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FreeCast, Inc.

CAST
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Business Summary

FreeCast operates in the online video and entertainment industry, which has undergone significant transformation as consumers shift from traditional pay television to internet-delivered streaming content. As of 2025, approximately 68.7 million U.S. households still subscribe to cable TV, down from 105 million in 2010, with industry penetration rates falling from a peak of about 88% in 2010 to below 50% by 2024, with some estimates as low as 38.5% . According to Nielsen, streaming has become the largest category of television viewing in the United States, accounting for approximately 38% to 40% of total TV usage in 2024 . eMarketer's 2026 media consumption forecast indicates U.S. adults will spend approximately 2 hours and 14 minutes per day viewing traditional linear TV, while averaging 1 hour and 17 minutes per day with social video and 42 minutes per day on YouTube . The industry has become increasingly fragmented, requiring consumers to manage multiple subscriptions across platforms, contributing to higher levels of subscriber churn and increased competition among streaming providers .

FreeCast faces competition at several levels of the customer experience, including subscription aggregation (Amazon Prime Video), advertising-supported television (Pluto TV), content discovery (Yidio), and device and media platforms (Roku, Amazon Fire TV, Apple TV) . At the enterprise level, competitors include providers of platform licensing, managed streaming services, and OTT infrastructure, such as webOS and TiVo . The company believes its combination of streaming aggregation, broadcast-to-streaming technology, subscription management, advertising, and enterprise distribution within a unified white-label platform differentiates it from competitors . FreeCast's competitive strengths include its internet-delivered service, device-agnostic SmartGuide, and support for multiple monetization opportunities .

FreeCast provides a white-label Platform-as-a-Service (PaaS) that enables companies with existing customers to offer their own branded entertainment and media hub, bringing together free and paid streaming, television, and related services while allowing partners to maintain their brand and direct customer relationship . The company currently earns revenue mainly from advertising, FAST services, and subscriptions, with a model designed to add licensing, pay-per-view, connectivity, and e-commerce revenue rather than depending primarily on owning expensive content and selling another consumer streaming subscription . For the year ended June 30, 2026, total revenue was $710,882, comprising $385,602 of advertising revenue, $267,509 of FAST revenue – related parties, $56,311 of subscription revenue, and $1,460 of other revenue . The platform gives users access to eligible online media subscriptions, as well as more than 700 channels, including global FAST channels (500 channels), local and regional over-the-air (OTA) integrated broadcast channels, premium pay OTT channels, and top-tier news and entertainment content .

FreeCast's revenue mechanisms include advertising revenue generated through ad placements within the platform; FAST revenue from channel buildout, production, and platform distribution services; subscription revenue from additional monthly content bundles; product revenue from selling digital high-definition TV antennas; licensing revenue from partnerships with CDPs and third-party distributors; and referral fees earned through partnerships with content providers . For subscribers who sign up using the free registration subscription service, the company offers a variety of content provider bundles for an additional monthly fee ranging from $2.99 to $19.99 . The company also may earn fees when subscribers purchase pay-per-view (PPV) media through the SmartGuide, receive fees for advertising on guide pages and for Google AdSense in-video/pre-roll ads, receive arbitrage advertising revenue from buying and selling advertising space on other content provider platforms, and receive fees through content providers' affiliate programs for PPV purchased through the SmartGuide .

FreeCast has developed three distinct deployment models: Platform-as-a-Service (PaaS), which enables telecom operators, ISPs, municipalities, and other enterprises to offer branded entertainment and media services; Broadcast Enabled Streaming TV (BEST), which pairs over-the-air television with an online stream of eligible local broadcast programming; and Direct-to-Device (D2D), which enables telecom operators and ISPs to offer branded television services on supported consumer devices . The company also offers FreeCast Home, a gateway device that receives local over-the-air channels through an antenna and distributes them over a home broadband network . Product development initiatives include aggregated sports information with potential integration of sports betting and fantasy data, a personalized channel-guide initiative, Multi-channel View to display two to four user-selected channels simultaneously, FreeCast Hospitality, and a Commercial Business Location application .

