FreeCast, Inc. (CAST) FY2026 Earnings: Revenue $711K (+13.2%)
CAST — FY2026 Financial Report Analysis
Full Year · Fiscal year 2026 · Published by Pham Hop
FreeCast's first annual report as a Nasdaq company shows revenue of $0.71 million (up 13%) against a $12.7 million operating loss, with the business still running on money raised from investors and its CEO's company.
Revenue
$711K
+13.2% YoY
Net income
-$13M
Diluted EPS
$-0.62
Operating margin
-1783.5%
This period vs a year ago
Same period last year
This period
Revenue▲+13.2%
≈$628K
$711K
Year-ago figures (≈) are worked out from the growth rate the company reported. Each row has its own scale.
A $13 million loss on $0.7 million of revenue, now funded by a post-listing cash raise
FreeCast, an Orlando-based company that runs a streaming TV guide (FreeCast.com / SmartGuide) and sells a branded streaming platform to partners such as broadband and apartment operators, reported revenue of $710,882 for the fiscal year ended June 30, 2026, up 13.2% from $628,149. It spent far more than that to operate: the loss from operations was $12.7 million and the net loss $13.0 million, slightly smaller than the $14.1 million lost the year before. This is FreeCast's first 10-K since its Class A shares started trading on the Nasdaq Global Market on March 10, 2026 through a direct listing (shares began trading without a traditional IPO). The audited statements do include a full prior year, so year-on-year comparisons below are on the same basis.
At a glance
Revenue $0.71 million (+13.2%). Growth came from advertising and from producing TV channels for two companies run by the CEO; paid subscriptions fell by more than half.
Operating expenses $13.3 million, about 19 times revenue. Costs fell 5.5%, but the business is nowhere near covering them.
Cash $8.9 million at June 30, up from $0.5 million, plus about $14.0 million more that arrived after year-end from a private share sale. At this year's rate of cash use (about $10 million), that is the company's runway, not profit.
Results
Metric
FY2026 (to Jun 30, 2026)
FY2025
YoY Change
Revenue
$0.71M
$0.63M
+13.2%
Gross margin
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82.1%
44.8%
+37.3 pts
Total operating expenses
$13.26M
$14.04M
-5.5%
Loss from operations
-$12.68M
-$13.76M
loss $1.08M smaller
Operating margin
-1,783.5%
-2,189.8%
n/m
Net loss
-$13.04M
-$14.07M
loss $1.02M smaller
Net loss per share (basic and diluted)
-$0.62
-$0.36
loss per share larger
Advertising revenue
$385,602
$271,638
+41.7%
Registered users ("subscribers"), year-end
1,194,219
975,501
+22.4%
Operating margin is the share of revenue left after running the business; at these revenue levels it is a very large negative number and the percentage change is not meaningful (n/m). Percentage changes for net loss and loss per share are also left out, because a percentage change between two negative numbers reads the wrong way round; the table states the direction instead.
Where the revenue came from
The filing breaks $710,882 of revenue into four lines:
Revenue line
FY2026
FY2025
Change
Advertising
$385,602
$271,638
+41.7%
FAST channel services (related parties)
$267,509
$221,894
+20.6%
Subscriptions ("membership")
$56,311
$132,950
-57.6%
Other
$1,460
$1,667
-12.4%
Advertising grew because of "contracts secured during the fourth quarter of fiscal 2026," per management. The notes name them: about $138,000 from a Del Air media plan, about $125,000 from an earlier LaunchThat agreement plus about $100,000 from a new LaunchThat order, about $10,000 from NHK World-Japan and about $12,500 from CCTV News Content. In other words, most of the year's advertising revenue came from a handful of named contracts, not from a broad base of advertisers.
FAST revenue (FAST means free, ad-supported streaming TV channels) is fees for building and hosting channels for two companies, Test Drive Live Inc. and Celebrity Cigars, Inc. Both are run by FreeCast's founder and CEO, William A. Mobley, Jr., and the arrangements are verbal, priced at cost plus a 15% or 30% markup. Management says the increase came from "higher new channel buildouts" during the year.
Subscriptions keep shrinking because FreeCast moved its guide to a free sign-up model supported by ads; only premium add-ons such as its 17-channel "Value Channels" package are paid. Registered users rose to about 1.19 million, but by the company's own measure, revenue per user outside FAST and advertising fell from $0.14 to $0.05.
What the headline numbers hide
More than a third of revenue came from the CEO's own companies. All $267,509 of FAST revenue (37.6% of the total) is from related parties. Celebrity Cigars alone was 30.2% of revenue, behind LaunchThat at 31.7% and ahead of Del Air at 19.4%; three customers made up about 81% of the year's sales. The filing also discloses that $191,023 of what those two related companies owed FreeCast was paid off by Nextelligence, another company majority owned by the CEO, and added to what FreeCast owes Nextelligence.
