NASDAQ$KUST

Kustom Entertainment Inc · Q2 2025 earnings

Q2 2025 earnings · · After market close · Investor relations

Briefing

Digital Ally reported a net loss with declining gross margins despite stable revenue.

Digital Ally posted revenue of $5.63M in Q2 2025, essentially flat year-over-year. However, higher costs pushed the company into a gross loss, and operating losses widened. Net loss per share was -$3.21, reflecting ongoing financial pressure despite financing activities that improved liquidity.

  • Total revenue was $5.63M, flat compared to Q2 2024.
  • Gross margin turned negative with a gross loss of $0.63M.
  • Operating loss increased to $4.10M from $3.91M in Q2 2024.
  • Net loss attributable to shareholders was $4.55M, or -$3.21 per share.

Headline financials

Total Revenue

$5.63M

Previous: $100K+5532.0%
EPS (adj)

-$3.21

Previous: -$0.07-4485.7%
Net loss improvement

$595K

No prior period
Capital Expenditures

-$220K

Previous: -$24.9K-784.8%
Net Income

-$4.55M

Previous: -$350K-1197.8%
Operating Income

-$4.1M

Previous: -$446K-817.3%
Gross Profit

-$633K

Previous: -$346K-82.6%

Revenue & EPS history

Digital Ally · Revenue · Quarterly

$5.63M

Q2 2025+5,532%vs Q2 2024
Beat estimate in 4 of 10 quarters(40%)
ActualEstimate

Revenue by segment

Digital Ally · $4.31M total across 2 segments · Q1 2026

  • Entertainment
    $3.21M
  • Video Solutions
    $1.11M

Forward guidance

The company expects continued challenges in profitability but is focusing on cost controls, financing flexibility, and leveraging its three operating segments.

Tailwinds

  • Stable revenue across core segments.
  • Recent equity financing strengthened liquidity.
  • Debt obligations reduced significantly.
  • Subscription models continue to contribute steady cash flow.
  • Entertainment and healthcare segments provide diversification.

Headwinds

  • Gross margin turned negative due to rising costs.
  • Operating losses remain elevated.
  • Net losses continue to weigh on equity.
  • Cash flow from operations was negative at -$8.64M in H1 2025.
  • Uncertainty around sustaining revenue growth across segments.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2025

Historical avgQ2 2025

-1.2%

Avg return

Earnings day

-4.9%

Avg return

5 days after

+5.3%

Avg return

30 days after

44%

28 / 64 earnings

Positive

+41.8%

Q1 2013

Best reaction

-25.3%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-5.0%-7.7%
Q3 2025-4.6%-18.7%-27.1%
Q2 2025-0.6%+8.1%+16.2%
Q1 2025-19.8%-42.2%-46.3%
Q4 2024+1.0%-37.5%-39.7%
Q3 2024-0.5%+13.2%-54.7%
Q2 2024-25.3%-25.3%-22.6%
Q1 2024-3.5%-7.5%-13.5%
Q4 2023-6.0%-2.0%-3.6%
Q3 2023-13.5%-17.1%-24.2%
Q2 2023-6.7%-8.9%-21.0%
Q1 2023+6.8%+9.3%+42.2%
Q4 2022-14.7%-17.7%-29.2%
Q3 2022+0.0%+0.0%-24.3%
Q2 2022-11.2%-13.5%-39.3%
Q1 2022-4.0%-14.9%-20.8%
Q4 2021+4.6%+3.7%-10.1%
Q3 2021+3.2%-0.8%-13.5%
Q2 2021+0.8%+0.0%-0.8%
Q1 2021+1.8%+1.8%+9.0%
Q4 2020+0.0%-0.6%+4.0%
Q3 2020+5.0%+0.4%+8.3%
Q2 2020-24.9%-31.0%-34.0%
Q1 2020-4.8%-4.8%+435.7%
Q4 2019+0.0%+11.7%+13.0%
Q3 2019-0.8%-0.8%-3.4%
Q2 2019-14.3%-14.3%+20.2%
Q1 2019-10.1%-13.3%-21.0%
Q4 2018+2.4%+2.7%+15.3%
Q3 2018-1.8%-0.4%-7.4%
Q2 2018-3.8%+0.0%+62.3%
Q1 2018-7.4%+0.0%-4.4%
Q4 2017+17.4%+15.2%+13.0%
Q3 2017+8.0%+10.3%+31.5%
Q2 2017+1.7%+13.6%-1.7%
Q1 2017+2.7%-7.2%-7.2%
Q4 2016+2.2%+4.6%+3.4%
Q3 2016+3.0%+12.0%-4.4%
Q2 2016-9.0%-11.8%+3.2%
Q1 2016+1.3%
Q4 2015-12.1%
Q3 2015-1.0%
Q2 2015-17.9%
Q1 2015-7.8%
Q4 2014+19.2%
Q3 2014-11.5%
Q2 2014-19.2%
Q1 2014+3.7%
Q4 2013-22.0%
Q3 2013-17.0%
Q2 2013+6.7%
Q1 2013+41.8%
Q4 2012+3.4%
Q3 2012+13.3%
Q2 2012+5.1%
Q1 2011+11.1%
Q1 2012-10.4%
Q4 2011+40.0%
Q3 2010-3.3%
Q3 2011-3.3%
Q4 2010+10.7%
Q2 2010+10.7%
Q2 2011+10.7%
Q1 2010+2.9%

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