IZEA's shares declined 5.0% after the quarter, reflecting investor disappointment with revenue deceleration driven by the ongoing exit from lower-margin SMB accounts and a cautious near-term outlook despite progress on the strategic shift to enterprise clients.

• Revenue declined to $6.6 million from $8 million year over year, fully attributable to the wind-down of non-core SMB business.
• Managed Services bookings fell $1.2 million year over year, including a $1 million timing impact from enterprise accounts.
• Gross margins remained stable, supported by consistent cost of revenue despite revenue pressures.
• Operating expenses decreased 3% year over year to $4.1 million, driven by lower sales and marketing costs offset partially by higher G&A.
• The company posted a net loss of $800 thousand (-$0.04 per share), widening from a loss of $100 thousand (-$0.01 per share) in the prior year period, despite cost reductions.