Rumble Inc.

Company Overview

Business Model: Rumble Inc. operates as a high-growth video sharing and cloud services provider platform. Its core value proposition is to empower content creators by offering tools for content management, distribution, and monetization, connecting them with brands, publishers, and their audiences. Revenue is primarily generated through Audience Monetization (advertising fees, subscription fees from Rumble Premium, Locals.com, and badges, content licensing, tipping, and platform hosting fees) and Other Initiatives (digital advertisements on third-party publisher networks and Rumble Cloud services). Rumble Cloud provides Infrastructure as a Service (IaaS) offerings, including consumption-based fees, subscriptions for infrastructure and professional services, and license agreements for Rumble Player.

Market Position: Founded in 2013, Rumble Inc. initially focused on supporting small creators, identifying a market opportunity as incumbent social video platforms began to preference larger entities. The Company experienced significant user growth from 2020 due to its consistent and transparent content policies, which contrasted with the "preferencing and censorship" of incumbent platforms. Rumble Inc. positions itself as a "neutral video platform" and a "Freedom-First technology platform." In the cloud market, Rumble Cloud aims to differentiate by addressing customer pain points such as censorship, data trust, vendor lock-in, and unpredictable pricing, offering a "predictable and fair pricing model." The Company competes with major online video distribution platforms, including YouTube, and large cloud hyperscalers such as Google Cloud, Microsoft Azure, and Amazon Web Services.

Recent Strategic Developments:

• February 2025 Strategic Investment: Rumble Inc. closed a strategic investment from Tether Investments S.A. de C.V., receiving $775 million in gross proceeds from the sale of 103,333,333 shares of Class A Common Stock at $7.50 per share. $250 million of these proceeds were allocated to growth initiatives. Concurrently, the Company completed a tender offer, repurchasing 70,000,000 shares of Class A Common Stock for $525 million.
• November 2025 Business Combination Agreement with Northern Data AG: Rumble Inc. signed an agreement to acquire Northern Data AG, a leader in AI and high-performance-computing (HPC) infrastructure. The transaction involves a voluntary public exchange offer where Northern Data AG shareholders will receive 2.0281 shares of Rumble Inc. Class A Common Stock for each Northern Data AG share. This combination is designed to bolster Rumble Cloud’s portfolio with approximately 22,400 Nvidia GPUs and a globally distributed network of energized data center locations, and is expected to close in the second quarter of 2026.
• Tether Investments S.A. de C.V. Commitments: Following the Northern Data AG business combination, Tether Investments S.A. de C.V. has committed to purchase up to $150 million of GPU services over a two-year period. Additionally, Tether Investments S.A. de C.V. made a $100 million advertising commitment ($50 million per year over two years) starting in the first quarter of 2026, independent of the Northern Data AG transaction.
• Acquisitions: Rumble Inc. acquired Locals in October 2021 to accelerate its subscription revenue model, Callin in May 2023 (technology formed the foundation for Rumble Studio), and North River Project Inc. in October 2023 (developed Rumble Advertising Center).

Geographic Footprint: Rumble Inc. is headquartered in Longboat Key, Florida, and maintains offices in both the United States and Canada.

• Revenue Distribution (Year Ended December 31, 2025):
  • United States: $90,893,137
  • Canada: $1,175,959
  • Other: $8,553,224
• Long-Lived Assets (As of December 31, 2025):
  • United States: $16,611,488
  • Canada: $1,435,911
• The proposed business combination with Northern Data AG is expected to expand Rumble Inc.'s international footprint, adding a prominent presence in Europe (Germany, Sweden, Norway, Portugal, the Netherlands, and the United Kingdom) and a growing presence in the United States.

