IZEA Worldwide, Inc.

Previous wording

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report, including those contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the notes to our consolidated financial statements, particularly those that utilize terminology such as “may,” “will,” “would,” “can,” “could,” “continue,” “design,” “should,” “expects,” “aims,” “anticipates,” “estimates,” “believes,” “thinks,” “intends,” “likely,” “projects,” “plans,” “pursue,” “strategy,” “future,” “forecasts,” “goal,” “hopes,” or the negative of these words or other words or expressions of similar meaning, are forward-looking statements. Such statements are based on currently available operating, financial and competitive information, and are subject to inherent risks, uncertainties, and changes in circumstances that are difficult to predict and many of which are outside of our control. Future events and our actual results and financial condition may differ materially from those reflected in these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause these differences include, but are not limited to, the following:

Current wording

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact contained in this report, including those contained in Management’s Discussion and Analysis of Financial Condition and Results of Operations and the notes to our unaudited consolidated financial statements, particularly those that utilize terminology such as “may,” “will,” “would,” “can,” “could,” “continue,” “design,” “should,” “expects,” “aims,” “anticipates,” “estimates,” “believes,” “thinks,” “intends,” “likely,” “projects,” “plans,” “pursue,” “strategy,”

Previous wording

•any erroneous or inaccurate estimates or judgments relating to our critical accounting policies;

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•errors in estimates, assumptions, or judgments relating to our critical accounting policies;

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•our ability to satisfy the requirements for continued listing of our common stock on the Nasdaq Capital Market;

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•our ability to maintain compliance with the continued listing requirements of the Nasdaq Capital Market;

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•our ability to maintain and grow our business;

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•our ability to maintain and grow our business and brand;

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•the successful integration of acquired companies, technologies, and assets into our portfolio of software and services;

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•the successful integration of acquired companies, technologies, and assets;

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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.

Current wording

Our cost of revenue consists primarily of direct costs paid to our third-party creators who provide the custom content, influencer marketing, or amplification services for our Managed Service customers, for which revenue is reported on a gross basis. Cost of revenue also includes internal costs for our campaign fulfillment and customer support, including salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and personnel-related costs incurred to support service delivery and fulfill our customer contractual obligations.

Previous wording

Our sales and marketing expenses consist primarily of salaries, bonuses, commissions, stock-based compensation, employee benefit costs, travel, and miscellaneous departmental costs for our marketing, sales, and sales support personnel. They also include marketing expenses such as brand marketing, public relations events, trade shows, marketing materials, and travel expenses.

Current wording

Our sales and marketing expenses consist primarily of salaries, bonuses, commissions, stock-based compensation, employee benefit costs, travel, and other personnel-related costs for our sales, account management, and marketing teams. These expenses also include costs for brand marketing activities, public relations, industry events, marketing materials, and other demand-generation efforts to support customer acquisition and account expansion.

Previous wording

Our general and administrative (“G&A”) expense consists primarily of salaries, bonuses, commissions, stock-based compensation, employee benefit costs, and miscellaneous departmental costs related to our executive, finance, legal, human resources, and other administrative personnel. It also includes travel, public company, investor relations expenses, accounting, legal professional services fees, and other corporate-related expenses.

Current wording

Our general and administrative (“G&A”) expenses consist primarily of salaries, bonuses, commissions, stock-based compensation, employee benefits, and other personnel-related expenses for our executive, finance, legal, human resources, and other administrative functions. G&A also includes travel, public company and investor relations costs, accounting and legal professional services fees, and other corporate-related expenses.

Previous wording

Within G&A, we incorporate technology and development costs, consisting primarily of our payroll costs for our internal engineers and contractors responsible for developing, maintaining, and improving our technology, as well as hosting and software subscription costs. These costs are expensed as incurred, except to the extent that they are associated with internal-use software that qualifies for capitalization, which is then recorded as software development costs in the consolidated balance sheet. When major software components are developed, we capitalize these as intangible assets. Depreciation and amortization related to these costs are separately stated under depreciation and amortization in our consolidated statements of operations and comprehensive loss.

