One-glance verdict
Undervalued
$5.83 our estimate vs market $2.25
61% below our estimate, below the bear case
Fundamentals snapshot
IZEA Worldwide, Inc.
IZEA · NCM · Communication Services · Advertising Agencies
Current price
$2.25
52-week range
$2.13 - $5.50
Market cap
$39.19M
Balance sheet
Healthy
-290.31x Concerning
Net cash $46.60M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 1/10 years.
- Risk Return on equity was -5.1% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -13.7% to -18.4% over 3 years.
What this company does
IZEA Worldwide, Inc.
IZEA Worldwide, Inc. helps businesses work with online influencers and content creators to market their products, essentially acting as a middleman that connects brands with people who have a following online. Their main income comes from fees charged to these businesses for managing these marketing campaigns, which matters because it shows how they help companies get their message out to customers through trusted online personalities.
How the company got here
IZEA Worldwide, Inc. was founded in 2006 and was a pioneer in the influencer marketing space, launching the industry's first technology platform to pay bloggers for creating content for brands. The company, formerly known as IZEA, Inc., changed its name to IZEA Worldwide, Inc. in August 2018 to reflect its global ambitions. Over the years, IZEA has facilitated millions of brand-creator collaborations and has evolved its offerings to keep pace with the rapidly changing digital landscape. It is now a NASDAQ-traded company headquartered in Orlando, Florida.
What it actually does
IZEA Worldwide operates as a full-service creator economy agency. Essentially, it acts as a bridge between brands that want to advertise their products or services and the individuals (creators) who have a significant online following and can influence their audience. IZEA provides the technology, data, and managed services to help brands discover creators, manage campaigns, and measure the results of their marketing efforts. This includes everything from finding the right influencer to ensuring content is created and distributed effectively.
IZEA's Creator Marketplace
IZEA's Creator Marketplace is a core part of its business, acting as an online platform where brands can find and connect with content creators. Think of it like a digital directory where marketers can search for influencers based on various criteria such as platform (like TikTok or Instagram), niche (like fashion or gaming), follower count, or location. Brands can also post 'Casting Calls' for specific campaigns, allowing creators to pitch themselves directly, streamlining the process of finding the right talent for a marketing initiative.
Managed Services
Beyond just connecting brands and creators, IZEA offers comprehensive Managed Services. This means IZEA's team actively manages influencer marketing campaigns from start to finish. They provide strategic planning, help with influencer discovery and relationship management, oversee campaign execution, and offer detailed analytics and reporting to show how well the campaign performed. This service is for brands that want a hands-off approach and need expert guidance to maximize their return on investment (ROI), which is the profit or benefit gained from an investment relative to its cost.
IZEA Flex and FormAI
IZEA Flex is a sophisticated platform designed to give brands and agencies more control over their influencer marketing campaigns. It offers various modules for managing transactions, contracts, content, and using AI tools. FormAI is a suite of artificial intelligence (AI) tools specifically built for influencer marketing. These tools can help with tasks like generating text for social media posts, creating visual content, and automating other aspects of content creation, making the process more efficient for both brands and creators.
What management is betting on now
IZEA's current strategy focuses on an 'enterprise-first' approach, meaning they are prioritizing larger, established companies as clients. Management is also emphasizing the adoption and expansion of their proprietary ZED technology platform, which is designed to help manage large-scale creator campaigns efficiently. The company is also investing in AI tools like FormAI to enhance content creation and campaign optimization, aiming to improve the quality of their services and secure more recurring business from major clients.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-1.43M
FY2024 Q4
$538.36K
FY2025 Q1
$2.00M
FY2025 Q2
$-787.80K
FY2025 Q4
$-32.24K
FY2026 Q2
$1.20M
Revenue
$5.81M
Net income
$-683.91K
Diluted EPS
-0.04
Operating cash flow
$1.26M
Free cash flow
$1.20M
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Sources
Revenue
$6.57M
Net income
$-777.52K
Diluted EPS
-0.04
Operating cash flow
$-3.99M
Free cash flow
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Sources
Revenue
$6.06M
Net income
$-1.17M
Diluted EPS
-0.07
Operating cash flow
$-5.25K
Free cash flow
$-32.24K
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Sources
Revenue
$8.07M
Net income
$147.75K
Diluted EPS
0.01
Operating cash flow
$1.19M
Free cash flow
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Sources
Revenue
$9.13M
Net income
$1.21M
Diluted EPS
0.07
Operating cash flow
$-762.14K
Free cash flow
$-787.80K
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Sources
Revenue
$7.97M
Net income
$-142.80K
Diluted EPS
-0.01
Operating cash flow
$2.01M
Free cash flow
$2.00M
Fetching…
Sources
Revenue
$11.00M
Net income
$-4.62M
Diluted EPS
-0.25
Operating cash flow
$541.94K
Free cash flow
$538.36K
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Sources
Revenue
$8.83M
Net income
$-8.77M
Diluted EPS
-0.52
Operating cash flow
$-1.40M
Free cash flow
$-1.43M
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Sources
Is it cheap or expensive?
Fair value $5.83 vs current price $2.25
Our most-likely fair value is $5.83 a share — about 159.3% above today's price of $2.25, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $46.6M - more cash than debt. Interest coverage -290.3x.
Net debt
$-46.60M
Interest coverage
-290.31x
IZEA Worldwide, Inc.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
IZEA
BASELINE
IZEA Worldwide, Inc.
Total debt $0.00 Interest coverage -290.31x This is the baseline the peer rows are being compared against.
Total debt $22.09M Interest coverage -20.30x Neither company has much profit cushion over interest right now.
Total debt $356.09M Interest coverage 0.58x This peer still has a real interest-payment cushion, while IZEA does not.
Total debt $10.34M Interest coverage -25.77x Neither company has much profit cushion over interest right now.
Total debt $189.89M Interest coverage -4.30x Neither company has much profit cushion over interest right now.
Total debt $36.73M Interest coverage 14.75x This peer still has a real interest-payment cushion, while IZEA does not.
What you should know
The case for and against IZEA
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 1/10 years.
Risks
-
Return on equity was -5.1% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -13.7% to -18.4% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
-5.49x
P/B
0.83x
P/S
1.48x
EV/EBITDA
1.82x
PEG ratio
2.67x
Profitability
How much profit each dollar creates
Gross margin
44.7%
Operating margin
-18.4%
Net margin
-9.4%
ROE
-5.1%
ROA
-4.6%
Health
Liquidity and balance-sheet strength
Debt / equity
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Current ratio
7.83x
Quick ratio
7.74x
Total debt
$0.00
Total cash
$46.60M
Growth
How the business has been compounding
Revenue TTM
$26.52M
Revenue 5Y CAGR
1.0%
EPS TTM
-0.14
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$-1.55M
Free CF TTM
$2.37M
FCF margin
9.0%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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