Kustom Entertainment (NASDAQ: KUST) slashes 2025 net loss by $11.9M
Rhea-AI Filing Summary
Kustom Entertainment, Inc. filed an 8-K furnishing its earnings release for the year ended December 31, 2025, highlighting sharply improved results and a strategic refocus on live entertainment and ticketing.
Revenue from continuing operations reached approximately $13.76 million, while net loss from continuing operations narrowed to about $5.96 million, an improvement of roughly $11.95 million from the prior year’s $17.90 million loss. SG&A expenses fell by $2.28 million to roughly $12.23 million, even after a one-time, non-cash $2.54 million goodwill and intangible impairment charge. Non-operating income increased by $11.44 million, driven by a $4.58 million favorable change in warrant derivative liabilities and a $2.72 million reduction in interest expense.
Total stockholders’ equity rose by $11.4 million and net working capital improved by $17.9 million. The company advanced its pivot away from legacy businesses by closing the sale of its loss-making medical billing revenue cycle management segment effective January 1, 2026, and signing a non-binding MOU to sell its legacy video solutions division to Cycurion, Inc. for an expected $6.0–$8.5 million. The release also notes Forbes Advisor recognition of TicketSmarter as a “Best Resale Site for Tickets” and announces the 30th anniversary Country Stampede festival lineup.
Positive
- Substantial reduction in losses and stronger balance sheet: Net loss from continuing operations improved by about $11.9 million to $5.96 million, while total stockholders’ equity increased $11.4 million and net working capital improved $17.9 million year over year.
- Exit from loss-making non-core operations: The sale of the medical billing RCM business, which lost $1.41 million in 2025 and $3.82 million in 2024, and a planned $6.0–$8.5 million divestiture of the legacy video solutions division support the strategic focus on entertainment and ticketing.
Negative
- None.
Insights
Kustom shows major loss reduction, cleaner balance sheet, and exits non-core assets.
Kustom Entertainment reports revenue from continuing operations of $13.755 million for fiscal 2025, but the standout change is profitability. Net loss from continuing operations shrank to $5.955 million, improving by about $11.945 million versus the prior year’s $17.9 million loss.
Operating expenses became more efficient: SG&A dropped $2.275 million to roughly $12.23 million even with a one-time, non-cash $2.535 million goodwill and intangible impairment. Non-operating income rose by $11.44 million, largely from a $4.575 million favorable change in warrant derivative liabilities and a $2.715 million cut in interest expense.
The company is also simplifying its structure. It closed the sale of its medical billing RCM business, which had losses of $1.405 million in 2025 and $3.82 million in 2024. A non-binding MOU to sell the legacy video solutions division to Cycurion, Inc. for $6.0–$8.5 million would further reduce legacy exposure and could support liquidity if completed.
8-K Event Classification
Key Figures
Key Terms
non-operating income financial
goodwill and intangible asset impairment financial
warrant derivative liabilities financial
Memorandum of Understanding regulatory
working capital financial
Offering Details
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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| Item 2.02 | Results of Operations and Financial Condition. |
The information under Item 7.01 of this Current Report on Form 8-K is incorporated by reference in this Item 2.02.
| Item 7.01 | Regulation FD Disclosure. |
On April 13, 2026, Kustom Entertainment, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and year ended December 31, 2025. A copy of the press release is attached hereto as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
The information in Items 2.02 and 7.01 of this Current Report on Form 8-K (including Exhibit 99.1 attached hereto) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference into any filing by the Company, under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Item 9.01. | Financial Statements and Exhibits. |
(d) Exhibits.
| Exhibit
Number |
Description | |
| 99.1 | Press Release dated April 13, 2026. | |
| 104 | Cover Page Interactive Data File, formatted in Inline Extensible Business Reporting Language (iXBRL). |
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: April 13, 2026
| Kustom Entertainment, Inc. | ||
| By: | /s/ Stanton E. Ross | |
| Name: | Stanton E. Ross | |
| Title: | Chairman, President and Chief Executive Officer | |
Exhibit 99.1
Kustom Entertainment, Inc. Reports Significant Financial Improvements for Fiscal Year 2025 and Files Annual Report on Form 10-K
Company Highlights $11.9 Million Improvement in Net Loss, Strategic Divestiture of Non-Core Assets, and Forbes Recognition for TicketSmarter
OVERLAND PARK, KS – April 13, 2026 – Kustom Entertainment, Inc. (NASDAQ: KUST) (“Kustom” or the “Company”), a leader in live entertainment and digital ticketing, today announced its financial results for the fiscal year ended December 31, 2025. The Company also confirmed the filing of its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission (SEC).
2025 marked a transformative year for Kustom, characterized by a sharp reduction in net losses, the successful divestiture of non-core business segments, and a concentrated strategic pivot toward the $100 billion global live entertainment market.
