RUM Group Inc. (RUM)

Price$8.60Cached quoteAs of 2026-09-06 08:21 UTC

AI: Overvalued

Price checkThe market price already assumes rapid, well-funded growth from the new artificial intelligence infrastructure business.

Published market capitalization is about $3.5 billion on roughly 400 million common shares. June filings also show 98.3 million pre-funded warrants issued to Tether with a nominal exercise price, so treating those as economic shares raises equity value to roughly $4.3 billion. Against trailing revenue of about $117.7 million and free cash flow, meaning cash left after operations and investment, of negative $153.1 million, the stock is near 37 times sales. Even annualized third-quarter guidance implies about 12 times sales, supporting an Overvalued verdict.

Big pictureRevenue is accelerating, but the company still consumes cash and has become far more capital intensive.

The supplied history shows 2025 revenue of $100.6 million, an operating loss of $126.7 million, and $70.4 million of operating cash outflow. In 2026, second-quarter revenue reached $40.4 million, while first-half operating cash outflow reached $66.1 million and second-quarter capital spending jumped above $42 million. Legacy video revenue also remains advertising-sensitive: audience monetization improved mainly because advertising added $5.9 million, while subscription revenue fell $0.5 million. Growth is real, but cash durability is not established.

Business strengthCash reserves remain meaningful, yet Northern Data transformed a cash-rich balance sheet into one carrying heavy obligations.

At June 30, cash was $203.3 million and liquid Bitcoin holdings were worth $17.2 million. However, Northern Data brought a convertible note carrying about $358.8 million plus roughly $143 million of lease obligations, leaving published debt near $501.8 million. The upside is substantial infrastructure: roughly 22,000 high-end Nvidia processors were added, and management reported about 85% utilization. Northern Data contributed $10.1 million of second-quarter revenue after closing, but management's adjusted earnings measure still showed a $16.6 million quarterly loss.

What could change the storyA huge cloud contract could justify the valuation, but only if financing and delivery work.

The August contract carries about $13.7 billion of six-year order value, but the third tranche needs customer approval and RUM says required project financing is not in place. The customer can earn up to 50.8 million near-zero-price warrants. Dilution already matters: the 2025 Tether transaction issued 103.3 million shares and repurchased 70 million, then Northern Data added 59.3 million shares plus 98.3 million pre-funded warrants. Strong margins and cheap financing could overturn the bearish valuation; expensive funding or delays could compound dilution.

AI: News

Massive cloud contractA six-year computing contract could transform revenue, but it brings major funding and dilution demands.

On August 23, the company signed a six-year agreement with an unnamed U.S. cloud customer for about $13.7 billion of graphics-processing services across three tranches; the third depends on customer approval of the delivery date. The customer can earn up to 50.8 million shares through one-cent warrants. Reuters reported the stock rose more than 8% before the August 24 open; it finished that session about 3.4% higher. The timing suggests a favorable reaction, not proven sole causation.

Record quarter and guidanceQuarterly revenue hit a record and management raised near-term expectations, while losses still remained large.

Results released after the August 10 close showed quarterly revenue of $40.4 million, up 61%, with Northern Data contributing $10.1 million after its June closing. Management's adjusted earnings measure, which excludes several non-cash and unusual items, showed a $16.6 million loss versus $20.5 million previously. Third-quarter revenue guidance was $87 million to $93 million. Shares rose 11.4% the next session and another 9.1% afterward; that timing suggests a positive reaction but does not prove sole causation.

Northern Data acquisition closesNorthern Data added major computing capacity and assets, but also substantial debt, warrants, and integration risk.

On June 17, Rumble completed its purchase of about 85.2% of Northern Data. The transaction added a large European computing estate and roughly 22,000 high-end Nvidia processors, but consideration included 59.3 million common shares, 98.3 million pre-funded warrants and a convertible note initially valued near $366.6 million. The next trading session gained about 1%, so price timing alone does not establish a strong direct market reaction. More importantly, the deal fundamentally changed RUM's balance sheet and business mix.

