Mega Matrix Cuts Advertising to 47% of Revenue as ARPU Hits $3.42
Mega Matrix posted fiscal 2025 revenue of $26.1 million and closed with $7.3 million in cash, bolstered by private placements and an at-the-market offering. Advertising expenses fell to 47% of revenue, ARPU rose to $3.42, adjusted EBITDA loss narrowed to $5.6 million, and digital assets totaled $5.8 million.
1. Fiscal 2025 Financial Results
During fiscal 2025, Mega Matrix recorded $26.1 million in total revenue and held $7.3 million in cash and cash equivalents. The company raised additional capital through private placements and an at-the-market offering, narrowing its adjusted EBITDA loss from $7.1 million to $5.6 million.
2. Operational and Content Strategy
Mega Matrix shifted to an asset-light model for its short-drama streaming operation, scaling back in-house production in favor of third-party procurement and AI-based translation. This transformation reduced marketing expense ratio from 62% to 47% and drove average revenue per active user up to $3.42, while expanding FlexTV’s library to 968 short dramas with over 10,500 multi-language titles across 16 languages in more than 200 regions.
3. Digital Asset Treasury Framework
Mega Matrix implemented a dual-engine digital asset strategy, deploying stablecoins into low-risk DeFi protocols and investing in governance tokens of leading stablecoin platforms. As of December 31, 2025, the treasury held Bitcoin, Ethena, and USDT with a carrying value of approximately $5.8 million under institutional custody arrangements.