Audioboom Group plc (AIM: BOOM), a global podcast company, saw its share price drop more than 7% in early Thursday trading after it released a trading update for the year ending December 31, 2025.
Despite showcasing robust financial performance and strategic advancements, the share price declined. The company reported record revenue and adjusted EBITDA profit exceeding market expectations, signaling a successful transition towards a scalable audio and video platform.
The company's annual adjusted EBITDA reached approximately $5.1 million, a 54% increase compared to $3.4 million in 2024, exceeding market forecasts. Revenue for 2025 reached approximately $80.4 million, up 10% from $73.4 million in the previous year. Total gross profit also saw significant growth, reaching approximately $17.0 million, an 18% increase from $14.4 million in 2024. This underscores the company's strategic focus on higher-quality revenue streams.
Audioboom achieved record quarterly revenue of approximately $24.9 million and a record quarterly adjusted EBITDA profit of approximately $2.2 million in Q4, resulting in a 9% adjusted EBITDA margin. Showcase, the company's tech-based global advertising marketplace, experienced substantial growth, with record revenue of approximately $30.4 million, up 31% from $23.1 million in 2024.
In Q4 2025, the average monthly distribution reached 150 million downloads and video views, a 66% increase compared to Q4 2024 (91 million views). This growth was fueled by the acquisition of Adelicious in July 2025 and the rapid expansion of Audioboom's video podcasts. The Q4 RPM (average revenue per 1,000 downloads and views) was $55.23, lower than the previous year (Q4 2024: $75.62) due to the increase in lower-yield video views and UK downloads. The company sees this as an opportunity for medium-term value creation through video podcast monetization and expansion in the UK podcast market.
The company's cash position at the end of 2025 was $4.2 million, compared to $3.9 million at the end of 2024, with an additional $3.4 million available through an overdraft facility. The conclusion of the final onerous contract on December 31, 2025, is expected to improve cash generation in 2026.
Audioboom has launched a commercial partnership with Spotify, aimed at enhancing the company's video monetization engine through expanded advertising and subscription opportunities. The UK operation also reported record quarterly revenue following the successful integration of Adelicious. Further expansion of the Audioboom Creator Network includes a new commercial and distribution partnership with History Daily, an award-winning daily podcast.
CEO Stuart Last commented, “2025 marked an inflection point in Audioboom's transition from a podcast network to a scaled audio and video platform…Our financial performance in 2025 was very pleasing, with record revenue and adjusted EBITDA ahead of market expectations for the year.”
The ongoing Strategic Review, announced on October 3rd, is expected to provide further updates on or before the publication of the Company's results for the year ended December 31, 2025, in April 2026.
Analyst Summary: Bull and Bear Cases
Bull Case:
- Showcase Growth: The company's scalable advertising marketplace, Showcase, continues to be a primary driver of revenue, growing 31% year-over-year to a record US$30.4 million.
- Video Monetization Strategy: A new commercial partnership with Spotify is set to enhance the video monetization engine, tapping into a rapidly growing segment of the market.
- Strategic Acquisitions and Expansion: The successful integration of Adelicious has fueled record revenue in the UK, demonstrating a strong strategy for market expansion and growth.
Bear Case:
- Decreasing RPM: Average revenue per 1,000 downloads/views (RPM) fell in Q4, indicating that the rapid expansion into lower-yield video and UK content is currently diluting profitability.
- Strategic Review Uncertainty: An ongoing strategic review creates ambiguity about the company's future direction, which could weigh on investor sentiment until its conclusions are announced.
- Cash Generation Pressure: While the cash position is stable, the company's ability to significantly improve cash generation in 2026 hinges on the successful conclusion of its final onerous contract and effective monetization of new content formats.
Audioboom's 2025 performance highlights a successful strategic pivot, with record revenue and adjusted EBITDA surpassing expectations. The growth of its ‘Showcase' marketplace and expansion into video podcasts via partnerships like Spotify are key strengths. However, investors should remain cautious of the lower RPM from these new content streams and the uncertainty surrounding the ongoing strategic review. While the outlook appears positive, the results of the review will be crucial in determining the company's long-term trajectory and ability to convert its growing audience into sustained profitability.
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