Kustom Entertainment (NASDAQ: KUST) reported fiscal 2025 results with a significant improvement in net loss and balance sheet metrics. Total revenue from continuing operations rose to $13.755 million, SG&A improved by $2.275 million, and net loss improved by $11.945 million to $5.955 million. The company closed the sale of its RCM business effective Jan 1, 2026 and entered a non-binding MOU to sell legacy video solutions for an expected $6.0–$8.5 million. TicketSmarter received Forbes recognition, and the company outlined the 2026 Country Stampede lineup for June 25–27, 2026.
Loading…
Loading translation…
Positive
- Net loss improved by $11.945M to $5.955M
- Total revenues from continuing operations of $13.755M (+$0.235M YoY)
- SG&A expenses reduced by $2.275M
- Total stockholders’ equity increased by $11.4M
- RCM business sale closed effective Jan 1, 2026
Negative
- One-time goodwill and intangible impairment of $2.535M
- RCM segment losses of $1.405M in 2025
- Legacy video solutions sale is a non-binding MOU (transaction not finalized)
- Net loss remains $5.955M for 2025
Revenue
$13,755,000
Total revenues from continuing operations in fiscal year 2025
Revenue increase
$235,000
Year-over-year revenue growth from continuing operations in 2025
SG&A expenses
$12,230,000
Selling, General, and Administrative expenses in 2025 after improvements
SG&A improvement
$2,275,000
Year-over-year reduction in SG&A expenses in 2025
Non-operating income increase
$11,440,000
Year-over-year increase in non-operating income during 2025
Net loss from continuing ops
$5,955,000
2025 net loss from continuing operations vs $17,900,000 prior year
Stockholders’ equity increase
$11,400,000
Year-over-year increase in total stockholders’ equity
Working capital improvement
$17,900,000
Year-over-year improvement in net working capital position
$0.6543
Last Close
Volume
Volume 89,370 is slightly above the 20-day average of 82,187 (relative volume 1.09x).
normal
Technical
Shares at $0.6543 are trading below the 200-day MA of $1.30 and sit 85.4% under the 52-week high.
No peer stocks from the Entertainment space appeared in the momentum scanner, suggesting the -6.53% move in KUST was stock-specific rather than part of a broader sector rotation.
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 03 |
Body camera contract |
Positive |
-6.0% |
Multi-year body camera subscription with large Kansas City health system. |
| Feb 10 |
TicketSmarter recognition |
Positive |
+12.4% |
TicketSmarter named top resale site and pivot to ticketing reiterated. |
| Jan 22 |
Video unit divestiture MOU |
Positive |
-5.1% |
Non-binding MOU to sell video solutions division to Cycurion. |
| Jan 12 |
Healthcare divestiture |
Positive |
-17.4% |
Completion of Nobility Healthcare sale to refocus on live entertainment. |
Recent history shows KUST often selling off on strategic or positive business updates, with only one of the last four news events aligning positively with price reaction.
Over the past few months, KUST has focused on sharpening its live entertainment and ticketing strategy. In January 2026, it completed the divestiture of Nobility Healthcare and separately announced an MOU to sell its video solutions segment. In February 2026, TicketSmarter gained Forbes recognition, and in March 2026, the Digital Ally brand secured a multi-year body camera subscription deal. Despite these seemingly constructive updates, share price reactions have frequently been negative, similar to the pre-news decline ahead of this 10-K and FY 2025 results release.
This announcement combined FY 2025 financial data with confirmation of the Form 10-K filing and further detail on Kustom’s shift toward live entertainment and proprietary ticketing. The company emphasized revenue growth from continuing operations, a significantly reduced net loss, and stronger equity and working capital positions. Recent divestitures and MOUs point to continued balance sheet simplification. Investors may focus on how consistently KUST converts this streamlined structure and brand recognition into durable, ticketing-led growth.
form 10-k
regulatory
“confirmed the filing of its Annual Report on Form 10-K with the U.S.”
A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company’s financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company’s performance and make informed decisions about buying or selling its stock.
goodwill
financial
“despite a one-time, non-cash charge of $2,535,000 for goodwill and intangible”
Goodwill is the extra value a buyer pays for a company above the measurable worth of its buildings, inventory and other tangible items, reflecting things like brand reputation, customer loyalty and expected future profits. Think of paying more for a café because of its famous name and regulars rather than its furniture alone. It matters to investors because changes in goodwill — for example a write-down if expected benefits don’t materialize — can reduce reported earnings and signal that past acquisitions aren’t delivering as hoped.
intangible asset impairment
financial
“non-cash charge of $2,535,000 for goodwill and intangible asset impairment”
An intangible asset impairment is a forced reduction in the book value of non-physical assets like patents, trademarks, software or customer relationships when those assets are no longer expected to generate the cash the company originally forecasted. It matters to investors because the write-down lowers reported profits and equity, can signal weaker future earnings or poor investment returns, and may affect credit terms or management credibility much like marking a damaged painting down to its actual resale value.
non-operating income
financial
“Non-Operating Income: Non-operating income increased by $11,440,000 year over year.”
