RUM Group Inc. Reports Record Third Quarter 2026 Results
RUM Group Inc. (RUM) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 RUM Group Inc. Reports Record Third Quarter 2026 Results ~ Third Quarter Revenue of $96.6 Million, Up 290% YoY ~ ~ First Profitable Quarter in the Company’s History on an Adjusted EBITDA Basis ~ ~ 22,000 GPUs at Utilization of Approximately 85% ~ LONGBOAT KEY, Fla.,
How this was made
The 30-second read
Why it matters
The earnings release provides the first profitable quarter and a issued Q4 outlook, likely prompting buying interest.
Market read
First profitable quarter and strong revenue growth make RUM a notable short‑term trade idea.
What to watch
Potential delay of 250MW capacity beyond 2027 could limit future upside.
Record Q3 2026 revenue of $96,577,752, up 290% YoY, with first positive Adjusted EBITDA quarter ($4,409,851) but a GAAP net loss of $(89,854,446)
Revenue scale and Adjusted EBITDA turned positive, and Quake AI reported $68.2 million of revenue. GAAP operating and net losses widened sharply on acquisition-related amortization and depreciation, cash fell from $237.9 million at December 31, 2025 to $134.4 million, and the company said part of its 250MW of 2027 capacity may slip beyond 2027.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenues, three months ended September 30, 2026GAAP | $96,577,752 | – | 290% |
| Quake AI revenues, three months ended September 30, 2026other | $68.2M | – | – |
| Total revenues, quarter-over-quarter growth as stated in highlightsother | $96.6M | 139% | – |
| Cost of services (content, hosting and other), three monthsGAAP | $57,186,000 | – | 127% |
| General and administrative, three monthsGAAP | $25,926,872 | – | 147% |
| Research and development, three monthsGAAP | $7,723,475 | – | 73% |
| Sales and marketing, three monthsGAAP | $7,690,241 | – | 51% |
| Acquisition-related transaction costs, three monthsGAAP | $3,545,525 | – | – |
| Amortization and depreciation, three monthsGAAP | $85,184,021 | – | – |
| Change in fair value of digital assets, three monthsGAAP | $(6,038,100) | – | – |
| Total expenses, three monthsGAAP | $181,218,034 | – | – |
| Loss from operations, three monthsGAAP | $(84,640,282) | – | – |
| Interest income (expense), net, three monthsGAAP | $(3,686,718) | – | – |
| Net loss, three monthsGAAP | $(89,854,446) | – | – |
| Net loss attributable to RUM Group Inc., three monthsGAAP | $(79,916,367) | – | – |
| Loss per share, basic and diluted, three monthsGAAP | $(0.19) | – | – |
| Adjusted EBITDA, three monthsnon-GAAP | $4,409,851 | – | – |
| Total share-based compensation expense, three monthsGAAP | $6,358,687 | – | – |
| Revenues, nine months ended September 30, 2026GAAP | $162,404,284 | – | – |
| Cost of services (content, hosting and other), nine monthsGAAP | $114,790,250 | – | – |
| General and administrative, nine monthsGAAP | $52,650,983 | – | – |
| Research and development, nine monthsGAAP | $20,258,664 | – | – |
| Sales and marketing, nine monthsGAAP | $26,602,057 | – | – |
| Acquisition-related transaction costs, nine monthsGAAP | $36,707,170 | – | – |
| Amortization and depreciation, nine monthsGAAP | $105,451,787 | – | – |
| Loss from operations, nine monthsGAAP | $(194,520,067) | – | – |
| Net loss, nine monthsGAAP | $(201,060,001) | – | – |
| Net loss attributable to RUM Group Inc., nine monthsGAAP | $(189,331,443) | – | – |
| Loss per share, basic and diluted, nine monthsGAAP | $(0.58) | – | – |
| Adjusted EBITDA, nine monthsnon-GAAP | $(33,174,650) | – | – |
| Net cash used in operating activities, nine monthsGAAP | $(113,828,760) | – | – |
| Purchase of property and equipment, nine monthsGAAP | $(75,545,353) | – | – |
| Total share-based compensation expense, nine monthsGAAP | $18,723,020 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Quake AIGPU cloud computing services on a reserved or on-demand basis, plus data center hosting and colocation. The filing attributes the revenue to the inclusion of a first full quarter of combined results after the Northern Data acquisition closed on June 17, 2026. Prior-year revenue was $0. | $68.2 million (more than 70% of total revenue, per filing) | – | – |
| RumbleAdvertising revenue increased $5.6 million, partly offset by a $2.0 million decrease in other services revenue. Other services fell $1.2 million in subscription revenue and $0.8 million in licensing, platform hosting fees and other revenues. | Not printed as a standalone total in the filing | – | +$3.6 million (increase, as printed) |
Q4 2026 outlook
- Revenue$88 million to $94 million
Capital returns
- No repurchases of Class A Common Stock in the three or nine months ended September 30, 2026 (cash flow line shows no 2026 repurchase amount).
