BuzzFeed Inc. Q1 2026 Earnings Call - Byron Allen Takes the Helm as Jonah Peretti Steps Down Amid Revenue Decline
Summary
BuzzFeed Inc. reported a sharp 12.4% drop in Q1 2026 revenue to $31.6 million, driven by a 19.8% plunge in advertising and a 32% collapse in commerce. The company posted a wider net loss of $15.1 million and negative adjusted EBITDA of $7.8 million, while audience engagement fell 10.7% to 60.6 million hours. Management withheld full-year guidance as it navigates a pivotal leadership transition.
The call centered on the impending acquisition by media entrepreneur Byron Allen, who will replace founder Jonah Peretti as CEO. Peretti will pivot to lead a new BuzzFeed AI division, while the company plans to spin out its video and studio operations into a separate entity. Allen's vision targets free streaming and AI-driven content aggregation to compete with tech giants, though the immediate financial reality is a contracting core business with no near-term visibility on recovery.
Key Takeaways
- Byron Allen will replace Jonah Peretti as CEO upon closing of the transaction agreement, expected within the month.
- Jonah Peretti will step down as CEO and assume the role of President of BuzzFeed AI.
- BuzzFeed reported Q1 2026 revenue of $31.6 million, a 12.4% year-over-year decline.
- Advertising revenue fell 19.8% year-over-year to $17.1 million.
- Content revenue surged 69% to $7.5 million, offsetting some declines in other segments.
- Commerce and other revenues dropped 32% to $6.9 million.
- Net loss widened to $15.1 million from $12.5 million in Q1 2025.
- Adjusted EBITDA deteriorated to negative $7.8 million from negative $5.9 million in the prior year.
- Audience engagement, measured in time spent, declined 10.7% to 60.6 million hours.
- Management withheld full-year guidance pending the close of the Byron Allen transaction.
- BuzzFeed plans to spin out its studio, micro drama, and digital video businesses into a new independent entity.
- Byron Allen's strategy focuses on free streaming video, AI-driven content aggregation, and competing with major tech platforms.
- Peretti's new AI division will focus on product development and technological innovation leveraging recent AI advances.
- The company expects to provide updated financial and strategic guidance after the transaction closes.
- No Q&A session was held as the call focused on announcing the leadership transition and transaction.
Full Transcript
Conference Call Operator: Good day, and thank you for standing by. Welcome to the BuzzFeed Inc. first quarter 2026 earnings conference call. I would now like to hand the conference over to your first speaker today, Juliana Clifton, VP of Communications. Please go ahead.
Juliana Clifton, VP of Communications, BuzzFeed Inc.: Hi, everyone. Welcome to BuzzFeed Inc.’s 1st quarter 2026 earnings conference call. I’m Juliana Clifton, VP of Communications for BuzzFeed. Joining me first today are CEO, Jonah Peretti, and CFO, Matt Omer. Before we get started, I’d like to take this opportunity to remind you that our remarks today include forward-looking statements. Actual results may differ materially from those contemplated by these forward-looking statements. Factors that could cause these results to differ materially are set forth in today’s press release, Form 10-Q filed with the SEC. Any forward-looking statements that we make on this call are based on assumptions as of today. We undertake no obligation to update these statements as a result of new information or future events. During this call, we present both GAAP and non-GAAP financial measures, including adjusted EBITDA and adjusted EBITDA margin.
The use of non-GAAP financial measures allows us to measure the operational strength and performance of our business. We believe adjusted EBITDA and adjusted EBITDA margin are relevant and useful information for investors because they allow investors to view performance in a manner similar to the method used by our management. A reconciliation of these GAAP to non-GAAP measures is included in today’s earnings press release. Please refer to our investor relations website to find today’s press release. Now I’m gonna hand the call over to Jonah.
Jonah Peretti, Chief Executive Officer (Outgoing) / President of BuzzFeed AI (Incoming), BuzzFeed Inc.: Thank you. Good afternoon, everyone, and thanks for joining us. Today marks an important milestone for BuzzFeed. On behalf of the board and management team, I want to welcome Byron Allen, who will become Chairman and Chief Executive Officer of BuzzFeed upon the completion of a transaction agreement we entered into earlier today. Byron Allen has agreed to make a significant investment out of his family office into BuzzFeed, and we are very excited about his vision for the company and our iconic brands, BuzzFeed and HuffPost. We have entered into a transaction agreement that we expect to close within the month, subject to customary closing conditions.
