Executive Summary / Key Takeaways

• Strategic Transformation Underway: Mobiquity Technologies (MOBQ) is undergoing a critical strategic pivot, shifting from traditional digital advertising to high-growth verticals like AI-powered gaming ad tech and retail media, driven by key proprietary platforms (ATOS, MobiExchange, CMOne) and a strategic alliance with Context Networks.
• Significant Revenue Decline Amidst Investment: Recent financial results for Q2 2025 show a sharp revenue decline (down 88.3% YoY to $31,108) and widening net losses ($2.17 million), reflecting a deliberate "short-term revenue gap" as the company invests heavily in new product deployment and strategic relationships, particularly the anticipated Q3 2025 monetization of the Context Networks alliance.
• Differentiated Technology as a Core Moat: MOBQ's technological edge lies in its AI/ML-optimized ATOS platform, precise geo-location data intelligence, and the "first-of-its-kind" integration of programmatic advertising into physical gaming machines via Context Networks, aiming for "unmatched targeting and real-time delivery" in a largely untapped market.
• Liquidity and Going Concern Risks Remain: Despite recent financing efforts, including an Equity Line of Credit (ELOC) for up to $4.00 million, MOBQ faces substantial doubt about its ability to continue as a going concern, evidenced by a $2.20 million working capital deficit and a $230.10 million accumulated deficit as of June 30, 2025.
• High-Risk, High-Reward Outlook: While the company's strategic initiatives target massive addressable markets (e.g., 1.6 billion global gamblers), its ability to execute, secure sufficient capital, and overcome intense competition from larger, more financially robust ad tech players like The Trade Desk (TTD) and AppLovin (APP) will be critical for long-term success.

The Genesis of a Digital Ad Innovator: A Strategic Pivot

Mobiquity Technologies, Inc. (MOBQ) has a long history, incorporated in 1998, initially focusing on mobile advertising technology. Over the years, it evolved into a next-generation location data intelligence company, providing precise, at-scale data and insights into consumer behavior for marketing and research. This journey culminated in the pivotal 2018 acquisition of Advangelists LLC, which brought the core Advertising Technology Operating System (ATOS) platform into MOBQ's fold.

Today, MOBQ operates within the rapidly expanding programmatic advertising industry, a sector projected to grow from $595 billion in 2024 to over $800 billion by 2028 globally. The company's mission is to enhance efficiency and effectiveness in ad monetization, audience segmentation, and data compliance for enterprises. This mission is pursued through three proprietary software platforms: the ATOS platform, a Data Intelligence Platform, and a Publisher Platform for monetization and compliance.

MOBQ's overarching strategy centers on leveraging these platforms to penetrate high-growth verticals and expand its AI-powered marketing capabilities. A significant recent development is its strategic alliance with Context Networks, Inc., a private company specializing in programmatic advertising for the gaming industry. This partnership, solidified in February 2025, aims to integrate digital ads directly into casino slot machines and other gaming environments, creating a unique, omni-channel ad ecosystem. This initiative, alongside the August 2025 launch of CMOne, an AI-powered marketing platform for small and medium-sized businesses, represents a bold pivot towards building scalable, recurring, and sustainable revenue streams.

Technological Edge: The Core of Mobiquity's Ambition

Mobiquity's investment thesis is deeply rooted in its differentiated technology, which forms the bedrock of its competitive strategy. The company's ATOS platform is a single-vendor, end-to-end solution that blends artificial intelligence (AI) and machine learning (ML) optimization for automatic ad serving and digital campaign management. This platform processes approximately 10 billion advertisement opportunities daily, offering dynamic, real-time scalability. Its proprietary cloud-based architecture is designed to keep costs down, making it "substantially more time efficient and cost efficient than other Demand-Side Platforms (DSPs)" by integrating all necessary capabilities—including DSP, bidding, fraud protection, rich media, ad serving, attribution, reporting, and DMP—without the need for costly third-party integrations.

The Data Intelligence Platform provides "precise unique, at-scale location data and insights on consumers real-world behavior and trends," utilizing multiple internally developed geo-location technologies. This platform offers a managed service model and a self-service Software-as-a-Service (SaaS) alternative called MobiExchange. MobiExchange empowers users to rapidly build actionable data and insights, featuring private labeling, flexible branding, content/user management, subscriptions, payment, invoices, reporting, and gateways to third-party platforms. It serves as a "core AI-driven intelligence layer" that "enhances both precision targeting and campaign optimization."

A crucial technological differentiator is the strategic alliance with Context Networks. This partnership is creating a "first-of-its-kind platform delivering ads to slot machines in real-time," introducing a "unique channel for brand exposure in an industry with very little traditional advertising." This technology "brings programmatic precision into the gaming industry with unmatched targeting and real-time delivery," establishing a scalable marketplace across gaming and digital environments. Management believes this initiative "sets the stage for expansion beyond gaming into broader programmatic opportunities, positioning us as a future leader in the space."