- Nine months ended September 30, 2026: proceeds from issuance of pre-funded warrants in connection with equity commitment agreement of $36,242,537.
- Nine months ended September 30, 2026: share issuance costs of $(11,504,125).
- Acquired an additional 8.26 million shares of Northern Data AG, increasing ownership from 85.2% to approximately 98%. Commenced squeeze-out proceedings under the German Stock Corporation Act, expecting to reach 100% ownership in early 2027.
What drove it
- Filing attributes revenue growth to higher Rumble revenues and the contribution of Quake AI.
- Filing attributes the cost of services increase to $30.0 million of Quake AI data center costs and $3.1 million of higher programming and content costs, partly offset by a $1.1 million decrease in other cost of services.
- Filing attributes the G&A increase primarily to the Northern Data acquisition, which contributed $11.0 million of payroll and related expenses and other administrative costs. Excluding Northern Data, the filing cites a $3.0 million increase in professional fees.
- Filing attributes the R&D increase to payroll and related expenses up $1.8 million (of which $0.8 million from Northern Data) and computer software, hardware and other R&D-related costs up $1.5 million.
- Filing attributes the sales and marketing increase to $2.0 million of higher payroll and related expenses (including $0.7 million from Northern Data), $0.4 million of marketing and public relations, and $0.2 million of other spending.
- Company states utilization of approximately 85% on about 22,000 NVIDIA GPUs for the quarter.
- Company states Q3 revenue was 3.8% above the top end of its guidance (guidance range not printed in the filing).
Concerns
- GAAP net loss of $(89,854,446) in Q3 2026 versus $(16,261,762) a year earlier, and nine-month net loss of $(201,060,001).
- Amortization and depreciation rose to $85,184,021 in Q3 2026 from $3,880,492 in the prior-year quarter.
- Acquisition-related transaction costs were $36,707,170 for the nine months, against $7,624,901 a year earlier.
- Cash and cash equivalents fell to $134,428,984 from $237,919,453 at December 31, 2025, while operating cash outflow for nine months was $(113,828,760).
- Convertible notes payable of $358,837,827 and the risk factors cite substantial indebtedness and the need for additional financing for the Maysville, GA site.
- Company states that a portion of its previously disclosed 250MW of unmonetized capacity targeted for 2027 may be pushed out beyond 2027 due to market conditions.
- Q4 2026 revenue outlook of $88 million to $94 million is below the Q3 2026 actual of $96,577,752.
What to watch
- Whether the 250MW of 2027 capacity is monetized on the timing described, and how much may move beyond 2027.
- Progress of the Maysville, GA data center build and the financing required for it, as described in the forward-looking statements.
- Result of the Northern Data squeeze-out proceedings and the expected 100% ownership in early 2027.
- Savings from the video cost reset that the company expects to see through 2027.
- Whether Q4 2026 revenue lands within the $88 million to $94 million outlook.
- Filing of the automatic WKSI shelf registration statements expected this week, as stated in the release.
- Adjusted EBITDA sustainability, given the GAAP net loss and the large amortization and depreciation charge.
Balance sheet and cash flow
- Total liquidity as of September 30, 2026: $142.3 million, consisting of $134.4 million in cash and cash equivalents and 94.68 Bitcoin valued at $7.9 million.
- Cash and cash equivalents: $134,428,984 at September 30, 2026 versus $237,919,453 at December 31, 2025.
- Total assets: $2,000,152,319 at September 30, 2026 versus $336,846,798 at December 31, 2025.
- Convertible notes payable (non-current): $358,837,827 at September 30, 2026.
- Total shareholders' equity: $1,342,520,993 at September 30, 2026 versus $274,842,192 at December 31, 2025.
- Net cash used in operating activities, nine months: $(113,828,760) versus $(41,004,032).
- Acquisition of Northern Data AG, net of cash acquired, nine months: $51,036,335 (cash flow line shown as a positive amount).
Analysis
RUM Group reported Q3 2026 revenue of $96,577,752, against $24,762,445 in the same quarter of 2025, a 290% increase. The filing says Quake AI contributed $68.2 million of that total, which it describes as more than 70% of revenue, in its first full quarter after the Northern Data acquisition closed on June 17, 2026. Rumble's advertising revenue rose $5.6 million, which the filing says was partly offset by a $2.0 million decline in other services revenue. The release states total revenue was up 139% quarter over quarter, but the prior-quarter revenue figure is not printed, so the sequential dollar comparison cannot be stated from the filing. Revenue for the nine months ended September 30, 2026 was $162,404,284, against $73,553,866 a year earlier.