Byron is one of the most accomplished media entrepreneurs and leaders in the industry, having built a global media platform with a strong track record of content creation, distribution, advertising sales, and strategic growth across television, digital, streaming, and local media assets. His vision, operational experience, and long-term commitment to premium content makes him exceptionally well-positioned to lead BuzzFeed and HuffPost into our next phase of growth and innovation. Byron has spent 30 plus years building distribution infrastructure, identifying strategic assets, and scaling them into something much greater. To prepare for Byron’s arrival, we expect to make significant changes to build the best possible foundation for his ambitious vision. This includes planning cost reductions aimed at making our core business more efficient, so we can build new initiatives on top of a profitable core.
We also plan to set up BuzzFeed Studios as a new independent entity to house our premium studio, vertical micro drama, and digital video businesses, which we expect will create new opportunities for these assets, bring operational focus to BuzzFeed Inc., and generate new liquidity. Once this transaction is completed, I will shift my focus to a newly created role as President of BuzzFeed AI. Over the past couple years, I’ve become convinced that AI will fundamentally transform the media industry and empower creative people to build in new ways. This vision came into sharper focus over the last several months, and I believe the opportunity is enormous. After my 20 years as CEO of BuzzFeed, I’m excited to switch my focus to a more hands-on role developing products and technology that are only possible because of recent advances in AI.
I’m confident I can have a bigger impact and create more value in this new capacity. I’m excited that Byron is joining us today to share some brief remarks about the extraordinary new opportunity, partnership, and vision.
Byron Allen, Chairman and Chief Executive Officer (Incoming), BuzzFeed Inc.: Thank you, Jonah, and the entire BuzzFeed and HuffPost team. Today marks the beginning of an exciting new chapter for BuzzFeed and HuffPost. I am honored to step into the role of Chairman and CEO upon this transaction closing. Our vision is to build on the iconic foundation of BuzzFeed and HuffPost and expand into free streaming video, audio, and user-generated content, competing at scale with the largest tech platforms globally. As of this moment, BuzzFeed is officially chasing YouTube. BuzzFeed is the perfect platform to deliver free streaming globally using proprietary software and artificial intelligence. BuzzFeed will expand its ability to aggregate, curate, and deliver premium video and audio content. Building on that foundation, these iconic brands will provide super hyperlocal, national, and international news. BuzzFeed will pursue growth organically and through strategic acquisitions. Jonah will lead our team in AI innovation and user-generated content.
These initiatives on top of our e-commerce, news, and content businesses will position BuzzFeed to be a valuable platform for consumers and digital advertisers worldwide. I also wanna take a moment here to recognize Jonah Peretti, whose vision and creativity over the last 20 years built BuzzFeed.
Jonah Peretti, Chief Executive Officer (Outgoing) / President of BuzzFeed AI (Incoming), BuzzFeed Inc.: BuzzFeed
Byron Allen, Chairman and Chief Executive Officer (Incoming), BuzzFeed Inc.: Jonah will continue to play an important leadership role as president of BuzzFeed AI, where he will focus on advancing the company’s AI-driven strategies. Together, we have an exceptional leadership team focused on operational excellence, AI, digital innovation, and a commitment to work diligently to create shareholder value. We are committed to the iconic brands of BuzzFeed and HuffPost and honoring their long tradition of reinventing and adapting to create the future of media. We are very excited about this extraordinary opportunity. Thank you for allowing us to share some of our vision.
Jonah Peretti, Chief Executive Officer (Outgoing) / President of BuzzFeed AI (Incoming), BuzzFeed Inc.: Thank you, Byron. Our focus now is on supporting a smooth transition through the closing process and positioning BuzzFeed for long-term growth from day one. Now I’ll hand over to Matt Omer to walk through the first quarter 2026 financial results.
Matt Omer, Chief Financial Officer, BuzzFeed Inc.: Thanks, Jonah. BuzzFeed delivered Q1 2026 revenues of $31.6 million, declining 12.4% compared to the first quarter of 2025. Breaking down each revenue line, advertising revenue declined 19.8% year-over-year to $17.1 million. Content revenue increased by $3.1 million or 69% to $7.5 million. Commerce and other revenues declined 32% year-over-year to $6.9 million. Net loss was $15.1 million for Q1 2026 compared to a net loss of $12.5 million in Q1 2025. Adjusted EBITDA was negative $7.8 million for Q1 2026 compared to negative $5.9 million in Q1 2025.
On time spent, our primary audience engagement metric, Q1 2026 was 60.6 million hours compared to 67.9 million hours in Q1 2025, a decrease of 10.7% year-over-year. Given the ongoing transaction and the strategic work underway, we are withholding full year guidance at this time. We expect to provide a full update on both our strategic direction and financial outlook following the close of the transaction. We will not be taking questions today, but we look forward to discussing our post-closing strategy and financial outlook in greater detail once the transaction is complete. I’ll hand the call back over to the operator.
Conference Call Operator: This concludes today’s program. Thank you for participating. You may now disconnect.
