Ended June 30,
	2025				2024				2025				2024
Net income (loss) from operations	$	1,205,068			$	(2,194,828	)		$	1,062,268			$	(5,460,678	)
Adjustment to fair market value of digital assets		—				26,044				—				(80,115	)
Non-cash stock-based compensation		355,714				394,931				640,846				749,120
Non-cash stock issued for payment of services		89,994				75,000				179,996				150,006
Depreciation and amortization		149,242				225,748				309,594				429,934
Interest expense		1,784				1,999				3,438				4,000
Interest income		(475,342	)			(634,765	)			(946,532	)			(1,301,017	)
Tax benefit		—				(88,296	)			—				(107,078	)
Adjusted EBITDA(1)	$	1,326,460			$	(2,194,167	)		$	1,249,610			$	(5,615,828	)

⁽¹⁾ Adjusted EBITDA presentation varies from prior disclosure, primarily to exclude non-operating items such as interest income.

FAQ

What were IZEA's Q2 2025 earnings results?

IZEA reported $9.1 million in revenue, net income of $1.2 million ($0.07 per share), and Adjusted EBITDA of $1.3 million. This marked the company's first profitable quarter in its history.

How much cash does IZEA (NASDAQ: IZEA) have as of Q2 2025?

IZEA reported $50.6 million in cash and equivalents as of June 30, 2025, with no outstanding long-term debt.

What is IZEA's stock buyback program status in Q2 2025?

IZEA purchased 121,788 shares at an average price of $2.29 during Q2 2025, investing $0.3 million under its $10 million repurchase program.

How did IZEA's operating expenses change in Q2 2025?

IZEA's total costs and expenses decreased 30% to $8.4 million, with sales and marketing costs dropping 70% and general administrative costs declining 14% year-over-year.

Which new clients did IZEA win in Q2 2025?

IZEA won new business from T. Marzetti, Shampoo Hotel, Corona, Revry, Kellogg's, Nestlé, and produced work for A Minecraft Movie, F1: The Movie, Jeep, and Acer.