Bright Mountain Narrows Q3 Loss Amidst Revenue Dip, Debt Mounts

Ticker: BMTM · Form: 10-Q · Filed: Nov 7, 2025

Sentiment: bearish

Topics: Digital Media, Advertising Technology, Net Loss, Debt, Going Concern, SEC Filing, Financial Risk

Related Tickers: BMTM

TL;DR

**BMTM is bleeding cash and piling on debt, making it a high-risk bet despite some revenue growth.**

AI Summary

Bright Mountain Media, Inc. (BMTM) reported a net loss of $2,833,000 for the three months ended September 30, 2025, an improvement from a net loss of $3,256,000 in the same period of 2024. Revenue slightly decreased to $13,940,000 for the third quarter of 2025, down from $14,151,000 in the prior year, representing a 1.5% decline. However, for the nine months ended September 30, 2025, revenue increased to $43,538,000 from $39,602,000 in 2024, a 9.9% rise. The company's gross margin for the quarter was $4,254,000, a slight decrease from $4,387,000 in Q3 2024. Operating income improved significantly to $155,000 for the quarter, compared to an operating loss of $27,000 in Q3 2024. Total liabilities increased to $110,984,000 as of September 30, 2025, from $105,197,000 at December 31, 2024, primarily due to an increase in the Centre Lane Senior Secured Credit Facility to $81,237,000. The company continues to face substantial doubts about its ability to continue as a going concern, as highlighted in the forward-looking statements.

Why It Matters

Bright Mountain Media's continued net losses and increasing debt, particularly the $81.2 million owed to Centre Lane, signal significant financial instability for investors. While the company saw a 9.9% revenue increase year-to-date, the quarterly revenue dip and substantial 'going concern' warning raise red flags about its competitive position in the volatile digital media and advertising market. Employees face uncertainty given the company's financial health, and customers might question the long-term viability of a partner with such a precarious balance sheet. The broader market will watch if BMTM can leverage its digital publishing and ad tech segments to reverse its deficit trend against larger, more stable competitors.

Risk Assessment

Risk Level: high — The company explicitly states 'substantial doubts about our ability to continue as a going concern' in its forward-looking statements. Total liabilities increased by $5,787,000 to $110,984,000 as of September 30, 2025, from $105,197,000 at December 31, 2024, driven by a significant related-party debt of $81,237,000 to Centre Lane. This, coupled with an accumulated deficit of $177,002,000, indicates severe financial distress.

Analyst Insight

Investors should exercise extreme caution and consider avoiding BMTM given the explicit 'going concern' warning and escalating debt. Current shareholders should evaluate their position, as the company's financial instability and ongoing losses present a high risk of further capital erosion.

Financial Highlights

debt To Equity
Not Applicable
revenue
$43,538,000
operating Margin
1.1%
total Assets
$37,617,000
total Debt
$110,984,000
net Income
($10,150,000)
eps
Not Disclosed
gross Margin
26.6%
cash Position
$553,000
revenue Growth
+9.9%

Revenue Breakdown

SegmentRevenueGrowth
Advertisement Sales$13,940,000-1.5%
Programmatic Advertising FacilitationNot DisclosedNot Disclosed
Creative and Media Marketing CampaignsNot DisclosedNot Disclosed
Research and Intelligence ServicesNot DisclosedNot Disclosed
Creative and Media ServicesNot DisclosedNot Disclosed

Key Numbers

Key Players & Entities

FAQ

What were Bright Mountain Media's revenues for the third quarter of 2025?

Bright Mountain Media's revenue for the three months ended September 30, 2025, was $13,940,000, a slight decrease from $14,151,000 in the same period of 2024.

Did Bright Mountain Media achieve profitability in Q3 2025?

No, Bright Mountain Media reported a net loss of $2,833,000 for the three months ended September 30, 2025, although this was an improvement from the $3,256,000 net loss in Q3 2024.

