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BuzzFeed, Inc. (BZFD)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 delivered a clean top‑line beat and the first sequential reacceleration of 2025: revenue rose to $46.4M (+13% YoY) vs S&P Global consensus $39.4M, driven by studio delivery, +23% organic affiliate commerce and +11% programmatic; however EPS was −$0.28 vs Street −$0.23 as a non‑recurring loss on convertible note extinguishment weighed on GAAP earnings . Revenue consensus values retrieved from S&P Global.*
  • Mix quality improved: scalable lines (programmatic, affiliate commerce) led growth; content surged on a feature film delivery; direct‑sold ads and content remained soft by design as the company pivots away from platform dependence .
  • Profitability: Adjusted EBITDA improved to $2.0M (4.3% margin), helped by a one‑time $2.4M reversal; note S&P’s EBITDA “actual” remains negative (definitions differ), underscoring the importance of non‑GAAP adjustments this quarter . EBITDA estimate/actual values retrieved from S&P Global.*
  • Guidance reaffirmed for FY25: revenue $195–$210M and Adjusted EBITDA $10–$20M; H2/Q4 seasonality remains the key driver of the full‑year outcome .
  • Capital structure cleanup completed intra‑quarter: new $40M term loan used to eliminate converts; company also repurchased ~4.9% of Class A shares, with related extinguishment costs impacting Q2 GAAP EPS (non‑recurring) .

What Went Well and What Went Wrong

  • What Went Well

    • Scalable revenue engines accelerated: programmatic ads +11% YoY to $17.4M and organic affiliate commerce +23% to $12.8M, sustaining a five‑quarter streak of growth .
    • Studio execution: content revenue +53% YoY to $10.7M, nearly 4x growth in studio on feature film delivery (Lionsgate’s “F*** Marry Kill” hit #1 on Hulu in June) .
    • Platform independence and engagement: 61% of O&O traffic now direct/internal/app; U.S. Time Spent 69.9M hours (up 3% QoQ), with BuzzFeed.com at 36.4M and HuffPost at 20.7M hours . Quote: “We returned to growth, driven by double digit gains in both commerce and programmatic… We’ve begun beta testing on BF Island” — CEO Jonah Peretti .

  • What Went Wrong

    • GAAP earnings pressure: net loss from continuing operations widened YoY to −$10.6M on a non‑recurring convert extinguishment charge, driving an EPS miss vs Street .
    • Direct‑sold softness by design and macro caution: direct‑sold advertising −31% YoY within ad mix; direct‑sold content −17% YoY, reflecting strategic shift and muted demand .
    • Quality of EBITDA: Adjusted EBITDA of $2.0M included a one‑time $2.4M reversal that will not recur; investors should normalize for this when assessing run‑rate profitability .

Financial Results

Summary vs Prior Periods

MetricQ2 2024Q1 2025Q2 2025
Total Revenue ($M)$41.1 $36.0 $46.4
Net Loss from Continuing Ops ($M)$(5.4) $(12.5) $(10.6)
Diluted EPS – Continuing Ops ($)$(0.15) $(0.33) $(0.28)
Adjusted EBITDA ($M)$0.8 $(5.9) $2.0
Adjusted EBITDA Margin (%)2.0% (16.4)% 4.3%

Segment Revenue Breakdown

Segment ($M)Q2 2024Q1 2025Q2 2025
Advertising$23.2 $21.4 $22.6
Content$7.0 $4.4 $10.7
Commerce & Other$10.9 $10.2 $13.1
Total Revenue$41.1 $36.0 $46.4

KPIs and Mix

KPIQ1 2025Q2 2025
U.S. Time Spent (hours, M)67.9 69.9
% O&O Traffic from Direct/Internal/App62% 61%
BuzzFeed.com Time Spent (hours, M)32.9 36.4
HuffPost Time Spent (hours, M)—20.7

Guidance Changes

MetricPeriodPrevious Guidance (as of Q1’25)Current Guidance (Q2’25)Change
RevenueFY 2025$195–$210M $195–$210M Maintained
Adjusted EBITDAFY 2025$10–$20M $10–$20M Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4’24, Q1’25)Current Period (Q2’25)Trend
AI/Technology initiativesBuilding AI‑native BF Island; ~$10M 2025 investment; integrating new models and AI tools in publishing/ads BF Island beta testing expanded; plan to open to community by end of Q3 Advancing from concept to broader beta
Platform independence64% of BuzzFeed.com traffic direct/internal/app in Q4’24 ; 62% in Q1’25 61% in Q2; loyalty improving; logged‑in users tripled over 2 years Stable high direct share
Revenue mix (Programmatic/Affiliate)Programmatic resilience emphasized; affiliate growth in key shopping windows Programmatic +11% YoY; organic affiliate +23% YoY Positive momentum sustained
Studio/IP & long‑form2024 variability; pivot to IP and long‑form to reduce algorithm risk Nearly 4x studio revenue YoY on film delivery; #1 Hulu film in June Rebound with pipeline
Macro/tariffsAdvertisers “look‑and‑see” posture; tariff uncertainty Direct‑sold remains soft; programmatic/affiliate offset Cautious but manageable mix shift
Capital structureDebt paydowns and asset sales in 2024 New $40M term loan; converts fully repaid; 4.9% buyback; Q2 extinguishment charge Balance sheet simplified

