IZEA Worldwide, Inc.
For the period ended Sep 30, 2025. Filed Nov 12, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2025 · Filed Nov 12, 2025
IZEA$2.22+1.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001495231-25-000156
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-12.
0001495231-25-000185
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 111 current paragraphs.
72 unchanged; 22 reworded; 17 added; 11 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (17)
Current report
For contracts in which we act as an agent, revenue is reported on a net basis, which excludes amounts paid to third-party creators, as those costs are passed through to the customer. Cost of revenue for these contracts consists only of our internal labor and other fulfillment costs associated with arranging and managing services on behalf of our customers.
Current report
For our SaaS platform, the cost of revenue primarily includes personnel and related costs associated with customer support, platform maintenance, and other fulfillment activities directly tied to delivering our software services.
Current report
Impairment of Goodwill
Current report
In September 2024, following an interim assessment of goodwill in the Company’s IZEA reporting segment, we determined that the carrying value of the Company’s IZEA reporting segment as of September 30, 2024, exceeded the fair value. As a result of the valuation, the Company recorded a $4.0 million full impairment of goodwill related to prior IZEA acquisitions in the nine months ended September 30, 2024.
Current report
Depreciation and amortization expense for the three months ended September 30, 2025 decreased by $89,109, or approximately 37%, compared to the same period in 2024, due primarily to Intangible Assets becoming fully amortized in 2024.
Current report
Interest expense totaled $1,654 during the three months ended September 30, 2025, compared to $1,654 in the prior year period.
Current report
Results of Operations for the Nine Months Ended September 30, 2025 and 2024
Current report
Revenue during the nine months ended September 30, 2025, increased by $0.3 million, or 1%, from the same period in 2024, which included $2.3 million from Hoozu, which was divested in December 2024. Excluding Hoozu, revenue increased $2.6 million, or 11%, during the nine months ended September 30, 2025. As a result of our shift in focus to expanding our core enterprise customer base, revenue from Managed Services increased quarter over quarter. This increase was driven by strong double-digit growth among large enterprise customers, partially offset by a decline in revenue from non-core, less profitable customers from the prior-year period.
Current report
Impairment of Goodwill
Current report
In September 2024, following an interim assessment of goodwill in the Company’s IZEA reporting segment, we determined that the carrying value of the Company’s IZEA reporting segment as of September 30, 2024, exceeded the fair value. As a result of the valuation, the Company recorded a $4.0 million full impairment of goodwill related to prior IZEA acquisitions in the nine months ended September 30, 2024.
Current report
Depreciation and amortization expense for the nine months ended September 30, 2025, decreased by $209,449, or approximately 31%, compared to the same period in 2024, due primarily to Intangible Assets becoming fully amortized in 2024.
Current report
Interest expense totaled $5,092 during the nine months ended September 30, 2025, compared to $5,654 in the prior year period.
Current report
Managed Services bookings represent total sales orders received during a period, net of cancellations and refunds. Contracts vary by customer and scope, ranging from custom content projects to integrated marketing campaigns, and generally extend from several months up to a year. Managed Services bookings provide a useful measure of overall demand but are not necessarily predictive of quarterly revenue, as the timing of revenue recognition varies with contract size, complexity, and customer arrangements. Certain customers enter into annual spend commitments that establish a defined budget for services to be performed throughout the year, while others engage the Company for specific campaigns or deliverables. These differing contract structures may influence the timing and distribution of bookings and related revenue. The Company uses this metric to evaluate customer and market trends, to plan operational staffing, and to inform product development initiatives.
Current report
Managed Services bookings totaled $3.6 million and $7.9 million for the three months ended September 30, 2025 and 2024, respectively, and $16.7 million and $27.4 million for the nine-month periods then ended. Excluding Hoozu, which the Company divested in December 2024, bookings for the three and nine-month periods in 2024 totaled $6.4 million and $27.4 million, respectively. The decline in bookings for both periods primarily reflects the Company’s strategic shift away from smaller, less strategic customers, which tend to be lower-value, project-based, and generate limited repeat business.
