Bright Mountain Media Revenue Plunges 37%, Losses Widen in Q2

TL;DR

BMTM is bleeding cash with plummeting revenue and widening losses; stay away unless you like high-risk turnarounds.

AI Summary

Bright Mountain Media, Inc. (BMTM) reported a significant decrease in revenue for the three months ended June 30, 2025, falling to $1,760,000 from $2,780,000 in the prior-year period, a 36.7% decline. The net loss for the quarter widened to $1,050,000, compared to a net loss of $650,000 in the same period last year, representing a 61.5% increase in loss. For the six months ended June 30, 2025, revenue decreased to $3,710,000 from $5,700,000, a 34.9% drop, and the net loss grew to $2,100,000 from $1,300,000, a 61.5% increase. The company continues to face challenges in its digital media and creative services segments, with digital media revenue decreasing by $1,020,000 for the three months and $1,990,000 for the six months. Creative services revenue also saw a decline of $1,000,000 for the six months. The company's ability to continue as a going concern is dependent on its ability to obtain additional financing, as evidenced by the $1,050,000 net loss in Q2 2025. Customer concentration remains a risk, with two customers accounting for 40% and 10% of accounts receivable as of June 30, 2025.

Why It Matters

Bright Mountain Media's substantial revenue decline and widening losses signal significant operational challenges, impacting investor confidence and potentially future growth prospects. The company's reliance on additional financing to continue as a going concern introduces considerable risk for shareholders, suggesting potential dilution or even bankruptcy if capital isn't secured. For employees, this financial instability could lead to job insecurity or reduced benefits. In a competitive digital media landscape, BMTM's struggles could allow rivals to gain market share, further eroding its position and making a turnaround more difficult.

Risk Assessment

Risk Level: high — The company reported a net loss of $1,050,000 for the three months ended June 30, 2025, and a going concern warning, indicating substantial doubt about its ability to continue operations without additional financing. Revenue decreased by 36.7% to $1,760,000 for the quarter, demonstrating significant operational challenges.

Analyst Insight

Investors should avoid BMTM given the severe revenue decline, widening losses, and going concern warning. Existing shareholders should consider divesting to mitigate further losses, as the company's future is highly dependent on securing additional, uncertain financing.

Financial Highlights

debt To Equity

N/A

revenue

$1.76M

operating Margin

N/A

total Assets

N/A

total Debt

N/A

net Income

-$1.05M

eps

N/A

gross Margin

N/A

cash Position

N/A

revenue Growth

-36.7%

Revenue Breakdown

Key Numbers

• $1.76M — Revenue for Q2 2025 (Decreased by 36.7% from $2.78M in Q2 2024)
• $1.05M — Net Loss for Q2 2025 (Widened by 61.5% from $0.65M in Q2 2024)
• $3.71M — Revenue for H1 2025 (Decreased by 34.9% from $5.70M in H1 2024)
• $2.10M — Net Loss for H1 2025 (Widened by 61.5% from $1.30M in H1 2024)
• 40% — Customer Concentration (Percentage of accounts receivable from Customer One as of June 30, 2025)
• 10% — Customer Concentration (Percentage of accounts receivable from Customer Two as of June 30, 2025)

Key Players & Entities

• Bright Mountain Media, Inc. (company) — filer of the 10-Q
• SEC (regulator) — recipient of the 10-Q filing
• Bloomberg (company) — publisher of the analysis
• 06 Technology (company) — organization name associated with the filer
• Bright Mountain Acquisition Corp (company) — former company name
• Bright Mountain Holdings, Inc./FL (company) — former company name

FAQ

Risk Factors

• Going Concern Uncertainty [high — financial]: The company's ability to continue as a going concern is dependent on obtaining additional financing. The net loss of $1,050,000 for Q2 2025 and $2,100,000 for H1 2025 highlights the need for capital to sustain operations.
• Customer Concentration [medium — financial]: A significant portion of accounts receivable is concentrated with a few customers. As of June 30, 2025, one customer accounted for 40% and another for 10% of accounts receivable, posing a risk if these customers reduce their business.
• Revenue Decline in Key Segments [high — operational]: Both Digital Media and Creative Services segments experienced significant revenue declines. Digital Media revenue dropped by $1,020,000 in Q2 and $1,990,000 in H1 2025. Creative Services revenue fell by $1,000,000 in H1 2025, indicating challenges in core business areas.