Non-operating income is money a company earns or loses from activities outside its main business — for example interest, investment gains or losses, and one-time sales of assets. Investors watch it because it can inflate or mask the health of the core business: think of it as a shop owner’s extra income from renting out a back room rather than from selling products, which can boost short-term profits but may not reflect sustainable performance.
warrant derivative liabilities
financial
“a $4,575,000 improvement in the fair value of warrant derivative liabilities”
Warrant derivative liabilities are financial claims that give someone the right to buy a company’s stock under terms that require the company to settle in cash or otherwise behave like a bet whose value moves with the share price. They show up on the balance sheet as a liability because the company may owe cash if the warrants are exercised or revalued, and changes in their value flow through earnings. Investors care because these instruments can create earnings volatility and potential cash outflows, and they signal future dilution risk to shareholders similar to having a standing IOU tied to the stock price.
AI-generated analysis. Not financial advice.
Company Highlights
OVERLAND PARK, KS, April 13, 2026 (GLOBE NEWSWIRE) — Kustom Entertainment, Inc. (NASDAQ: KUST) (“Kustom” or the “Company”), a leader in live entertainment and digital ticketing, today announced its financial results for the fiscal year ended December 31, 2025. The Company also confirmed the filing of its Annual Report on Form 10-K with the U.S. Securities and Exchange Commission (SEC).
2025 marked a transformative year for Kustom, characterized by a sharp reduction in net losses, the successful divestiture of non-core business segments, and a concentrated strategic pivot toward the
Financial Highlights for Fiscal Year 2025
- Revenue Growth: Total revenues from continuing operations rose to approximately
$13,755,000 , an increase of$235,000 year-over-year. - Operating Efficiency: Selling, General, and Administrative (SG&A) expenses improved by
$2,275,000 year-over-year to approximately$12,230,000 in 2025. This improvement was achieved despite a one-time, non-cash charge of$2,535,000 for goodwill and intangible asset impairment during 2025. - Non-Operating Income: Non-operating income increased by
$11,440,000 year over year. This was driven primarily by a$4,575,000 improvement in the fair value of warrant derivative liabilities and a$2,715,000 reduction in interest expense. - Bottom Line Improvement: Net loss from continuing operations improved by approximately
$11,945,000 t o$5,955,000 compared to$17,900,000 for the prior fiscal year. - Balance sheet: Total stockholders’ equity increased
$11.4 million and net working capital position improved by$17.9 million year over year.
Strategic Pivot & Asset Divestitures
Kustom is successfully executing its strategy to exit legacy business lines to focus exclusively on entertainment and proprietary ticketing.
- The Company recently changed its name to Kustom Entertainment, Inc. further emphasizing its new strategy and focus.
- Revenue Cycle Management (RCM): The Company closed the sale of its medical billing RCM business effective January 1, 2026. This segment accounted for losses of
$1,405,000 in 2025 and$3,820,000 in 2024. - Legacy Video Solutions: Kustom has entered into a non-binding Memorandum of Understanding (MOU) to sell its legacy video solutions division to Cycurion, Inc. (NASDAQ: CYCU). If finalized, the transaction is expected to be valued between
$6.0 million and$8.5 million , further streamlining Kustom’s balance sheet.
Forbes Recognition for TicketSmarter
On February 6, 2026, Forbes Advisor named TicketSmarter a “Best Resale Site for Tickets.” The expert review specifically lauded the platform’s:
- Pricing Transparency: Clear communication of total costs, including fees, prior to checkout.
- Buyer Protections: A
100% Ticket Guarantee ensuring valid tickets or full refunds. - Seller-Friendly Terms: Commissions as low as
10% for returning sellers. - Massive Reach: Listing visibility across thousands of websites via partner networks.
“We are honored to receive this recognition from Forbes Advisor, which serves as a powerful validation of our fan-first philosophy,” said Stanton Ross, CEO of Kustom Entertainment. “As we continue our strategic pivot to focus exclusively on live events and proprietary ticketing, recognitions like this underscore the value TicketSmarter provides. We remain committed to providing a secure, transparent, and seamless experience for the 125,000+ events we support across North America.”
