Kustom Entertainment (KUST) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 56.7% YoY to $2.71M; reported net income attributable to common stockholders was $2.35M, while continuing operations lost $2.67M.

• The $5.07M gain on the Video Solutions sale contributed to reported income; Q3 was the first full quarter operating exclusively in live entertainment and ticketing.

• Nine-month revenue increased 66.4% to $11.30M, while continuing operations lost $7.71M and used $4.83M in operating cash; substantial doubt about going concern remains.

• Stockholders’ equity rose to $7.85M from $2.37M at year-end 2025, and total liabilities fell to $7.7M from $17.0M.

Financial highlights

• Q3 gross profit was $208,949 vs. $189,673 YoY; nine-month gross loss narrowed to $749,248 from $784,717.

• Q3 operating loss widened to $2.51M from $1.15M; nine-month operating loss was $6.40M vs. $5.79M.

• Q3 net income attributable to common stockholders was $2,346,315 vs. a $1,021,867 loss; nine-month net loss was $8.09M vs. $1.30M.

• Q3 basic and diluted EPS was $4.51 vs. a loss of $88.73; nine-month EPS was a loss of $37.16 vs. a loss of $210.17, with historical share data adjusted for reverse splits.

• Continuing-operations Q3 loss was $2,670,888, or $5.13 per share, vs. $994,761, or $86.38 per share, in Q3 2025.

Outlook and guidance

• Management expects customer-acquisition and marketing investments to support expanding margins as TicketSmarter scales; positive operating cash flow and profitability or additional capital are needed to fund operations and obligations.

• ELOC availability was $19.4M at Sept. 30, subject to market, trading-volume, Nasdaq and share-capacity conditions; management expects to access capital markets until consistent positive operating cash flow is achieved.

• TFL acquisition remained unclosed, with financing incomplete; the outside date was extended to Dec. 18, 2026, with no assurance of financing or closing.

• The 2027 Country Stampede is planned for Gilley’s Park City near Wichita, with nearly double the venue capacity; additional live-event days are planned.