IZEA signals continued enterprise account momentum with 14% year-to-date managed services growth while advancing AI-powered platform

Earnings Call Insights: IZEA Worldwide, Inc. (IZEA) Q3 2025

MANAGEMENT VIEW

* CEO Patrick Venetucci highlighted that Q3 2025 marked "our third consecutive quarter of financial improvement," despite an 8% decrease in total revenue to $8.1 million attributed to shedding unprofitable nonrecurring project work and softness in government and retail accounts. Venetucci emphasized the company's transformation, stating: "Three consecutive quarters of continuous improvement underscores that our strategic direction and transformation towards sustainable, profitable growth is firmly taking hold."
* Venetucci reported that Managed Services revenue, excluding Hoozu, increased 5% for the quarter, and year-to-date Managed Services revenue is up 14%. He noted, "Our enterprise accounts are now growing at double-digit rates that are well above the industry average and a few at triple-digit rates."
* New enterprise clients, including Amazon, General Motors, and Owens-Corning, were added, and the sales pipeline "reached a new high for the year with invitations to larger pitches growing."
* Strategic hires included Steve Bonnell as EVP Account Management and John Francis as VP Marketing and Revenue Operations to bolster enterprise account growth.
* Venetucci also announced ongoing investment in the technology platform: "In Q3, we infused our technology platform with AI-powered features that provide clients with strategic insights and campaign performance."
* CFO Peter Biere stated: "Operating expenses other than the cost of revenue totaled $4.3 million for the third quarter, down $8.7 million or 67%, compared to $13 million in the prior year quarter."

OUTLOOK

* Management did not issue explicit forward-looking financial guidance or targets for revenue or EPS.
* Venetucci expressed optimism: "With all of this momentum and opportunity ahead of us, I am optimistic about the future of this company and our ability to deliver additional value to all of our stakeholders, shareholders, clients and employees alike."
* No changes in formal guidance language were presented compared to the previous quarter.

FINANCIAL RESULTS

* Total revenue for Q3 2025 was reported as $8.1 million, down 8% year over year, primarily due to the intentional exit from unprofitable nonrecurring project work and softness in certain sectors.
* Net income for the quarter was $0.1 million compared to a net loss of $8.8 million in Q3 2024.
* Cash increased by $0.8 million to $51.4 million as of quarter end, and operating cash flow was positive year-to-date.
* The company reported "total cost of revenue...$4.2 million or 51% of revenue," with operating expenses (excluding cost of revenue) down 67% to $4.3 million.
* Adjusted EBITDA for Q3 2025 was $0.4 million compared to negative $3.4 million in the prior year quarter.
* Cumulative share repurchases totaled 561,950 shares for $1.4 million, with no purchases made in Q3. The company remains debt-free.

Q&A

* NOT_APPLICABLE: No analyst questions were present during the Q3 2025 call, as explicitly stated by the operator.

SENTIMENT ANALYSIS

* Analysts: No sentiment could be assessed due to the absence of analyst participation in the Q&A session.
* Management: The tone from management during prepared remarks remained optimistic and confident, with Venetucci underscoring "optimism about the future of this company" and Biere highlighting "the benefits of improved operating performance and disciplined cost management."
* Compared to the prior quarter, management maintained a similar level of confidence, continuing to stress the success of the company's transformation and operational improvements.

QUARTER-OVER-QUARTER COMPARISON

* Q3 saw a decrease in total revenue compared to the prior quarter ($8.1 million in Q3 vs. $9.1 million in Q2), attributed to the continued shift away from unprofitable and nonrecurring projects.
* Managed Services revenue growth slowed, but remained positive year-to-date, up 14%.
* Operating expenses (excluding cost of revenue) fell further quarter-over-quarter, reflecting continued cost discipline.
* Management's tone and strategic focus remained consistent, emphasizing transformation, enterprise account growth, and technology investment.
* No analyst questions were fielded this quarter, in contrast to several detailed questions in Q2, which focused on M&A, bookings, and expense management.

RISKS AND CONCERNS

* Biere cited "more cautious marketing spend among certain enterprise and agency clients amid broader economic uncertainty, including tariff impacts."
* The company noted that "individual bookings are expected to become higher in value but less consistent in timing, which can impact comparability."
* Contract backlog decreased from $15.5 million at the beginning of the year to $7.1 million at quarter end, reflecting the strategic focus on higher-quality accounts and continued macroeconomic caution.
* Management cited cost control and a strong balance sheet as key mitigation strategies.

FINAL TAKEAWAY

Management underscored that IZEA’s transformation towards sustainable, profitable growth continues to gain traction, with three consecutive quarters of improvement. Despite a strategic reduction in revenue from nonrecurring work, the company reported positive net income, expanding enterprise client relationships, and accelerated technology investments, especially in AI-powered platform enhancements. The leadership team remains optimistic about delivering further value, supported by a strengthened balance sheet and disciplined cost management.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/izea/earnings/transcripts]

MORE ON IZEA WORLDWIDE

* IZEA Worldwide, Inc. (IZEA) Q3 2025 Earnings Call Prepared Remarks Transcript [https://seekingalpha.com/article/4842818-izea-worldwide-inc-izea-q3-2025-earnings-call-prepared-remarks-transcript]
* Seeking Alpha’s Quant Rating on IZEA Worldwide [https://seekingalpha.com/symbol/IZEA/ratings/quant-ratings]
* Historical earnings data for IZEA Worldwide [https://seekingalpha.com/symbol/IZEA/earnings]
* Financial information for IZEA Worldwide [https://seekingalpha.com/symbol/IZEA/income-statement]