Furthermore, the August 2025 launch of CMOne, described as a "first-of-its-kind fully agentic AI marketing platform," unifies organic content, paid media, and conversational engagement into one autonomous system. This aims to streamline brand execution and campaign performance for small and medium-sized businesses, providing them with enterprise-grade marketing capabilities. These technological advancements are critical for MOBQ to carve out a competitive moat, potentially leading to higher average selling prices (ASPs), lower operational costs, improved margins, and a stronger market position in its targeted high-growth sectors.

Competitive Landscape and Market Positioning

Mobiquity operates in a fiercely competitive ad tech market, contending with established players and innovative startups. Its direct competitors include industry giants like The Trade Desk, PubMatic (PUBM), AppLovin, and Criteo (CRTO).

The Trade Desk, a leading independent demand-side platform, is known for its advanced AI-driven ad optimization and broad global reach. Compared to TTD, MOBQ's ATOS platform emphasizes integrated, cost-efficient solutions, but it may lag in the depth of AI-driven optimization features that TTD is renowned for. MOBQ's specialized focus on mobile and connected TV ads, particularly its unique foray into gaming ad tech, offers a differentiated value proposition. However, TTD's scale and robust R&D pipeline generally translate to stronger revenue growth and cash flow generation.

PubMatic, a prominent supply-side platform, focuses on maximizing ad yield for publishers. While MOBQ's ATOS also creates automated marketplaces, its emphasis on advertiser tools for audience engagement contrasts with PUBM's publisher-centric optimization. MOBQ's mobile data analytics capabilities could offer a unique edge in interactive ad formats, but it likely trails PUBM in overall publisher network breadth and established ecosystem.

AppLovin, a mobile app marketing platform, leverages AI for user acquisition and ad optimization. MOBQ's ATOS platform, while sharing mobile ad tech similarities, targets broader data intelligence for connected devices beyond just apps. AppLovin's AI capabilities are perceived to offer significantly greater efficiency in user acquisition, potentially giving it an edge in performance marketing. MOBQ's overall financial health and growth trajectory appear less robust than AppLovin's rapid expansion in the mobile app ecosystem.

Criteo specializes in performance marketing and retargeting. MOBQ's ATOS platform offers broader capabilities for video and image ads across diverse devices, potentially providing better performance in emerging formats like connected TV, where Criteo has been slower to adapt. However, Criteo's deep expertise in data-driven personalization and retargeting remains a strong competitive advantage.

MOBQ's competitive advantages primarily stem from its integrated ATOS platform and its strategic focus on niche, high-growth areas like in-venue gaming advertising. The Context Networks alliance, by deploying ads directly onto gaming machines, creates a "first-of-its-kind" solution that taps into an industry with "very little traditional advertising." This unique channel for brand exposure, combined with MOBQ's data intelligence, could lead to stronger customer loyalty and recurring revenue in these specialized segments. However, MOBQ's smaller scale and historical financial struggles represent significant vulnerabilities. Its ability to compete effectively against larger, more financially stable rivals will depend on the rapid and successful monetization of its new strategic initiatives.

Financial Performance and Liquidity: A Period of Transition

Mobiquity Technologies' recent financial performance reflects a company in a significant transition phase, marked by substantial investment in new strategic initiatives. For the three months ended June 30, 2025, revenues plummeted to $31,108, an 88.3% decrease from $266,892 in the same period of 2024. Similarly, for the six months ended June 30, 2025, revenues were $43,721, down 91.7% from $530,174 year-over-year. Management attributes this sharp decline primarily to the "absence of political advertising revenue that was realized during the 2024 period" and a "strategic shift in the Company’s focus toward initiatives expected to generate long-term growth."

Despite the revenue contraction, the gross profit margin saw a notable improvement in Q2 2025, reaching 99.45% compared to 31.01% in Q2 2024. This was largely due to a drastic reduction in the cost of revenues, which fell to just $170 in Q2 2025 from $184,125 in the prior year. Management noted that the company's "ability to capture and store data for sales does not translate to increased cost of revenues," suggesting a potentially scalable cost structure for its core data operations. However, the absolute gross profit still decreased significantly from $82,767 to $30,938 for the quarter.

Operating expenses, conversely, rose substantially. For Q2 2025, total operating expenses increased to $1.99 million from $1.10 million in Q2 2024, driven by a non-cash increase in professional fees of approximately $675,000, amortization of $118,000, and salaries of $174,000. These increases were partially offset by reductions in computer support and technology. The net result was a widening loss from operations, which grew to $1.96 million in Q2 2025 from $1.02 million in Q2 2024. The net loss for the six months ended June 30, 2025, was $4.46 million, significantly higher than the $1.85 million loss in the prior year period.