Current report
Beginning early in 2025, we implemented a new account management model, redirecting our focus and resources primarily toward larger, more valuable recurring accounts - our core enterprise customers - while reducing the selling and delivery resources previously devoted to cost-intensive, lower-value, project-based accounts with limited repeat business. This strategic realignment resulted in a reduction in current-year contract bookings, while significantly improving profitability and strengthening our foundation for sustainable growth. We are initiating a structured transition for our non-enterprise customers into a new small and mid-sized business (“SMB”) service model; this targeted approach will allow us to serve a narrower set of these customers profitably, while maintaining strategic alignment with our enterprise objectives.
Current report
Revenue from Managed Services, excluding Hoozu, increased 14% for the nine months ended September 30, 2025, compared to the prior-year period, while overall growth slowed to 5% in the quarter. Growth was driven by expansion within enterprise customers, partly offset by a reduction was concentrated in smaller in non-strategic accounts we intentionally deemphasized.
Current report
We implemented significant cost savings beginning in December 2024 and continuing into 2025 to align operating expenses with anticipated revenue and accelerate our path to profitability. These actions have been effective, resulting in a $10.7 million improvement in EBITDA during the first nine months of 2025, improving from a $9.1 million loss in 2024 to a $1.6 million profit in 2025.
Removed paragraphs (11)
Previous report
Depreciation and amortization expense for the three months ended June 30, 2025 decreased by $76,506, or approximately 34%, compared to the same period in 2024. Depreciation expense on property and equipment was $21,729 and $26,701 for the three months ended June 30, 2025 and 2024, respectively. Amortization expense was $127,513 and $177,629 for the three months ended June 30, 2025 and 2024, respectively. Depreciation and amortization expense decreased compared to the prior-year quarter primarily due to lower amortization expense due to the absence of expense related to legacy platforms that were sunset in 2024.
Previous report
Interest expense totaled $1,784 during the three months ended June 30, 2025, compared to $1,999 in the prior year period.
Previous report
Results of Operations for the Six Months Ended June 30, 2025 and 2024
Previous report
Revenue during the during the six months ended June 30, 2025, increased by $1.1 million, or 7%, from the same period in 2024, which included $1.3 million from Hoozu, which was divested in December 2024. Excluding Hoozu, revenue increased $2.7 million, or 19%, during the six months ended June 30, 2025. Revenue from ongoing customers increased year-over-year due to higher spend from several of our larger existing customers and the addition of new customers.
Previous report
Sales and marketing expense for the six months ended June 30, 2025, decreased by $4.2 million, or approximately
Previous report
Depreciation and amortization expense for the six months ended June 30, 2025, decreased by $120,340, or approximately 28%, compared to the same period in 2024. Depreciation expense on property and equipment was approximately $44,684 and $53,258 for the six months ended June 30, 2025, and 2024. Amortization expense was approximately $264,910 and $376,676 for the six months ended June 30, 2025 and 2024, respectively. Amortization expense related to internal-use software development costs was $264,910 and $252,686 for the six months ended June 30, 2025 and 2024, respectively. The Company did not have any amortization expense related to acquired intangible assets for the six months ended June 30, 2025. The Company recognized $123,990 amortization expense related to acquired intangible assets for the six months ended June 30, 2024.
Previous report
Interest expense totaled $3,438 during the six months ended June 30, 2025, compared to $4,000 in the prior year period.
Previous report
Managed Services Bookings is a measure of all sales orders received during a time period, less any cancellations received, or refunds given during the same time period. Sales order contracts vary in complexity with each customer and range from custom content delivery to integrated marketing services; our contracts generally run from several months for smaller contracts up to twelve months for larger contracts. We recognize revenue from our Managed Services contracts on a percentage of completion basis as we deliver the content or services over time, which can vary greatly. Historically, bookings have converted to revenues over a 6-month period on average. However, since late 2020, we have received increasingly larger and more complex sales orders, which, in turn, has lengthened the average revenue period to approximately 9-months, with the largest contracts taking longer to complete. During the latter half of 2023, the time between bookings and revenue improved to an average of 7.5 months. For this reason, Managed Services Bookings, while an overall indicator of the health of our business, may not be used to predict quarterly revenues and could be subject to future adjustments. Managed Services Bookings is useful information as it reflects the number of orders received in one period, even though revenue from those orders may be reflected over varying amounts of time. We use the Managed Services Bookings metric to plan operational staffing, to identify key customer group trends to enlighten go-to-market activities, and to inform its product development efforts. Managed Services Bookings for the three months ended June 30, 2025 and 2024 was $5.6 million and $10.3 million, respectively. Managed Services Bookings for the six months ended June 30, 2025, and 2024, was $13.1 million and $19.6 million respectively.