Cost and expense growth moved in step with the new business. Cost of services rose to $57,186,000 from $25,219,331 (127%), and the filing attributes $30.0 million of the increase to Quake AI data center costs. G&A reached $25,926,872 (up 147%), with Northern Data contributing $11.0 million of payroll and other administrative costs. Amortization and depreciation jumped to $85,184,021 from $3,880,492, and acquisition-related transaction costs were $3,545,525 in the quarter and $36,707,170 for the nine months. These items push the GAAP loss from operations to $(84,640,282) and the net loss to $(89,854,446), or $(79,916,367) attributable to RUM Group Inc. after non-controlling interest. Loss per share was $(0.19), against $(0.06) a year earlier.
The company's non-GAAP measure, Adjusted EBITDA, was $4,409,851 for the quarter, compared with $(15,097,494) a year earlier, and the release calls this the first profitable quarter in company history on that basis. The reconciliation excludes amortization and depreciation, share-based compensation, acquisition-related costs and fair value changes, so the reader should weigh it against the GAAP loss figures shown above. For the nine months, Adjusted EBITDA was $(33,174,650), against $(58,265,958) a year earlier.
On the balance sheet, cash and cash equivalents were $134,428,984 at September 30, 2026, down from $237,919,453 at December 31, 2025. Total liquidity, which includes 94.68 Bitcoin valued at $7.9 million, was $142.3 million. Total assets rose to $2,000,152,319 and convertible notes payable stand at $358,837,827. Net cash used in operating activities for the nine months was $(113,828,760), and purchases of property and equipment were $(75,545,353). The company's Q4 2026 revenue outlook is $88 million to $94 million, which sits below the Q3 actual of $96,577,752. The release also says that part of the 250MW of 2027 capacity may be pushed beyond 2027 due to market conditions, and that a cost reset in video began in the quarter with savings expected through 2027.
Management, verbatim
Q3 was a defining quarter for RUM Group.
Chris Pavlovski, Chairman and Chief Executive Officer, RUM Group
Quake AI is now the engine of our business.
Chris Pavlovski, Chairman and Chief Executive Officer, RUM Group
Our 22,000-GPU estate is nearly sold out at 85% utilization.
Chris Pavlovski, Chairman and Chief Executive Officer, RUM Group
Not in the filing
stated, not guessed- Prior-quarter (Q2 2026) total revenue and other Q2 2026 comparatives, which are not printed in this release.
- Standalone Rumble segment revenue in dollars for Q3 2026 and Q3 2025.
- Standalone Quake AI prior-period revenue beyond the $0 prior-year figure, and any year-over-year percentage for Quake AI.
- Prior-year and prior-quarter comparatives for acquisition-related transaction costs, amortization and depreciation, and change in fair value of digital assets on a nine-month basis.
- Year-over-year percentage change for Adjusted EBITDA, net loss, loss from operations and cash flow lines.
- Gross margin, operating margin and any margin percentages.
- Guidance range printed for Q3 2026, which the release refers to only as 'the top end of our guidance'.
- Full-year 2026 guidance and any guidance for gross margin, operating expenses or tax rate.
- Prior-period outlook document (not provided), so no guidance comparison was made.
- Consensus estimates and share price reaction (not provided in the documents).
- Breakdown of the 250MW of capacity, and the portion that may move beyond 2027, as a number.
- Amount of the video cost reset savings and any dollar figure for the expected savings.
- Dollar amount of Quake AI revenue for the nine months, and Quake AI's share of nine-month revenue.
- Quarter-end and nine-month income tax and deferred tax comparatives on a per-period basis beyond those printed in the statements.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
RUM Group is an AI infrastructure and video company that recently acquired Northern Data and operates a 22,000‑GPU fleet.
Ticker impact
RUM Group reported record Q3 2026 revenue of $96.6M, first profitable quarter and issued Q4 revenue outlook of $88M-$94M.
likely upside as investors price in record revenue and first adjusted EBITDA profit.
The company posted 290% YoY revenue growth, achieved profitability, and issued its Q4 outlook, providing fresh, material information.
Market effects
Highlights growing demand for AI compute services, may benefit peers in AI infrastructure.
Boosts sentiment for US-listed AI/cloud stocks.
Shows rapid scaling of AI data center capacity, relevant to global AI hardware suppliers.
Counterpoint
Rapid growth may be unsustainable; high GPU utilization could mask margin pressure if demand wanes.
Key entities
- CompanyRUM Group Inc.
AI infrastructure and video services provider (NASDAQ:RUM).