During the fiscal year ended June 30, 2026, FreeCast announced several commercial developments. On June 18, 2026, the company announced a reseller agreement for Starlink Business services, combining enterprise satellite broadband connectivity with streaming television, advertising, and digital engagement services . On June 11, 2026, the company announced an expansion of its DIRECTV relationship across its direct-to-consumer residential initiatives and PaaS partner ecosystem . On June 4, 2026, the company announced signed agreements involving Via One affiliates, including Assist Wireless and enTouch Wireless, to use its PaaS ecosystem for aggregated streaming and entertainment distribution . In March 2025, the company entered into a dealer agreement with DIRECTV, LLC, authorizing it to promote, market, and take orders for DIRECTV streaming services to subscribers, with a focus on MDU properties . The company also completed development of its Zer0Gap Ads proprietary advertising technology platform in March 2026 and rolled it out during the fourth quarter of fiscal 2026 .

For the fiscal year ended June 30, 2026, FreeCast reported total revenue of $710,882, compared to $628,149 for the year ended June 30, 2025 . The company incurred net losses of approximately $13.0 million and $14.1 million for the years ended June 30, 2026, and 2025, respectively . As of June 30, 2026, the company had an accumulated deficit of approximately $219.7 million and a stockholders' equity of approximately $2.25 million . The company's cash balance was $8,919,833 as of June 30, 2026, with a working capital surplus of $1,964,398 . Subscriber numbers increased from 975,501 on June 30, 2025, to 1,194,219 on June 30, 2026 .

Business Outlook

FreeCast's growth strategy focuses on increasing the number and scale of enterprise deployments, expanding consumer populations accessible through those deployments, increasing engagement, and broadening available media, services, and monetization capabilities . As reported in June 2026, the company had 25 distribution partners representing a potential customer universe of approximately 31.2 million users, and a pipeline of 14 potential partners representing approximately 14.7 million potential customers . The company plans to expand domestically and globally by securing licensing agreements with Consumer Direct Platforms (CDPs) that already have a substantial user base . Subsequent to June 30, 2026, on July 29, 2026, the company publicly outlined its local advertising strategy centered on Zer0Gap and the rollout of FreeCast Cities across the 210 U.S. designated market areas .

FreeCast is developing extensive relationships with CDPs, including mobile device manufacturers and distributors for preloading of FreeCast streaming TV services platform in mobile 'smart' phones in exchange for negotiated commissions . The company has secured several industry endorsements, such as the National Lifeline Association, and partnerships in the mobile carrier segment that have begun offering its free TV solution for mobile devices . With the introduction of hardware integrations for OTA TV gateways, the company is growing its presence in the telecommunications, broadband carriers, property developers (REITs), and hospitality industries . The company plans to run context-aware Digital Out-of-Home (DOOH) campaigns across high traffic venues to drive brand awareness and app registrations, with creative strategy including dynamic content and QR/NFC calls to action .

FreeCast's advertising platform, Zer0Gap Ads, is designed to support targeted campaigns across eligible live, linear, and on-demand inventory, with the intent to support real-time bidding and cross-device advertising . The company launched dynamic advertising insertion and FAST Channel Builder in early 2023, which support partner channel operations and advertising monetization . The company also launched MediaPay, its virtual wallet system, in October 2023, designed to support management of eligible subscriptions and billing within the platform . The company's integrated model, which includes owning both content distribution and ad inventory, could offer a more streamlined and scalable alternative to traditional programmatic platforms as transparency and efficiency become critical differentiators in CTV advertising .

FreeCast's cost of revenue decreased by 63.2%, or $219,025, to $127,556 in the year ended June 30, 2026, compared to $346,581 for the year ended June 30, 2025, primarily attributed to lower platform delivery costs and lower content-related costs . Operating expenses decreased by 5.52%, or $775,230, to $13,261,776 in the year ended June 30, 2026, compared to $14,037,006 for the year ended June 30, 2025, with a $1,238,050 decrease in general and administrative expenses and a $195,168 decrease in sales and marketing expenses, partially offset by an increase in compensation and benefits expense of $657,988 .