Management Commentary

  • CEO Jonah Peretti: “We returned to growth, driven by double digit gains in both commerce and programmatic… Our latest feature film hit #1 on Hulu in June. And we’ve begun beta testing on BF Island, our AI-native social media app.”
  • CFO Matt Omer (on profitability quality): “Adjusted EBITDA… includes a one time $2.4 million reversal that positively impact our quarterly results and will not recur in future periods.”
  • CEO on platform independence: “Direct visits, internal referrals and app usage now make up 61% of BuzzFeed's traffic, surpassing Facebook and reducing dependence on external algorithmic platforms.”

Q&A Highlights

  • Diversification from platforms: Management emphasized a multi‑year transformation to direct traffic and apps; HuffPost homepage referrals +12% YoY, now ~75% of its pageviews .
  • Programmatic resilience: In uncertain macro, programmatic’s efficiency and measurability make it more durable and sometimes uncapped for advertisers .
  • BF Island: Early prototype strengthens confidence; expanding beta to community members by end of Q3; positioned as an AI‑native “oasis” away from algorithmic feeds .
  • Traffic sources with promise: Apple News remains key, especially for HuffPost; owning IP supports cross‑platform distribution and monetization .

Estimates Context

  • Q2 2025 vs S&P Global consensus | Metric | Actual | Consensus | Beat/Miss | |---|---|---|---| | Revenue ($) | $46,394,000 | $39,432,000* | Beat* | | EPS (Primary, $) | $(0.28) | $(0.23)* | Miss* | | EBITDA ($) | $(1,942,000)* | $(2,887,000)* | Beat* |

Values marked with * retrieved from S&P Global.

  • Forward consensus (Street, S&P Global) | Metric | Q3 2025 | Q4 2025 | |---|---|---| | Revenue Consensus Mean ($) | 54,653,000* | 61,895,000* | | Primary EPS Consensus Mean ($) | −0.06* | 0.13* | | EBITDA Consensus Mean ($) | 3,691,000* | 11,229,000* | | # of Estimates (Rev/EPS) | 1 / 1* | 1 / 1* |

Values marked with * retrieved from S&P Global.

Implications: The substantial revenue beat alongside a GAAP EPS miss (due to one‑time extinguishment cost) suggests estimate revisions may lift top‑line forecasts while EPS paths will depend on interest expense post‑refinancing and the absence of one‑timers in H2. The reaffirmed FY guide anchors back‑half reliance (seasonal Q4 lift) .

Key Takeaways for Investors

  • Top‑line momentum returned with high‑quality mix (programmatic, affiliate, studio delivery) driving a meaningful revenue beat; this is the primary positive catalyst from the print .
  • GAAP EPS miss is primarily non‑recurring (convertible extinguishment); normalize EPS and scrutinize interest expense under the new term loan going forward .
  • Adjusted EBITDA benefited from a one‑time $2.4M reversal; investors should adjust for this to assess true run‑rate margins .
  • Strategy execution remains consistent: rising direct traffic share, deepening loyalty, and scaled ad/commerce rails reduce platform risk and should support more predictable monetization .
  • Studio/IP pipeline and native AI initiatives (BF Island) provide optionality; near‑term P&L contribution remains timing‑dependent for studio, while BF Island is in beta and pre‑monetization .
  • FY25 guidance unchanged; success hinges on seasonal H2/Q4 performance—watch intra‑quarter indicators for programmatic yield, affiliate strength, and studio delivery cadence .
  • Balance sheet simplified (converts eliminated; buyback executed); monitor covenant terms and interest burden on the $40M term loan as a swing factor for EPS and cash flow .

Appendix: Additional Data Points

  • Cash & cash equivalents at 6/30/25: $29.7M . Borrowings from term loan YTD: $39.2M; payments on Convertible Notes: $30.0M; buyback: $3.3M .
  • U.S. Time Spent YoY: 69.9M hours in Q2’25 vs 71.0M hours in Q2’24; +3% QoQ vs Q1’25 .
  • Reaffirmed FY25 Adjusted EBITDA guidance lacks GAAP reconciliation due to forecasting limitations (company policy) .