Yangaroo Announces Q2'2025 Financial Results

Executive Summary

• Yangaroo Inc. reported financial results for the second quarter ended June 30, 2025, marking its twelfth consecutive quarter of positive Normalized EBITDA.
• Total revenue declined 15% year-over-year to $1,651,441, driven by decreases in both Advertising and Entertainment divisions due to geopolitical tensions and protectionist trade measures.
• The company achieved a Normalized EBITDA of $220,909 for the quarter, while reporting an operating loss of $18,777 and an after-tax loss of $281,168.

Key Details

• Quarterly Revenue: $1,651,441 (down 15% from $1,949,689 in Q2 2024; down 7% from $1,782,058 in Q1 2025).
• Revenue Breakdown:
  • Advertising revenue decreased by $222,360 (16% YoY) and $221,980 (16% QoQ).
  • Entertainment revenue decreased by $75,888 (14% YoY).
  • Music revenue increased by $27,752 (12% QoQ).
  • Awards revenue increased by $63,611 (39% QoQ).
• Profitability Metrics:
  • Operating Loss: $18,777 (compared to Operating Income of $110,704 in Q2 2024).
  • Normalized EBITDA: $220,909 (down 35% from $337,818 in Q2 2024; down 16% from $264,251 in Q1 2025).
  • EBITDA: $63,051.
  • After-Tax Loss: $281,168.
• Six-Month Performance (Ended June 30, 2025):
  • Operating Income: $5,747 (vs. $128,075 in H1 2024).
  • Normalized EBITDA: $485,160 (vs. $575,399 in H1 2024).
• Operating Expenses: $1,670,218 (down 9% YoY and 5% QoQ), attributed to reductions in headcount, marketing, G&A, and technology expenses.
• Legal Settlements:
  • Reached a settlement agreement of $60,000 with a defendant shareholder regarding the 2021 acquisition of Digital Media Services Inc.
  • Reached a second settlement agreement for $150,000 with the accounting firm named in the same lawsuit.
• Shares for Services:
  • Issued 81,123 common shares to CEO Grant Schuetrumpf for services rendered May–July 2025.
  • Breakdown: 31,520 shares at $0.07/share (June); 49,603 shares at $0.09/share (May and July).
  • Cumulative shares issued under this arrangement for Jan–Jul 2025 total 281,473.
• Balance Sheet Highlights (Q2 2025):
  • Cash: $271,234.
  • Working Capital Deficiency: $(2,140,887).
  • Liquidity: $656,059.

Notable Quotes

• "We are pleased to report our twelfth consecutive quarter of positive Normalized EBITDA, reflecting the strength of our operations and our ongoing commitment to exceptional client service. While the macro market dynamics in the advertising and music sectors have created near-term headwinds, our disciplined approach and resilient business model position us well to navigate these challenges." — Grant Schuetrumpf, President and CEO