Financial Performance

Revenue Analysis

Profitability Metrics:

• Gross Margin: -6.72%
• Operating Margin: -125.87%
• Net Margin: -81.32%

Investment in Growth:

• R&D Expenditure: $18,743,630 (18.63% of revenue)
• Capital Expenditures: $6,954,766 (comprising $4,066,907 for property and equipment and $2,887,859 for intangible assets)
• Strategic Investments:
  • Purchase of digital assets: $19,100,000
  • Strategic investment from Tether Investments S.A. de C.V. provided $775 million in gross proceeds, with $250 million allocated to growth initiatives.
  • Business combination agreement with Northern Data AG to bolster cloud business with AI/HPC infrastructure.

Business Segment Analysis

Audience Monetization (Rumble Services)

Financial Performance:

• Revenue: $86,519,799 (+3.67% YoY)
• Operating Margin: Not separately disclosed.
• Key Growth Drivers: The increase in revenue was driven by a $14.0 million increase in subscription fees and a $2.8 million increase from licensing, tipping fees, and platform hosting fees. This growth was partially offset by a $13.8 million decrease in advertising revenue. The Company notes that the uptake of new brand advertisers has been slower than anticipated.

Product Portfolio:

• Rumble Video: A free and subscription-based video sharing and livestreaming platform (Rumble.com, Locals.com, Rumble Premium). Available via desktop, mobile web, iOS and Android mobile applications, and connected TV apps (Roku, Apple TV, Amazon Fire TV, LG, Samsung, Android TV).
• Rumble Studio: A patent-pending multi-platform livestreaming and monetization application for creators, offering custom settings, multi-platform control, and various monetization opportunities including host-read ads and sponsorships.
• Rumble Advertising Center (RAC): A proprietary in-house advertising marketplace and network offering traditional display, pre-roll/mid-roll video advertising, and creator sponsorships.
• Rumble Wallet: A non-custodial crypto wallet integrated into the Rumble Inc. platform, supporting USAT, Tether (USDT), Tether Gold (XAUt), and Bitcoin (BTC) for direct creator tipping.

Market Dynamics:

• Rumble Inc. competes with other online video distribution platforms, notably YouTube, and has filed antitrust lawsuits against Google related to search engine results and the online advertising market.
• The platform emphasizes a "neutral video platform" and "diversity of opinion" to attract creators and users.
• Monthly Active Users (GA4) reached 52 million on average in Q4 2025, an 11% increase from Q3 2025, primarily due to an initial investment in international expansion.
• Average Revenue Per User (ARPU) was $0.46 in Q4 2025, a 2% increase from Q3 2025.

Other Initiatives (Rumble Cloud)

Financial Performance:

• Revenue: $14,102,521 (+17.23% YoY)
• Operating Margin: Not separately disclosed.
• Key Growth Drivers: The increase in revenue was due to a $1.2 million increase in cloud services offered and a $0.9 million increase in advertising inventory monetized by Rumble Inc.'s publisher network.

Product Portfolio:

• Rumble Cloud: An Infrastructure as a Service (IaaS) offering launched in early 2024, providing cloud compute, load balancers, object storage, Kubernetes orchestration, block storage, and virtual private cloud. The infrastructure is built on 4th generation AMD EPYC processors and NVMe SSDs, with fully dedicated vCPUs.
• Future Offerings (post-Northern Data AG combination): Expected to include AI infrastructure (GPU as a service (GPUaaS)) and data center services, leveraging approximately 22,400 Nvidia GPUs and a globally distributed network of energized data center locations, including four owned data centers.

Market Dynamics:

• Rumble Cloud targets a wide range of businesses from startups to SMBs, governments, and enterprise clients.
• It differentiates itself with a "flexible Resource Tier pricing model" designed for transparency and predictability, contrasting with consumption-based models of major hyperscalers.
• The business combination with Northern Data AG is expected to provide immediate scale in the cloud and data center business and expand Rumble Inc.'s international footprint in Europe and the United States.

Capital Allocation Strategy

Shareholder Returns:

• Share Repurchases: In February 2025, Rumble Inc. repurchased 70,000,000 shares of Class A Common Stock for $525 million as part of a tender offer related to the strategic investment from Tether Investments S.A. de C.V.
• Dividend Payments: Rumble Inc. does not anticipate declaring or paying any cash dividends on its Class A Common Stock for the foreseeable future, intending to retain earnings for business operations.