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Revenue

2021

2022

2023

2024

2025

Net income

2021

2022

2023

2024

2025

Free cash flow

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2021

2022

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2025

Financial statements

	2025	2024	2023	2022	2021
Revenue	$100.6M	$95.5M	$81.0M	$39.4M	$9.5M
Gross profit	−$6.8M	−$43.0M	−$65.2M	−$4.4M	—
Gross margin	−6.72%	−45.02%	−80.52%	−11.07%	—
Research & development	$18.7M	$18.9M	$15.7M	$6.3M	$1.6M
Operating expenses	$227.3M	$226.3M	$216.5M	$75.0M	$20.0M
Operating income	−$126.7M	−$130.9M	−$135.5M	−$35.6M	−$10.5M
Operating margin	−125.87%	−137.04%	−167.42%	−90.39%	−111.05%
EBITDA	−$112.1M	−$117.2M	−$130.7M	−$34.0M	−$10.4M
EBITDA margin	−111.40%	−122.78%	−161.43%	−86.44%	−109.42%
Net income	−$81.8M	−$338.4M	−$116.4M	−$11.4M	−$13.4M
Net profit margin	−81.32%	−354.35%	−143.79%	−28.96%	−141.70%
Basic EPSper basic share	-$0.32	-$1.66	-$0.58	-$0.05	-$0.06
Diluted EPSper diluted share	-$0.32	-$1.66	-$0.58	-$0.05	-$0.06

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈51.35%of listed shares

Tether Investments, S.A. de C.V. / Tether Global Investments Fund, S.I.C.A.F., S.A. / Devasini Giancarlo141.88M shares · Jun 17, 2026

View holders

Top 20 reported holders of RUM
Holder	% owned
Tether Investments, S.A. de C.V. / Tether Global Investments Fund, S.I.C.A.F., S.A. / Devasini Giancarlo	≈51.35%141.88M shares
CANTOR FITZGERALD, L. P.	6.75%18.65M shares
COOPER CREEK PARTNERS MANAGEMENT LLC	3.27%9.04M shares
BlackRock, Inc.	3.15%8.7M shares
Arsov Robert	≈1.86%5.15M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	1.51%4.18M shares
VANGUARD CAPITAL MANAGEMENT LLC	1.49%4.12M shares
GEODE CAPITAL MANAGEMENT, LLC	1.11%3.08M shares
STATE STREET CORP	1.05%2.89M shares
GOLDMAN SACHS GROUP INC	0.56%1.55M shares
CHARLES SCHWAB INVESTMENT MANAGEMENT INC	0.35%966.32K shares
NORTHERN TRUST CORP	0.34%952.88K shares
SUSQUEHANNA INTERNATIONAL GROUP, LLP	0.34%928.12K shares
VANGUARD FIDUCIARY TRUST CO	0.29%791.13K shares
JANE STREET GROUP, LLC	0.28%775.01K shares
UBS Group AG	0.25%698.54K shares
AMERIPRISE FINANCIAL INC	0.23%631.15K shares
Pavlovski Christopher	≈0.21%591.97K shares
BANK OF AMERICA CORP /DE/	0.20%555.05K shares
Cambridge Investment Research Advisors, Inc.	0.19%527.66K shares

Percentages use 276.32M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Gray completes the 100% scale. Reported positions may overlap; holders have different reporting dates.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys7$46.23M disclosed value

Sells (SEC code S)37$526.02M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 17, 2026Form 4	Tether Investments, S.A. de C.V. +2TenPercentOwner	BuyPre-Funded Warrant · derivative · indirect	4.60M	$7.88	$36.24M	56.14M
Feb 6, 2026Form 4	Devasini Giancarlo +2TenPercentOwner	BuyClass A Common Stock, par value $0.0001 per share · indirect	44.4K	$5.48	$243.1K	105.17M
Feb 5, 2026Form 4	Devasini Giancarlo +2TenPercentOwner	BuyClass A Common Stock, par value $0.0001 per share · indirect	539.0K	$5.41	$2.92M	105.13M
Feb 3, 2026Form 4	Devasini Giancarlo +2TenPercentOwner	BuyClass A Common Stock, par value $0.0001 per share · indirect	193.7K	$5.49	$1.06M	104.59M
Nov 21, 2025Form 4	Devasini Giancarlo +2TenPercentOwner	BuyClass A Common Stock, par value $0.0001 per share · indirect	270.5K	$5.46	$1.48M	104.40M