Revenue of $2.7 million; Gross Profit of $2.2 million, Achieving Gross Margin of 80.7%
Signed Non-Binding Letter of Intent to Acquire Assets of ConnectAndSell, Inc. (“ConnectAndSell”), Expected to Increase Revenue and Expand AI Platform Capabilities
Management to Host First Quarter 2026 Results Conference Call Today, Friday, May 15, 2026 at 4:30 p.m. Eastern Time
SEATTLE, May 15, 2026 (GLOBE NEWSWIRE) — Banzai International, Inc. (NASDAQ: BNZI) (“Banzai” or the “Company”), a leading AI-powered sales & marketing technology company, today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026 and Key Financial & Operational Highlights
- Maintained revenue of $2.7 million for Q1 2026, which represented a decrease of 4% from Q4 2025, primarily due to one-time revenue.
- Gross profit of $2.2 million for Q1 2026, a decrease of $0.1 million compared to Q4 2025. Gross margin was 80.7% for Q1 2026 compared to 81.9% in Q4 2025.
- Net Loss for Q1 2026 was $8.4 million, compared to Q4 2025 Net Loss of $5.0 million.
- Q1 2026 Adjusted EBITDA Loss increased to $1.9 million, compared to an Adjusted EBITDA Loss of $1.6 million in fourth quarter 2025.
- Reduced debt by $4.5 million compared to December 31, 2025. Year to date, we have reduced debt by $7.4 million.
- Stockholder’s Equity remained at $8.1 million as of March 31, 2026; converted $3.8 million of debt to equity, and raised an additional $3.3 million from the SEPA and ATM since December 31, 2025.
- Customer base includes over 150,000 total customers who have purchased or subscribed to Banzai products as of March 31, 2026.
- Signed a Non-binding Letter of Intent to acquire assets of ConnectAndSell, expected to increase annual revenue and expand AI Platform capabilities, continuing to negotiate terms.
“Overall, our revenue remained relatively flat compared to Q4 2025. We saw many bright spots including consistently high gross margin, and made substantial efforts to increase our enterprise pipeline, and 11% revenue growth in March as compared to February,” said Joe Davy, Founder and CEO of Banzai. “However, we are not satisfied with the performance of our consumer direct products in 2026 and are taking steps to fine tune our product offering and go-to-market effort in this segment. We grew operating expenses in the areas that added capability to support future growth and reduced expenses in areas like professional fees, where we found cost efficiencies by bringing this work in house.”
“During the quarter, we strengthened our balance sheet by retiring debt totaling $4.5 million through cash payments and share conversions.
“We have taken actions to manage our cost structure, resulting in substantial improvements. Additionally, I am pleased that Banzai’s management has committed to further cost management actions, which we expect will materially reduce operating expenses.
“Looking ahead, we are focused on building upon the foundation established in 2025 by deepening relationships with enterprise and mid-market customers and driving broader adoption across high-value verticals. We will continue investing in our AI capabilities to find new ways to deliver customer value. We believe these efforts will allow us to deliver long-term value for shareholders while supporting our customers’ evolving needs.
“We also maintain an active pipeline of potential acquisition opportunities across key industries where we have strong sector experience and can leverage our AI platform and experience to add value and strategic operational acceleration. Recent balance sheet improvements are expected to enable new growth as we maintain operational discipline and the path to sustainable profitability,” concluded Davy.
First Quarter 2026 Financial Results
Total revenue for the three months ended March 31, 2026 decreased 20.2% to $2.7 million compared to the prior year quarter. Our consumer direct products showed the largest declines compared to our enterprise products. On a sequential basis, total revenue for the three months ended March 31, 2026 decreased 4% compared to the three months ended December 31, 2025.
Total cost of revenue for the three months ended March 31, 2026 was $0.5 million, compared to $0.6 million in the prior year quarter, a decrease of 14%. On a sequential basis, total cost of revenue is flat compared to the three months ended December 31, 2025.
Gross profit for the three months ended March 31, 2026 was $2.2 million, compared to $2.8 million in the prior year quarter. Gross margin was 80.7% in first quarter 2026 compared to 82.1% in first quarter 2025. On a sequential basis, gross profit decreased by $0.1 million to $2.3 million for the three months ended December 31, 2025. Gross margin was 81.9% in fourth quarter 2025.
