Banzai International, Inc. Q1 FY2026 earnings call

• Business and Strategy Overview

  • Bonsai operates an integrated AI-powered marketing technology (MarTech) platform with five core offerings: Demeo (AI-moderated virtual events/webinars), Open Reel (enterprise AI remote video production), Create Studio (AI 3D video/animation), Superblocks (AI website/landing page builder), and the proposed acquisition of Connect and Sell (AI sales acceleration platform).
  • The company focuses on addressing fragmented MarTech tools by centralizing capabilities across four core areas: lead attraction, customer engagement, performance tracking, and marketing intelligence, pursuing growth via both organic product development and targeted acquisitions to capitalize on MarTech industry consolidation.
  • The company follows a flywheel business model: expanding product usage generates more customer data, which enables better AI and automation features that deepen customer retention and grow the business, building competitive moats via platform integration and AI enablement.

• Operational Milestones

  • The company grew its total customer base to over 150,000 global customers across more than 90 countries, including blue chip clients across healthcare, BFSI, technology, and e-commerce verticals. Healthcare is a targeted high-priority vertical, with over 250 enterprise/mid-market customers; the company is on track to complete ISO 27001 security certification by the end of Q2 2026 to unlock new regulated enterprise customer segments.
  • In Q4 2025, Bonsai closed the acquisition of Superblocks, the AI website-building platform; a new version of Superblocks with AI-powered starting templates is launching soon, and integration into the core Bonsai platform is underway.
  • The company signed a non-binding letter of intent to acquire Connect and Sell, an AI B2B sales acceleration platform with ~$15 million in annual revenue, 86% gross margin, ~250 enterprise customers, and over 10 patents; the transaction would expand Bonsai's end-to-end revenue generation platform and create cross-selling opportunities.
  • The company is implementing targeted cost management actions to materially reduce annual operating costs, with cost cuts already achieved in professional fees and administrative expenses.

• Balance Sheet Updates

  • Stockholders' equity stood at $8.1 million as of March 31, 2026. The company closed an additional $2.3 million tranche of its $11 million institutional debt facility and raised $3.3 million in new equity during Q1 2026, and continued to pay down debt to strengthen its balance sheet.

Bonsai reports aggregated total segment performance for Q1 2026, with no separate financial results provided for individual product segments. Total company revenue for Q1 2026 was $2.7 million, representing a 20% decrease year-over-year from Q1 2025 and a 4% decrease quarter-over-quarter from Q4 2025. Gross profit was $2.2 million, a 22% year-over-year decrease, with a stable gross margin of 80.7%. Total operating expenses were $8 million, a slight increase from $7.7 million in Q1 2025. Net loss for the quarter was $8.4 million, and adjusted EBITDA loss was $1.9 million.

No formal full-year 2026 financial guidance was provided on the call. Management's key forward-looking outlooks include:

• Management expects to complete and obtain ISO 27001 certification by the end of Q2 2026, which will unlock new regulated enterprise customer segments.
• Management has an ambition to close multiple targeted M&A transactions by the end of 2026, with priority on completing the Connect and Sell acquisition during 2026 (no firm closing date is provided as the transaction is still being negotiated).
• Management expects recently implemented cost management actions to deliver material annual operating cost savings, which will be reported in future updates.
• Management expects improved operational results and a stronger cash position throughout 2026 as post-acquisition integration of recent purchases is completed.

• Forward-looking statements (including acquisition timelines, revenue growth projections, and certification targets) are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations, and the company is not obligated to update forward-looking statements after the call date.
  • The proposed Connect and Sell acquisition is subject to negotiation of definitive agreements and satisfaction of closing conditions, so there is no guarantee the transaction will close on the expected timeline or at all.
  • Post-acquisition integration of newly purchased businesses typically creates temporary operational inefficiencies (including slowed sales and marketing execution) while internal processes, go-to-market strategies, and teams are restructured.
  • As of March 31, 2026, Bonsai only held $0.1 million in cash, relying on ongoing debt and equity financing to fund operations and future growth.

Q: What is the current state of Bonsai's M&A pipeline, and how have target valuations changed recently? / A: Management reports a strong pipeline of attractive M&A targets, with current valuations viewed as favorable for acquirers. The company's top near-term priority is completing the Connect and Sell acquisition, with the ambition to close multiple additional targeted transactions by the end of 2026. Management's long-term goal is to scale Bonsai to $100 million, $500 million, and ultimately $1 billion in revenue via continued inorganic growth alongside organic expansion. No specific timing is guaranteed for any pending or potential transactions.

Q: Have you seen any recent changes in enterprise MarTech spending, sales cycle length, or deal closing timelines? / A: Management has observed an uptick in sales pipeline generation in Q1 and early Q2 2026, which is viewed as a positive indicator of market demand. Within Q1 2026, March revenue grew 11% over February revenue, showing an accelerating positive trend. The company did experience temporary operational and sales slowdowns after recent acquisitions while integrating new teams, processes, and go-to-market strategies, but integration has progressed well and growth is now accelerating. Management is optimistic about continued sales improvement in 2026.