Balance Sheet Position: (As of December 31, 2025)

• Cash and Equivalents: $237,919,453
• Total Debt: $1,914,572 (comprising current and long-term lease liabilities). No other material debt is disclosed.
• Net Cash Position: $236,004,881 (Cash and Equivalents minus Total Debt).
• Credit Rating: Not disclosed.
• Debt Maturity Profile: Lease liabilities have remaining terms expiring between 2026 and 2027.

Cash Flow Generation:

• Operating Cash Flow: -$70,430,149 (2025) compared to -$87,010,475 (2024).
• Free Cash Flow: -$77,384,915 (calculated as Operating Cash Flow minus Capital Expenditures of $6,954,766).
• Cash Conversion Metrics: Not explicitly disclosed.

Operational Excellence

Production & Service Model: Rumble Inc.'s operational philosophy centers on providing a robust, neutral platform for content creators and a predictable, fair cloud infrastructure. Rumble Video offers free and subscription-based video sharing and livestreaming. Rumble Studio is a patent-pending application for multi-platform livestreaming and monetization. Rumble Cloud provides Infrastructure as a Service (IaaS) built on latest-generation equipment, including 4th generation AMD EPYC processors and NVMe SSDs, ensuring dedicated vCPU performance. The Company's content acquisition strategy involves offering economic incentives, including minimum guaranteed earnings, to a limited number of content creators and sports leagues.

Supply Chain Architecture: Key Suppliers & Partners:

• Content Moderation & Software Development: Cosmic Inc. and Kosmik Development Skopje doo ("Cosmic") - provides content moderation and software development services; controlled by Rumble Inc.'s CEO, Chris Pavlovski, and Director, Ryan Milnes.
• Infrastructure & Payments: Third-party vendors for internet services, data centers, customer support, software development, video hosting, transcoding, streaming, cloud services support, and payment processing.
• Crypto Exchange: Third-party crypto exchange for Rumble Wallet's on- and off-ramp services.
• AI/HPC Infrastructure: Northern Data AG (post-acquisition) - will contribute approximately 22,400 Nvidia GPUs and data center services.

Facility Network:

• Manufacturing: Not applicable.
• Research & Development: R&D activities are supported by engineering and development teams, with expenses primarily consisting of payroll and related costs.
• Distribution: Rumble Inc. utilizes its own infrastructure and third-party data centers. The Northern Data AG acquisition is expected to add a globally distributed network of energized data center locations, including four owned data centers.
• Offices: Headquarters in Longboat Key, Florida, with additional offices in the United States and Canada.

Operational Metrics:

• Monthly Active Users (GA4): 52 million (Q4 2025).
• Average Revenue Per User (ARPU): $0.46 (Q4 2025).
• Total Employees: 156 full-time employees as of December 31, 2025 (108 in the United States, 48 in Canada).

Market Access & Customer Relationships

Go-to-Market Strategy: Distribution Channels:

• Direct Sales: Rumble Inc. employs direct sales teams for its Rumble Advertising Center (display, video advertising, sponsorships) and Rumble Cloud (mid-market and enterprise clients).
• Channel Partners: For Rumble Cloud, channel partners include referral, reseller, and managed service partners to expand mid-market and enterprise opportunities.
• Digital Platforms: Rumble Inc. leverages Rumble.com, Locals.com, iOS and Android mobile applications, and connected TV apps (Roku, Apple TV, Amazon Fire TV, LG, Samsung, Android TV). Rumble Cloud also utilizes a self-serve customer acquisition model via rumble.cloud.

Customer Portfolio: Enterprise Customers:

• Tier 1 Clients: Not explicitly named, but Rumble Cloud targets "startups to small and medium sized businesses (SMBs) to governments to enterprise clients."
• Strategic Partnerships:
  • Tether Investments S.A. de C.V.: Committed to purchase up to $150 million of GPU services over two years and $100 million in advertising services over two years.
• Customer Concentration: No single customer represented 10% or more of total revenue for the year ended December 31, 2025. For the year ended December 31, 2024, one customer accounted for 16% of total revenue.

