Loop Media Reports Significant Revenue Declines and Increased Net Losses for Q3 and YTD 2025

Loop Media, Inc. reported significant declines in its financial performance for the three and nine months ended June 30, 2025, compared to the same periods in 2024. The company generated revenue of $1.29 million for the three months ended June 30, 2025, a decrease of 70% from $4.35 million in the prior year. For the nine-month period, revenue fell 64% to $6.70 million from $18.52 million. The gross profit for the three months was $271,245, down 70% year-over-year, while the nine-month gross profit decreased by 61% to $1.94 million. The net loss for the quarter was $3.40 million, a 38% improvement from the $5.45 million loss in the same quarter of 2024, and the nine-month net loss was $12.18 million, down 33% from $18.31 million.

The company attributed these declines primarily to a slowdown in digital advertising spending, changes in terms from major ad demand partners, and a reduction in the number of Loop Players due to cost-cutting measures. Loop Media's active units as of June 30, 2025, included approximately 135,000 active Loop Players and Partner Screens, with 17,996 quarterly active units on its owned and operated platform, reflecting a decrease from the previous quarter. However, the number of Partner Screens increased by approximately 16,000 from the prior quarter, indicating some growth in that segment.

In terms of operational changes, Loop Media has been implementing cost-saving measures, including reductions in headcount and restructuring its affiliate program. Total operating expenses for the three months ended June 30, 2025, were $2.54 million, a decrease of 55% from $5.69 million in the same quarter of 2024. The company has also been actively exploring financing options to address its liquidity challenges, as it reported cash of only $109,692 at the end of the reporting period, down from $1.55 million a year earlier.

Looking ahead, Loop Media anticipates continued losses and negative cash flows, raising substantial doubt about its ability to continue as a going concern. The company is focused on generating sufficient revenue and raising additional funds through equity and debt financing while maintaining reduced spending levels. The management is evaluating strategic alternatives to maximize shareholder value and is committed to exploring financing opportunities to support its operations and growth initiatives.