Rumble Inc. shares surge 19% after Q1 revenue rises 34% and cloud business expands

Why Did Rumble Inc. Stock Surge Nearly 20% After Q1 2025 Results?

Rumble Inc. (NASDAQ: RUM) closed 19.54 percent higher on May 9, 2025, at $9.30, after the company delivered its first-quarter earnings report that significantly outpaced market expectations. The digital media and cloud infrastructure company reported a 34 percent year-on-year increase in revenue to $23.7 million, driven by higher subscription revenues and monetization gains from its video platform and publisher network. The stock surge came amid strong investor enthusiasm over the company’s monetization strategies, government cloud contracts, and high-profile content partnerships.

What Drove Rumble’s Q1 2025 Revenue Growth?

Rumble’s first quarter of fiscal 2025 marked a pivotal revenue inflection point. Total revenues rose to $23.7 million from $17.7 million a year earlier, with the majority of growth coming from a $3.6 million increase in subscription-based income and an additional $1.0 million contributed by tipping fees, licensing, platform hosting, and advertising activities. Audience monetization contributed a total of $4.6 million in additional revenue, while Rumble’s expanding cloud services and publisher monetization network added a further $1.4 million.

The company’s Average Revenue Per User (ARPU) for the quarter came in at $0.34, reflecting a decline of 13 percent quarter-on-quarter. This drop, however, was largely attributed to seasonal declines in advertising revenue, partially offset by stronger growth in subscriptions—an increasingly vital revenue source for the platform’s sustainability.

How Did User Retention Improve Following the 2024 U.S. Election Cycle?

Rumble’s Monthly Active Users (MAUs) averaged 59 million in Q1 2025, down from 68 million in the prior quarter. However, this 87 percent retention rate post the 2024 U.S. general election marks a significant improvement over the 60 percent retention rate seen following the 2022 midterms. Management attributed the stronger post-election stickiness to broader content offerings, a rising ecosystem of politically aligned creators, and improved platform stability. The company’s ability to hold a larger share of its peak audience after a politically charged period is being seen as a bullish indicator for long-term engagement.

What Were the Key Strategic Developments in Q1?

Rumble secured several headline-generating partnerships and initiatives in Q1 2025. In January, the company inked a cloud services agreement with the Government of El Salvador, underscoring its expansion into public sector infrastructure. In February, the White House launched an official channel on the platform, bringing credibility and attention to Rumble as a mainstream political media outlet.

That same month, popular political commentator Tim Pool joined the platform, with much of his content going exclusive under the Rumble Premium subscription tier. These strategic additions bolstered content depth and monetization potential.

Additionally, Rumble and Trump Media & Technology Group jointly filed a lawsuit against Brazilian Supreme Court Justice Alexandre de Moraes over alleged free speech violations. While legal risks remain, the move reinforced the company’s positioning as a free-speech-oriented alternative to mainstream platforms.

How Is Rumble Monetizing Its Cloud Business?

The cloud division, branded as Rumble Cloud, continued to gain traction. Beyond the El Salvador deal, Rumble announced a partnership with the NFL’s Tampa Bay Buccaneers. These collaborations not only diversify revenue but also enhance the credibility of Rumble’s infrastructure offerings in both governmental and enterprise verticals. The cloud segment contributed $0.3 million in the quarter, and management signaled optimism about scaling these initiatives as part of its path to profitability.

What Does the Financial Picture Reveal About Rumble’s Performance?

Despite posting a net loss of $2.7 million in Q1 2025, the figure marked a stark improvement from the $43.3 million loss a year earlier. On a non-GAAP basis, Adjusted EBITDA remained in negative territory at -$22.7 million, but improved by over $3.7 million year-over-year. Cost reductions in programming and content helped narrow losses, while an infusion of capital from Tether, through a completed strategic investment, strengthened the company’s liquidity.

As of March 31, Rumble held $301.3 million in cash and cash equivalents and an additional $21.3 million in Bitcoin holdings. Total liquidity reached $318.7 million, providing substantial runway for future investment in growth, technology, and user acquisition. This cash cushion is further expected to support the launch of the Rumble Wallet later in the year—an initiative that could become a key component of its international expansion.

What Are Analysts and Investors Watching Next?

Institutional sentiment appears to be tilting more positive, given the improved balance sheet, rising user monetization, and steady subscriber conversion. Investors are closely monitoring the rollout of Rumble Wallet, which is expected to further integrate content monetization with decentralized payment models. Additionally, expansion of the cloud segment and broader adoption among sports, government, and enterprise clients are viewed as potential catalysts.

Rumble has also committed to moving toward Adjusted EBITDA breakeven by the end of 2025, a target that, if met, could significantly improve its valuation profile. While the stock remains volatile given its association with politically sensitive content and lawsuits, its operational momentum appears to be strengthening.

How Does Rumble Compare to Other Ad-Tech and Media Platforms?

Rumble’s differentiated position as a platform that blends content distribution with cloud services puts it in a hybrid league relative to traditional video-sharing sites. Its direct engagement with political and alternative media audiences allows it to tap into a niche, highly engaged user base, while its self-developed infrastructure provides cost and security advantages.

By comparison, platforms like YouTube maintain dominance in audience scale, but Rumble’s independence and free-speech branding enable it to draw creators who feel alienated from larger tech ecosystems. This positioning has helped Rumble secure deals such as its recent cloud agreements and government platform integrations, which are largely inaccessible to competitors operating on third-party infrastructure.

What Risks and Regulatory Challenges Remain?

Despite recent gains, Rumble continues to face regulatory and public scrutiny. Its exposure to lawsuits involving global governments, free speech policies, and user-generated content risks remains high. The company has also identified a material weakness in its internal financial controls, flagged in its December 2024 filings.

Moreover, the volatility of its Bitcoin strategy, dependence on high-profile creators, and exposure to politically controversial content could contribute to both operational risk and public backlash. However, these same elements are also central to the platform’s brand identity and user growth.