IZEA Worldwide, Inc.
For the period ended Jun 30, 2026. Filed Aug 11, 2026.
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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.
Jun 30, 2026 · Filed Aug 11, 2026
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 2026-03-31; filed 2026-05-12.
0001495231-26-000017
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-11.
0001495231-26-000024
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe 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 110 previous paragraphs and 114 current paragraphs.
68 unchanged; 17 reworded; 26 added; 23 removed; 2 previous and 3 current paragraphs rearranged.
Tables are not compared: 3 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 (26)
Current report
In March 2026, we rebranded our proprietary technology platform as ZED, an AI-enabled platform that builds upon the capabilities of IZEA Flex and our broader technology stack. ZED supports the delivery and management of influencer marketing programs at scale and is primarily used by our internal teams to manage campaign workflows, creator relationships, compliance, budget controls, and performance measurement. Customers may be provided access to certain platform capabilities in connection with managed services engagements to facilitate collaboration, approvals, and visibility into campaign activity and results. Our technology platform also includes capabilities that facilitate creator discovery and engagement, including functionality historically available through online marketplace environments such as IZEA.com, as well as AI-enabled tools like FormAI that support content creation and operational efficiency within the influencer marketing process. We continue to invest in ZED and are currently evaluating the platform in a limited number of customer campaigns as development continues.
Current report
Revenue totaled $5.8 million for the three months ended June 30, 2026, compared to $9.1 million for the three months ended June 30, 2025. This represents a decrease of $3.3 million, or 36%, year over year. The majority of the year-over-year decline reflects the Company's continued strategic shift away from small and mid-sized business ("SMB") and emerging customers toward larger enterprise relationships. The decrease also reflects modest softness in enterprise client spending, as well as the timing of certain campaign launches and project-related delays during the quarter.
Current report
Other Income, Net
Current report
Net Income (Loss)
Current report
Net loss for the three months ended June 30, 2026 was $0.7 million, compared to net income of $1.2 million for the same period in 2025. The change was primarily driven by the factors affecting revenue and operating expenses discussed above.
Current report
Total Comprehensive Income (Loss)
Current report
The following table sets forth a summary of our consolidated statements of operations and the change between the periods:
Current report
Revenue
Current report
Revenue totaled $12.4 million for the six months ended June 30, 2026, compared to $17.1 million for the six months ended June 30, 2025, a decrease of $4.7 million, or 28%. The majority of the year-over-year decline reflects the Company's continued strategic shift away from SMB and emerging customers toward larger enterprise relationships. Revenue from enterprise customers increased compared to the prior-year period but was lower than anticipated, reflecting modest softness in customer spending and the timing of certain campaign launches and project-related delays.
Current report
Cost of revenue totaled $7.2 million for the six months ended June 30, 2026, compared to $8.8 million for the six months ended June 30, 2025, representing a decrease of $1.6 million, or 18%, year over year. The decrease primarily reflects lower campaign delivery volume and reduced variable costs associated with servicing client campaigns. The decline was partially offset by payroll and other delivery costs that did not decrease proportionately with revenue.
Current report
Sales and marketing expense for the six months ended June 30, 2026, decreased by $0.4 million, or approximately 19%, compared to the same period in 2025. The decline was primarily attributable to lower payroll and related costs resulting from reduced headcount and the effects of prior workforce reductions. This reduction was partially offset by higher stock-based compensation and additional spending on advertising and travel to support growth initiatives. Investor relations expense also declined modestly from the prior-year period.
Current report
General and administrative expense for the six months ended June 30, 2026, decreased by $0.5 million, or approximately 8%, compared to the same period in 2025. The decrease primarily reflects the benefits of ongoing cost management initiatives, including targeted workforce reductions, together with reduced use of external contractors, lower professional service fees, and decreased software licensing expenses.
Current report
Depreciation and amortization expense increased by less than $0.1 million, or 9% for the six months ended June 30, 2026, compared to the same period in 2025. The increase was driven by a modest increase in amortization of internal-use software development costs, which approximated $0.3 million in both periods but increased due to additional internally developed software features being placed into service. This increase was partially offset by lower depreciation expense, which remained less than $0.1 million in both periods as certain property and equipment became fully depreciated.
Current report
Other Income, Net
Current report
Interest expense remained less than $0.1 million for the six months ended June 30, 2026 and June 30, 2025, reflecting the absence of significant outstanding borrowings during either period.
Current report
Other income, net totaled $0.8 million for the six months ended June 30, 2026, compared to $1.0 million in the prior year period, primarily from lower investment portfolio interest income.
Current report
Net Income (Loss)
Current report
Net loss for the six months ended June 30, 2026 was $1.5 million, compared to net income of $1.1 million for the same period in 2025. This $2.5 million decline in operating results was attributable to the changes in revenue and operating expenses discussed above.
