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BuzzFeed, Inc. (BZFD)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 revenue was $46.3M and diluted EPS from continuing operations was -$0.20; revenue missed Wall Street consensus ($54.7M*) and EPS missed (-$0.06*) as softness in direct-sold ads/content and lower affiliate bonuses weighed on results .
  • Management lowered full-year 2025 guidance to revenue of $185–$195M and Adjusted EBITDA of breakeven to $10M, citing near-term advertising and commerce challenges and studio timing lumpiness .
  • Positive indicators: Adjusted EBITDA remained positive ($0.8M, 1.6% margin), direct traffic mix improved to 63%, and BuzzFeed remained #1 among Gen Z/Millennials in its competitive set; these support the strategic pivot to owned distribution .
  • Near-term stock reaction catalysts: the revenue/ EPS miss and guide-down contrasted with management’s expectation for Q4 seasonal step-up (Black Friday/Cyber Monday commerce), plus a promised update on R&D initiatives (BF Island) next quarter .

What Went Well and What Went Wrong

What Went Well

  • Adjusted EBITDA remained positive despite revenue pressure ($0.8M; 1.6% margin), reflecting ongoing cost discipline and a leaner operating structure .
  • Continued audience quality/ownership progress: 63% of BuzzFeed.com traffic from direct visits/internal referrals/apps (up from 61% in Q2), and HuffPost homepage referrals now at 75% of traffic, reinforcing reduced platform dependency .
  • Management emphasis on product innovation and controlled distribution: “I’m spending more of my time in the lab as we build new products for this direct audience” — Jonah Peretti, CEO ; “We expect a seasonal step-up from Q3” — Matt Omer, CFO .

What Went Wrong

  • Revenue fell 17% YoY; segment declines were broad: Advertising -11%, Content -33%, Commerce & other -15%; Adjusted EBITDA fell to $0.8M from $8.1M in Q3 2024 .
  • Management tied weakness to softer direct-sold demand and reduced affiliate partner bonuses (including Amazon), plus tough comps against last year’s presidential election cycle elevated engagement .
  • Total U.S. Time Spent declined YoY to 68.5M hours from 80.3M (election-cycle comp), while EPS was negative (-$0.20) and net loss from continuing operations was -$7.4M .

Financial Results

Income Statement and Margins (Continuing Operations)

MetricQ1 2025Q2 2025Q3 2025
Revenue ($USD Millions)$36.0 $46.4 $46.3
Diluted EPS - Continuing Ops ($)-$0.33 -$0.28 -$0.20
Adjusted EBITDA ($USD Millions)-$5.9 $2.0 $0.8
Adjusted EBITDA Margin (%)-16.4% 4.3% 1.6%
Net Income Margin % (Continuing Ops)-34.6% -22.9% -16.0%

Segment Revenue Mix

Segment ($USD Millions)Q1 2025Q2 2025Q3 2025
Advertising$21.4 $22.6 $22.2
Content$4.4 $10.7 $7.2
Commerce & Other$10.2 $13.1 $17.0
Total Revenue$36.0 $46.4 $46.3

KPIs and Audience

KPIQ1 2025Q2 2025Q3 2025
Total U.S. Time Spent (hours, millions)67.9 69.9 68.5
BuzzFeed.com Direct/Owned Traffic Mix (%)62% 61% 63%
HuffPost Homepage Share of Traffic (%)—~75% (“three quarters”) 75%

Results vs S&P Global Consensus

MetricQ2 2025 Consensus*Q2 2025 ActualQ3 2025 Consensus*Q3 2025 Actual
Revenue ($USD Millions)$39.4*$46.4 $54.7*$46.3
Primary EPS ($)-$0.23*-$0.28 -$0.06*-$0.20

Values retrieved from S&P Global*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025$195–$210M $185–$195M Lowered
Adjusted EBITDAFY 2025$10–$20M Breakeven–$10M Lowered

