Sabio Holdings (SBIO) Q3 2025 earnings summary

Executive summary

• Navigated a challenging advertising market with front-loaded budgets and government cutbacks, yet maintained focus on diversification and scalability, resulting in 10% year-to-date growth normalized for political spending.

• Transformed from a single-product, single-market company to a multi-product, multi-market, data-driven platform, with over 70% of revenue now from ad-supported streaming.

• Early programmatic scale and international expansion contributed nearly 40% of Q3 gross revenue mix, with international revenue led by the UK.

• Customer diversification improved, with a 54% increase in branded logos and recurring revenue at 85% for the nine-month period.

• Positioned for a strong 2026, anticipating increased activity from the U.S. mid-term elections and further expansion in programmatic and international channels.

Financial highlights

• Q3 gross revenue was $9.3M ($8.8M normalized for political/advocacy), down from $9.8M last year; net revenue was $8.2M ($7.7M normalized), also down year-over-year.

• Core ad-supported streaming gross revenue increased 2% year-over-year, excluding political and advocacy.

• Programmatic gross revenue reached $1.9M (20% of consolidated gross revenue); international gross revenue grew 240% year-over-year (19% of consolidated gross revenue).

• Gross margin was 59%, influenced by scalable programmatic channels.

• Adjusted EBITDA was negative $2.2M, reflecting ongoing investment in new products and international expansion.

Outlook and guidance

• Entering 2026 with a pipeline up nearly 60% year-over-year, driven by programmatic and international growth.

• Expecting significant uplift from the 2026 midterm election cycle, anticipated to be the largest streaming cycle in history.

• Enhanced revenue mix, high recurring customer base, and strengthened technology stack position the company for long-term growth.