Current report
Total Comprehensive Income (Loss)
Current report
Cash and cash equivalents totaled $46.6 million as of June 30, 2026, as compared with $50.9 million as of December 31, 2025. The $4.3 million decrease was primarily due to cash used in operating activities, capitalized software development costs, and repurchases of the Company’s common stock under its share repurchase program.
Current report
We expect operating expenses to increase over time as we continue to invest in our technology platform, support future revenue growth, and fund the working capital requirements of our business. Based on our current operating plan, we believe our existing cash resources are sufficient to fund operations and planned investments beyond the next twelve months. We also continue to evaluate strategic growth opportunities, including potential acquisitions, which we believe represent an important component of our long-term growth strategy. Depending on the size, timing, and structure of any future transaction, additional capital may be required. Should additional capital be required, we expect to source it through a combination of equity, equity-linked, or debt financing.
Current report
Beginning in early 2025, we realigned our commercial model to focus on larger, recurring enterprise customers while reducing our emphasis on lower-value, project-based engagements, a transition that continued to affect comparative revenue during the first half of 2026. During the second quarter, we also experienced slower customer commitments amid continued economic uncertainty, resulting in lower booking activity that is expected to continue influencing near-term revenue trends.
Current report
While early third-quarter customer activity has been encouraging, the timing of campaign launches may result in the related revenue being recognized later in the year.
Current report
Managed Services revenue decreased 27.7% for the six months ended June 30, 2026, compared to the prior-year period, primarily reflecting the continued effects of our strategic realignment toward larger enterprise customers, together with modest softness in enterprise demand and the timing of contract awards with certain enterprise accounts.
Current report
We remain focused on expanding relationships with our core enterprise customers and pursuing additional business development opportunities. However, enterprise contract awards and campaign activity have remained slower than previously anticipated, and the timing of those awards continues to affect quarterly bookings and revenue. Because Managed Services revenue is generally recognized over an average period of approximately seven months following contract execution, improvements in bookings may not immediately translate into revenue growth within the current fiscal year.
Current report
We expect operating expenses to remain disciplined while continuing to make targeted investments that support our long-term growth strategies. We believe our current cost structure is better aligned with our business and provides flexibility as market conditions evolve.
Removed paragraphs (23)
Previous report
We continue to invest in our proprietary technology platform to enhance the efficiency, scalability, and performance of our managed services offerings. During the quarter, we rebranded our platform as ZED, an AI-powered operating system designed to support enterprise brands and agencies in managing complex, large-scale creator campaigns. ZED builds upon the existing capabilities of IZEA Flex and our broader technology stack, further integrating campaign planning, creator relationship management, workflow automation, compliance, budgeting controls, and performance measurement into a unified environment.
Previous report
ZED introduces expanded functionality intended to improve execution and insights across the influencer marketing lifecycle, including enhanced workflow automation, more advanced performance analytics, and deeper AI-driven support for campaign planning and content development. While ZED was launched during the quarter, it has not yet been deployed in active client campaigns and did not directly impact revenue or operating results for the three months ended March 31, 2026. The Company incurred costs related to the continued development and rollout of the platform during the period. We expect a full rollout in the second quarter of 2026, with the platform designed to drive more efficient, data-driven campaign execution and strengthen our ability to deliver at scale.
Previous report
Cost of Revenue
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
Depreciation and Amortization
Previous report
Revenue totaled $6.6 million for the three months ended March 31, 2026, compared to $8.0 million for the three months ended March 31, 2025. This represents a decrease of $1.4 million, or 18%, year over year. The decline primarily reflects the Company’s deliberate shift toward growing our core enterprise customer base and reducing reliance on non-core, lower-margin customers, which supports our continued focus on enhancing the quality, sustainability, and long-term profitability of our revenue. The decrease was also impacted, to a lesser extent, by contract timing differences within several enterprise accounts in the current quarter, which we expect to contribute to our growth in the current year.
Previous report
Cost of Revenue
Previous report
Sales and Marketing
Previous report
General and Administrative
Previous report
Depreciation and Amortization
Previous report
Other Income (Expense)
Previous report
Net Loss
Previous report
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 report
Total Comprehensive Loss
Previous report
The Company’s primary cash needs have historically been funding the development and integration of our technology
Previous report
We had cash and cash equivalents of $46.5 million as of March 31, 2026, as compared to $50.9 million as of December 31, 2025. The $4.4 million decrease was primarily driven by an increase in accounts receivable and the payout of accrued 2025 incentive compensation during the current quarter.
