10-Q · May 14, 2026
FreeCast, Inc. reported significant declines in revenue and operating metrics for Q1 2026, with a 61% drop in subscription revenue year-over-year and a net loss of $4,533,974. While FAST revenue rose by 75%, overall…
Earnings analysis · 10-K
CAST earnings analysis
Filed September 28, 2026 · Our reading of the company's report
The latest report
FreeCast is repositioning around a white-label PaaS and FAST platform, and fiscal 2026 showed strong advertising and FAST growth alongside a substantial gross-margin improvement. Nevertheless, the company remains deeply…
Read full summary
FreeCast is repositioning around a white-label PaaS and FAST platform, and fiscal 2026 showed strong advertising and FAST growth alongside a substantial gross-margin improvement. Nevertheless, the company remains deeply unprofitable, generated approximately negative $10.1 million of free cash flow, and relies on equity and related-party financing to fund operations. Materially concentrated customers and related-party revenue, potential dilution, and an ineffective control environment keep the overall outlook bearish despite improved liquidity and subscriber growth.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.62
- Segment
- Single operating and reportable segment; fiscal 2026 revenue was $710,882, consisting of $385,602 advertising, $267,509 FAST-related-party, $56,311 membership, and $1,460 other revenue.
What stood out
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PaaS and FAST platform expansion
FreeCast describes a white-label Platform-as-a-Service strategy that lets partners offer branded entertainment hubs while FreeCast monetizes advertising, FAST services, subscriptions, licensing, pay-per-view, connectivity, and e-commerce. The company says it has aggregated over 500 FAST channels.
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Advertising drove revenue growth
Revenue increased to $710,882 in fiscal 2026 from $628,149 in fiscal 2025, a 13.2% increase. Advertising revenue rose 41.7% to $385,602 and FAST revenue rose 20.6% to $267,509, partially offset by a 57.6% decline in membership revenue to $56,311.
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Major gross-margin improvement
Gross profit increased to $583,326 from $281,568, lifting gross margin to approximately 82.0% from 44.8%, as cost of revenue fell 63.2% to $127,556. This was the clearest profitability inflection, although the company remained deeply loss-making.
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Lower cash burn and higher liquidity
Operating cash burn improved to $10,029,873 from $12,332,291, while capital expenditures were only $23,199, implying approximately negative $10.1 million of free cash flow. The company ended the year with $8,919,833 of cash versus $549,249 a year earlier.
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Subscriber growth but weaker monetization
Subscriber registrations increased from 975,501 at June 30, 2025 to 1,194,219 at June 30, 2026. However, revenue excluding advertising and FAST per subscriber fell from $0.14 to $0.05, indicating that user growth has not yet translated into equivalent monetization.
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Financing extended operating runway
The company completed a July 2, 2026 private placement generating approximately $23.7 million of gross proceeds and $22.3 million net proceeds. It also has a potential equity line of up to $50 million through April 1, 2029, subject to a Nasdaq 19.99% issuance cap unless shareholder approval is obtained.
What to watch
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Material weakness in financial controls
Management concluded that disclosure controls and procedures were not effective as of June 30, 2026 because of a material weakness involving inadequate review and approval controls for complex equity transactions. The company says remediation has begun but will not consider the weakness remediated until controls operate effectively and testing supports that conclusion.
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Persistent losses and funding dependence
The business remains structurally unprofitable: fiscal 2026 operating loss was $12,678,450, net loss was $13,044,799, and accumulated deficit reached $219,691,498. Cash used in operations was $10,029,873, requiring continued external financing despite the July 2026 capital raise.
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Customer and related-party concentration
Customer and related-party concentration increased the risk of revenue volatility and governance conflicts. Launch That, related-party Celebrity Cigars, and Del Air represented 31.7%, 30.2%, and 19.4% of fiscal 2026 revenue, respectively; related-party FAST revenue was $267,509, or approximately 37.6% of total revenue.
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Unproven monetization and competition
The shift to free registration increased subscribers but reduced monetization: revenue excluding FAST and advertising per subscriber declined from $0.14 to $0.05. The company also states that international expansion depends on sufficient capital, staffing, and infrastructure and may face low-cost competitors and easy consumer switching.
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Equity dilution risk
Potential dilution is substantial. The company had 5,003,287 anti-dilutive common-stock equivalents at June 30, 2026, while the equity line could provide up to $50 million of additional stock financing and the July financing included pre-funded warrants exercisable for up to 3,243,807 Class A shares.
Management's outlook
The 10-K provides no quantitative revenue or EPS guidance. Management states that, including the July 2026 financing proceeds, it believes liquidity is sufficient to fund operations, planned capital expenditures, and working capital for at least the next twelve months.
Earlier filings 2
10-Q · March 30, 2026
FreeCast reported revenue of $62,090 for the quarter ended December 31, 2025, down from $151,545 a year earlier, while six‑month revenue was $257,950 versus $269,952 a year earlier. Gross profit for the six months…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.