Rumble's Q2 Results and Potential AI Expansion: Northern Data Acquisition Plans

Why Is Rumble Stock Climbing Monday? - Northern Data (OTC:NDTAF), Rumble (NASDAQ:RUM)

Rumble Inc. RUM shares surged on Monday after the company reported second-quarter results and confirmed interest in an all-stock exchange offer to acquire Northern Data AG NDTAF. The company posted a net loss of $30.2 million, or 12 cents per share, missing analysts' expectations for a loss of 7 cents. Revenue rose 12% year over year to $25.08 million, below the $26.78 million consensus. Adjusted EBITDA loss narrowed to $20.5 million from $28.7 million. Monthly active users fell to 51 million from 59 million in the prior quarter, which management attributed to slower news and political commentary outside a U.S. election cycle. Average revenue per user increased 24% sequentially to 42 cents, driven by higher subscription and licensing revenue. Also Read: Rumble Stock Is Trending This Month: What's Going On? Audience monetization revenue rose by $1.7 million, offset by a $3.7 million drop in advertising. Other initiatives' revenue grew $0.9 million on higher cloud services and publisher network monetization. The cost of services fell 26% to $26.5 million, mainly due to lower programming and content costs. General and administrative expenses rose 12% to $11.7 million, sales and marketing expenses increased 26% to $7.9 million, and research and development expenses declined 9% to $4.8 million. Rumble ended the quarter with $306.4 million in liquidity, including $283.8 million in cash and cash equivalents and 210.82 Bitcoin BTC/USD valued at $22.6 million. CEO Chris Pavlovski said the company is entering "a new phase of aggressive growth" with Tether's backing and highlighted the upcoming launch of Rumble Wallet and expanding cloud and AI initiatives. Intent to Acquire AI Company Northern Data The proposed Northern Data transaction would give its shareholders 2.319 newly issued Rumble Class A shares for each Northern Data share, resulting in about 33.3% pro forma ownership if all shares are tendered. The deal remains subject to due diligence, board approvals, definitive agreements, and regulatory clearances. The transaction would integrate Northern Data's Ardent data centers and Taiga GPU-as-a-service business, including over 20,000 Nvidia H100s, into Rumble's operations. Tether would become Rumble's largest Class A shareholder and commit to a multi-year GPU purchase agreement. Price Action: RUM shares are trading higher by 9.29% to $8.612 at last check Monday. Read Next: These Analysts Cut Their Forecasts On Wendy's After Q2 Results Photo by Tada Images via Shutterstock NDTAFNorthern Data AGNot Available-%Stock Score Locked: Edge Members Only Benzinga Rankings give you vital metrics on any stock - anytime. Unlock RankingsEdge RankingsMomentumN/AGrowthN/AQualityN/AValueN/APrice TrendShortMediumLongOverviewRUMRumble Inc$8.619.26%Market News and Data brought to you by Benzinga APIs

Why Rumble Stock Surged Today | The Motley Fool

Rumble stock rocketed out of the gates at the start of today's trading in response to speculative bets relating to some moves that the company is aiming to make in the artificial intelligence (AI) space. The gains faded as the day's trading progressed, but the stock still ended the session solidly in the green. Along with the second-quarter report that it published on Aug. 10, Rumble announced that it is interested in acquiring AI company Northern Data. The high-performance-computing (HPC) specialist has yet to signal that it's open to being acquired, and no valuation level has been set on Rumble's all-stock offer to acquire the company. Despite the shortage of information related to the potential buyout, investors showed signs of approval in today's trading and bid the streaming stock up to levels significantly exceeding yesterday's close. While plays in the AI and cryptocurrency spaces could help boost valuation momentum, Rumble's recent quarterly results continue to raise questions about the company's outlook. The business posted a loss of $0.12 per share on sales of $25.08 million in the second quarter. For comparison, the average analyst estimate had called for a loss of $0.07 per share on sales of roughly $26.8 million. Rumble closed out the quarter with an average of 51 million monthly active users (MAUs), down from 59 million MAUs in this year's first quarter and 53 million MAUs in Q2 2024. On the other hand, average revenue per user was actually up 24% year over year to $0.42. On balance, Rumble streaming engagement and monetization still looks somewhat shaky -- and that puts added pressure on other growth initiatives.

