Rumble (NASDAQ:RUM) reported second-quarter revenue of $40.4 million, up 61% from $25.1 million a year earlier, as the company completed its acquisition of Northern Data and reorganized under the new parent-company name RUM Group Inc.
Founder, Chairman and CEO Chris Pavlovski said the June 17 closing of the Northern Data transaction, through which RUM Group secured approximately 85.2% of Northern Data’s outstanding shares, marks the company’s entry into cloud and agentic AI infrastructure. The combined company will operate two business units: the Rumble video platform and Quake AI, which combines Rumble Cloud with Northern Data’s GPU fleet.
Northern Data acquisition reshapes business
Pavlovski described Quake AI as the company’s future financial engine, positioning RUM Group as an end-to-end AI infrastructure provider that combines Rumble’s existing compute, content-delivery network and streaming infrastructure with Northern Data’s AI compute operations.
In June, the company signed a multiyear agreement with Together AI to deploy NVIDIA HGX B300 GPU capacity. Pavlovski said the agreement establishes RUM Group as an independent provider of large-scale AI infrastructure outside the traditional hyperscaler ecosystem.
The company is targeting the monetization of 250 megawatts of power capacity in 2027. Its portfolio includes a 180-megawatt powered site near Atlanta, where the substation has been built and transformers are on site, as well as a smaller Pittsburgh location and European sites with roughly 50 megawatts in Sweden and 20 megawatts in Norway.
Management said monetizing the currently unmonetized 250 megawatts could represent a $3 billion-plus annual revenue run-rate opportunity, though that figure reflects the company’s view of the potential opportunity rather than guidance.
During the question-and-answer session, Pavlovski said he expects demand for AI compute to remain ahead of available capacity over the next one to two years, citing growth in inference and agentic AI. CFO Mike Masci said the company is focused on AI compute as a service rather than a “powered shell” approach, in which a company provides a data-center facility and power while customers furnish their own computing equipment.
Masci said RUM Group does not intend to enter customer contracts unless it has strong visibility into obtaining the hardware and capacity needed to fulfill them. He noted that the company recorded nearly $47 million in investing activities during the quarter, largely related to IT capital expenditures needed for its AI compute-as-a-service operations.
Expenses and losses rise following transaction
Second-quarter cost of services rose to $30.6 million from $26.5 million a year ago, driven by higher programming and content expenses along with data-center costs from the Northern Data acquisition. General and administrative expense increased to $16.3 million from $11.7 million, including $5 million of payroll and other administrative costs contributed by Northern Data.
Research and development expense rose to $6.8 million from $4.8 million, while sales and marketing expense increased to $10.4 million from $7.9 million. Masci attributed the sales and marketing increase to higher marketing and public-relations spending, payroll and other related costs.
Adjusted EBITDA loss improved to $16.6 million from a loss of $20.5 million in the prior-year quarter. Net loss was $80.3 million, including $79.1 million attributable to RUM Group Inc., compared with a net loss of $30.2 million a year earlier.
The larger net loss primarily reflected $28.3 million in acquisition-related transaction costs associated with the Northern Data closing, along with higher non-cash depreciation and amortization following the acquisition, Masci said.
RUM Group ended the quarter with total liquidity of $220.5 million, consisting of $203.3 million in cash and cash equivalents and 293.14 Bitcoin valued at about $17.2 million.
Third-quarter revenue guidance issued
For the third quarter, RUM Group expects revenue between $87 million and $93 million. The forecast will be the company’s first full quarter reflecting Quake AI following the Northern Data transaction.
Masci said the company plans to begin reporting results through two operating segments, Rumble Video and Quake AI, starting with its third-quarter report. Each segment will have separate revenue and profitability metrics.
The company will no longer present monthly active users and average revenue per user as headline corporate metrics, Masci said, because they describe only the video audience business and no longer represent the full company.
Video business reports higher ARPU
Rumble’s average global monthly active users totaled 57 million in the second quarter. Average revenue per user was $0.48, up 20% sequentially.
Pavlovski said management remains focused on increasing video revenue through brand advertising. Masci said $4.8 million of second-quarter revenue was related to Tether.
Pavlovski also said some Quake AI customers have expressed interest in Rumble’s video data. He said the company is evaluating ways to monetize that data and potentially create another revenue source for its creator community as AI development moves toward robotics and agentic systems.
About Rumble (NASDAQ:RUM)
Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company’s primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.
In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.