Previous report
Revenue from ongoing customers grew 16.2% in the first six months of 2025 compared to the prior-year period. Contract backlog declined from $15.5 million at the start of the year to $11.6 million as of June 30, 2025, reflecting slower contract bookings during the period. Net bookings totaled $13.1 million for the six months ended June 30, 2025, down $5.4 million, or 29%, from the prior year. We believe several factors drove the decline in backlog:
Previous report
•a strategic shift toward larger, more profitable recurring accounts and away from smaller, less economic projects;
Previous report
•reduced internal resource allocation during our organizational transition.
Reworded paragraphs (22)
Previous wording
IZEA Worldwide, Inc. (“IZEA”, “Company,” “we”, “us” or “our”) is a leading innovator in the creator economy, specializing in providing value through managing custom content workflow, creator search and targeting, bidding, analytics, and payment processing. The Company’s mission is to make creator economy solutions for marketers. We offer solutions that range from creator agency services to creator technologies to a marketplace that connects marketers with creators. By fostering these connections, we light up the creator economy with IZEAs - social-first content, made by creators, that are culturally relevant and move at the speed of culture, champion the creators, empowering individuals to monetize their creativity, content, and influence.
Current wording
IZEA Worldwide, Inc. (“IZEA”, “Company,” “we”, “us” or “our”) is a leading innovator in the creator economy, specializing in providing value through managing custom content workflow, creator search and targeting, bidding, analytics, and payment processing. The Company’s mission is to make creator economy solutions for marketers. We offer a range of solutions, from creator agency services and technologies to a marketplace connecting marketers with creators. By fostering these connections, we light up the creator economy with IZEAs - social-first content, made by creators, that are culturally relevant and move at the speed of culture, champion the creators, empowering individuals to monetize their creativity, content, and influence.
Previous wording
We generate revenue primarily from our managed services, when a marketer (typically a brand, agency, or partner) pays us to provide custom content, influencer marketing, amplification, or other campaign management services (“Managed Services”).
Current wording
We generate revenue primarily from our managed services, which involve providing custom content, influencer marketing, amplification, or other campaign management services to marketers (typically brands, agencies, or partners) who pay us for these services (“Managed Services”).
Previous wording
Our cost of revenue consists of direct costs paid to our third-party creators who provide the custom content, influencer marketing, or amplification services for our Managed Service customers, where we report revenue on a gross basis. It also includes internal costs for our campaign fulfillment and SaaS support departments. These costs include salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and miscellaneous departmental costs related to the personnel responsible for supporting our customers and ultimately fulfilling our obligations under our contracts with customers.
Current wording
The Company acts as the principal in the vast majority of our contracts. Accordingly, our cost of revenue for contracts in which we act as a principal consists of costs paid to third-party creators who provide custom content, influencer marketing, or amplification services for our Managed Services customers, where we report revenue on a gross basis. It also includes internal costs for our campaign fulfillment and SaaS support departments. These costs include salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and miscellaneous departmental expenses related to personnel responsible for supporting our customers and fulfilling our obligations under our contracts.
Previous wording
Revenue during the three months ended June 30, 2025 was essentially flat compared to the prior year’s quarter. The three months ended June 30, 2024 total included $0.8 million of revenue from Hoozu that was divested in December 2024. Excluding $0.8 million in revenue from Hoozu, revenue grew 10.5% during the quarter ended June 30, 2025. Revenue from ongoing customers increased quarter-over-quarter due to higher spend from several of our larger existing customers and the addition of new customers.
Current wording
Revenue during the three months ended September 30, 2025 decreased by $0.8 million, or 9% from the prior year’s quarter. The three months ended September 30, 2024 total included $1.0 million of revenue from Hoozu that was divested in December 2024. Excluding the revenue from Hoozu, revenue grew $0.2 million, or 2.48% during the quarter ended September 30, 2025. As a result of our shift in focus to expanding our core enterprise customer base, Managed Services revenue increased quarter over quarter. This increase was driven by strong double-digit growth among large enterprise customers, partially offset by a decline in revenue from non-core, less profitable customers from the prior-year quarter.
Previous wording
For the three months ended June 30, 2025, the cost of revenue declined by 0.8 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue remained relatively consistent year-over-year.
