Banzai International reported third‑quarter 2025 revenue of $2.8 million, a 163% year‑over‑year increase that still fell short of the $3.54 million consensus estimate, a miss of $0.74 million. Gross profit rose to $2.3 million, up 213% YoY, and the company’s gross margin expanded to 81.7%, up 13 percentage points from 68.7% in Q3 2024. Operating expenses climbed to $6.8 million, reflecting integration and scaling costs for the OpenReel and Vidello acquisitions, while the quarter ended with a net loss of $5.9 million and an adjusted EBITDA of ($2.2) million.
The revenue surge was driven largely by the OpenReel and Vidello businesses, which were acquired earlier in the year. These units bring a higher‑margin profile that has lifted the overall gross margin, offsetting the rise in operating expenses. The margin expansion reflects the pricing power and cost structure of the acquired platforms, while the increased expenses are attributable to integration work, system consolidation, and additional sales and marketing spend to accelerate growth.
Compared with the prior year, Banzai’s revenue grew 163% and gross margin expanded to 81.7%, a significant improvement over the 68.7% margin in Q3 2024. The net loss narrowed from $15.4 million in Q3 2024 to $5.9 million, a reduction of $9.5 million, yet the company still missed earnings expectations. Consensus EPS was –$0.72; the company reported –$1.54, a miss of $0.82. The revenue miss and EPS miss are largely due to the company’s focus on high‑margin acquisitions and the associated integration costs, which have not yet translated into profitability.
On the balance sheet, shareholders’ equity turned positive at $5.4 million, up $28.2 million year‑to‑date. Banzai repaid $10.7 million of debt during the quarter and secured up to $11 million in new financing, improving liquidity. However, a working‑capital deficit of $26.6 million remains, underscoring ongoing cash‑flow pressure as the company continues to invest in growth.
Management guidance for the next quarter remains cautious. CEO Joe Davy emphasized the company’s AI‑powered marketing platform, stating, “We are developing a platform of AI‑powered marketing solutions that make our customers’ lives 10 times faster and easier.” CFO Dean Ditto noted, “Finally, Q3 2025 gross margin was pretty steady at 82%. This was up about 13% year over year.” The company forecast negative EPS for the coming quarter, reflecting continued investment in integration and scaling, while revenue guidance remains below analyst expectations. Investors are watching the company’s ability to convert top‑line momentum into profitability and to sustain its cash runway.
After the earnings release, Banzai’s stock fell 2.14% in aftermarket trading. The decline was driven by the net loss and negative guidance, which outweighed the headline revenue growth and margin expansion. Market participants focused on the company’s ongoing cash‑flow challenges and the need for further execution to achieve profitability.
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