Previous report
We anticipate that our operating expenses will increase over time to support higher revenue and the working capital financing required as we continue to expand our business. We currently believe that we have adequate cash to fund our business growth beyond the next twelve months; however, should additional capital become necessary, we expect these funds would be financed predominantly through proceeds from future equity, equity-based, or debt offerings, unless and until our operations are profitable and sustain our ongoing capital needs. As a result, our business success could significantly depend upon our ability to obtain the funding necessary to support our operations.
Previous report
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 report
Revenue from Managed Services decreased 17% for the three months ended March 31, 2026, compared to the prior-year period, primarily reflecting our deliberate shift toward enterprise customers and away from non-core, lower-margin work, as we prioritize higher-quality, more sustainable, and more profitable revenue.
Previous report
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, although growth may not occur consistently each quarter. As Managed Services revenue is recognized over time and typically lags contract bookings by approximately seven months, results for the first half of 2025 included revenue recognized from non-core customer contracts booked in 2024 that remained in backlog at the start of 2025. As those contracts have rolled off, year-over-year revenue comparisons in the first half of 2026
Previous report
have been and are expected to remain lower. We anticipate more favorable comparisons in the second half of 2026 as revenue increasingly reflects our current mix of core enterprise engagements.
Previous report
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.
Reworded paragraphs (17)
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 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,”
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,” “future,” “forecasts,” “goal,” “hopes,” or the negative of these words or other words or expressions of similar meaning, are forward-looking statements.
Previous wording
We generate revenue primarily from our Managed Services, when a marketer (typically a brand, agency, or partner) engages us to provide custom content, influencer marketing, amplification, or other campaign management services. We generate limited SaaS Services Revenue from access to certain features of our proprietary platforms, as well as related transaction and miscellaneous fees.
Current wording
engages us to provide custom content, influencer marketing, amplification, or other campaign management services. We generate limited SaaS Services Revenue from access to certain features of our proprietary platforms, as well as related transaction and miscellaneous fees.
Previous 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.
Current wording
G&A expenses may include current-period gains and losses on our acquisition costs payable and on the sale of fixed assets, if applicable. 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 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.
Current wording
Depreciation and amortization expenses consist primarily of amortization of our internal-use software and may include amortization of acquired intangible assets, when applicable. 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 Dollar.
Current wording
Other Income, Net. Other income, net, consists primarily of interest income earned on investments and realized foreign currency transaction gains and losses, primarily related to the Canadian dollar.
Previous wording
Cost of revenue totaled $3.6 million for the three months ended March 31, 2026, compared to $4.4 million for the three months ended March 31, 2025, representing a decrease of $0.8 million, or 18%, year over year. The decrease was primarily driven by lower overall delivery volume, consistent with the decline in revenue, and a more favorable mix of higher-margin enterprise engagements.
Current wording
Cost of revenue totaled $3.6 million for the three months ended June 30, 2026, compared to $4.4 million for the three months ended June 30, 2025, representing a decrease of $0.8 million, or 18%, year over year. The decrease was primarily attributable to lower campaign delivery volume associated with reduced revenue. The decline was partially offset by the impact of fixed and semi-fixed delivery costs, resulting in a smaller percentage decrease in cost of revenue than the decline in revenue.
Previous wording
17%, compared to the same period in 2025, primarily reflecting lower payroll and related expense, reflecting lower headcount and the impact of prior workforce reductions. This decrease was partially offset by increased stock-based compensation, as well as incremental investments in advertising and travel to support growth initiatives. Investor relations costs declined modestly compared to the prior year period.
Current wording
Sales and marketing expense for the three months ended June 30, 2026 decreased by $0.2 million, or approximately 21%, compared to the same period in 2025, primarily due to lower payroll and related expense resulting from reduced headcount and the impact of prior workforce reductions. These decreases were partially offset by higher stock-based compensation and incremental investments in advertising and travel to support strategic growth initiatives. Investor relations costs also declined modestly compared to the prior-year period.
Previous wording
General and administrative expense for the three months ended March 31, 2026 increased by $0.1 million, or approximately 3%, compared to the same period in 2025. The increase is primarily due to higher payroll and related expenses, partially offset by cost reductions in professional fees, contractor usage, and software and hosting costs.
Current wording
General and administrative expense for the three months ended June 30, 2026 decreased by $0.6 million, or approximately 20%, compared to the same period in 2025. The decrease is primarily due to lower payroll and related expenses, partially offset by cost increases in travel fees and public company expenses.
Previous wording
Depreciation and amortization expenses for the three months ended March 31, 2026, decreased by $11,105, or approximately 7%, compared to the same period in 2025, primarily due to lower depreciation expense on property and equipment. Depreciation expense decreased to $10,922 for the three months ended March 31, 2026 from $22,955 in the prior-year period. Amortization of internal-use software development costs was $138,325 for the three months ended March 31, 2026, compared to $137,397 for the prior-year period, with the modest increase driven by additional internally developed software features being placed into service.