Current wording

G&A includes technology and development costs associated with maintaining and enhancing our proprietary technology platform. These costs consist primarily of payroll costs for internal engineers and contractors, as well as hosting and software subscription expenses. Technology and development costs are expensed as incurred, except for qualifying internal-use software development costs, which are capitalized and recorded as software development costs on the consolidated balance sheet. Depreciation and amortization related to these capitalized costs are reflected separately in the unaudited consolidated statements of operations and comprehensive loss.

Previous wording

G&A expenses include current period gains and losses on our acquisition costs payable and gains and losses from the sale of fixed assets. Impairments on fixed assets are included as part of G&A expenses presented separately in our consolidated statements of operations and comprehensive loss when deemed material.

Current wording

G&A expenses include current-period gains and losses on our acquisition costs payable and on the sale of fixed assets. Impairments on fixed assets, intangible assets, and goodwill, are included as part of G&A expenses presented separately in our unaudited consolidated statements of operations and comprehensive loss when deemed material.

Previous wording

Depreciation and amortization expenses consists primarily of amortization of our internal-use software and acquired intangible assets from our business acquisitions. To a lesser extent, we also have depreciation and amortization on equipment used by our personnel. Costs are amortized or depreciated over the estimated useful lives of the associated assets.

Current wording

Depreciation and amortization expenses consist primarily of amortization of our internal-use software and acquired intangible assets from our business acquisitions. To a lesser extent, we also have depreciation and amortization on equipment used by our personnel. Costs are amortized or depreciated over the estimated useful lives of the associated assets.

Previous wording

Other Income. Other income consists primarily of interest income earned on investments, as well as realized gains and losses on foreign currency exchange transactions, primarily related to the Canadian and Australian Dollar.

Current wording

Other Income. Other income consists primarily of interest income earned on investments, as well as realized gains and losses on foreign currency exchange transactions, primarily related to the Canadian Dollar.

Previous 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.

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Sales and marketing expense for the three months ended March 31, 2026 decreased by $0.2 million, or approximately

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Interest expense totaled $1,654 during the three months ended September 30, 2025, compared to $1,654 in the prior year period.

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Interest expense totaled $372 during the three months ended March 31, 2026, compared to $1,654 in the prior year period, primarily reflecting the repayment of one of the Company’s prior financing arrangements.

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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.

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Other income, net, totaled $0.4 million during the three months ended March 31, 2026, a decrease of $0.1 million compared to the same period in 2025, primarily from lower investment portfolio interest income.

Previous 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.

Current wording

Net loss for the three months ended March 31, 2026 was $0.8 million, compared to the net loss of $0.1 million for the same period in 2025.

Previous wording

We review the information provided by our key financial metrics, Managed Services Bookings, and gross billings, to assess the progress of our business and make decisions on where to allocate our resources. As our business evolves, we may change the key financial metrics in future periods.

Current wording

We review the information provided by our key financial metric, Managed Services Bookings, to assess the progress of our business and make decisions on where to allocate our resources including sales capacity, marketing investments, and product development. As our business evolves, we may change the key financial metrics in future periods.

Previous wording

Adjusted EBITDA is a “non-GAAP financial measure” under the rules of the Securities and Exchange Commission (the “SEC”). We define Adjusted EBITDA as operating income (or loss) from operations before depreciation and amortization, non-cash stock-based compensation, and other operating adjustments that are non-recurring or unusual to our core ongoing operations.

Current wording

Our Chief Operating Decision Maker (“CODM”) and Board of Directors emphasize our operating results for planning purposes to allocate resources to enhance the financial performance of our business. Adjusted EBITDA is a “non-GAAP financial measure” under the rules of the Securities and Exchange Commission (the “SEC”). We define Adjusted EBITDA as operating income (or loss) from operations before depreciation and amortization, non-cash stock-based compensation, and other operating adjustments that are non-recurring or unusual to our core ongoing operations.

