Earnings call · Jun 2026 (Q2 FY26)

Rumble Q2 FY26 earnings call RUM

Aug 10, 2026 Source

Executive summary

RUM Group Q2 FY26 — Transformational Quarter with Northern Data Acquisition and AI Infrastructure Focus

RUM Group completed its acquisition of Northern Data, rebranding the parent company and establishing Quake AI as a new cloud and AI infrastructure business alongside its Rumble video platform. This strategic move positions the company as an end-to-end AI infrastructure provider, with significant unmonetized power capacity targeted for future revenue generation. Management is focused on integrating the new AI capabilities and transitioning to segment-based reporting next quarter to provide clearer operational insights.

Highlights

Revenue for Q2 FY26 was $40.4 million, up 61% year-over-year from $25.1 million in Q2 FY25.
Adjusted EBITDA loss improved to $16.6 million from a loss of $20.5 million in Q2 FY25.
Quake AI's existing GPU estate is running at more than 85% utilization, a sharp increase.
Signed a multiyear agreement with Together AI to deploy NVIDIA HGX B300 GPU capacity, validating RUM Group as a credible AI infrastructure provider.
Average global monthly active users (MAU) for the Video business reached $57 million, with ARPU up 20% quarter-over-quarter to $0.48.

Concerns

Net loss for the quarter was $80.3 million, compared to a net loss of $30.2 million in Q2 FY25, primarily due to $28.3 million in acquisition-related transaction costs.
Cost of services increased to $30.6 million from $26.5 million, driven by higher programming, content, and incremental data center expenses from Northern Data.
General and administrative expenses rose to $16.3 million from $11.7 million, with Northern Data contributing $5 million in payroll and administrative costs.

Guidance & targets

Category	Target	Timeline	Confidence
Revenue	$87 million to $93 million high materiality	Q3 · FY26	High
Annual Run Rate Opportunity from Unmonetized Power Capacity	$3 billion-plus high materiality	Annual	Medium

Deals & partnerships

Northern Data Acquisition of approximately 85.2% of outstanding shares to form Quake AI, a new cloud and AI infrastructure business.

The acquisition closed on June 17, leading to the renaming of the parent company to RUM Group Inc. and the establishment of Quake AI, combining Rumble Cloud with Northern Data's GPU estate of roughly 22,000 NVIDIA H100 and H200 GPUs.

Together AI Multiyear agreement to deploy NVIDIA HGX B300 GPU capacity. multiyear

The agreement was signed in June, establishing RUM Group's position outside the traditional hyperscaler ecosystem and reflecting customer trust in their execution.

Risks & headwinds

Increased net loss due to acquisition costs Q2 FY26

Net loss of $80.3 million (or $79.1 million attributable to RUM Group Inc.) in Q2 FY26, compared to $30.2 million in Q2 FY25, primarily driven by $28.3 million in acquisition-related transaction costs.

Mitigation:These are one-time transaction costs associated with the Northern Data acquisition, which is expected to drive significant future revenue and strategic positioning in AI.

Increased operating expenses Q2 FY26

Cost of services increased to $30.6 million (from $26.5 million YoY), G&A increased to $16.3 million (from $11.7 million YoY), R&D increased to $6.8 million (from $4.8 million YoY), and S&M increased to $10.4 million (from $7.9 million YoY).

Mitigation:These increases are attributed to strategic investments for high growth in AI, including incremental data center expenses and payroll from Northern Data, and higher marketing spend. These are considered necessary investments for future growth.

What to watch in Q3 FY26

Q3 FY26 Revenue Guidance

Q3 FY26

Target $87 million to $93 million

Why it matters

This is the first formal revenue guidance issued by the company, reflecting the full impact of the Northern Data acquisition and the new Quake AI business. Meeting or exceeding this range will be critical for establishing credibility and demonstrating successful integration.

For the third quarter of 2026, our first full quarter reflecting Quake AI, we expect revenue between $87 million and $93 million.

Q&A highlights

What are management's thoughts on AI compute pricing when capacity eventually catches up with demand?

Management believes the industry is still in early stages, especially with inferencing and agentic AI, and does not foresee capacity catching up to demand in the next 1-2 years due to continued scarcity.

“I don't see at this point any time in the near future, any point where capacity is going to catch up to the demand on the AI compute side. I think it's scarce. It's very scarce. And I believe at this point in time, I don't see any point in which we're going to have capacity meet that demand in the next 1 to 2 years.”

asked by Unknown Analyst · answered by Christopher Pavlovski

2 min read 5 chapters

Detailed narrative

Strategic Transformation to AI Infrastructure

RUM Group completed the acquisition of Northern Data on June 17, securing approximately 85.2% of its shares and renaming the parent company. This strategic move created two distinct business units: Rumble, the video platform, and Quake AI, a new cloud and AI infrastructure business. Quake AI now combines Rumble Cloud with Northern Data's GPU estate, comprising roughly 22,000 NVIDIA H100 and H200 GPUs, positioning RUM Group as an end-to-end AI infrastructure company.

Quake AI Operational Momentum

Quake AI's existing GPU estate is operating at over 85% utilization, a significant improvement attributed to a focus on customer support and infrastructure as a service execution. This operational efficiency enabled RUM Group to secure a multiyear agreement with Together AI for NVIDIA HGX B300 GPU capacity, validating its credibility as an independent large-scale AI infrastructure provider outside traditional hyperscalers and securing NVIDIA supply allocation.

Future Power Capacity and Monetization

The company is focused on monetizing 250 megawatts of power capacity targeted for 2027, which includes a marquee 180-megawatt site near Atlanta, Georgia, and smaller sites in Pittsburgh, Sweden (50 MW), and Norway (20 MW). Management believes this unmonetized capacity represents a $3 billion-plus annual run rate opportunity. The grid connections and substation infrastructure are already in place for significant deployment next year.

Rumble Video's Evolving Role

While the Rumble Video business continues to grow its user base, with 57 million global monthly active users and $0.48 ARPU, its strategic importance is evolving. The company anticipates that Rumble's extensive spatial and temporal video data will become increasingly valuable for robotic learning and agentic AI in the coming years. Quake AI clientele have already expressed interest in this data, presenting a new potential revenue stream for the creator community and differentiating RUM Group from other cloud providers.

Shift to Segment Reporting

Beginning with the third quarter report, RUM Group will transition to segment reporting, separating Rumble Video and Quake AI with their own revenue and profitability metrics. This change aims to provide greater transparency into capital allocation and the performance of each business unit, offering investors a more useful way to understand the company's diversified operations.

AI-generated summary of the company's earnings call. Not investment advice.