Sabio Holdings (SBIO) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 and first-half revenues, with Q2 2025 sales reaching $11.2 million (up 25% YoY) and first-half revenue totaling $20.2 million (up 33% YoY), marking the fifth consecutive quarter of double-digit growth.

• 92% of first-half revenues were from repeat customers, highlighting a strong recurring revenue model and high customer retention.

• Ad-supported streaming now accounts for 60% of revenue and is the largest contributor to annual growth, with international expansion and new products fueling further gains.

• Rapid adoption of new offerings, including programmatic CTV/OTT and Creator Television, positions the company for a lucrative 2026 U.S. election cycle, with Creator TV viewership growing over 300% since launch.

• Creator TV received industry awards for innovation and significant newcomer status.

Financial highlights

• Q2 2025 sales reached $11.2 million, up 25% year-over-year, or 29% excluding political sales, with all growth organic.

• Ad-supported streaming sales grew 8% to $7.4 million; excluding political campaigns, growth was 13% year-over-year.

• Mobile ad sales surged 88% to $3.5 million, driven by new performance marketing offerings.

• Gross margins remained strong at 61% for both Q1 and Q2 2025.

• Adjusted EBITDA loss was $1.2 million in Q2 2025, compared to a $0.3 million loss in Q2 2024, due to investments in new products and international expansion.

• Ended the quarter with $2.2 million in cash and cash equivalents as of June 30, 2025.

Outlook and guidance

• Management expects substantial benefits from recent investments to materialize in the second half of 2025 and into the 2026 election year, with continued double-digit revenue growth anticipated.

• No formal guidance provided due to macroeconomic uncertainty, but further top-line growth and margin expansion are anticipated for 2026.

• Q4 is expected to be cash flow positive, with 2026 projected to be a strong, profitable year.

• Expects normalization of cloud computing costs and a return to profitability in the latter half of 2025.