Geographic Revenue Distribution:

• United States: 90.33% of total revenue (2025)
• Canada: 1.17% of total revenue (2025)
• Other: 8.50% of total revenue (2025)
• Growth Markets: Rumble Inc. has made an initial investment into international expansion, contributing to MAU growth. The acquisition of Northern Data AG is expected to significantly expand its international footprint, particularly in Europe (Germany, Sweden, Norway, Portugal, the Netherlands, and the United Kingdom).

Competitive Intelligence

Market Structure & Dynamics

Industry Characteristics:

• Online Video Distribution: Characterized by a challenging and rapidly evolving environment, with incumbent platforms employing sophisticated algorithms for amplification and censorship.
• Cloud Services: Dominated by major cloud hyperscalers, operating in a highly regulated environment. Market trends include rising multi-cloud strategies and increasing complexity and unpredictability in cloud pricing.

Competitive Positioning Matrix:

Direct Competitors

Primary Competitors:

• Online Video: YouTube, Google (Rumble Inc. has filed antitrust lawsuits against Google).
• Cloud Services: Google Cloud, Microsoft Azure, Amazon Web Services, and smaller niche cloud service providers.

Emerging Competitive Threats:

• New entrants, disruptive technologies, and alternative solutions are general competitive threats.
• Changes in competing platforms' moderation policies could impact content creator retention.

Competitive Response Strategy: Rumble Inc. aims to compete by maintaining a neutral video platform that fosters trust and welcomes diverse content. Its strategy includes investing in content to grow and diversify its library and user base, building the Rumble Advertising Center, developing infrastructure for Rumble Video and Rumble Cloud, and hiring to support domestic and international growth. Rumble Cloud specifically targets market pain points with predictable pricing and a "Freedom-First" technology platform vision.

Risk Assessment Framework

Strategic & Market Risks

Market Dynamics:

• Weakened Global Economic Conditions: Potential for reduced consumer confidence, decreased advertiser demand, increased operating costs (labor), constrained credit, and volatility in financial markets.
• Technology Disruption: Risk from new technologies that block or obscure advertising (e.g., Apple's App Tracking Transparency, changes to third-party cookies), potentially harming advertising revenue.
• Customer Concentration: While no single customer exceeded 10% of revenue in 2025, a significant portion of 2024 revenue (16%) came from one customer, indicating potential concentration risk.
• Traffic Growth & Engagement: Dependent on compatibility with various operating systems, networks, devices, web browsers, and mobile application stores (e.g., iOS, Android, connected TV apps), which Rumble Inc. does not control.
• Competition: Intense competition for traffic, user engagement, and advertising spend from companies with greater financial resources and larger user bases.
• Negative Media Campaigns: Risk of malicious media campaigns and advertiser boycotts due to Rumble Inc.'s commitment to diversity of opinion and refusal to censor otherwise allowable content.

Operational & Execution Risks

Supply Chain Vulnerabilities:

• Supplier Dependency: Reliance on third-party vendors for core services, including internet service providers, data centers, and content moderation (Cosmic Inc. and Kosmik Development Skopje doo). Outages or disruptions from these vendors could materially affect services.
• Capacity Constraints: Risk of misestimating data center capacity requirements in the cloud business.
• Limited Operating History: Makes it difficult to evaluate business and prospects or forecast future results, especially in rapidly evolving markets.
• User Base & Profitability: Uncertainty in sustaining user base growth, achieving or maintaining profitability, and effectively scaling systems, technology, or infrastructure.
• Content Creator Retention: Risk of losing existing content creators or failing to recruit new ones, particularly if competing platforms change moderation policies or offer superior monetization.
• Acquisition Integration: Risks associated with integrating acquired businesses (e.g., Northern Data AG), including operational, technological, and personnel challenges, diversion of management attention, and potential failure to realize anticipated benefits.
• Cybersecurity Incidents: Exposure to information theft, data corruption, operational disruption, and financial loss from cyberattacks, system failures, or security breaches.
• Spam Activities: Inauthentic and fraudulent user activities may overstate performance indicators and negatively impact reputation.
• Cloud Business Performance: Risk that the cloud services business may not achieve intended results due to challenges in establishing a brand, attracting talent, service outages, security vulnerabilities, or customers using the platform for illegal content.
• Key Personnel Loss: Dependence on the ability to attract and retain senior officers and other qualified personnel.

