Gross margins have experienced severe compression, falling from a peak of 86.4% in 2023Q4 to 29.2% in 2026Q1, reflecting significant challenges in maintaining profitability.
| Sales/Revenue | 180.82M | 185.27M | 189.89M | 252.68M | 325.78M | 397.56M | 321.32M | 317.92M |
| Revenue Growth % | 3.13% | -2.43% | -24.85% | -22.44% | -18.06% | 23.73% | 1.07% | - |
| Cost of Goods Sold | 109.02M | 125.98M | 105.06M | 142.37M | 184.54M | 207.4M | 140.29M | 150.35M |
| COGS % of Revenue | - | 68% | 55.33% | 56.34% | 56.65% | 52.17% | 43.66% | 47.29% |
| Gross Profit | 71.79M | 59.29M | 84.82M | 110.31M | 141.24M | 190.17M | 181.03M | 167.57M |
| Gross Margin % | 39.71% | 32% | 44.67% | 43.66% | 43.35% | 47.83% | 56.34% | 52.71% |
| Gross Profit Growth % | - | -30.1% | -23.11% | -21.9% | -25.73% | 5.04% | 8.03% | - |
| Operating Expenses | 89.22M | 72.39M | 108.36M | 150.13M | 255.81M | 215.32M | 168.9M | 207.84M |
| OpEx % of Revenue | - | 39.08% | 57.06% | 59.42% | 78.52% | 54.16% | 52.56% | 65.37% |
| Selling, General & Admin | 64.21M | 66.18M | 78.36M | 117.02M | 155.51M | 167.53M | 133.74M | 167.26M |
| SG&A % of Revenue | - | 35.72% | 41.26% | 46.31% | 47.74% | 42.14% | 41.62% | 52.61% |
| Research & Development | 10.06M | 10.79M | 10.86M | 11.18M | 27.1M | 24.93M | 17.67M | 21.13M |
| R&D % of Revenue | - | 5.83% | 5.72% | 4.42% | 8.32% | 6.27% | 5.5% | 6.65% |
| Other Operating Expenses | 4M | -4.58M | 19.15M | 21.94M | 73.2M | 22.86M | 17.49M | 19.45M |
| Operating Income | -17.42M | -13.11M | -23.54M | -39.82M | -114.57M | -25.15M | 12.14M | -40.27M |
| Operating Margin % | -9.63% | -7.07% | -12.39% | -15.76% | -35.17% | -6.33% | 3.78% | -12.67% |
| Operating Income Growth % | - | 44.31% | 40.9% | 65.24% | -355.48% | -307.23% | 130.14% | - |
| EBITDA | -2.48M | 2.72M | -4.39M | -17.88M | -91.92M | -2.29M | 29.62M | -20.82M |
| EBITDA Margin % | -1.37% | 1.47% | -2.31% | -7.08% | -28.21% | -0.58% | 9.22% | -6.55% |
| EBITDA Growth % | -531.04% | 162.02% | 75.46% | 80.54% | -3906.8% | -107.74% | 242.3% | - |
| D&A (Non-Cash Add-back) | 14.94M | 15.83M | 19.15M | 21.94M | 22.66M | 22.86M | 17.49M | 19.45M |
| EBIT | -55.6M | -13.11M | -26.51M | -42.65M | -108.41M | 2.68M | 13.02M | -40.27M |
| Net Interest Income | -6.08M | -5.71M | -6.78M | -16.09M | -6.42M | -2.88M | -923K | 1.39M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 321K | 0 | 1.39M |
| Interest Expense | 6.08M | 5.71M | 6.78M | 16.09M | 6.42M | 3.21M | 923K | 0 |
| Other Income/Expense | -42.4M | -43.84M | -9.76M | -18.91M | -258K | 24.63M | -41K | 2.99M |
| Pretax Income | -59.83M | -56.95M | -33.29M | -58.73M | -114.83M | -528K | 12.1M | -37.28M |
| Pretax Margin % | -33.09% | -30.74% | -17.53% | -23.24% | -35.25% | -0.13% | 3.76% | -11.73% |
| Income Tax | 194K | 386K | 662K | 1.6M | 2.73M | -26.4M | 941K | -358K |
| Effective Tax Rate % | -0.32% | -0.68% | -1.99% | -2.73% | -2.38% | 5000.76% | 7.78% | 0.96% |
| Net Income | -60.26M | -57.72M | -10.1M | -88.58M | -200.96M | 24.71M | 10.34M | -37.19M |
| Net Margin % | -33.33% | -31.16% | -5.32% | -35.06% | -61.69% | 6.22% | 3.22% | -11.7% |
| Net Income Growth % | -564.93% | -471.75% | 88.6% | 55.92% | -913.2% | 139.09% | 127.79% | - |
| Net Income (Continuing) | -60.02M | -57.33M | -33.96M | -60.33M | -117.56M | 25.88M | 11.16M | -36.92M |
| Discontinued Operations | 0 | 0 | 24.03M | -28.99M | -83.77M | 22.01M | 0 | 0 |
| Minority Interest | 646K | 724K | 2.17M | 2.35M | 3.34M | 4.34M | 0 | 0 |
| EPS (Diluted) | -1.60 | -1.53 | -0.27 | -2.48 | -5.82 | 0.73 | 3.45 | -1.12 |
| EPS Growth % | -551.85% | -466.67% | 89.11% | 57.39% | -897.26% | -78.84% | 408.04% | - |
| EPS (Basic) | - | -1.53 | -0.27 | -2.48 | -5.82 | 0.73 | 3.45 | -1.12 |
| Diluted Shares Outstanding | 37.62M | 37.84M | 37.39M | 35.77M | 34.54M | 33.76M | 33.29M | 33.29M |
| Basic Shares Outstanding | 37.62M | 37.84M | 37.39M | 35.77M | 34.54M | 33.76M | 33.29M | 33.29M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Liquidity and platform dependency