Rumble Reports 12 Percent Revenue Growth | The Motley Fool

Rumble (RUM 6.22%) reported its Q2 2025 results on August 11, 2025, delivering a 12% year-over-year revenue increase to $25.1 million, stable monthly active users (MAUs) at 51 million, and a preliminary announcement of a potential acquisition of AI company Northern Data. The quarter featured a meaningful reduction in costs, progress on strategic partnerships with Tether and Cumulus Media, and the upcoming launch of Rumble Wallet to expand monetization and international reach. Management revealed intentions for a possible all-stock exchange offer to acquire Northern Data, a leading provider of artificial intelligence (AI) and high-performance computing, marking a significant shift toward advanced infrastructure and cloud services. Tether, Northern Data's majority shareholder, provided favorable preliminary feedback to the proposed transaction, highlighting growing alignment with large-scale technology partners. "As described in the press release, Northern Data is a leading provider of AI and high-performance computing solutions and operates primarily through Ardent, its data center business, and Tyga, its GPU as a service business. Rumble has informed Northern Data that it is interested in pursuing a potential exchange offer in which the shareholders of Northern Data would receive newly issued class A shares of Rumble common stock in exchange for their Northern Data shares. Rumble has received positive feedback from Tether, the majority shareholder of Northern Data, with respect to the potential offer on the preliminary terms described in the press release." -- Chris Pavlovski, Founder, Chairman, and CEO This prospective acquisition underscores Rumble's ambition to expand platform capabilities beyond video sharing into the rapidly growing AI and GPU-as-a-service markets, which could significantly reshape its long-term total addressable market and competitive positioning. The company reported a rise in average revenue per user (ARPU) to 42¢, up 24% quarter over quarter, and an $8.2 million year-over-year improvement in adjusted EBITDA loss to $20.5 million, driven primarily by subscription revenue growth and substantial reductions in programming expenses. Rumble ended the quarter with $306.4 million in total liquidity, supporting its ongoing investment capacity and aggressive growth mandate. "ARPU increased to 42¢, up 24% sequentially. A positive indicator of our enhanced monetization strategy attributable to higher subscription and licensing revenue. Cost of services improved 26% year over year to $26.5 million, primarily from a $10.1 million reduction in programming and content expenses partially offset by a $1 million increase in other costs including publisher fees and payment processing. The decrease is primarily due to the expiration of various programming and content agreements. Adjusted EBITDA loss improved to $20.5 million compared to a loss of $28.7 million last year. An $8.2 million improvement primarily related to the previously mentioned increase in revenue and expiration of programming and content agreements." -- Brandon Alexandroff, CFO Improved unit economics and a stronger liquidity position enhance Rumble's resilience and flexibility to fund strategic initiatives without near-term capital constraints, especially as it targets platform expansion and new business lines. The second quarter featured new strategic alliances, including collaborations with Cumulus Media for content and ad sales integration and MoonPay for crypto on/off-ramps. Tether began advertising on the platform and will help promote Rumble Wallet, expected to launch in Q3 and facilitate tipping with Bitcoin, Tether's USDT, and Tether Gold. Management emphasized plans to invest heavily in marketing Rumble Wallet both on and off platform to drive international audience and creator growth. "As part of this launch, in keeping with our theme of partnerships, I want to discuss MoonPay. MoonPay will power all crypto on and off ramps within Rumble Wallet, enabling seamless buy, sell, and swap functionality. MoonPay's creative agency, Otherlife, will also leverage Rumble Cloud for next-gen object storage in decentralized compute. Bottom line, partnerships are no longer a someday goal. They're here, they're expanding, and they're creating a meaningful foundation for our next phase of growth." -- Chris Pavlovski, Founder, Chairman, and CEO The broadening of use cases via digital wallets and crypto payments not only diversifies revenue potential but also positions Rumble to accelerate international expansion and attract new creators to its platform. Management reaffirmed aggressive growth as Rumble's new strategic mandate, with key initiatives including the Q3 launch of Rumble Wallet and expanded creator acquisition campaigns. No explicit quantitative guidance was provided for gross profit margins or EBITDA, as leadership emphasized capital deployment toward scaling the core platform and potential AI-related expansion. Any further updates on the Northern Data transaction or AI partnership details will be disclosed in future announcements or press releases as developments arise.