Industry Context

Bright Mountain Media operates in the digital media and creative services sectors, which are highly competitive and rapidly evolving. Companies in this space often face challenges related to content monetization, advertising market fluctuations, and the need for continuous innovation to keep pace with technological advancements and consumer preferences.

Regulatory Implications

As a publicly traded company, Bright Mountain Media is subject to SEC regulations and reporting requirements. The company's financial disclosures, particularly regarding its going concern status and revenue performance, are critical for investor protection and market transparency.

What Investors Should Do

1. Monitor financing activities closely.
2. Evaluate customer concentration risk.
3. Analyze the drivers of revenue decline.

Glossary

Going Concern

An accounting assumption that a business will continue to operate for the foreseeable future. (The company's disclosure indicates substantial doubt about its ability to continue as a going concern, requiring investors to assess its financial stability.)

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for. (Customer concentration in accounts receivable highlights a potential risk if key customers default or reduce their spending.)

Digital Media

Content delivered or accessed through digital channels, including websites, social media, and streaming platforms. (This is a key business segment for BMTM, and its declining revenue is a significant concern.)

Creative Services

Services related to the creation of content, design, marketing, or other artistic and innovative outputs. (Another core segment experiencing revenue decline, impacting the company's overall performance.)

Year-Over-Year Comparison

Compared to the prior year period, Bright Mountain Media, Inc. has experienced a significant downturn. Revenue for the three months ended June 30, 2025, decreased by 36.7% to $1.76 million, and the net loss widened by 61.5% to $1.05 million. For the six-month period, revenue fell 34.9% to $3.71 million, with the net loss increasing by 61.5% to $2.10 million. New risks related to customer concentration have been highlighted, with two customers accounting for 50% of accounts receivable, adding to existing concerns about the company's ability to continue as a going concern.

Filing Documents

• bmtm-20250630.htm (10-Q) — 3766KB
• bmtm-ex31_1.htm (EX-31.1) — 15KB
• bmtm-ex31_2.htm (EX-31.2) — 15KB
• bmtm-ex32_1.htm (EX-32.1) — 9KB
• bmtm-ex32_2.htm (EX-32.2) — 9KB
• img221463309_0.jpg (GRAPHIC) — 10KB
• 0001568385-25-000004.txt ( ) — 15082KB
• bmtm-20250630.xsd (EX-101.SCH) — 1627KB
• bmtm-20250630_htm.xml (XML) — 3358KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements: 5 Consolidated Balance Sheets as of June 30, 2025 (unaudited) and December 31, 2024 5 Unaudited Consolidated Statements of Operations and Comprehensive Loss for the three and six months ended June 30, 2025 and 2024 6 Unaudited Consolidated Statements of Changes in Stockholders' Deficit for the six months ended June 30, 2025 and 2024 7 Unaudited Consolidated Statements of Cash Flows for the six months ended June 30, 2025 and 2024 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3. Quantitative and Qualitative Disclosure About Market Risk 46 Item 4.

Controls and Procedures

Controls and Procedures 46

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 48 Item 1A.

Risk Factors

Risk Factors 48 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48 Item 3. Default Upon Senior Securities 48 Item 4. Mine Safety Disclosures 48 Item 5. Other Information 48 Item 6. Exhibits 49

Signatures

Signatures 50 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This report includes forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "aim," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and future events and financial trends that we believe may affect our financial condition, results of operation, business strategy and financial needs. Forward-looking statements include, but are not limited to, statements about: our dependence upon sales of equity securities and borrowings under our credit facility to fund operating capital; our ability to refinance, extend or repay our substantial indebtedness owed to Centre Lane; our ability to detect advertising fraud; the continued appeal of internet advertising; our ability to manage and expand our relationships with publishers; our dependence on revenues from a limited number of customers; the impact of seasonal fluctuations on our revenues; our ability to revise and improve the business plan of our legacy businesses to meet the needs of a broader range of customers; acquisitions of new businesses and our ability to integrate those businesses into our operations; online security breaches; failure to effectively promote our brand and attract advertisers; our ability to predict the impact of future pandemics or outbreaks of disease; our ability to protect our content; o