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 2025)Previous Mentions (Q2 2025)Current Period (Q3 2025)Trend
AI/Technology InitiativesAI tools lifted article performance ~25%; pilots for AI creation formats; BF Island development underway BF Island beta expanding; Lighthouse improving programmatic targeting CEO spending more time “in the lab”; larger R&D update next quarter Increasing focus/expect updates
Platform Independence62% direct O&O traffic; push to owned distribution 61% direct O&O traffic; HuffPost homepage “three quarters” of pageviews 63% direct O&O traffic; HuffPost homepage 75% of traffic Improving
Programmatic vs Direct-SoldProgrammatic growth offset direct-sold declines Programmatic +11% YoY; direct-sold ads -31% Continued softness in direct-sold ads/content cited Programmatic resilient; direct-sold pressured
Commerce/AffiliateOrganic affiliate +$1.0M YoY Organic affiliate +23% YoY Lower supplemental affiliate bonuses (incl. Amazon) reduced revenue Seasonal step-up expected in Q4
Studio/Content/IPStudio variable; resource allocation to margin/quality Feature film hit #1 on Hulu; studio up ~4x YoY on delivery timing Content down 33% YoY; prior-year non-recurring data license complicates comp Lumpy; depends on delivery timing
Macro/TariffsAdvertiser “look-and-see”; tariff uncertainty —Election-cycle tough comps; softer market in direct-sold categories External headwinds persist

Management Commentary

  • “Q3 was a challenging quarter, but we continued to advance our core strategy… I’m spending more of my time in the lab as we build new products for this direct audience” — Jonah Peretti, CEO .
  • “As we move into Q4, we expect a seasonal step-up from Q3… focused on capturing that demand and managing the business carefully” — Matt Omer, CFO .
  • CFO context: Weakness from “continued softness in direct-sold advertising and content, a decline in affiliate bonuses… and difficult year-over-year comparison” (election cycle); nonetheless “remain committed to… adjusted EBITDA profitability for the full year” .

Q&A Highlights

  • Q3 call ended after prepared remarks with no live Q&A segment .
  • Q2 Q&A themes (pre-submitted):
    • Diversification away from platform referral traffic; rising direct/homepage traffic across brands .
    • Views on platform dependency and future of social platforms; emphasis on owned destinations and IP .
    • Programmatic resilience and measurability in uncertain macro environments; Lighthouse tech improving contextual targeting .

Estimates Context

  • Q3 2025: Revenue $46.3M vs consensus $54.7M*; EPS -$0.20 vs consensus -$0.06* — both missed as direct-sold demand softened and affiliate bonuses declined (including Amazon), with tough comps from the prior election cycle .
  • Q2 2025: Revenue $46.4M vs consensus $39.4M* (beat); EPS -$0.28 vs -$0.23* (miss), as a non-recurring extinguishment charge impacted EPS while studio delivery and programmatic/commerce drove revenue outperformance .
    Values retrieved from S&P Global*

Key Takeaways for Investors

  • Q3 was a reset: both top-line and EPS missed consensus and FY25 guidance was lowered; the immediate focus is execution into Q4 seasonality (affiliate commerce, ads) .
  • Structural shift continues: rising direct traffic mix (63%) and leadership with Gen Z/Millennials should support monetization durability independent of external algorithms .
  • Revenue mix implications: programmatic and affiliate are more resilient; direct-sold ads/content remain pressured—portfolio managers should expect less volatility in scalable lines and ongoing variability in studio/content based on delivery .
  • Studio/IP trajectory is lumpy: outsized Q2 benefit from a film delivery and prior-year data license makes comps noisy; model for content should incorporate timing risk .
  • Liquidity/cost discipline: Adjusted EBITDA stayed positive; sustained margin improvement from restructuring and operating efficiency remains a key defense in a soft demand environment .
  • Watch catalysts: Holiday commerce performance (affiliate commissions/bonuses), any update on BF Island/AI initiatives next quarter, and stabilization in direct-sold demand could drive sentiment shifts .
  • Estimate implications: Street likely to cut FY25 revenue/EBITDA following the guide-down; near-term revisions should track Q4 execution quality in commerce and ads .