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• Sabio reported Q3/25 financial results that missed our expectations, with revenue coming in at $8.2M (-49% YoY), compared to our estimate of $11.2M. Adjusted EBITDA was ($2.2M) vs. our expected $1.3M.
• While the quarter was weak, management remains bullish on 2026, stating that its Q1 pipeline is up 60% YoY.
• We urge investors to look ahead to 2026, where we are expecting 49% YoY revenue growth and 8% EBITDA margins.
Yesterday, after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported Q3 financial results that missed our expectations. Management attributed the weak quarter to 2025 being a non-political year and clients shifting spending to prior quarters. However, management remained highly positive on 2026, stating that it has built a strong foundation for future growth, taking advantage of the upcoming political spending. We are maintaining our BUY rating and C$1.00/share target price on Sabio Holdings.
Q3/25 Highlights
• Revenue came in at $8.2M (-49% YoY), missing our estimate of $11.2M. This was comprised of $6.2M in ad-supported streaming revenue (-49% YoY), $1.8M in mobile display revenue (-47% YoY), and $0.1M in other revenue (-50% YoY). Management attributed the decline to 2025 being a non-political year, where budgets shifted into early quarters ahead of the anticipated tariff impacts. Gross revenue was -11% YoY after removing political and advocacy.
• Management highlighted that ad-support gross revenue was up 2% YoY when excluding political and advocacy revenue. Furthermore, programmatic scale and international expansion (+240% YoY) drove 40% of the gross revenue mix in Q3. This highlights that the business is becoming more diversified.
• Sabio experienced a 54% increase in branded logos in Q3, with recurring revenue remaining at 85% over the nine-month period. 70% of its top 2024 customers increased their spend YTD, reflecting deepening client relationships.
• Gross margin was 59%, below our estimate of 61% and 63% in Q3/24.
• Adjusted EBITDA was ($2.2M), which missed our forecast of $1.3M. This compares to a 16% adjusted EBITDA margin in Q3/24. This reflects the shift in revenue mix and ongoing investments into growth initiatives. As a percent of revenue, S&M was 51%, G&A was 22%, and R&T was 22%.
• Net income of ($3.3M) vs. our estimate of $0.7M.
• Sabio ended the quarter with $2.0M in cash and $6.9M in debt, prior to completing its $1.3M equity financing on November 12th.
SBIO: Weak Q3 Financials; Still Eyeing 2026
What you need to know:• Sabio reported Q3/25 financial results that missed our expectations, with revenue coming in at $8.2M (-49% YoY), compared to our estimate of $11.2M. Adjusted EBITDA was ($2.2M) vs. our expected $1.3M.
• While the quarter was weak, management remains bullish on 2026, stating that its Q1 pipeline is up 60% YoY.
• We urge investors to look ahead to 2026, where we are expecting 49% YoY revenue growth and 8% EBITDA margins.
Yesterday, after market close, Sabio Holdings Inc. (SBIO:TSXV, SABOF:OTC) reported Q3 financial results that missed our expectations. Management attributed the weak quarter to 2025 being a non-political year and clients shifting spending to prior quarters. However, management remained highly positive on 2026, stating that it has built a strong foundation for future growth, taking advantage of the upcoming political spending. We are maintaining our BUY rating and C$1.00/share target price on Sabio Holdings.
Q3/25 Highlights
• Revenue came in at $8.2M (-49% YoY), missing our estimate of $11.2M. This was comprised of $6.2M in ad-supported streaming revenue (-49% YoY), $1.8M in mobile display revenue (-47% YoY), and $0.1M in other revenue (-50% YoY). Management attributed the decline to 2025 being a non-political year, where budgets shifted into early quarters ahead of the anticipated tariff impacts. Gross revenue was -11% YoY after removing political and advocacy.
• Management highlighted that ad-support gross revenue was up 2% YoY when excluding political and advocacy revenue. Furthermore, programmatic scale and international expansion (+240% YoY) drove 40% of the gross revenue mix in Q3. This highlights that the business is becoming more diversified.
• Sabio experienced a 54% increase in branded logos in Q3, with recurring revenue remaining at 85% over the nine-month period. 70% of its top 2024 customers increased their spend YTD, reflecting deepening client relationships.
• Gross margin was 59%, below our estimate of 61% and 63% in Q3/24.
• Adjusted EBITDA was ($2.2M), which missed our forecast of $1.3M. This compares to a 16% adjusted EBITDA margin in Q3/24. This reflects the shift in revenue mix and ongoing investments into growth initiatives. As a percent of revenue, S&M was 51%, G&A was 22%, and R&T was 22%.
• Net income of ($3.3M) vs. our estimate of $0.7M.
• Sabio ended the quarter with $2.0M in cash and $6.9M in debt, prior to completing its $1.3M equity financing on November 12th.
Underlying
Sabio Holdings, Inc. (SBIO)
Provider
Atrium Research Corporation
Atrium Research provides institutional quality issuer paid research on North American public equities using deep fundamental analysis. Our research reports are disseminated through Bloomberg, FactSet, Capital IQ, Reuters and many more, as well as through our social media and email distribution lists.
Nicholas Cortellucci, CFA
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