Financial Highlights for Fiscal Year 2025
| ● | Revenue Growth: Total revenues from continuing operations rose to approximately $13,755,000, an increase of $235,000 year-over-year. | |
| ● | Operating Efficiency: Selling, General, and Administrative (SG&A) expenses improved by $2,275,000 year-over-year to approximately $12,230,000 in 2025. This improvement was achieved despite a one-time, non-cash charge of $2,535,000 for goodwill and intangible asset impairment during 2025. | |
| ● | Non-Operating Income: Non-operating income increased by $11,440,000 year over year. This was driven primarily by a $4,575,000 improvement in the fair value of warrant derivative liabilities and a $2,715,000 reduction in interest expense. | |
| ● | Bottom Line Improvement: Net loss from continuing operations improved by approximately $11,945,000 to $5,955,000 compared to $17,900,000 for the prior fiscal year. | |
| ● | Balance sheet: Total stockholders’ equity increased $11.4 million and net working capital position improved by $17.9 million year over year. |
Strategic Pivot & Asset Divestitures
Kustom is successfully executing its strategy to exit legacy business lines to focus exclusively on entertainment and proprietary ticketing.
| ● | The Company recently changed its name to Kustom Entertainment, Inc. further emphasizing its new strategy and focus. | |
| ● | Revenue Cycle Management (RCM): The Company closed the sale of its medical billing RCM business effective January 1, 2026. This segment accounted for losses of $1,405,000 in 2025 and $3,820,000 in 2024. | |
| ● | Legacy Video Solutions: Kustom has entered into a non-binding Memorandum of Understanding (MOU) to sell its legacy video solutions division to Cycurion, Inc. (NASDAQ: CYCU). If finalized, the transaction is expected to be valued between $6.0 million and $8.5 million, further streamlining Kustom’s balance sheet. |
Forbes Recognition for TicketSmarter
On February 6, 2026, Forbes Advisor named TicketSmarter a “Best Resale Site for Tickets.” The expert review specifically lauded the platform’s:
| ● | Pricing Transparency: Clear communication of total costs, including fees, prior to checkout. | |
| ● | Buyer Protections: A 100% Ticket Guarantee ensuring valid tickets or full refunds. | |
| ● | Seller-Friendly Terms: Commissions as low as 10% for returning sellers. | |
| ● | Massive Reach: Listing visibility across thousands of websites via partner networks. |
“We are honored to receive this recognition from Forbes Advisor, which serves as a powerful validation of our fan-first philosophy,” said Stanton Ross, CEO of Kustom Entertainment. “As we continue our strategic pivot to focus exclusively on live events and proprietary ticketing, recognitions like this underscore the value TicketSmarter provides. We remain committed to providing a secure, transparent, and seamless experience for the 125,000+ events we support across North America.”
2026 Country Stampede Music Festival Lineup
Kustom is proud to announce the full lineup for the 2026 Country Stampede Music Festival, celebrating its 30th anniversary on June 25–27, 2026, at the Azura Amphitheater in Bonner Springs, KS.
| ● | Headliners: Rascal Flatts, Zach Top (2025 CMA New Artist of the Year), and Treaty Oak Revival. | |
| ● | Main Stage Support: Scotty McCreery, Wyatt Flores, Tracy Lawrence, Diamond Rio, Jerrod Niemann, Lanie Gardner, Presley & Taylor, and The Wilder Blue. | |
| ● | Expanded Experience: The 2026 festival includes a downtown Bonner Springs pre-party, late-night after-parties, and the “Battle of the Bands” finale was in March to determine the opening act for the Main Stage. The battle of the bands winner was Isaac Cole, and he will be opening the festival on the main stage on Thursday June 25th. | |
| ● | We also have a Kickoff Party at Hollywood Casino on Wednesday June 24th, and nightly after parties as soon as the main stage ends. |
“Kustom Entertainment isn’t just another production company. We pour into each community we visit,” said Matt Tholen, Vice President of Operations. “The 2026 lineup shows how we blend strong headliners, solid support, and real opportunities for emerging artists to build a festival that serves everyone involved.”
Tickets, camping, and VIP experiences are available now at www.CountryStampede.com.
About Kustom Entertainment, Inc.
Kustom Entertainment, Inc. is a leader in live event production and ticketing technology, specializing in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually during June at the Azura Amphitheater in Bonner Springs, Kansas.
The Company also maintains a legacy segment engaged in video solution technology (in-car and body-worn cameras) for law enforcement and security, currently integrating artificial intelligence to enhance its specialized product lines.
For additional information, please visit www.kustoment.com and www.digitalally.com.
Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today’s date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company’s periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, the risks described in the Company’s 2025 Annual Report on Form 10-K under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
For Additional Information, Please Contact:
Stanton E. Ross, CEO at (913) 456-5878