Total operating expenses for the three months ended March 31, 2026 were $8.0 million, compared to $7.7 million in the prior year quarter. Operating expenses increased primarily driven by People Expenses reflecting the costs of building out key roles on the leadership team and within sales and marketing, as well as professional fees. On a sequential basis, total operating expenses increased $0.9 million from $7.1 million in the three months ended December 31, 2025. Operating expenses increased primarily driven by People Expenses reflecting the costs of building out key roles on the leadership team and within sales and marketing, and professional fees.
Net Loss for the three months ended March 31, 2026 was $8.4 million. Q1 2025 Net Loss of $3.6 million included a one-time non-cash gain of $4.3 million related to a negotiated reduction of SPAC liabilities. Adjusting for this one-time gain, Q1 2025 Net Loss would have been $7.9 million, compared to $8.4 million for Q1 2026. On a sequential basis, Net Loss for Q4 2025 was $5.0 million. The increase in Net Loss was driven by Other (Income) Expense items, primarily change in fair value related to financial instruments.
Adjusted EBITDA Loss for the three months ended March 31, 2026 increased to $1.9 million, compared to an Adjusted EBITDA Loss of $1.7 million in the prior year quarter. On a sequential basis, Adjusted EBITDA Loss for the three months ended March 31, 2026 increased by $0.3 from $1.6 million in fourth quarter 2025.
Net cash used in operating activities for the three months ended March 31, 2026 was $5.5 million, compared to $5.0 million for the three months ended March 31, 2025. On a sequential basis, net cash used in operating activities was $2.3 million for the three months ended December 31, 2025.
We signed a Non-binding Letter of Intent to acquire assets of ConnectAndSell, an AI-powered sales enablement platform serving B2B organizations across financial services, healthcare, technology, and other industries. The acquisition is expected to increase Banzai’s annual revenue and expand our AI Platform capabilities. The two companies have executed a non-binding letter of intent and continue to negotiate material terms of the transaction. Since the transaction is subject to execution of a definitive agreement and closing conditions, we cannot accurately estimate the closing date at this time. There can be no assurance that we will be able to complete this acquisition.
Cash totaled $0.1 million as of March 31, 2026, compared to $0.8 million as of March 31, 2025.
During first quarter 2026, we continued to fund our operations through a combination of equity and debt financings, and most notably, closed an additional tranche of convertible debt, totaling approximately $2.3 million, and raised an additional $3.3 million of equity.
Management has continued to strengthen the balance sheet and reduced net debt by $0.7 million in line with our strategic priorities. Stockholder’s Equity remained at $8.1 million as of March 31, 2026.
First Quarter 2026 Results Conference Call
Banzai Founder & CEO Joe Davy and CFO Dean Ditto will host the conference call, followed by a question-and-answer session. The conference call will be accompanied by a presentation, which can be viewed during the webcast or accessed via the investor relations section of the Company’s website here.
To access the call, please use the following information:
| Date: | Friday, May 15, 2026 |
| Time: | 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) |
| Webcast Registration: | Banzai Q1 2026 Financial Results Conference Call |
A replay of the webcast and the presentation utilized during the call will be available in the Company’s investor relations section here.
Note About Non-GAAP Financial Measures
Adjusted EBITDA
In addition to our results determined in accordance with U.S. GAAP, we believe that Adjusted EBITDA, a non-GAAP measure as defined below, is useful in evaluating our operational performance distinct and apart from certain irregular, non-cash, and non-operational expenses. We use this information for ongoing evaluation of operations and for internal planning purposes. We believe that non-GAAP financial information, when taken collectively with results under GAAP, may be helpful to investors in assessing our operating performance and comparing our performance with competitors and other comparable companies.
Non-GAAP measures should not be considered in isolation or as a substitute for analysis of our results as reported under GAAP. We endeavor to compensate for the limitation of Adjusted EBITDA, by also providing the most directly comparable GAAP measure, which is net loss, and a description of the reconciling items and adjustments to derive the non-GAAP measure.