Previous wording

You should not consider Adjusted EBITDA in isolation or as a substitute for an analysis of our results of operations as under GAAP. Not all companies calculate Adjusted EBITDA similarly, limiting its usefulness as a comparative measure. Moreover, Adjusted EBITDA has limitations as an analytical tool, including that Adjusted EBITDA:

Current wording

You should not consider Adjusted EBITDA in isolation or as a substitute for an analysis of our results of operations under GAAP. In addition, not all companies calculate Adjusted EBITDA in the same manner, which limits its usefulness as a comparative measure. Moreover, Adjusted EBITDA has limitations as an analytical tool, including that it:

Previous wording

•does not include non-operating activity, such as interest income and other gains, losses, and expenses that we believe are not indicative of our ongoing core operating results, but these items may represent a reduction or increase in cash available to us.

Current wording

•does not include non-operating activity, including interest income and other gains, losses, and expenses that we believe are not indicative of our ongoing core operating results, but these items may represent a reduction or increase in cash available to us.

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 nine months ended September 30, 2025, and 2024:

Current wording

The following table sets forth a reconciliation from the GAAP measurement of net loss to our non-GAAP financial measure of Adjusted EBITDA for the three months ended March 31, 2026, and 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, 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.

Current wording

platforms, marketing expenses, and general and administrative (“G&A”) expenses, including 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 has resulted in a total accumulated deficit of $105.0 million as of March 31, 2026. While we have not yet achieved consistent profitability, and we will continue to invest in areas we expect will help us grow, we believe we have sufficient resources to fund operations and planned investments for at least the next twelve months.

Previous 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.

Current wording

Net cash used by operating activities was $4.0 million during the three months ended March 31, 2026, primarily driven by net loss of $0.8 million and unfavorable working capital changes, including a $2.5 million increase in accounts receivable and a $1.6 million decrease in accrued expenses. These uses of cash were partially offset by non-cash items, including $0.4 million of stock-based compensation and $0.1 million of depreciation and amortization, as well as a $0.1 million decrease in prepaid expenses and a $0.2 million increase in deferred revenue. Net cash used by investing activities was $0.2 million during the three months ended March 31, 2026, primarily due to investment in software development. Net cash used for financing activities during the three months ended March 31, 2026 was $0.2 million, primarily driven by payments on shares withheld for statutory taxes.

Previous wording

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 wording

Beginning in early 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 or project-based accounts with limited repeat business. This strategic realignment reduced current-year contract bookings while significantly improving profitability and strengthening our foundation for sustainable growth. We believe that our bookings will show comparative growth mid-2026.

Previous 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.

Current wording

Operating expenses are expected to increase gradually over the next twelve months 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 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

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 notes, or debt financing until our operations generate sufficient profitability to meet ongoing capital requirements.

Previous wording

There have been no material changes to our critical accounting policies as set forth in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2024. For a summary of our significant accounting policies, please refer to “Note 1 - Company and Summary of Significant Accounting Policies” included in Item 1 of this Quarterly Report.

Current wording

There have been no material changes to our critical accounting policies as set forth in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included in our Annual Report on Form 10-K for the year ended December 31, 2025. For a summary of our significant accounting policies, please refer to “Note 1 - Company and Summary of Significant Accounting Policies of the unaudited Consolidated Financial Statements” included in Item 1 of this Quarterly Report.

Previous wording

See “Note 1 - Company and Summary of Significant Accounting Policies,” under Part I, Item 1 of this Quarterly Report for information on additional recent pronouncements.

Current wording

See “Note 1 - Company and Summary of Significant Accounting Policies of the unaudited Consolidated Financial Statements,” under Part I, Item 1 of this Quarterly Report for information on additional recent pronouncements.