Financial & Regulatory Risks

Market & Financial Risks:

• Bitcoin Treasury Strategy: Exposure to high volatility, uncertain regulatory environment, cybersecurity threats, and market perception risks associated with holding Bitcoin.
• Stablecoin Acceptance: Risks related to the stability and reliability of stablecoins, regulatory uncertainty (e.g., GENIUS Act), operational and cybersecurity risks, and market acceptance.
• ND Business Combination Financial Impact: Significant transaction fees and integration costs, potential loss of customers or personnel, and dilution for existing stockholders.
• Capital Requirements: Potential need for additional capital to support growth, with uncertainty regarding availability on acceptable terms.

Regulatory & Compliance Risks:

• Data Privacy & Security: Subject to evolving and often conflicting domestic and international laws (e.g., GDPR, UK GDPR, LGPD, PIPEDA, CCPA, expanding US state laws) governing personal information, with substantial penalties for noncompliance.
• Online Content & Speech Regulation: Exposure to laws regulating online video-sharing and content (e.g., Canada’s Online Streaming Act, EU’s Digital Services Act, US state laws), which may require changes to content moderation practices, incur fines, or lead to service suspensions in certain jurisdictions.
• Age Verification & Child Online Safety: Significant regulatory, operational, and legal risks from laws requiring age verification and imposing obligations related to minors' data (e.g., COPPA, California's Age Appropriate Design Code, UK's Online Safety Act).
• Anti-Corruption & Anti-Money Laundering: Compliance obligations under U.S. Foreign Corrupt Practices Act and other international laws, with potential for criminal or civil liability.
• Intellectual Property Infringement: Risk of claims for infringing third-party intellectual property rights, leading to litigation costs, damages, or operational restrictions.
• Intermediary Liability: Potential liability for hosting tortious or unlawful materials uploaded by third parties, despite Section 230 protections, which are subject to evolving interpretations and legislative challenges.
• Paid Endorsements: Regulatory risk and liability from content creators engaging in paid promotions of regulated products/services, particularly if FTC guidelines are not followed.
• Tax Changes: Adverse impact from changes in tax rates, tax treatment of e-commerce, or new tax legislation in various jurisdictions.

Geopolitical & External Risks

Geopolitical Exposure:

• Trade Disputes: Prolonged or escalating trade disputes (e.g., US tariffs imposed in 2025) could increase costs, disrupt supply chains, reduce demand, and lead to regulatory changes like export controls or data localization requirements.
• Geographic Dependencies: Operational exposure to risks in key countries where Rumble Inc. operates or plans to expand.

Innovation & Technology Leadership

Research & Development Focus: Core Technology Areas:

• Video Platform: Continuous development and enhancement of the Rumble Inc. video sharing and livestreaming platform.
• Livestreaming & Monetization: Development of Rumble Studio, a patent-pending application for multi-platform livestreaming and monetization.
• Advertising Technology: Ongoing enhancement of Rumble Advertising Center (RAC), a proprietary advertising marketplace and network.
• Cloud Infrastructure: Building and operating Rumble Cloud with latest-generation equipment, including 4th generation AMD EPYC processors and NVMe SSDs, for high performance.
• Artificial Intelligence (AI): Increasing reliance on AI technologies, including generative AI and emerging agentic systems, for operational efficiency, product development, and data analysis.