The jump in gross margin is mostly a cost story. Gross margin (revenue minus the direct cost of delivering it) rose to 82.1% from 44.8% because cost of revenue fell 63.2% to $127,556, which management attributes to "lower platform delivery costs and lower content-related costs." With revenue under $1 million, gross margin barely affects the bottom line: the $12.7 million operating loss is almost entirely overhead.
Pay costs rose only because of a one-off listing fee paid in stock. Compensation and benefits rose $657,988 to $6.14 million, which management puts down "primarily" to stock-based pay for Maxim Partners. The notes explain that FreeCast issued 125,000 shares valued at $1.0 million to Maxim for advisory work on the direct listing and expensed them when the listing happened. Without that $1.0 million, compensation would have been about $5.14 million, lower than last year's $5.48 million (our calculation from the filing's figures). General and administrative costs fell $1.24 million on less website development and lower professional fees.
Loss per share got worse while the loss got smaller. The net loss shrank to $13.0 million, yet loss per share rose to $0.62 from $0.36. The reason is an $11.4 million "deemed dividend": in April 2026 FreeCast reissued expired warrants (rights to buy shares at a fixed price) covering about 6.7 million shares to outside investors, then in May cut their exercise price from $4.25 to $1.33. No cash left the company, but accounting treats the value handed to those holders ($11.4 million) as a payout to them, which is subtracted from what common shareholders earn. Only 250,000 of those warrants were actually exercised, raising $332,500. On the net loss alone, the loss would have been roughly $0.33 per share (our calculation: $13.04 million over 39.5 million weighted shares).
Cash burn was a bit smaller than the loss, partly by paying suppliers later. Operating activities used $10.0 million of cash, less than the $13.0 million loss. About $1.3 million of the difference is non-cash stock issued or expensed for services. Another $1.9 million came from bills left unpaid: accounts payable and accrued expenses rose to $2.97 million from $1.53 million, and amounts owed to related parties rose to $0.55 million. The filing also mentions an insurance premium payment that bounced "due to insufficient funds" during the year and was covered by the company's insurance agent.
The balance sheet was rescued by new shares and the CEO's lender. Financing brought in $18.4 million: $8.3 million of early deposits toward a private share sale, $7.4 million borrowed from Nextelligence, $2.7 million of share sales and the warrant exercise. Shareholders' equity went from a $4.9 million deficit to $2.3 million positive. FreeCast still owes Nextelligence $3.68 million of principal plus $256,111 of interest on a 12% note due June 30, 2027, which the holder can convert into shares at the market price.
Funding and dilution after year-end
On July 2, 2026, FreeCast closed a private placement raising about $23.7 million gross and $22.3 million after fees, of which about $14.0 million arrived after June 30. It issued 4,666,667 Class A shares and pre-funded warrants for 3,243,807 more, all since exercised. Class A shares outstanding went from 28,988,755 at June 30 to 36,861,774 by September 25, 2026, alongside 13.9 million Class B shares at year-end. The company also has a $50 million equity line with Amiens Technology Investments, which lets it sell new shares at 95% of the recent average price over the period to April 2029. Management states the July money is enough to fund operations for at least twelve months, and the auditor's report carries no going-concern warning, a doubt about survival that an auditor must flag when it applies.
The share price shows how much investors have marked down the story: the filing says Class A shares closed at $9.13 on the first day of trading, then ranged from $0.59 to $9.84, and were at $1.29 on September 9, 2026.
Takeaway: FreeCast is still a start-up in its economics: $0.7 million of revenue, more than a third of it from companies its CEO runs, set against $13 million a year of costs. The July raise buys it roughly two years at this year's cash burn (our estimate: about $22.9 million of cash on hand or received after year-end, against about $10 million used in FY2026), and further funding will likely mean more new shares.
What to watch
Management gives no revenue or profit guidance. Its stated plan is to grow the partner platform, sold as Platform-as-a-Service, broadcast-to-streaming and direct-to-device models, which the filing itself says "have not yet generated significant revenue." Three things will show whether that is changing:
Whether the fourth-quarter ad contracts repeat. Del Air and LaunchThat drove the advertising increase. If they turn out to be one-off campaigns, advertising revenue could fall back.
Revenue from customers the CEO does not control. Related-party FAST work was 37.6% of sales; real progress would be that share falling because revenue from outside customers grows, not because the related-party work shrinks.
Cash use per quarter against the ~$22.9 million raised, and how often the equity line is drawn. Each draw issues new shares below the recent market price.
This is our first published analysis of FreeCast, so there is no earlier outlook to check against.