Current wording
For the three months ended September 30, 2025, the cost of revenue declined by $1.1 million compared to the same period in the prior year, primarily due to the absence of Hoozu-related costs, which were included in the prior year period. Excluding Hoozu, the cost of revenue increased by 5.3% year-over-year.
Previous wording
Sales and marketing expense for the three months ended June 30, 2025 decreased by $2.2 million, or approximately 70%, compared to the same period in 2024. This decrease is primarily due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Current wording
Sales and marketing expense for the three months ended September 30, 2025 decreased by $1.8 million, or approximately 62%, compared to the same period in 2024. This decrease is primarily due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Previous wording
General and administrative expense for the three months ended June 30, 2025 decreased by $0.5 million, or approximately 14%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Current wording
General and administrative expense for the three months ended September 30, 2025 decreased by $2.8 million, or approximately 49%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Previous wording
Other income, net, totaled $0.5 million during the three months ended June 30, 2025, a decrease of $0.2 million compared to the same period in 2024, primarily from lower investment portfolio interest income.
Current wording
Other income, net, totaled $0.5 million during the three months ended September 30, 2025, a decrease of $0.1 million compared to the same period in 2024, primarily from lower investment portfolio interest income.
Previous wording
Net income for the three months ended June 30, 2025 was $1.2 million, compared to the net loss of $2.2 million for the same period in 2024.
Current wording
Net income for the three months ended September 30, 2025 was $0.1 million, compared to the net loss of $8.8 million for the same period in 2024.
Previous wording
For the six months ended June 30, 2025, the cost of revenue declined by $0.4 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue increased by 1% year-over-year.
Current wording
For the nine months ended September 30, 2025, the cost of revenue declined by $1.4 million compared to the same period in the prior year, primarily due to the absence of costs related to Hoozu, which was included in the prior year period. Excluding Hoozu, the cost of revenue increased by 5.2% year-over-year.
Previous wording
67%, compared to the same period in 2024. Advertising expenses decreased due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Current wording
Sales and marketing expense for the nine months ended September 30, 2025, decreased by $6.0 million, or approximately 65%, compared to the same period in 2024. Advertising expenses decreased due to lower payroll and related costs, following our December 2024 targeted workforce reduction, a pause in current period advertising and promotional spending, and decreased general contractor fees.
Previous wording
General and administrative expense for the six months ended June 30, 2025, decreased by $1.3 million, or approximately 18%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Current wording
General and administrative expense for the nine months ended September 30, 2025, decreased by $4.2 million, or approximately 32%, compared to the same period in 2024. The decrease is primarily due to lower employee-related costs following our December 2024 targeted workforce reduction, reduced use of external contractors, decreased professional service fees, and lower software licensing expenses.
Previous wording
Other income, net totaled $1.0 million for the six months ended June 30, 2025, compared to $1.3 million in the prior year period, reflecting interest earned on portfolio investments.
Current wording
Other income, net totaled $1.5 million for the nine months ended September 30, 2025, compared to $1.9 million in the prior year period, primarily from lower investment portfolio interest income.
Previous wording
Net income (loss) from operations for the six months ended June 30, 2025 was $1.1 million, a $6.5 million increase from the net loss of $5.5 million for the same period in 2024. The increase in net income was primarily the result of decreased operating costs in the current year period.
Current wording
Net income (loss) from operations for the nine months ended September 30, 2025 was $1.2 million, a $15.4 million increase from the net loss of $14.2 million for the same period in 2024. The increase in net income was primarily the result of decreased operating costs in the current year period.
Previous wording
The following table sets forth a reconciliation from the GAAP measurement of net income (loss) to our non-GAAP financial measure of Adjusted EBITDA for the three and six months ended June 30, 2025, and 2024:
Current wording
The following table sets forth a reconciliation from the GAAP measurement of net income (loss) to our non-GAAP financial measure of Adjusted EBITDA for the three and nine months ended September 30, 2025, and 2024:
Previous wording
(1) The 2024 measure excludes interest income to ensure comparability with the Company’s revised definition of the metric, which no longer includes interest income beginning in 2025.
Current wording
(1)The 2024 measure excludes interest income to ensure comparability with the Company’s revised definition of the metric, which no longer includes interest income beginning in 2025.
