BuzzFeed, Inc. (BZFD) Q1 2026 Earnings Report, Transcript and Summary

Good day, and thank you for standing by. Welcome to the BuzzFeed Inc. First Quarter 2026 Earnings Conference Call. I would now like to hand the conference over to your first speaker today, Juliana Clifton, VP of Communications. Please go ahead.

Hi, everyone. Welcome to BuzzFeed Inc.'s First Quarter 2026 Earnings Conference Call. I'm Juliana Clifton, VP of Communications for BuzzFeed. Joining me first today are CEO, Jonah Peretti; and CFO, Matt Omer. Before we get started, I'd like to take this opportunity to remind you that our remarks today include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today's press release, Form 10-Q filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update these statements as a result of new information or future events. During this call, we present both GAAP and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin. The use of non-GAAP financial measures allows us to measure the operational strength and performance of our business. We believe adjusted EBITDA and adjusted EBITDA margin are relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by our management. A reconciliation of these GAAP to non-GAAP measures is included in today's earnings press release. Please review -- refer to our Investor Relations website to find today's press release. Now I'm going to hand the call over to Jonah.

Thank you. Good afternoon, everyone, and thanks for joining us. Today marks an important milestone for BuzzFeed. On behalf of the Board and management team, I want to welcome Byron Allen, who will become Chairman and Chief Executive Officer of BuzzFeed upon the completion of a transaction agreement we entered into earlier today. Byron Allen has agreed to make a significant investment out of his family office into BuzzFeed, and we are very excited about his vision for the company and our iconic brands, BuzzFeed and HuffPost. We have entered into a transaction agreement that we expect to close within the month, subject to customary closing conditions. Byron is one of the most accomplished media entrepreneurs and leaders in the industry, having built a global media platform with a strong track record of content creation, distribution, advertising sales and strategic growth across television, digital, streaming and local media assets. His vision, operational experience and long-term commitment to premium content makes him exceptionally well positioned to lead BuzzFeed and HuffPost into our next phase of growth and innovation. Byron has spent 30-plus years building distribution infrastructure, identifying strategic assets and scaling them into something much greater. To prepare for Byron's arrival, we expect to make significant changes to build the best possible foundation for his ambitious vision. This includes planning cost reductions aimed at making our core business more efficient, so we can build new initiatives on top of a profitable core. We also plan to set up BuzzFeed Studios as a new independent entity to house our premium studio, vertical microdrama and digital video businesses which we expect will create new opportunities for these assets, bring operational focus to BuzzFeed Inc. and generate new liquidity. Once this transaction is completed, I will shift my focus to a newly created role as President of BuzzFeed AI. Over the past couple of years, I've become convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways. This vision came into sharper focus over the last several months, and I believe the opportunity is enormous. After my 20 years as CEO of BuzzFeed, I'm excited to switch my focus to a more hands-on role developing products and technology that are only possible because of recent advances in AI. I'm confident I can have a bigger impact and create more value in this new capacity. I'm excited that Byron is joining us today to share some brief remarks about the extraordinary new opportunity, partnership and vision.

Thank you, Jonah, and the entire BuzzFeed and HuffPost team. Today marks the beginning of an exciting new chapter for BuzzFeed and HuffPost. I am honored to step into the role of Chairman and CEO upon this transaction closing. Our vision is to build on the iconic foundation of BuzzFeed and HuffPost and expanded to free streaming video, audio and user-generated content. Competing at scale with the largest tech platforms globally. As of this moment, BuzzFeed is officially chasing YouTube. BuzzFeed is the perfect platform to deliver free streaming globally using proprietary software and artificial intelligence. BuzzFeed will expand its ability to aggregate, curate and deliver premium video and audio content. Building on that foundation, these iconic brands will provide super hyper local, national and international news. BuzzFeed will pursue growth organically and through strategic acquisitions. Jonah will lead our team in AI innovation and user-generated content. These initiatives on top of our e-commerce, news and content businesses will position BuzzFeed to be a valuable platform for consumers and digital advertisers worldwide. I also want to take a moment here to recognize Jonah Peretti, whose vision and creativity over the last 20 years, built BuzzFeed into one of the most powerful and recognizable digital media brands in the world. Jonah will continue to play an important leadership role as President of BuzzFeed AI where he will focus on advancing the company's AI-driven strategies. Together, we have an exceptional leadership team focused on operational excellence, AI, digital innovation and a commitment to work diligently to create shareholder value. We are committed to the iconic brands of BuzzFeed and HuffPost and honoring their long tradition of reinventing and adapting to create the future of media. We are very excited about this extraordinary opportunity. Thank you for allowing us to share some of our vision.

Thank you, Byron. Our focus now is on supporting a smooth transition through the closing process and positioning BuzzFeed for long-term growth from day one. Now I'll hand over to Matt Omer to walk through the first quarter 2026 financial results.

Thanks, Jonah. BuzzFeed delivered Q1 2026 revenues of $31.6 million, declining 12.4% compared to the first quarter of 2025. Breaking down each revenue line. Advertising revenue declined 19.8% year-over-year to $17.1 million. Content revenue increased by $3.1 million or 69% to $7.5 million. In commerce and other revenues declined 32% year-over-year to $6.9 million. Net loss was $15.1 million for Q1 2026 compared to a net loss of $12.5 million in Q1 2025. Adjusted EBITDA was negative $7.8 million for Q1 2026 compared to negative $5.9 million in Q1 2025. On time spent, our primary audience engagement metric, Q1 2026 was 60.6 million hours compared to 67.9 million hours in Q1 2025, a decrease of 10.7% year-over-year. Given the ongoing transaction and the strategic work underway, we are withholding full year guidance at this time, we expect to provide a full update on both our strategic direction and financial outlook following the close of the transaction. We will not be taking questions today, but we look forward to discussing our post-closing strategy and financial outlook in greater detail once the transaction is complete. Now I'll hand the call back over to the operator.

And this concludes today's program. Thank you for participating. You may now disconnect.