Paradium.AI — Q3 2026 Earnings Summary

Financial Performance:

• Revenue was $20.5 million for Q3 2026, a 31.2% decrease compared to $29.8 million in Q3 2025.
• Gross margin declined to 31.7% in Q3 2026 from 50.0% in Q3 2025.
• Net loss was $3.8 million (or -18.5% of revenue) in Q3 2026, compared to net income of $6.9 million (or 23.2% of revenue) in Q3 2025.
• Adjusted EBITDA was $2.4 million in Q3 2026, down from $11.9 million in Q3 2025; Adjusted EBITDA margin was 11.7% compared to 39.9% in the prior year period.
• Cash balance was $10.1 million as of September 30, 2026, consistent with year-end 2025 levels.
• Total liabilities were $114.0 million as of September 30, 2026, compared to $117.4 million as of December 31, 2025.
• Term debt was $96.4 million as of September 30, 2026, compared to $97.6 million as of December 31, 2025.
• Stockholders' deficiency was $(11.3) million as of September 30, 2026, compared to $(4.8) million as of December 31, 2025.
• Operating expenses increased to $7.4 million in Q3 2026 from $5.4 million in Q3 2025, driven by General and Administrative expenses rising to $4.3 million from $3.2 million.
• Interest expense, net, was $2.5 million in Q3 2026 compared to $2.9 million in Q3 2025.
• The quarterly net loss included a $1.3 million reversal of an employee retention tax credit asset that was disallowed.
• The quarterly results included the timing of recognition of annual incentive compensation expenses of $1.0 million.

Business Segments and Product Lines:

• Blended revenue per page view (RPM) rose 15% month-over-month in September 2026 compared to August 2026, driven by monetization initiatives deployed in the first half of 2026.
• New article production increased 15% over Q2 2026, expanding sequentially each month in Q3 2026, enabled by AI technologies InfoSentience (acquired in August 2026) and Cutter Studios.
• Announced a licensing co-brand agreement for "Trust·Respect·Love by Cesar Millan" with Xcel Brands, combining celebrity expert credibility with PetHelpful, Parade, and Cesar Millan's personal platforms.
• Launched a purpose-built, AI-enabled tool for content creation, editing, and management in the CMS in October, increasing words reviewed in evergreen content by over 100% and pageviews by approximately 50% within three weeks of updates.
• Implemented agentic buying campaigns in collaboration with pubX, reducing campaign trafficking time by up to 78% (from 2-3 business days to 5 hours and 37 minutes).
• The company is developing Tablation, an AI task management system built for content management and development.

Market and Competitive Landscape:

• Results were driven by lower referral traffic, including from Google Discover, reflecting a challenging distribution environment affecting digital publishers across the industry.
• The company is executing a strategic shift to reduce dependence on referral traffic sources by developing durable revenue streams from its AI and technology-based tools and products.

Risks and Challenges:

• The company faces a challenging distribution environment impacting referral traffic sources.
• The reversal of the employee retention tax credit asset was disallowed by authorities, though the company plans to appeal the decision.
• The company has liquidated damages payable of $3.8 million as of September 30, 2026, related to covenants in private placement offerings from fiscal years 2018 through 2020.
• The company has a stockholders' deficiency of $(11.3) million as of September 30, 2026.

Management Commentary and Tone:

• CEO Paul Edmondson stated the company is "all in" on the age of AI, noting that while retaining referral traffic remains a focus, momentum is powered by tools like Cutter Studios and InfoSentience.
• Management highlighted that these tools, along with CMS updates and the upcoming launch of Tablation, enable rapid adaptation to the future of modern publishing.

Other Key Points:

• The company acquired InfoSentience in August 2026.
• The company is formerly known as The Arena Group Holdings, Inc.
• The company has 47,610,653 shares of common stock issued and outstanding as of September 30, 2026.
• Unearned revenue decreased to $851,000 (current and non-current combined) as of September 30, 2026, from $3.3 million as of December 31, 2025.
• Accounts receivable decreased to $17.7 million as of September 30, 2026, from $22.3 million as of December 31, 2025.