Bright Mountain Media (BMTM 7.44%), a digital advertising and consumer insights platform, released its financial results for the second quarter of fiscal 2025 on August 7, 2025. The company reported GAAP revenue of $15.4 million in Q2 2025, representing an 18% increase over the prior-year period, with solid momentum in its advertising technology and consumer insights business lines. However, gross margin (GAAP) declined 11% in Q2 2025 as increasing costs—particularly in publisher fees and direct project expenses—held back profitability. There were no public analyst estimates for the quarter, so comparisons focus on year-over-year shifts rather than consensus expectations. Despite meaningful adjusted EBITDA improvement and cost controls in the second quarter of 2025, the period still demonstrated persistent losses and heightened funding risk, reflecting the need for further progress in sustainable profitability and cash flow management.
| Metric | Q2 2025 | Q2 2024 | Y/Y Change |
|---|---|---|---|
| Revenue (GAAP) | $15.4 million | $13.0 million | 18% |
| Gross Margin | $3.0 million | $3.4 million | -12% |
| Adjusted EBITDA (loss) | $(0.2) million | $(0.9) million | 76% |
| Net Loss | $(4.1) million | $(5.2) million | 21% |
| EPS (GAAP), Diluted | $(0.02) | $(0.03) | 33.3% |
Business Overview and Strategic Focus
Bright Mountain Media operates as a diversified player in the digital advertising and marketing ecosystem. Its business features proprietary advertising technology, digital publishing targeted at key demographic groups, consumer insights fueled by analytics and artificial intelligence, along with dedicated creative and media services. The company's portfolio seeks to bridge brands with target audiences across channels and devices, especially in digital and connected television advertising.
Recent strategic focus centers on scaling its advertising technology platform and expanding its consumer insights offerings, which have become key growth engines. Maintaining competitive programmatic ad solutions, leveraging owned and operated web properties, and harnessing data analytics remain fundamental to driving future gains. Success for the business relies on effective monetization of audiences, ongoing tech innovation, and disciplined expense management to offset industry margin pressures.
Quarterly Performance and Developments
During Q2 2025, revenue growth continued, anchored by $5.1 million from the advertising technology division and $7.3 million from consumer insights. Consumer insights—services that provide clients with actionable data and analytics—ranked as the largest revenue contributor in the period. Growth in advertising technology stemmed from new deals with publishers and improved pricing for connected television and programmatic ad placements.
The digital publishing segment posted $359,000 in GAAP revenue, a decrease from the previous year, reflecting headwinds from reduced website traffic and inflationary constraints on client advertising spend. Creative services and media services, which include branded content, campaign management, and marketing support, contributed $1.7 million and $869,000, respectively. However, overall gains in core operating segments masked margin pressures. Gross margin slipped to $3.0 million (GAAP), as higher publisher costs and direct project expenses drove cost of revenue up by 29% to $12.4 million (GAAP). The gross margin percentage (GAAP) fell from 26.3% to 19.7% compared to Q2 2024.
On the expense side, management made progress in reducing general and administrative (G&A) costs, trimming these outlays by 24% year over year to $4.0 million (GAAP). This cost control, along with improved operating leverage, helped drive adjusted EBITDA (non-GAAP) 76% closer to breakeven, at a $(0.2) million loss compared to a $(0.9) million loss in Q2 2024. The net loss (GAAP) narrowed by 22%, from $5.2 million to $4.1 million. Earnings per diluted share (GAAP) moved from $(0.03) to $(0.02).
The company's cash position continued to tighten, ending the quarter at $1.7 million—down from the beginning of the year. Total liabilities (GAAP) rose to $110.1 million as of June 30, 2025, and the stockholders’ deficit deepened, highlighting balance sheet challenges.
Outlook and Things to Watch
Bright Mountain Media did not provide quantitative guidance for upcoming quarters or fiscal 2025. Management expressed satisfaction over recent growth in revenue and operating leverage but did not specify revenue, profit, or margin forecasts for prospective periods. The absence of concrete guidance requires investors to monitor company updates and subsequent filings for clearer future projections.
Key watch items for future quarters include progress on gross margin recovery, advances toward breakeven or positive cash flow, and the company’s ability to manage its leverage and liquidity risk. Additionally, ongoing diversification of revenue streams and clients, especially in digital publishing and consumer insights, will be critical as segment performance remains uneven and cost of revenue pressures persist. BMTM does not currently pay a dividend.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