Adjusted EBITDA should only be considered alongside results prepared in accordance with GAAP, including various cash-flow metrics, net income (loss) and our other GAAP results and financial performance measures.
| BANZAI INTERNATIONAL, INC. | ||||||||||||||||
| Net Income (Loss) to Adjusted EBITDA Reconciliation | ||||||||||||||||
| (Unaudited, in thousands) | ||||||||||||||||
| Three Months Ended March 31, | Period-over-Period | |||||||||||||||
| 2026 | 2025 | $ | % | |||||||||||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | $ | (4,773 | ) | (131.0 | %) | |||||
| Interest income | (3 | ) | — | (3 | ) | NM | ||||||||||
| Interest expense | 9 | — | (9 | ) | NM | |||||||||||
| Interest expense – related party | 194 | 358 | 164 | 45.8 | % | |||||||||||
| Income tax expense (benefit) | (52 | ) | 74 | 126 | 170.3 | % | ||||||||||
| Depreciation and amortization expense | 305 | 247 | (58 | ) | (23.5 | %) | ||||||||||
| Stock based compensation | 1,308 | 337 | (971 | ) | (288.1 | %) | ||||||||||
| Gain on extinguishment of liabilities | — | (4,343 | ) | 4,343 | 100.0 | % | ||||||||||
| Loss on debt issuance | 49 | 274 | 225 | 82.1 | % | |||||||||||
| Loss on Private Placement Issuance | 1,598 | — | (1,598 | ) | NM | |||||||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | 1,764 | 99.7 | % | |||||||||||
| Change in fair value of financial instruments | 608 | 140 | (468 | ) | (334.3 | %) | ||||||||||
| Change in fair value of financial instruments – related party | 22 | 45 | 23 | 51.1 | % | |||||||||||
| Change in fair value of convertible notes | (372 | ) | 159 | 531 | 334.0 | % | ||||||||||
| Loss on Yorkville SEPA advances | 28 | 385 | 357 | 92.7 | % | |||||||||||
| Other (income) expense, net | 550 | (125 | ) | (675 | ) | (540.0 | %) | |||||||||
| Transaction related expenses | 2,259 | 2,582 | 323 | 12.5 | % | |||||||||||
| Adjusted EBITDA | $ | (1,908 | ) | $ | (1,741 | ) | $ | (167 | ) | (9.6 | %) | |||||
About Banzai
Banzai is a marketing technology company that provides AI-enabled marketing and sales solutions for businesses of all sizes. On a mission to help their customers grow, Banzai enables companies of all sizes to target, engage, and measure both new and existing customers more effectively. Banzai has over 150,000 customers including Amazon, Dell, Salesforce, Aflac, Thermo Fisher Scientific, RBC Wealth Management, and Fitch Group. Learn more at http://www.banzai.io. For investors, please visit ir.banzai.io.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements often use words such as “believe,” “may,” “will,” “estimate,” “target,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “propose,” “plan,” “project,” “forecast,” “predict,” “potential,” “seek,” “future,” “outlook,” and similar variations and expressions. Forward-looking statements are those that do not relate strictly to historical or current facts. Examples of forward-looking statements may include, among others, statements regarding Banzai International, Inc.’s (the “Company’s”): future financial, business and operating performance and goals; annualized recurring revenue and customer retention; ongoing, future or ability to maintain or improve its financial position, cash flows, and liquidity and its expected financial needs; potential financing and ability to obtain financing; acquisition strategy and proposed acquisitions and, if completed, their potential success and financial contributions; strategy and strategic goals, including being able to capitalize on opportunities; expectations relating to the Company’s industry, outlook and market trends; total addressable market and serviceable addressable market and related projections; plans, strategies and expectations for retaining existing or acquiring new customers, increasing revenue and executing growth initiatives; and product areas of focus and additional products that may be sold in the future. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which the Company operates may differ materially from those made in or suggested by the forward-looking statements. Therefore, investors should not rely on any of these forward-looking statements. Factors that may cause actual results to differ materially include changes in the markets in which the Company operates, customer demand, the financial markets, economic, business and regulatory and other factors, such as the Company’s ability to execute on its strategy. More detailed information about risk factors can be found in the Company’s Annual Report on Form 10-K and the Company’s Quarterly Reports on Form 10-Q under the heading “Risk Factors,” and in other reports filed by the Company, including reports on Form 8-K. The Company does not undertake any duty to update forward-looking statements after the date of this press release.