Current wording
Depreciation and amortization expense increased by less than $0.1 million, or 26%, for the three months ended June 30, 2026, compared to the same period in 2025. The increase was driven by higher amortization of internal-use software development costs, which increased to $0.2 million for the three months ended June 30, 2026 from $0.1 million for the same period in 2025, reflecting additional internally developed software features being placed into service. This increase was partially offset by lower depreciation expense, which remained less than $0.1 million in both periods as certain property and equipment became fully depreciated.
Previous wording
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.
Current wording
Interest expense remained less than $0.1 million for both the three months ended June 30, 2026 and 2025, primarily reflecting the repayment of one of the Company’s prior financing arrangements.
Previous wording
Total comprehensive loss for the three months ended March 31, 2026 was $0.8 million, an increase of $0.5 million compared to the prior year period. Changes to total comprehensive loss are primarily driven by an increase in net loss and a change in foreign currency translation adjustments.
Current wording
Total comprehensive loss for the three months ended June 30, 2026 was $0.7 million compared to comprehensive income of $1.2 million for the same period in 2025. The changes to total comprehensive loss are primarily driven by an increase in net loss and a change in foreign currency translation adjustments.
Previous wording
We use the Managed Services Bookings metric to plan staffing, assess cohort trends that inform our go-to-market strategy, and guide product development efforts. Managed Services Bookings for the three months ended March 31, 2026 and 2025, were $6.3 million and $7.5 million, respectively. The year-over-year decline was primarily due to contract timing differences with several of our enterprise accounts, which we expect to contribute to growth in the current year.
Current wording
We use the Managed Services Bookings metric to plan staffing, assess cohort trends that inform our go-to-market strategy, and guide product development efforts. Managed Services Bookings for the three months ended June 30, 2026 and 2025, were $4.5 million and $5.6 million, respectively. The year-over-year decline primarily reflects the Company's continued strategic shift away from SMB and emerging customers toward larger enterprise relationships. The decline was also influenced by modest softness in enterprise demand and the timing of contract awards within certain enterprise accounts during the quarter.
Previous 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:
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 six months ended June 30, 2026 and 2025:
Previous 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.
Current wording
The Company’s primary liquidity needs have historically consisted of funding the development of our technology platforms, sales and marketing activities, and general and administrative (“G&A”) expenses, including employee compensation. Although the Company has incurred losses and negative operating cash flows during most periods since inception, we believe we have sufficient resources to fund operations and planned investments for at least the next twelve months.
Previous 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.
Current wording
Net cash used in operating activities was $2.7 million during the six months ended June 30, 2026, primarily reflecting the Company’s net loss and changes in working capital, partially offset by non-cash charges, including stock-based compensation and depreciation and amortization. Net cash used in investing activities was $0.6 million during the six months ended June 30, 2026, primarily related to capitalized software development costs. Net cash used in financing activities during the six months ended June 30, 2026 was $1.0 million, primarily driven by repurchases of the Company's common stock under its share repurchase program and payments on shares withheld for statutory taxes.
Previous wording
Adjusted EBITDA loss increased to $0.5 million for the three months ended March 31, 2026, compared to the loss of $0.1 million in the prior year period, primarily reflecting lower comparative revenue, partially offset by a reduction in operating costs.
Current wording
Adjusted EBITDA was a loss of $1.0 million for the six months ended June 30, 2026, compared to positive Adjusted EBITDA of $1.2 million in the prior year period, primarily reflecting lower comparative revenue, partially offset by reduced operating costs.
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 notes, 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 our operating and strategic initiatives over the next twelve months. If additional capital is required, we expect to pursue financing alternatives, including equity, equity-linked securities, or debt, as appropriate.
Rearranged current paragraphs (3)
Current report — wording carried from elsewhere
We generate revenue primarily from our Managed Services, when a marketer (typically a brand, agency, or partner)
Current report — wording carried from elsewhere
Results of Operations for the Six Months Ended June 30, 2026 and 2025
Current report — wording carried from elsewhere
Total comprehensive loss for the six months ended June 30, 2026 was $1.5 million, compared to comprehensive income of $0.9 million for the same period in 2025. The changes to total comprehensive loss are primarily driven by an increase in net loss and a change in foreign currency translation adjustments.
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
“future,” “forecasts,” “goal,” “hopes,” or the negative of these words or other words or expressions of similar meaning, are forward-looking statements.
Previous report — wording carried elsewhere
Sales and marketing expense for the three months ended March 31, 2026 decreased by $0.2 million, or approximately