Innovation Pipeline:

• The product roadmap emphasizes the progressive integration of Rumble Video, Rumble Studio, Rumble Wallet, and RAC into a single, seamlessly integrated platform to unlock differentiated features.
• Future development in cloud services will include AI infrastructure offerings like GPU as a service (GPUaaS) following the Northern Data AG business combination.

Intellectual Property Portfolio:

• Patent Strategy: Holds a pending utility patent application for technology related to Rumble Studio. Rumble Inc. intends to continue filing additional applications to protect its intellectual property.
• Trademarks: Registered trademarks include RUMBLE (in the United States, Canada, the European Union, and the United Kingdom), RUMBLE CLOUD, RUMBLE PREMIUM, RUMBLE STUDIO, RUMBLE SUBSCRIPTION, and RAC (all in the United States). Several U.S. trademark registration applications are pending, including for RUMBLE ADVERTISING CENTER, RUMBLE SPORTS, RUMBLE POLITICS, RUMBLE NEWS, RUMBLE WALLET, RUMBLE REELS, RUMBLE SHORTS, FREEDOM-FIRST, FREEDOM-FIRST TECHNOLOGY PLATFORM, YOUR CLOUD YOUR WAY, the RUMBLE logos, LOCALS, and the LOCALS logos.
• Copyrights: Protects its source code, website, applications, and creative assets.
• Trade Secrets: Relies on confidentiality, non-disclosure, and invention assignment agreements.
• Licensing Programs: Holds a limited-use license agreement with a significant shareholder for certain source code used in operations, provided for nil consideration.

Technology Partnerships:

• Strategic Alliances: The business combination with Northern Data AG is a key alliance to enhance AI and high-performance-computing (HPC) infrastructure.
• Research Collaborations: Not explicitly disclosed.

Leadership & Governance

Executive Leadership Team

Leadership Continuity: Rumble Inc. acknowledges that the loss of senior management or uncertain transitions could strain its ability to execute strategic initiatives. The Board oversees risk management, including cybersecurity, and receives regular updates from the CTO and CISO.

Board Composition: Rumble Inc.'s Board of Directors and governance structure, including Chris Pavlovski's super-majority voting control, remained unchanged following the Tether Investments S.A. de C.V. transaction. The Board actively oversees risk management and performs an annual review of operational and regulatory risks.

Human Capital Strategy

Workforce Composition:

• Total Employees: 156 full-time employees as of December 31, 2025.
• Geographic Distribution: 108 employees are based in the United States, and 48 are based in Canada.
• Skill Mix: The information technology team possesses decades of operational experience in private and classified government settings, advanced degrees in IT, and certifications (e.g., CISSP, Operating Systems Certifications, Network Engineering certifications).

Talent Management: Acquisition & Retention:

• Hiring Strategy: Human capital objectives include identifying, recruiting, retaining, incentivizing, and integrating employees.
• Retention Metrics: Not explicitly disclosed.
• Employee Value Proposition: Equity incentive programs are utilized to attract, retain, and motivate key employees and directors through share-based compensation awards.

Diversity & Development:

• Diversity Metrics: Not explicitly disclosed.
• Development Programs: Not explicitly disclosed.
• Culture & Engagement: Rumble Inc. believes it has good relationships with its employees.

Business Cyclicality & Seasonality

Demand Patterns:

• Seasonal Trends: Not explicitly disclosed.
• Economic Sensitivity: Rumble Inc.'s overall performance is partly dependent on worldwide economic conditions. Weak economic conditions, inflation, and high interest rates can lead to reduced consumer confidence, decreased advertiser demand, and increased operating costs, potentially impacting business and operating results.
• Industry Cycles: The success of new content is substantially dependent on consumer tastes and preferences, which change unpredictably.

Planning & Forecasting: Rumble Inc.'s financial results can be influenced by numerous unpredictable factors.