Investor Relations
Dean Ditto
Chief Financial Officer, Banzai
206 414-1777
ir.banzai.io
Media
Nancy Norton
Chief Legal Officer,
Banzaimedia@banzai.io
| BANZAI INTERNATIONAL, INC. Condensed Consolidated Balance Sheets (in thousands, except share and per share data) | ||||||||
| As of | ||||||||
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash | $ | 137 | $ | 259 | ||||
| Accounts receivable, net | 668 | 709 | ||||||
| Prepaid expenses and other current assets | 855 | 445 | ||||||
| Total current assets | 1,660 | 1,413 | ||||||
| Property and equipment, net | — | 8 | ||||||
| Intangible assets, net | 7,737 | 8,027 | ||||||
| Goodwill | 21,992 | 21,992 | ||||||
| Operating lease right-of-use assets | 49 | 56 | ||||||
| Bifurcated embedded derivative asset – related party | — | 9 | ||||||
| Deferred offering costs | 32 | 122 | ||||||
| Other assets | 4 | 4 | ||||||
| Total assets | 31,474 | 31,631 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Accounts payable | 2,971 | 2,494 | ||||||
| Accrued expenses and other current liabilities | 4,068 | 4,354 | ||||||
| Convertible notes – related party | 5,117 | 4,923 | ||||||
| Convertible notes, carried at fair value | 1,890 | 1,856 | ||||||
| Convertible notes (Yorkville) | 571 | 1,200 | ||||||
| Notes payable, carried at fair value | 2,258 | 2,591 | ||||||
| Private placement warrant liability | 1,250 | 296 | ||||||
| Financial instruments – related party | 13 | — | ||||||
| Earnout liability | 500 | 991 | ||||||
| Deferred revenue | 3,547 | 3,642 | ||||||
| Operating lease liabilities, current | 30 | 23 | ||||||
| Total current liabilities | 22,215 | 22,370 | ||||||
| Deferred revenue, non-current | 117 | 94 | ||||||
| Deferred tax liability | 1,026 | 1,078 | ||||||
| Operating lease liabilities, non-current | 19 | 34 | ||||||
| Total liabilities | 23,377 | 23,576 | ||||||
| Stockholders’ equity: | ||||||||
| Additional paid-in capital | 117,346 | 108,912 | ||||||
| Accumulated other comprehensive (loss) income | (60 | ) | (85 | ) | ||||
| Accumulated deficit | (109,189 | ) | (100,772 | ) | ||||
| Stockholders’ equity | 8,097 | 8,055 | ||||||
| Total liabilities and stockholders’ equity | $ | 31,474 | $ | 31,631 | ||||
| BANZAI INTERNATIONAL, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Operations | ||||||||
| (in thousands) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Operating income: | ||||||||
| Revenue | $ | 2,696 | $ | 3,379 | ||||
| Cost of revenue | 521 | 606 | ||||||
| Gross profit | 2,175 | 2,773 | ||||||
| Operating expenses: | ||||||||
| General and administrative expenses | 7,650 | 7,433 | ||||||
| Depreciation and amortization expense | 305 | 247 | ||||||
| Total operating expenses | 7,955 | 7,680 | ||||||
| Operating loss | (5,780 | ) | (4,907 | ) | ||||
| Other expenses (income): | ||||||||
| Interest income | (3 | ) | — | |||||
| Interest expense | 9 | — | ||||||
| Interest expense – related party | 194 | 358 | ||||||
| Gain on extinguishment of liabilities | — | (4,343 | ) | |||||
| Loss on debt issuance | 49 | 274 | ||||||
| Loss on Private Placement Issuance | 1,598 | — | ||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | ||||||
| Change in fair value of financial instruments | 608 | 140 | ||||||
| Change in fair value of financial instruments – related party | 22 | 45 | ||||||
| Change in fair value of convertible notes | (372 | ) | 159 | |||||
| Loss on Yorkville SEPA advances | 28 | 385 | ||||||
| Other (income) expense, net | 550 | (125 | ) | |||||
| Total other expenses, net | 2,689 | (1,337 | ) | |||||