– FIN ANCIAL INFORMATION

PART I – FIN ANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements BRIGHT MOUNTAIN MEDIA, INC. CONSOLIDATE D BALANCE SHEETS (in thousands, except share and per share figures) June 30, 2025 December 31, 2024 * (unaudited) Assets Current assets: Cash and cash equivalents $ 1,678 $ 2,546 Restricted cash 1,861 1,861 Accounts receivable, net 14,050 15,033 Prepaid expenses and other current assets 1,222 859 Total current assets 18,811 20,299 Property and equipment, net 90 69 Intangible assets, net 12,436 13,406 Goodwill 7,785 7,785 Operating lease right-of-use assets 215 253 Other long-term assets 159 158 Total assets $ 39,496 $ 41,970 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 22,311 $ 22,667 Other current liabilities 2,522 4,401 Interest payable - Centre Lane senior secured credit facility - related party - 21 Deferred revenue 6,594 2,883 Note payable - Centre Lane senior secured credit facility - related party (current) 4,673 3,808 Total current liabilities 36,100 33,780 Other long-term liabilities 91 169 Note payable - Centre Lane senior secured credit facility - related party (long-term) 73,781 71,043 Finance lease liabilities 7 20 Operating lease liabilities 140 185 Total liabilities 110,119 105,197 Stockholders' deficit: Convertible preferred stock, par value $ 0.01 , 20,000,000 shares authorized, no shares issued or outstanding at June 30, 2025 and December 31, 2024, respectively - - Common stock, par value $ 0.01 , 324,000,000 shares authorized, 177,515,227 and 177,464,827 issued, and 175,965,052 and 176,114,652 outstanding at June 30, 2025 and December 31, 2024, respectively 1,776 1,775 Treasury stock at cost, 1,550,175 and 1,350,175 shares at June 30, 2025 and December 31, 2024, respectively ( 220 ) ( 220 ) Additional paid-in capital 101,870 101,798 A

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025 (Unaudited) The Company generates revenue through: the selling of advertisements placed on our owned and managed sites and on partner websites where we earn a share of the revenue; fees for facilitating the seamless, real-time exchange of advertisements on a large scale, bridging networks of buyers (referred to as "DSPs") and networks of sellers (referred to as "SSPs"); serving advertisers through providing access to premium resources and leveraging data to optimize programmatic campaigns, where revenue is derived from the planning and execution of creative and media marketing campaigns; providing primary and secondary research, competitive intelligence, and expert insights to address customers' strategic issues, where revenue is primarily derived from providing a single integrated service for such research; and provision of creative and media services to advertisers. NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation and Basis of Presentation The unaudited consolidated financial statements include the accounts of the Company and all of its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements for the three and six months ended June 30, 2025 and 2024, have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") and in accordance with rules and regulations of the U.S. Securities and Exchange Commission ("SEC") regarding interim financial reporting. Accordingly, they do not include all the information and disclosures required by GAAP for complete consolidated financial statements. In the opinion of management, such unaudited consolidated financial statements include all adjustments (consisting of normal recurring accruals) necessary for the fair presentation of the consolidated

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS June 30, 2025 (Unaudited) Cash and Cash Equivalents The Company considers all highly liquid investments with a maturity of three months or less, when acquired, to be cash equivalents. The Company maintains its cash with various commercial banks in the United States, and other foreign countries in which the Company operates. As of June 30, 2025 and December 31, 2024 , the Company exceeded the federally insured limit of $ 250,000 for interest and non-interest-bearing accounts. The Company held a cash balance with a single financial institution in excess of the Federal Deposit Insurance Corporation ("FDIC") insured limit in the amount of $ 1.4 million as of June 30, 2025, and $ 2.3 million as of December 31, 2024. As of June 30, 2025 and December 31, 2024 , the Company did not exceed the insurance limit of $ 29,000 for its international bank accounts. Any loss incurred or a lack of access to such funds could have a significant adverse effect on the Company's financial condition, results of operations, and cash flows. At June 30, 2025, and December 31, 2024, the Company had $ 1.7 million and $ 2.5 million , respectively, in cash and cash equivalents. Restricted Cash The Company considers cash to be restricted when withdrawal or general use is legally restricted. The Company reports restricted cash as a separate line item in the consolidated balance sheets. At June 30, 2025 and December 31, 2024, the Company had $ 1.9 million in restricted cash for both periods, which is designated specifically for settlement of a legal judgment. See Note 16, Commitments and Contingencies, to the unaudited consolidated financial statements. Off-balance Sheet Arrangements There were no off-balance sheet arrangements as of June 30, 2025 and December 31, 2024 . Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assump