10-Q · May 12, 2026
IZEA reported Q1 2026 revenues of $6.57 million, down 18% year-over-year, primarily driven by a strategic shift towards enterprise clients. The net loss increased significantly to $0.78 million from a net loss of $0.14…
Earnings analysis · 10-Q
IZEA earnings analysis
Filed August 11, 2026 · Our reading of the company's report
The latest report
IZEA’s second-quarter performance deteriorated materially, with revenue down 36% year over year to $5.8 million, gross margin down 14 percentage points to approximately 38.0%, and diluted EPS declining from $0.07 to…
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IZEA’s second-quarter performance deteriorated materially, with revenue down 36% year over year to $5.8 million, gross margin down 14 percentage points to approximately 38.0%, and diluted EPS declining from $0.07 to $(0.04). The company’s enterprise transition, softer customer commitments, and campaign timing continue to pressure bookings and revenue, while six-month operating cash flow turned negative at $2.7 million. Liquidity remains a near-term strength with $46.6 million of cash and no significant borrowings, and management expects the ZED platform to reach broad production release in the second half of 2026.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
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
- $-0.04
- Segment
- Single reportable segment: $5,807,086 revenue, down 36% year over year; Managed Services revenue was $5,711,285, down 36.9%, and SaaS Services revenue was $95,801, up 19.4%.
What stood out
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Revenue fell 36% year over year
Revenue declined to $5,807,086 from $9,133,232, a decrease of $3,326,146 or 36% year over year. Management attributed the decline to the shift away from SMB customers, softer enterprise spending, and campaign launch timing and project delays.
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Gross margin contracted 14 points
Gross margin was approximately 38.0%, down from 52.0% in the prior-year quarter, a 14.0 percentage-point decline. Cost of revenue decreased 18% to $3,602,737, less than the 36% revenue decline because fixed and semi-fixed delivery costs remained.
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Profitability reversed to a loss
The company reported a $1,066,514 operating loss versus $737,810 of operating income in the prior-year quarter, taking operating margin to approximately negative 18.4% from positive 8.1%. Net loss was $683,915, or diluted EPS of $(0.04), versus net income of $1,205,068, or $0.07 per diluted share.
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SaaS grew while core services shrank
Managed Services revenue was $5,711,285 versus $9,053,031 in the prior-year quarter, while SaaS Services revenue increased to $95,801 from $80,201. The company operates as one operating and one reportable segment.
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Liquidity supports the next 12 months
Cash and cash equivalents remained substantial at $46,600,679, although they declined $4,286,171 from $50,886,850 at December 31, 2025. Management stated that existing resources are sufficient to fund operations and planned investments for at least the next twelve months.
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ZED rollout remains a growth catalyst
ZED was introduced in the first quarter of 2026 and is undergoing limited production testing through select customer campaigns. The company capitalized $517,525 of software development costs during the first six months and expects broad production release during the second half of 2026.
What to watch
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Bookings and enterprise demand weakened
Managed Services bookings declined to $4.5 million from $5.6 million in the prior-year quarter. Management said slower customer commitments and enterprise contract awards are expected to continue influencing near-term revenue trends, while revenue conversion averages approximately seven months.
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Negative operating cash flow
Operating cash flow was negative $2,730,456 for the six months ended June 30, 2026, versus positive $1,245,988 in the prior-year period. Cash usage included $517,525 of capitalized software development costs, $53,127 of property and equipment purchases, and $501,543 of treasury-stock repurchases.
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Customer concentration persists
Revenue concentration remains material: two customers represented 16.2% and 18.5% of quarterly revenue, while three customers accounted for 11.0%, 18.6%, and 19.8% of accounts receivable at June 30, 2026. The filing states there were no material changes to the risk factors in the 2025 Form 10-K, but customer concentration creates exposure to reduced spending or customer loss.
Management's outlook
No quantitative revenue or EPS guidance was provided. Management expects broad production release of the ZED platform during the second half of 2026 and believes cash resources are sufficient to fund operations and planned investments for at least the next twelve months. Early third-quarter customer activity was described as encouraging, although campaign timing may defer revenue recognition later in the year.
Earlier filings 4
10-K · March 17, 2026
IZEA describes a strategy focused on technology-enabled Managed Services for enterprise marketers, supported by proprietary platforms (Flex, Marketplace) and AI tools. Revenue concentrated in Managed Services…
10-Q · November 12, 2025
IZEA reported Q3 2025 revenue of $8.07 million, a 8.6% decrease from $8.83 million in Q3 2024. The company recorded a net income of $147,745, representing an improvement compared to the significant loss of $8.77 million…
10-Q · August 12, 2025
IZEA reported a profitable quarter with revenue of $9,133,232 and net income of $1,205,068 (diluted EPS $0.07) for the three months ended June 30, 2025. Gross margin expanded to 52.0% and operating income was $737,810,…
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