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SpringBig Holdings, Inc. (SBIG)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 revenue was $5.84M, down 9% YoY but up 6% QoQ; gross margin improved to 74% (vs. 73% last year), and Adjusted EBITDA remained positive at $0.29M, marking a second consecutive positive quarter .
  • Operating discipline drove cash from operations of $0.20M for 1H 2025 and cost actions including a lease reset that reduced future obligations by $3.2M, though reported opex included a $0.55M termination fee and severance costs .
  • Net loss widened to $(1.14)M (EPS $(0.02)), largely reflecting one-time lease and severance costs despite improved gross margin and lower interest expense YoY; working capital deficit at quarter-end was $(2.83)M .
  • Management emphasized an AI-powered MarTech focus, subscription revenue quality (84% of revenue), and sustaining Adjusted EBITDA growth; consensus estimates were unavailable, limiting beat/miss analysis .

What Went Well and What Went Wrong

What Went Well

  • “Second consecutive quarter with positive Adjusted EBITDA… increasing year-to-date Adjusted EBITDA to $0.6 million,” reflecting operating discipline under new leadership .
  • Gross margin expanded to 74% (from 73% last year) on lower messaging costs, partially offsetting revenue pressure .
  • “Cash flows provided from operations of $0.2 million” in 1H 2025 and renegotiated vendor contracts plus a new HQ lease reduced future lease obligations by $3.2M .

What Went Wrong

  • Revenue declined 9% YoY to $5.84M, with subscription revenue down 11% YoY to $4.9M amid regulated-market headwinds; net revenue retention fell to 78% vs. 86% last year .
  • Operating expenses reported up 7% YoY (to $5.06M) in Q2 due to one-time lease termination and severance, driving a wider net loss of $(1.14)M vs. $(0.65)M last year .
  • Legal and tax contingencies persist (PPP loan investigation potential loss up to $1.6M; deferred payroll tax credits of $1.98M), and long-term debt increased to $8.73M .

Financial Results

MetricQ2 2024Q1 2025Q2 2025
Revenue ($USD Millions)$6.42 $5.52 $5.84
Gross Profit ($USD Millions)$4.70 $4.31 $4.34
Gross Profit Margin (%)73% 78% 74%
Total Operating Expenses ($USD Millions)$4.75 $4.74 $5.06
Loss from Operations ($USD Millions)$(0.06) $(0.43) $(0.73)
Net Loss ($USD Millions)$(0.65) $(0.75) $(1.14)
Adjusted EBITDA ($USD Millions)$0.33 $0.33 $0.29
Basic EPS ($USD)$(0.01) $(0.02) $(0.02)

Segment revenue breakdown:

Revenue Type ($USD Millions)Q2 2024Q1 2025Q2 2025
Retail Revenue$6.31 $5.44 $5.76
Brand Revenue$0.11 $0.08 $0.08
Total$6.42 $5.52 $5.84

Geographic revenue:

Geography ($USD Millions)Q2 2024Q1 2025Q2 2025
United States$6.22 $5.36 $5.70
Canada$0.20 $0.16 $0.14
Total$6.42 $5.52 $5.84

Subscription revenue composition:

MetricQ2 2024Q2 2025
Subscription Revenue ($USD Millions)$5.5 $4.9
Subscription % of Total Revenue86% 84%

KPIs:

KPIQ1 2025Q2 2025
Number of Retail Clients900 762
Net Revenue Retention (%)86% 78%
Messages Sent (Millions)133 151

Balance sheet and cash flow highlights:

  • Long-term debt (non-current): $8.73M .
  • Working capital deficit: $(2.83)M .
  • Cash from operations (1H 2025): $0.22M .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Adjusted EBITDA2H 2025 focusNone providedCompany focused on sustaining Adjusted EBITDA growth; no numeric ranges disclosed Maintained qualitative focus
Revenue3Q/Full Year 2025None providedNo formal guidance in Q2 release; management emphasized “improved revenue quality” Maintained qualitative focus
Operating Expenses2025None providedOpex reductions excluding one-time charges; renegotiated vendor contracts; new lease reduced future obligations by $3.2M Qualitative improvement
Tax rate, OI&E, dividends2025None providedNot discussed in Q2 materials N/A

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not found; themes below draw from Q2 press release and 10‑Q.