What is Bright Mountain Media's current debt situation?

Bright Mountain Media's total liabilities increased to $110,984,000 as of September 30, 2025. A significant portion of this is the Centre Lane Senior Secured Credit Facility, which stood at $81,237,000.

What are the primary risks highlighted in Bright Mountain Media's 10-Q filing?

The primary risks include 'substantial doubts about our ability to continue as a going concern,' dependence on equity sales and borrowings, and the ability to refinance or repay substantial indebtedness owed to Centre Lane.

How has Bright Mountain Media's cash position changed?

Bright Mountain Media's cash and cash equivalents decreased significantly to $553,000 as of September 30, 2025, from $2,546,000 at December 31, 2024.

What is the 'going concern' warning in Bright Mountain Media's filing?

The 'going concern' warning indicates that management has substantial doubts about the company's ability to continue operating for the foreseeable future, typically due to recurring losses or negative cash flows, as evidenced by their accumulated deficit of $177,002,000.

What is Bright Mountain Media's business model?

Bright Mountain Media is an end-to-end digital media and advertising services company, focusing on digital publishing (e.g., Mom.com), advertising technology, consumer insights, creative services, and media services.

How many shares of common stock does Bright Mountain Media have outstanding?

As of November 1, 2025, Bright Mountain Media had 178,440,337 shares of its common stock outstanding.

What was Bright Mountain Media's operating income for the third quarter of 2025?

Bright Mountain Media reported an income from operations of $155,000 for the three months ended September 30, 2025, a notable improvement from an operating loss of $27,000 in the prior year's third quarter.

What impact does the Centre Lane Senior Secured Credit Facility have on Bright Mountain Media?

The Centre Lane Senior Secured Credit Facility is a significant financial burden, with $9,189,000 in interest expense for the nine months ended September 30, 2025, and a total outstanding balance of $81,237,000, contributing to the company's substantial debt and 'going concern' risk.

Risk Factors

Industry Context

Bright Mountain Media operates in the digital advertising and media services sector, which is highly competitive and rapidly evolving. The industry is characterized by a shift towards programmatic advertising, data-driven optimization, and integrated creative services. Companies in this space face pressure to innovate and adapt to changing advertiser demands and technological advancements.

Regulatory Implications

As a publicly traded company, Bright Mountain Media is subject to SEC regulations and accounting standards. Compliance with these rules, including accurate financial reporting and disclosures, is critical. Any missteps in regulatory compliance could lead to investigations, fines, and reputational damage.

What Investors Should Do

  1. Monitor Debt Covenants
  2. Assess Cash Burn Rate
  3. Evaluate Revenue Sustainability
  4. Scrutinize Going Concern Disclosure

Key Dates

Glossary

DSPs
Demand-Side Platforms, which are technology platforms used by advertisers and agencies to buy digital advertising space. (Mentioned as a key component in the company's programmatic advertising facilitation services.)
SSPs
Supply-Side Platforms, which are technology platforms used by publishers to sell digital advertising space. (Mentioned as a key component in the company's programmatic advertising facilitation services, bridging buyers (DSPs) and sellers (SSPs).)
Accumulated Deficit
The cumulative net losses of a company over its lifetime that have not been offset by net income. (Indicates the company's long-standing history of unprofitability, with a deficit of $177.0 million as of September 30, 2025.)
Centre Lane Senior Secured Credit Facility
A type of loan provided by Centre Lane, which is secured by the company's assets and has priority over other debts in case of liquidation. (This facility represents a significant portion of the company's liabilities, increasing to $81.24 million as of September 30, 2025.)
Stockholders' Deficit
Occurs when a company's liabilities exceed its assets, resulting in a negative equity position. (Highlights the company's negative net worth, which has worsened to ($73.37 million) as of September 30, 2025.)
Going Concern
An accounting assumption that a business will continue to operate for the foreseeable future. (The company faces substantial doubts about its ability to continue as a going concern, as noted in the forward-looking statements.)
Working Capital Deficit
A situation where a company's current liabilities exceed its current assets. (The company had a working capital deficit of approximately $17.3 million as of September 30, 2025, indicating short-term liquidity issues.)