As reported in recent financial statements, BZFD's revenue trajectory remains highly erratic, with a 12.4% year-over-year decline in 2026Q1 following a 66.9% surge in 2025Q4, highlighting the company's struggle to maintain consistent growth amidst shifting social media referral traffic and seasonal advertising demand cycles.
The extreme quarter-to-quarter revenue fluctuations suggest that the company's business model is highly sensitive to external platform algorithm changes rather than organic brand loyalty. Investors should monitor whether the recent contraction reflects a permanent loss of reach or merely the volatility inherent in project-based digital advertising revenue.
Based on reported figures, BZFD's gross margin has experienced significant degradation, falling from a peak of 86.4% in 2023Q4 to 29.2% in 2026Q1, which suggests that the cost of revenue is increasingly consuming the value generated by its digital content and commerce activities.
This sharp margin compression appears to indicate that the company is losing pricing power or facing higher platform-related costs to distribute its content. The inability to sustain higher gross margins implies that the current content production model may be structurally inefficient in the current digital media landscape.
According to quarterly filings, BZFD's operating income has remained consistently negative in most periods, with a -42.7% operating margin in 2026Q1, demonstrating that the company has yet to achieve the necessary scale to cover its fixed editorial and technical infrastructure costs.
The lack of positive operating leverage suggests that revenue growth is not currently translating into improved profitability, as SG&A expenses remain sticky relative to top-line performance. This trend warrants further investigation into whether management can successfully implement cost-saving measures without further eroding the company's core content output.
As evidenced by the 2024Q4 net income of $31.0M despite an operating loss, BZFD's bottom-line results are frequently impacted by non-operating items, which obscures the underlying operational performance and makes it difficult for investors to gauge the true sustainability of the company's earnings.
The wide variance between operating income and net income suggests that one-time gains or accounting adjustments are masking the core business's inability to generate consistent profit. Analysts should focus on operating income as a more reliable indicator of the company's health, given the volatility introduced by these non-operating factors.
Based on the provided data, the company's persistent net losses and shrinking revenue base suggest that the business model may be facing a terminal decline, as the $8.4M cash position provides a very narrow window for the company to achieve a sustainable operational turnaround.
Short-sellers would likely focus on the company's inability to pivot toward a profitable model despite multiple strategic shifts and divestitures. The risk of further margin compression and the potential for liquidity constraints appear to be the most significant threats to the company's long-term survival.
Quick answers to the most common questions about buying BZFD stock.
For fiscal year 2025, BuzzFeed, Inc. (BZFD) reported total revenue of $185.3M. This represents a 41.7% decline compared to $317.9M in 2019.
BuzzFeed, Inc. (BZFD) reported a net loss of $57.7M for the fiscal year ending 2025.
BuzzFeed, Inc. (BZFD) reported an operating income of $-13.1M, resulting in an operating profit margin of -7.1%. This margin reflects the operational efficiency of the business before interest and taxes.
BuzzFeed, Inc. (BZFD) generated $59.3M in gross profit for the year, representing a gross profit margin of 32.0%. This demonstrates the company's core pricing power and production efficiency.