Loop Media Reports 58% Revenue Decline and Increased Losses in Latest Quarter

Loop Media, Inc. reported significant declines in revenue and increased losses in its latest quarterly financial results, as detailed in its 10-Q filing for the period ending March 31, 2025. The company generated revenue of $1.68 million for the three months ended March 31, 2025, a decrease of 58% from $4.00 million in the same period last year. For the six months, revenue fell to $5.41 million, down 62% from $14.17 million in the prior year. The net loss for the quarter was $4.23 million, compared to a loss of $7.57 million in the previous year, indicating a 44% improvement in loss reduction.

The decline in revenue was attributed to several factors, including a slowdown in digital advertising spending amid a challenging macroeconomic environment, changes in terms from a major ad demand participant, and a reduction in the number of Loop Players due to cost-cutting measures. The company has been restructuring its operations, which included eliminating its customer reward program and adjusting its affiliate program. Despite these challenges, Loop Media reported a gross profit margin of approximately 13.9% for the quarter, an increase from 10.4% a year earlier, primarily due to cost-cutting initiatives.

Operationally, Loop Media reported approximately 122,000 active Loop Players and Partner Screens as of March 31, 2025, which included 21,035 quarterly active Loop Players, a decrease from 23,225 in the previous quarter. However, the number of Partner Screens increased significantly, rising from about 60,000 to approximately 101,000. The company continues to focus on expanding its subscription offerings, including a two-tier music video service and a non-music subscription service featuring live channels.

Loop Media's financial position remains precarious, with cash reserves of $425,646 as of March 31, 2025, down from $2.20 million a year prior. The company has incurred substantial losses, leading to an accumulated deficit of $161.56 million. Management has indicated that the company will need to raise additional capital to sustain operations and continue its growth strategy. The outlook remains uncertain, with the company exploring various financing opportunities while implementing cost-saving measures to improve its financial health.