FreeCast's operations rely on third-party cloud computing providers, specifically Amazon Web Services . The company licenses entertainment data from Gracenote (a Nielsen company) and TMDB, paying Gracenote a monthly license fee of $16,200 and Rovi/TiVo a recurring monthly fee of $5,841 for TMDB data and API access . As of June 30, 2026, the company had 47 full-time employees and 44 contract employees . The company's subscriber growth exhibits a seasonal pattern, generally greatest in the second and third fiscal quarters (October through March), slowing in the fourth fiscal quarter (April through June), and then accelerating in the first fiscal quarter (July through September) .

FreeCast's capital allocation strategy includes raising additional equity financing to support its operations and growth . In July 2026, the company completed a private placement of shares of its Class A common stock and pre-funded warrants for aggregate gross proceeds of approximately $23.7 million . The company also has an Equity Purchase Agreement with Amiens Technology Investments LLC, which committed to purchase up to $50 million of shares of its Class A common stock, with a commitment fee of $750,000 payable in shares . The company does not intend to pay cash dividends for the foreseeable future, but rather to reinvest earnings, if any, in its business operations .

FreeCast faces several headwinds and constraints, including the need for additional capital to support operations and growth, with no assurance that financing will be available on acceptable terms . The company's PaaS, BEST, and D2D deployment models are relatively new and may not achieve broad market acceptance, with BEST subject to regulatory uncertainty and D2D depending on telecom operator and ISP adoption . The company's reliance on a limited number of customers, with two related-party customers accounting for more than 36% of total revenue for the year ended June 30, 2026, poses a risk . The company also faces risks related to changes in laws or regulations governing Internet access and net neutrality, which could increase costs or impair access to its services .

Risk Factors

FreeCast faces material risks including its history of recurring operating losses and an accumulated deficit of approximately $219.7 million as of June 30, 2026, which may require additional financing to fund operations . The company's revenue is highly concentrated, with two related-party customers accounting for more than 36% of total revenue for the fiscal year ended June 30, 2026, and the loss of either customer would adversely affect financial performance . The company's SmartGuide relies on technology licensed from Nextelligence, Inc., a company principally owned and controlled by its CEO, and any interruption of rights under that license could have a significant adverse impact on product development, customer retention, and sales . The reported subscriber count includes inactive accounts and may not reflect current platform engagement or monetization potential, as the company does not distinguish between active and inactive subscribers . The company's PaaS, BEST, and D2D deployment models are relatively new and may not achieve broad market acceptance, with BEST subject to regulatory uncertainty and D2D depending on telecom operator and ISP adoption .

Management Priorities

Management's message emphasizes the company's strategic shift to a white-label Platform-as-a-Service model, focusing on enterprise distribution through Consumer Direct Platforms (CDPs) to expand reach without depending solely on acquiring individual consumers directly . The company is strategically reinvesting in its proprietary PaaS infrastructure and broader ecosystem to enhance long-term enterprise value and deepen monetization opportunities . Management highlights the recent increase in advertising revenue, largely due to platform integration stabilizing and revenue performance starting to better reflect the underlying economics of a vertically integrated advertising model, as the company has secured new commercial relationships with major media spenders such as Launch That, NHK, and Del-Air . The company's Zer0Gap Ads strategy positions it to benefit long term by aligning with the broader industry trend of vertical integration in advertising, as major streaming platforms such as Roku, Netflix, and Amazon build their own first-party advertising ecosystems . Management believes that the proceeds from the July 2026 private placement financing, together with other available sources of liquidity, will provide sufficient capital to fund operations for at least 12 months .

View Source Annual Report on SEC.gov ↗

References

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  27. [27] Item 7, MD&A — Liquidity and Capital Resources
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  47. [47] Item 7, MD&A — Liquidity and Capital Resources
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  49. [49] Item 7, MD&A — Equity Line of Credit
  50. [50] Item 5, Market for Registrant's Common Equity — Dividend Policy
  51. [51] Item 1A, Risk Factors — Risks Related to Our Business
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  60. [60] Item 7, MD&A — Overview
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  66. [66] Item 1A, Risk Factors — Risks Related to Our Business
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  76. [76] Item 7, MD&A — Concentration of Credit Risk
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Analysis on 9/28/2026