MOBQ's liquidity position remains a critical concern. As of June 30, 2025, the company held only $184,081 in cash, with a working capital deficit of $2.20 million and an accumulated deficit of $230.10 million. These factors have led management to conclude that there is "substantial doubt about the Company’s ability to continue as a going concern." Cash used in operating activities for the first six months of 2025 totaled $2.57 million.

To address these challenges, MOBQ has actively pursued financing, securing an Equity Line of Credit (ELOC) with ClearThink Capital Partners for up to $4.00 million over 24 months. Additionally, in July and early August 2025, the company raised $440,000 from common stock sales and received a $250,000 cash investment commitment, alongside issuing two convertible promissory notes totaling over $414,000. These financing activities are crucial for sustaining operations and funding strategic initiatives.

When comparing MOBQ's latest TTM financial ratios to its competitors, a stark contrast emerges. MOBQ's Gross Profit Margin (TTM) of 52.47% is respectable, but its Operating Profit Margin (-640.70%), Net Profit Margin (-695.30%), and EBITDA Margin (-618.38%) are deeply negative, indicating significant unprofitability. In contrast, competitors like The Trade Desk boast strong positive margins (Gross Profit Margin 81%, Operating Profit Margin 17%, Net Profit Margin 16%), PubMatic shows positive margins (Gross Profit Margin 65%, Operating Profit Margin 1%, Net Profit Margin 4%), AppLovin demonstrates robust profitability (Gross Profit Margin 75%, Operating Profit Margin 40%, Net Profit Margin 34%), and Criteo maintains solid margins (Gross Profit Margin 51%, Operating Profit Margin 8%, Net Profit Margin 6%). MOBQ's Price-to-Sales (P/S) ratio of 19.05 and Price-to-Book (P/B) ratio of 11.52, while high, are not supported by positive earnings, unlike its more profitable peers. This highlights MOBQ's current valuation as speculative, heavily reliant on the future success of its strategic pivot.

Outlook and Key Risks

Management anticipates "initial monetization beginning in Q3 2025, with growth expected to accelerate on a quarter-over-quarter basis" from its strategic initiatives, particularly the Context Networks alliance and the CMOne launch. The Context Networks partnership, targeting approximately 4,700 global casinos and 2.9 million slot machines, represents a massive addressable market. Internal estimates suggest annual gross revenue potential from programmatic advertising across 1,000 slot machines could exceed $20 million for all participants. Management believes this alliance will have a "significant favorable impact on our results of operations in fiscal 2025 and beyond."

However, this ambitious outlook is tempered by several significant risks. The "substantial doubt about the Company’s ability to continue as a going concern" is paramount, requiring continuous access to additional capital. There is "no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis." Customer concentration is another major risk, with three customers accounting for approximately 85% of revenues for the six months ended June 30, 2025. The loss of any of these customers could have a material adverse effect.

Litigation risk also looms, with a former Co-CEO claiming "not less than $2.50 Million in damages." Furthermore, the company's disclosure controls and procedures were deemed "not effective as of June 30, 2025, due primarily to the Company’s lack of segregation of duties in the finance and accounting department." While remediation efforts are ongoing, this indicates operational vulnerabilities. Finally, the ability to fully access the $4.00 million ELOC is not assured, posing a potential financing constraint. The recently enacted "Taxpayer Fairness and Growth Act of 2025," reducing the federal corporate income tax rate to 19% from 2026, is expected to have a "limited impact" on MOBQ's effective tax rate, though remeasurement of deferred tax balances may result in non-cash tax charges.

Conclusion

Mobiquity Technologies stands at a critical juncture, attempting to transform its long history of operating losses into a future of scalable, profitable growth through a strategic pivot towards AI-powered gaming ad tech and retail media. The company's proprietary ATOS platform, advanced data intelligence, and groundbreaking alliance with Context Networks represent genuine technological differentiators in nascent, high-potential markets. The recent launch of CMOne further underscores its commitment to AI-driven innovation.

However, the path forward is fraught with challenges. MOBQ's current financial state, marked by significant losses and a going concern warning, necessitates flawless execution of its new initiatives and continuous access to capital. While management's outlook for monetization beginning in Q3 2025 is optimistic, investors must weigh the substantial risks, including customer concentration, ongoing litigation, and internal control deficiencies, against the potential for disruptive growth in its targeted verticals. The success of MOBQ's high-stakes pivot hinges on its ability to translate its technological leadership into tangible, sustainable revenue streams and overcome its historical financial hurdles in a highly competitive industry.