Regulatory Environment & Compliance

Regulatory Framework: Industry-Specific Regulations:

• Online Service Provider Liability: Operates under U.S. laws like the Digital Millennium Copyright Act of 1998 and Section 230 (47 U.S.C. § 230), which limit liability for user-uploaded content. International jurisdictions generally offer less robust protections.
• Privacy & Data Security: Subject to various laws globally, including Section 5 of the Federal Trade Commission Act, the EU’s General Data Protection Regulation (GDPR), the UK GDPR, the California Consumer Privacy Act (CCPA), Brazil’s Lei Geral de Protectao de Dados (LGPD), and Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA). New U.S. state privacy laws are taking effect in Indiana, Kentucky, and Rhode Island in January 2026.
• Online Transactions & Payments: Subject to laws governing online transactions, payment card transactions, and automatic renewals (e.g., federal Restore Online Shoppers Confidence Act).
• Online Content & Streaming: Subject to Canada’s Online Streaming Act (enacted 2023) and the EU’s Digital Services Act (DSA, effective 2023), which impose obligations on online platforms regarding content.
• Age Verification & Child Online Safety: Exposed to laws such as the Children’s Online Privacy Protection Act, California’s Age Appropriate Design Code, and the UK’s Online Safety Act, which impose obligations on services used by children.
• AI Regulation: Increasing regulatory scrutiny of AI technologies, including from the SEC and under the EU AI Act (phased enforcement from 2025).

Trade & Export Controls:

• Export Restrictions: Subject to Canadian and U.S. laws restricting trade and certain practices. Prolonged or escalating trade disputes, including U.S. tariffs imposed in 2025, could materially affect the business.
• Sanctions Compliance: Not explicitly detailed beyond general anti-corruption laws.

Legal Proceedings:

• Antitrust Lawsuits against Google: Two ongoing lawsuits in the U.S. District Court for the Northern District of California, one alleging self-preferencing in search results (on appeal to the Ninth Circuit) and another alleging monopolization of the online advertising market (ongoing in Multidistrict Litigation).
• Kosmayer Investment Inc. Lawsuit: Lawsuit in Ontario Superior Court of Justice alleging fraudulent misrepresentation, seeking rescission or $419.0 million in damages (ongoing discovery).
• New York State’s Social Media Law: Lawsuit in U.S. District Court for the Southern District of New York, with a preliminary injunction halting enforcement. Questions certified to the state high court.
• California AB 2655 Lawsuit: Lawsuit in U.S. District Court for the Eastern District of California, resulting in a permanent injunction against enforcement of the law. State of California has appealed.
• Brazilian Supreme Court Justice Alexandre de Moraes Lawsuit: Complaint filed in U.S. District Court for the Middle District of Florida related to content blocking orders (motion for alternative service filed).
• Rebel News Lawsuit: Lawsuit in Ontario Superior Court of Justice against Canada, Canada Lands Company, et al. alleging blocking of free speech gatherings (ongoing).
• Michael Goldstein Lawsuit: Lawsuit in U.S. District Court for the Central District of California alleging California Invasion of Privacy Act violation (motion to dismiss granted with leave to amend).

Tax Strategy & Considerations

Tax Profile:

• Effective Tax Rate: The effective tax rate for 2025 was -0.1% (expense) and for 2024 was 0.6% (benefit).
• Geographic Tax Planning: Rumble Inc. is subject to income taxes in the United States and other foreign jurisdictions. Significant judgment is required in determining income tax provisions and liabilities.
• Tax Reform Impact: New or revised tax regulations or court decisions, including those related to e-commerce, could subject Rumble Inc. or its customers to additional sales, income, and other taxes.

Insurance & Risk Transfer

Risk Management Framework:

• Insurance Coverage: Rumble Inc. does not currently maintain cybersecurity insurance to cover losses from security breaches. The Company cannot assure adequate insurance coverage for claims related to user content.
• Risk Transfer Mechanisms: Rumble Inc. indemnifies certain parties against losses from breaches of representations, covenants, or intellectual property infringement claims. It also has indemnification agreements with its officers and directors.