March 12 (Reuters) - BuzzFeed ( BZFD ) on Thursday flagged going concern doubts and said it will not provide a forecast for 2026 as it evaluates strategic options, sending the digital media company's shares down 7.3% after the bell.

BuzzFeed ( BZFD ) has been grappling with a cash crunch as digital advertisers increasingly favor social media platforms such as TikTok and Meta Platforms' ( META ) Instagram.

Founded by Jonah Peretti and John Johnson in 2006, BuzzFeed ( BZFD ) built its audience through listicles before expanding into a newsroom to challenge stalwarts like the New York Times.

It went public via a blank-check merger in 2021 with an enterprise value of $1.5 billion. The stock has lost 98% of its value since then.

"The current market value of the company does not reflect the strength of our individual brands," CEO Peretti said on a post-earnings call. "In other words, we believe the sum of the parts is worth more than the whole."

BuzzFeed ( BZFD ), with a market capitalization of $28.3 million, said it may lack sufficient cash to meet its financial obligations over the next 12 months. It ended 2025 with cash and cash equivalents of $8.5 million.

Though BuzzFeed ( BZFD ) was one of the defining brands of the social-media-driven digital publishing era, its "situation could be a sign that being well-known and getting a lot of clicks isn't enough anymore," said Emarketer analyst Grace Harmon.

While BuzzFeed ( BZFD ) has significantly reduced operating costs and real estate obligations, it still faces "legacy commitments that are burdening the business," CFO Matt Omer said in a statement.

It offloaded a few assets in 2024 to enhance profitability, selling First We Feast, the creator of YouTube's popular talk show "Hot Ones," for $82.5 million. It divested publisher Complex to live-video shopping app NTWRK in an all-cash transaction valued at $108.6 million.

British media group the Independent took control of BuzzFeed's ( BZFD ) UK and Ireland editorial and commercial operations in a multi-year licensing deal the same year.

For the fourth quarter ended December 31, BuzzFeed ( BZFD ) reported revenue of $56.5 million, compared to $56.2 million in the same period last year.