FreeCast Posts $5.6M Loss in H1 FY2026 as Revenue Slips 4%
The streaming technology company reported a net loss of $5.6 million for the six months ended December 31, 2025, narrowing from a $7.5 million loss in the prior-year period. Revenue declined 4% to $258,000.
FreeCast, Inc., a streaming technology company, reported a net loss of $5.6 million for the six months ended December 31, 2025, down from a loss of $7.5 million in the same period a year earlier. Revenue for the half fell 4% to $258,000 from $270,000. Read more earnings reports.
The company posted a net loss of $2.8 million for the three months ended December 31, 2025, compared to a loss of $3.9 million in the year-ago quarter. Quarterly revenue dropped 59% to $62,000 from $152,000.
Operating Performance
Operating expenses declined sharply across the board. For the six months ended December 31, 2025, total operating costs fell 24% to $5.7 million from $7.5 million. Compensation and benefits dropped 18% to $2.5 million, while general and administrative expenses fell 28% to $3.1 million.
The company recorded an operating loss of $5.6 million for the half, compared to a $7.4 million operating loss in the prior-year period. Gross profit for the six months climbed to $166,000 from $94,000, as cost of revenue fell 48% to $92,000.
| Six Months Ended December 31 | 2025 | 2024 |
|---|---|---|
| Total Revenue | $258,000 | $270,000 |
| Cost of Revenue | $91,741 | $176,186 |
| Gross Profit | $166,209 | $93,766 |
| Operating Expenses | $5,723,644 | $7,492,001 |
| Loss from Operations | ($5,557,435) | ($7,398,235) |
| Net Loss | ($5,646,331) | ($7,489,323) |
Balance Sheet and Cash Flow
FreeCast held $433,000 in cash as of December 31, 2025, down from $549,000 at June 30, 2025. Total assets stood at $1.2 million, down from $1.4 million six months earlier. The company carried a stockholders' deficit of $3.5 million, an improvement from a $4.9 million deficit at the end of the prior fiscal year.
Cash used in operating activities totaled $5.2 million for the six months ended December 31, 2025, compared to $6.7 million in the prior-year period. The company raised $2.7 million through the issuance of Class A common stock to a related party and drew $2.4 million from a convertible note payable from a related party during the half.
Accounts payable and accrued expenses rose to $1.8 million as of December 31, 2025, from $1.5 million at June 30, 2025. The company's convertible note payable to a related party stood at $2.4 million at the end of the period, down from $3.9 million six months earlier.
Equity Activity
FreeCast issued 509,507 shares of Class A common stock to settle $4.1 million in related-party notes payable during the period. The company also issued 337,500 shares for cash, raising $2.7 million. Stock-based compensation totaled $176,000 for the six months ended December 31, 2025, down from $738,000 in the prior-year period.
The company reported a basic and diluted net loss per common share of $0.14 for the six months ended December 31, 2025, compared to $0.19 in the prior-year period. Weighted average common shares outstanding rose to 39.6 million from 39.2 million.