| Loss before income taxes | (8,469 | ) | (3,570 | ) | ||||
| Income tax expense (benefit) | (52 | ) | 74 | |||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | ||
| Net loss attributable to common shareholders | (8,417 | ) | (3,644 | ) | ||||
| Net loss per share attributable to common shareholders | ||||||||
| Basic and diluted | $ | (11.69 | ) | $ | (30.37 | ) | ||
| Weighted average common shares outstanding (in thousands) | ||||||||
| Basic and diluted | 720 | 120 | ||||||
| BANZAI INTERNATIONAL, INC. | ||||||||
| Unaudited Condensed Consolidated Statements of Cash Flows | ||||||||
| (in thousands) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (8,417 | ) | $ | (3,644 | ) | ||
| Adjustments to reconcile net loss to net cash used in operating activities: | — | — | ||||||
| Depreciation and amortization expense | 305 | 247 | ||||||
| Provision for credit losses on accounts receivable | (15 | ) | (10 | ) | ||||
| Non-cash shares issued for consulting expenses | — | 233 | ||||||
| Discount at issuance on notes carried at fair value | — | 16 | ||||||
| Non-cash interest expense – related party | 194 | 336 | ||||||
| Amortization of operating lease right-of-use assets | 7 | 6 | ||||||
| Stock based compensation expense | 1,308 | 337 | ||||||
| Gain on extinguishment of liability | — | (4,343 | ) | |||||
| Loss on debt issuance | 49 | 274 | ||||||
| Loss on Private Placement Issuance | 1,598 | — | ||||||
| Loss on extinguishment of debt, net | 6 | 1,770 | ||||||
| Other (gains) losses | (7 | ) | — | |||||
| Loss on SEPA issuance | — | 385 | ||||||
| Change in fair value of financial instruments | 608 | 140 | ||||||
| Change in fair value of financial instruments – related party | 22 | 45 | ||||||
| Change in fair value of convertible notes, carried at fair value | (373 | ) | 159 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 56 | (82 | ) | |||||
| Prepaid expenses and other current assets | (410 | ) | (188 | ) | ||||
| Other assets | — | (3 | ) | |||||
| Accounts payable | 477 | (610 | ) | |||||
| Deferred revenue | (95 | ) | 37 | |||||
| Accrued expenses | (286 | ) | (213 | ) | ||||
| Operating lease liabilities | (8 | ) | (5 | ) | ||||
| Earnout liability | (491 | ) | 170 | |||||
| Deferred revenue – long-term | 23 | (6 | ) | |||||
| Deferred tax liability | (52 | ) | (25 | ) | ||||
| Net cash used in operating activities | (5,501 | ) | (4,974 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Cash paid for acquisition of Vidello, net of cash acquired | — | (2,677 | ) | |||||
| Net cash used in investing activities | — | (2,677 | ) | |||||
| Cash flows from financing activities: | ||||||||
| Payment of GEM commitment fee promissory note | — | (215 | ) | |||||
| Repayment of convertible notes (Yorkville) | (647 | ) | (1,877 | ) | ||||
| Proceeds from term notes, net of issuance costs | 504 | 4,000 | ||||||
| Repayment of term notes | (54 | ) | (3,686 | ) | ||||
| Partial repayment of convertible notes – related party | — | (870 | ) | |||||
| Proceeds from issuance of convertible notes, net of issuance costs | 2,121 | 3,258 | ||||||
| Proceeds from issuance of shares to Yorkville under the SEPA | 697 | 6,687 | ||||||
| Proceeds from shares issued to Verista | — | 50 | ||||||
| Proceeds from issuance of common stock and warrants | 2,726 | — | ||||||
| Net cash provided by financing activities | 5,347 | 7,347 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | 32 | — | ||||||
| Net decrease in cash | (122 | ) | (304 | ) | ||||
| Cash at beginning of period | 259 | 1,087 | ||||||
| Cash at end of period | $ | 137 | $ | 783 | ||||