Year-Over-Year Comparison

Compared to the prior year's comparable periods, Bright Mountain Media shows mixed results. While YTD revenue increased by 9.9% to $43.54 million, Q3 revenue saw a slight 1.5% decline to $13.94 million. The company has improved its operating income from a loss of $27,000 in Q3 2024 to a gain of $155,000 in Q3 2025, and net losses have narrowed both quarterly and year-to-date. However, total liabilities have increased, driven by the Centre Lane credit facility, and the stockholders' deficit has worsened, alongside a significant reduction in cash reserves, indicating persistent financial challenges.

Filing Stats: 4,448 words · 18 min read · ~15 pages · Grade level 18.5 · Accepted 2025-11-07 14:31:37

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1. Unaudited Consolidated Financial Statements: 5 Consolidated Balance Sheets as of September 30, 2025 (unaudited) and December 31, 2024 5 Unaudited Consolidated Statements of Operations and Comprehensive Loss for the three and nine months ended September 30, 2025 and 2024 6 Unaudited Consolidated Statements of Changes in Stockholders' Deficit for the nine months ended September 30, 2025 and 2024 7 Unaudited Consolidated Statements of Cash Flows for the nine months ended September 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 34 Item 3. Quantitative and Qualitative Disclosure About Market Risk 50 Item 4.

Controls and Procedures

Controls and Procedures 50

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 52 Item 1A.

Risk Factors

Risk Factors 52 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 52 Item 3. Default Upon Senior Securities 53 Item 4. Mine Safety Disclosures 53 Item 5. Other Information 53 Item 6. Exhibits 54

Signatures

Signatures 55 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) September 30, 2025 December 31, 2024 * (unaudited) Assets Current assets: Cash and cash equivalents $ 553 $ 2,546 Restricted cash 1,861 1,861 Accounts receivable, net 14,224 15,033 Prepaid expenses and other current assets 790 859 Total current assets 17,428 20,299 Property and equipment, net 61 69 Intangible assets, net 11,989 13,406 Goodwill 7,785 7,785 Operating lease right-of-use assets, net 195 253 Other long-term assets 159 158 Total assets $ 37,617 $ 41,970 Liabilities and Stockholders' Deficit Current liabilities: Accounts payable and accrued expenses $ 21,215 $ 22,667 Other current liabilities 3,081 4,401 Interest payable - Centre Lane Senior Secured Credit Facility - related party - 21 Deferred revenue 5,296 2,883 Note payable - Centre Lane Senior Secured Credit Facility - related party (current) 5,120 3,808 Total current liabilities 34,712 33,780 Other long-term liabilities 52 169 Note payable - Centre Lane Senior Secured Credit Facility - related party (long-term) 76,117 71,043 Finance lease liabilities - 20 Operating lease liabilities 103 185 Total liabilities 110,984 105,197 Stockholders' deficit: Convertible preferred stock, par value $ 0.01 , 20,000,000 shares authorized, no shares issued or outstanding at September 30, 2025 and December 31, 2024, respectively - - Common stock, par value $ 0.01 , 324,000,000 shares authorized, 180,347,712 and 177,464,827 issued, and 178,440,337 and 176,114,652 outstanding at September 30, 2025 and December 31, 2024, respectively 1,803 1,775 Treasury stock at cost, 1,907,375 and 1,350,175 shares at September 30, 2025 and December 31, 2024, respectively ( 220 ) ( 220 ) Additional paid-in capital

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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 nine months ended September 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 co

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 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 September 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 $ 249,000 as of September 30, 2025, and $ 2.3 million as of December 31, 2024. As of September 30, 2025 and December 31, 2024, the Company did

View on Read The Filing