Filing Flows › Kustom Entertainment (KUST) › Q1 2025
Kustom Entertainment (KUST) Q1 2025 earnings results (first quarter 2025)
10-Q filed May 20, 2025
Kustom Entertainment (KUST) reported revenue of $4.5M for the first quarter 2025 (Q1 2025), -19% from a year earlier and +0.5% from the quarter before. Operating margin was -21.9%, net earnings $4.3M (95.3% of revenue).
Kustom Entertainment, Q1 2025: revenue $4.5M (-19% year over year), operating margin -21.9%, net earnings $4.3M, operating cash flow −$5.8M. The chart follows the revenue to costs, profit and cash.
| Q1 2025 | Amount | Q/Q | Y/Y |
|---|---|---|---|
| Revenue | $4.5M | +0.5% | -19% |
| Operating profit | −$982K | — | — |
| Net earnings | $4.3M | — | — |
| Operating cash flow | −$5.8M | — | — |
What changed
Revenue was $4.5M in Q1 2025, down 19% year over year and roughly flat from the previous quarter.
Gross margin was 35.8%, up 8.2 points from a year earlier. Operating costs exceeded revenue by $1.0M, an operating margin of -21.9%. Operating expenses fell 50% while revenue fell 19%. Net earnings were $4.3M. The effective tax rate was -0.2%. Non-operating items added $5.2M, 123% of pre-tax earnings, so the bottom line overstates operating performance.
Operating cash flow was −$5.8M. Non-cash charges added back $418K of depreciation and amortization and $14K of share-based compensation. Working capital and other items used $10.5M. Capital expenditures of $42K exceeded it, leaving free cash flow of −$5.8M.
Questions
What was Kustom Entertainment's revenue in the first quarter 2025?
Kustom Entertainment (KUST) reported revenue of $4.5M for the first quarter 2025 (Q1 2025), -19% from a year earlier and +0.5% from the quarter before.
Was Kustom Entertainment profitable in the first quarter 2025?
Operating loss was $982K (-21.9% of revenue) and net earnings $4.3M.