"Q1 2026 underscores the strength and resilience of Bright Mountain’s operating model," said
"The 60% year-over-year improvement in net loss highlights our focus on operating discipline and margin progression, while reinforcing the strategic advantage of pairing complementary AdTech and
"At the same time, we see a meaningful opportunity to differentiate ourselves through proprietary AI. After extensive evaluation of third-party solutions in the market, we believe there is a clear gap in what today’s AdTech and
Financial Results for the Three Months Ended
Revenue was approximately
Cost of revenue was approximately
General and administrative expense was
Gross margin remained consistent at
Net loss was
Adjusted EBITDA was
About
Forward-Looking Statements for
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties. Such forward-looking statements can be identified by the use of words such as "should", "may", "intends", "anticipates", "believes", "estimates", "projects", "forecasts", "expects", "plans", and "proposes", and similar words. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations of our ability to successfully integrate acquisitions, and the realization of any expected benefits from such acquisitions. You are urged to carefully review and consider any cautionary statements and other disclosures, including the statements made under the heading "Risk Factors" in
Contact / Investor Relations:
Email: ir@brightmountainmedia.com
https://brightmountainmedia.com/investor-relations
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except share and per share data)
| Three Months Ended | ||||||||
| Revenue | $ | 13,963 | $ | 14,190 | ||||
| Cost of revenue | 9,654 | 9,918 | ||||||
| Gross margin | 4,309 | 4,272 | ||||||
| General and administrative expenses | 2,566 | 4,524 | ||||||
| Income (loss) from operations | 1,743 | (252 | ) | |||||
| Financing and other expense: | ||||||||
| Other income | 62 | 47 | ||||||
| Interest expense - | (3,101 | ) | (3,020 | ) | ||||
| Other interest expense | (4 | ) | (6 | ) | ||||
| Total financing and other expense, net | (3,043 | ) | (2,979 | ) | ||||
| Net loss before income tax | (1,300 | ) | (3,231 | ) | ||||
| Income tax provision | - | - | ||||||
| Net loss | $ | (1,300 | ) | $ | (3,231 | ) | ||
| Foreign currency translation | - | 42 | ||||||
| Comprehensive loss | $ | (1,300 | ) | $ | (3,189 | ) | ||
| Net loss per common share: | ||||||||
| Basic | $ | (0.01 | ) | $ | (0.02 | ) | ||
| Diluted | $ | (0.01 | ) | $ | (0.02 | ) | ||
| Weighted-average shares outstanding: | ||||||||
| Basic | 181,032,929 | 175,974,990 | ||||||
| Diluted | 181,032,929 | 175,974,990 | ||||||
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share data)
| (unaudited) | ||||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 594 | $ | 1,371 | ||||
| Restricted cash | 1,861 | 1,861 | ||||||
| Accounts receivable, net | 15,409 | 16,287 | ||||||
| Prepaid expenses and other current assets | 1,035 | 1,170 | ||||||
| Total current assets | 18,899 | 20,689 | ||||||
| Property and equipment, net | 107 | 124 | ||||||
| Intangible assets, net | 11,097 | 11,542 | ||||||
| 6,999 | 6,999 | |||||||
| Operating lease right-of-use assets, net | 150 | 173 | ||||||
| Other long-term assets | 9 | 158 | ||||||
| Total assets | $ | 37,261 | $ | 39,685 | ||||
| Liabilities and Stockholders' Deficit | ||||||||
| Current liabilities: | ||||||||
| Accounts payable and accrued expenses | $ | 20,342 | $ | 24,852 | ||||
| Other current liabilities | 3,555 | 4,210 | ||||||
| Interest payable - | 47 | 59 | ||||||
| Deferred revenue | 4,399 | 2,834 | ||||||
| Note payable - | 86,755 | 84,276 | ||||||
| Total current liabilities | 115,098 | 116,231 | ||||||
| Other long-term liabilities | - | 12 | ||||||
| Operating lease liabilities | 63 | 77 | ||||||
| Total liabilities | 115,161 | 116,320 | ||||||
| Stockholders' deficit: | ||||||||
| Convertible preferred stock, par value | - | - | ||||||
| Common stock, par value | 1,861 | 1,832 | ||||||
| (220 | ) | (220 | ) | |||||
| Additional paid-in capital | 101,994 | 101,988 | ||||||
| Accumulated deficit | (181,612 | ) | (180,312 | ) | ||||
| Accumulated other comprehensive income | 77 | 77 | ||||||
| Total stockholders' deficit | (77,900 | ) | (76,635 | ) | ||||
| Total liabilities and stockholders' deficit | $ | 37,261 | $ | 39,685 | ||||
* Derived from audited consolidated financial statements.
RECONCILIATION OF NET LOSS TO NON-GAAP EBITDA AND ADJUSTED EBITDA
(in thousands)
Non-GAAP Financial Measures
Non-GAAP results are presented only as a supplement to the financial statements and for use within management's discussion and analysis based on
All other items included in the reconciliation from net loss before taxes to EBITDA and from EBITDA to adjusted EBITDA are either (i) non-cash items (e.g., depreciation, amortization of purchased intangibles, stock-based compensation, etc.) or (ii) items that management does not consider to be useful in assessing the Company's ongoing performance (e.g., M&A costs, income taxes, gain on sale of investments, loss on disposal of assets, etc.). In the case of the non-cash items, management believes that investors can better assess the Company's operating performance if the measures are presented without such items because, unlike cash expenses, these adjustments do not affect the Company's ability to generate free cash flow or invest in its business.
We use, and we believe investors benefit from the presentation of, EBITDA and Adjusted EBITDA in evaluating our operating performance because it provides us and our investors with an additional tool to compare our operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect our core operations. We believe that EBITDA is useful to investors and other external users of our financial statements in evaluating our operating performance because EBITDA is widely used by investors to measure a company's operating performance without regard to items such as interest expense, taxes, and depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired.
Because not all companies use identical calculations, the Company's presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. However, these measures can still be useful in evaluating the Company's performance against its peer companies because management believes the measures provide users with valuable insight into key components of GAAP financial disclosures.
A reconciliation of net loss to EBITDA and Adjusted EBITDA is as follows:
| Three Months Ended | ||||||||
| 2026 | 2025 | |||||||
| (in thousands) | ||||||||
| Net loss before income tax | $ | (1,300 | ) | $ | (3,231 | ) | ||
| Depreciation expense | 17 | 13 | ||||||
| Amortization of intangibles | 445 | 485 | ||||||
| Amortization of debt discount | 460 | 633 | ||||||
| Other interest expense | 4 | 6 | ||||||
| Interest expense - | 2,641 | 2,387 | ||||||
| EBITDA | 2,267 | 293 | ||||||
| Stock compensation expense | 21 | 37 | ||||||
| Non-recurring professional fees | - | 241 | ||||||
| Non-recurring legal fees | - | 245 | ||||||
| Non-recurring severance expense | 68 | - | ||||||
| Adjusted EBITDA | $ | 2,356 | $ | 816 | ||||