TopicPrevious Mentions (Q-2: Q4 2024)Previous Mentions (Q-1: Q1 2025)Current Period (Q2 2025)Trend
AI/technology initiativesNot availablePlatform scale, loyalty/automation; 600M messages; GMV ~$7.0B “AI-powered MarTech and loyalty SaaS”, ROI for regulated industries Consistent emphasis
Cost reductions/operational disciplineNot availableOpex reductions; lower developer and compensation costs Vendor renegotiations; lease reset; excluding one-time charges, opex down 12% YoY Improving
Subscription revenue qualityNot availableSubscription 87% of revenue Subscription 84% of revenue; $4.9M Stable-high but pressured
Debt and interest costsNot available2024 notes at 17%/13% step down with EBITDA thresholds Same terms; interest expense down YoY Improving interest burden
Regulatory/legalNot availablePPP loan investigation (potential $1.6M), payroll tax credits PPP investigation continues; payroll credits $1.98M deferred Ongoing risk
Customer metricsNot availableNRR 86%, clients 900 NRR 78%, clients 762 Deteriorating

Management Commentary

  • CEO: “Springbig’s new leadership team is executing with urgency and discipline… positive EBITDA momentum, stronger cash flow, and improved operational efficiency.”
  • CEO: “Through our AI-powered MarTech and loyalty SaaS platform, we help regulated-market businesses increase customer retention, drive measurable ROI, and grow revenue.”
  • CFO: “Adjusted EBITDA of $0.6 million for the first half of 2025… despite an 11% decline in revenue amid ongoing headwinds in regulated markets… new lease reduced the company’s future lease obligation by $3.2 million… Excluding one-time charges, operating expenses decreased by 12% year-over-year.”

Q&A Highlights

  • A Q2 2025 earnings call transcript was not available; no Q&A themes or clarifications could be verified from a call recording/transcript [Investors site and news releases indicate no posted transcript for Q2 2025: https://investors.springbig.com/financial-information/quarterly-results] .

Estimates Context

  • Wall Street consensus (S&P Global) for Q2 2025 EPS, revenue, and EBITDA was unavailable; a beat/miss analysis versus consensus could not be performed. Values retrieved from S&P Global.*

Key Takeaways for Investors

  • SpringBig delivered its second straight quarter of positive Adjusted EBITDA ($0.29M) and positive 1H cash from operations ($0.22M), evidencing execution on cost discipline under new leadership .
  • Gross margin expansion to 74% suggests pricing/mix and lower messaging costs helping blunt revenue headwinds; however, subscription revenue fell 11% YoY and NRR declined to 78% .
  • One-off lease termination and severance weighed on opex and net loss; excluding these, management indicates opex down 12% YoY and future lease obligations reduced by $3.2M, improving forward opex profile .
  • Balance sheet carries $8.73M of long-term debt with high coupon notes stepping down as Adjusted EBITDA exceeds thresholds; interest expense declined YoY, but working capital deficit remains $(2.83)M, a liquidity watch item .
  • Regulatory/legal overhangs persist (PPP investigation potential loss up to $1.6M; payroll tax credits deferred), which can affect cash and headline risk .
  • Strategic positioning in AI-powered MarTech for regulated verticals plus the VICE CRM acquisition (closed July 31, 2025) may support product and go-to-market momentum, contingent on client retention and net-new logos .
  • Near-term trading implication: focus is on sustained positive Adjusted EBITDA and cash generation amid revenue stabilization; medium-term thesis hinges on re-accelerating subscription growth and improving NRR while managing legal and debt constraints .