Previous wording
The Company’s cash requirements have historically included funding the development and integration of our technology platforms, marketing initiatives, and general and administrative expenses, such as salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, salaries, bonuses and stock-based compensation, and other G&A expenses, including technology and development costs, which exceeded revenue, has resulted in a total accumulated deficit of $103.2 million as of June 30, 2025. These deficits have been funded through public equity.
Current wording
The Company’s cash requirements have historically included funding the development and integration of our technology platforms, marketing initiatives, and general and administrative expenses, such as salaries, bonuses, and commissions. The Company has incurred losses and negative cash flow from operations for most periods since inception, primarily the result of costs associated with third-party creators, personnel expenses (including salaries, bonuses and stock-based compensation), and other general and administrative expenses, including technology and development costs, which have exceeded revenue. As a result, the Company had an accumulated deficit of $103.1 million as of September 30, 2025, which has been funded through the issuance of public equity.
Previous wording
We had cash and cash equivalents of $50.6 million as of June 30, 2025, as compared to $44.6 million as of December 31, 2024. This $6.0 million increase is the result of the maturation of certain investments, supplemented by cash generated from operating activities.
Current wording
We had cash and cash equivalents of $51.4 million as of September 30, 2025, as compared to $44.6 million as of December 31, 2024. This $6.7 million increase is the result of the maturation of certain investments, supplemented by cash generated from operating activities.
Previous wording
Net cash provided by operating activities was $1.2 million during the six months ended June 30, 2025, which is consistent with our net income. Net cash provided by investing activities was $6.0 million during the six months ended June 30, 2025, primarily due to the maturity of marketable securities. Net cash used for financing activities during the six months ended June 30, 2025 was $1.1 million, primarily due to payments for shares withheld for taxes and the repurchase of treasury stock.
Current wording
Net cash provided by operating activities was $2.4 million during the nine months ended September 30, 2025, primarily driven by net income of $1.2 million and strong accounts receivable collections partially offset by reductions in accrued expenses and deferred revenue. Net cash provided by investing activities was $5.8 million during the nine months ended September 30, 2025, primarily due to the maturity of marketable securities. Net cash used for financing activities during the nine months ended September 30, 2025 was $1.4 million, primarily due to payments for shares withheld for taxes and the repurchase of treasury stock.
Previous wording
•cautious marketing spend among some enterprise and agency clients due to broader economic uncertainty, including tariffs; and
Current wording
Managed Services bookings, excluding Hoozu, declined 26.3% to $18.2 million for the nine months ended September 30, 2025, compared to the prior-year period, and contract backlog declined from $15.5 million at the beginning of the year to $7.1 million at quarter-end. The decline primarily reflects the Company’s strategic focus on higher-quality, recurring accounts, along with more cautious marketing spend among certain enterprise and agency clients amid broader economic uncertainty, including tariff impacts.
Previous wording
We implemented significant cost savings beginning in December 2024 and continuing into early 2025 to better align operating expenses with anticipated revenue and accelerate our path to profitability. This is demonstrated in part by our profitability during the first half of 2025. We have a strong and growing pipeline that we believe will support profitable growth over the next twelve months. While we expect revenue to grow over time, such growth may not occur consistently each quarter. We anticipate that operating expenses will increase gradually to support this growth; however, we believe our current cost structure is better aligned to scale efficiently, limiting the recurrence of historical cash losses and reducing the strain on working capital as we expand our business.
Current wording
We expect growth opportunities in our core enterprise accounts, along with other business development activities, to support profitable organic growth over the next twelve months, albeit from a lower, but more profitable revenue base in 2025. While revenue is expected to increase over time, such growth may not occur consistently each quarter. Operating expenses are expected to increase gradually as we invest in expansion; however, we believe our current cost structure is better aligned to scale efficiently, limiting the recurrence of historical cash losses and reducing the strain on working capital as the business grows.
Previous wording
We believe our cash and cash equivalents are sufficient to fund growth initiatives over the next twelve months. If additional capital is needed, we expect to obtain it primarily through equity, equity-linked, or debt financing unless and until our operations generate sufficient profitability to meet ongoing capital requirements.
Current wording
We believe our cash and cash equivalents are sufficient to fund planned growth initiatives over the next twelve months. If additional capital is needed, we expect to obtain it primarily through equity, equity-linked, or debt financing until our operations generate sufficient profitability to meet ongoing capital requirements