2026 Country Stampede Music Festival Lineup
Kustom is proud to announce the full lineup for the 2026 Country Stampede Music Festival, celebrating its 30th anniversary on June 25–27, 2026, at the Azura Amphitheater in Bonner Springs, KS.
- Headliners: Rascal Flatts, Zach Top (2025 CMA New Artist of the Year), and Treaty Oak Revival.
- Main Stage Support: Scotty McCreery, Wyatt Flores, Tracy Lawrence, Diamond Rio, Jerrod Niemann, Lanie Gardner, Presley & Taylor, and The Wilder Blue.
- Expanded Experience: The 2026 festival includes a downtown Bonner Springs pre-party, late-night after-parties, and the “Battle of the Bands” finale was in March to determine the opening act for the Main Stage. The battle of the bands winner was Isaac Cole, and he will be opening the festival on the main stage on Thursday June 25th.
- We also have a Kickoff Party at Hollywood Casino on Wednesday June 24th, and nightly after parties as soon as the main stage ends.
“Kustom Entertainment isn’t just another production company. We pour into each community we visit,” said Matt Tholen, Vice President of Operations. “The 2026 lineup shows how we blend strong headliners, solid support, and real opportunities for emerging artists to build a festival that serves everyone involved.”
Tickets, camping, and VIP experiences are available now at www.CountryStampede.com.
About Kustom Entertainment, Inc.
Kustom Entertainment, Inc. is a leader in live event production and ticketing technology, specializing in large-scale music festivals and end-to-end event management. Its flagship event, Country Stampede, is held annually during June at the Azura Amphitheater in Bonner Springs, Kansas.
The Company also maintains a legacy segment engaged in video solution technology (in-car and body-worn cameras) for law enforcement and security, currently integrating artificial intelligence to enhance its specialized product lines.
For additional information, please visit www.kustoment.com and www.digitalally.com.
Forward-Looking Statements
Statements made in this press release that are not descriptions of historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on management’s current expectations and assumptions and are subject to risks and uncertainties. If such risks or uncertainties materialize or such assumptions prove incorrect, our business, operating results, financial condition, and stock price could be materially negatively affected. You should not place undue reliance on such forward-looking statements, which are based on the information currently available to us and speak only as of today’s date. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s performance or achievements to be materially different from any expected future results, performance, or achievements. Forward-looking statements speak only as of the date they are made, and the Company assumes no duty to update forward-looking statements, except as required by law. Actual future results, performance or achievements may differ materially from historical results or those anticipated depending on a variety of factors, some of which are beyond the control of the Company, including, but not limited to, the risks described from time to time in the Company’s periodic filings with the U.S. Securities and Exchange Commission, including, without limitation, the risks described in the Company’s 2025 Annual Report on Form 10-K under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” (as applicable). These factors should be considered carefully, and readers are cautioned not to place undue reliance on such forward-looking statements. All information is current as of the date this press release is issued, and the Company undertakes no duty to update this information.
For Additional Information, Please Contact:
Stanton E. Ross, CEO at (913) 456-5878
FAQ
How did KUST perform financially for fiscal year 2025?
Kustom reported improved results with a net loss narrowed to $5.955 million. According to the company, revenue from continuing operations rose to $13.755 million and SG&A fell by $2.275 million, driving the bottom-line improvement.
What divestitures did Kustom announce and when did the RCM sale close?
Kustom closed the sale of its RCM business effective January 1, 2026. According to the company, the sale exits a losing segment that posted $1.405 million of losses in 2025, streamlining focus to entertainment.
What is the status and expected value of the legacy video solutions deal for KUST?
Kustom entered a non-binding MOU to sell legacy video solutions to Cycurion with an expected value of $6.0–$8.5 million. According to the company, the transaction remains subject to finalization and terms.
How did non-operating items affect KUST’s 2025 results?
Non-operating income rose substantially, improving results by $11.44 million. According to the company, gains included a $4.575 million warrant derivative fair-value improvement and reduced interest expense of $2.715 million.
What recognition did TicketSmarter receive and what features were highlighted?
TicketSmarter was named a ‘Best Resale Site for Tickets’ by Forbes Advisor. According to the company, the review cited pricing transparency, a 100% ticket guarantee, seller commissions as low as 10%, and broad listing reach.
What are the key details for the 2026 Country Stampede festival announced by KUST?
Country Stampede will run June 25–27, 2026, at Azura Amphitheater celebrating its 30th anniversary. According to the company, headliners include Rascal Flatts and Zach Top, with Isaac Cole opening after winning the Battle of the Bands.
‘ The preceding article may include information circulated by third parties ’
‘ Some details of this article were extracted from the following source www.stocktitan.net ’
