RUM Group Revenue Soars 290% As Quake AI Delivers $68.2 Million

RUM Group Inc. (NASDAQ:RUM) shares are trading higher Wednesday after the company reported record third-quarter revenue that beat analyst expectations, despite a wider-than-expected per-share loss.

The company reported a loss of 19 cents per share, wider than the analyst estimate of 12 cents.

Revenue reached a record $96.577 million, up 139% quarter over quarter and 290% year over year, beating the consensus estimate of $89.103 million and exceeding the upper end of its guidance by 3.8%.

As of Sept. 30, RUM Group had total liquidity of $142.3 million, consisting of $134.4 million in cash and cash equivalents and 94.68 bitcoin, valued at $7.9 million.

CEO Chris Pavlovski called the third quarter a milestone for the company, citing record revenue nearly four times higher than a year earlier and its first-ever positive adjusted EBITDA. Pavlovski identified Quake AI as the company’s primary growth driver, supported by operational infrastructure, active AI workloads and paying customers.

Quake AI Drives Revenue Growth

Quake AI generated $68.2 million in revenue, contributing more than 70% of RUM Group’s total revenue in its first full quarter.

The business operated approximately 22,000 NVIDIA GPUs at about 85% utilization, with the fleet nearly fully booked, reflecting strong demand for its existing AI infrastructure. Company-wide adjusted EBITDA came in at $4.4 million, compared with a loss of $15.1 million a year earlier.

Separately, Quake AI announced plans to deploy NVIDIA Minerva, an AI operations platform designed to detect infrastructure issues early and improve AI factory productivity. The platform is expected to enhance operational monitoring across Quake AI’s bare-metal computing services.

Pavlovski said the company plans to deploy NVIDIA Vera Rubin systems in 2027. The CEO added that Minerva will help teams identify potential problems earlier and improve infrastructure reliability, uptime and performance.

Key Business Updates

RUM Group acquired an additional 8.26 million shares of Northern Data AG, increasing its ownership from 85.2% to approximately 98%. The company also initiated squeeze-out proceedings under the German Stock Corporation Act, targeting full ownership in early 2027.

The company said market conditions could push part of the previously announced 250 megawatts of unmonetized capacity targeted for 2027 into later years.

The company also entered into a long-term distribution and content partnership with WWE, becoming the new home of its weekly premium program, WWE Main Event.

Separately, RUM Group began a cost reset in its video business during the third quarter as part of a refocused strategy, and expects to start seeing related savings through 2027.

Fourth-Quarter Outlook

For the fourth quarter, RUM Group expects revenue of $88 million to $94 million, compared with the analyst consensus estimate of $91.772 million.

RUM Price Action: RUM Group shares were up 4.70% at $5.35 at the time of publication Wednesday, according to Benzinga Pro data.

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