Executive Summary

SpringBig returned to profitability in Q3 2025: net income was $0.219M on revenue of $5.871M; operating income turned positive to $0.563M, and Adjusted EBITDA rose to $0.889M, its third consecutive positive quarter .
Revenue was essentially flat sequentially (+0.6% q/q to $5.871M) and down 4% y/y (vs. $6.144M in Q3 2024); subscription softness continued amid regulated-industry budget headwinds .
Management expects to remain Adjusted EBITDA positive for the full year and aims to sustain profitability into 2026; cost actions (lease termination and office move) materially reduced obligations and rent, supporting margin and cash generation .
Strategic catalysts: completion of ViceCRM integration strengthening AI-driven campaign optimization, and revenue mix >80% recurring subscription/platform fees supporting cash flow visibility .
Note: the press release cites Q3 gross margin at 71% while the Q3 10-Q MD&A discusses an improvement to 74%; we flag this discrepancy for investors to monitor .

What Went Well and What Went Wrong

What Went Well
- Returned to profitability: Net income $0.219M; operating income $0.563M vs. $(0.726)M in Q2 2025, with third straight quarter of positive Adjusted EBITDA ($0.889M) .
- Strategic execution and AI focus: “We’ve made major strides in expanding our AI-driven marketing and loyalty platform, delivering smarter automation, deeper analytics, and more personalized engagement tools” — CEO Jaret Christopher .
- Cost discipline and lease reset: Early termination reduced long-term obligations by $2.4M; new lease cut monthly rent ~75%, aiding margins and cash generation .
What Went Wrong
- Top-line pressure: Revenue declined 4% y/y to $5.871M; subscription revenue remained soft amid client budget constraints in regulated markets .
- Customer and vendor concentration: One customer 17% of YTD revenue; one vendor 90% of cost of goods sold YTD — concentration risk remains elevated .
- Legal overhangs: PPP Loan civil investigative demand (potential contingent loss up to $1.6M) and litigation with former CEO, with accrual recorded for settlement, increasing uncertainty .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($USD Millions)	$6.144	$5.837	$5.871
Gross Profit ($USD Millions)	$4.435	$4.338	$4.142
Gross Margin %	73%	74%	71%
Operating Income ($USD Millions)	$(0.045)	$(0.726)	$0.563
Net Income ($USD Millions)	$(0.554)	$(1.141)	$0.219
Adjusted EBITDA ($USD Millions)	$0.409	$0.285	$0.889
Diluted EPS ($USD)	$(0.01)	$(0.02)	$0.00
Cash and Equivalents (Period-end, $USD Millions)	$0.847	$1.383	$1.532

Notes:

Q3 2025 net income includes a one-time accrual reversal; management stated underlying performance consistent with Adjusted EBITDA trends .
Reported gross margin narrative in 10-Q MD&A (74%) differs from press release (71%); figures in the table reflect press release/MD&A disclosures rather than computed margins, for consistency .

Segment reporting:

SpringBig reports a single operating segment; no segment breakdown applies .

KPIs

KPI	Q3 2024	Q3 2025
Number of Retail Clients	1,022	768
Net Revenue Retention (%)	88%	95%
Messages Sent (Millions)	152	180

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA	FY 2025	Focused on sustaining Adjusted EBITDA growth	Expects to remain Adjusted EBITDA positive for the full year; aims to sustain profitability into 2026	Maintained/clarified toward full-year positive and into 2026

Earnings Call Themes & Trends

No Q3 2025 earnings call transcript or slides were available; themes below derive from Q1/Q2 filings and Q3 press release/10-Q.

Topic	Previous Mentions (Q1 2025 and Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology Initiatives	AI-powered MarTech platform and loyalty SaaS; executing cost cuts and platform efficiency	ViceCRM integration complete; expanded AI-driven campaign optimization capabilities	Strengthening AI feature set and integration
Cost Structure/Leases	New lease effective 2024; ongoing renegotiations	Prior lease terminated (penalty $0.55M) and new office lease reduced monthly rent ~75%	Structural cost base reduced
Macro/Client Budget Headwinds	Regulated-market headwinds affected revenue; retention 86% in Q1	Continued budget pressure; Q3 revenue -4% y/y; retention metrics improved to 95% in period table	Mixed: revenue headwinds persist; retention improved
Legal/Regulatory	PPP Loan investigation disclosed; contingent loss up to $1.6M	PPP investigative demand and CEO separation litigation accrued for settlement	Legal overhang persists
Customer/Vendor Concentration	Noted vendor concentration and customer concentration risk	One vendor 90% of COGS YTD; one customer 17% of revenue YTD	Concentration risk elevated

Management Commentary

CEO prepared remarks: “We’ve made major strides in expanding our AI-driven marketing and loyalty platform, delivering smarter automation, deeper analytics, and more personalized engagement tools… We’re building a leaner, more focused company positioned for sustained growth.” — Jaret Christopher, CEO .
CFO prepared remarks: “Revenue remained essentially flat versus Q2 ($5.9 million vs. $5.8 million), and gross margin held above 70%. Operating income improved from a loss in Q2 to a positive $0.6 million in Q3. Including a one-time accrual reversal, we recorded net income of $219,000.” — Jason Moos, CFO .
Outlook: “expects to remain Adjusted EBITDA positive for the full year… sustaining profitability into 2026” .

Q&A Highlights

No Q3 2025 earnings call transcript available; no Q&A content to report [ListDocuments showed none for SBIG, 2025-09-01 to 2025-11-20].

Estimates Context

S&P Global consensus data for Q3 2025 revenue and EPS was unavailable; attempted retrieval returned no estimates. Values retrieved from S&P Global.

Metric	Q3 2025
Revenue Consensus Mean	N/A*
Primary EPS Consensus Mean	N/A*
Revenue - # of Estimates	N/A*
Primary EPS - # of Estimates	N/A*

*Values retrieved from S&P Global (consensus unavailable).

Implications: With no published consensus, the quarter’s “beat/miss” framing is unavailable. Investors should focus on sequential stabilization, return to operating and net profitability, and sustainability of Adjusted EBITDA positive performance .

Key Takeaways for Investors

Profitability inflection: Operating income turned positive ($0.563M) and net income reached $0.219M; Adjusted EBITDA strengthened to $0.889M — a critical milestone for a micro-cap software platform in regulated markets .
Revenue base stabilizing: Revenue rose slightly q/q (+0.6% to $5.871M) but remains below prior-year levels; subscription demand still reflects budget constraints .
Cost actions supporting durability: Lease termination and office move materially reduced rent (~75%) and obligations, underpinning margin resilience and cash generation .
AI product momentum: ViceCRM integration and AI-driven optimization tools enhance differentiation and potential upsell/cross-sell as clients seek measurable ROI from messaging campaigns .
Risk watch: Legal overhang (PPP investigation; CEO litigation accrual) and concentration (one vendor 90% COGS; one customer 17% YTD revenue) require monitoring for potential financial or operational impacts .
Cash and liquidity: Cash rose to $1.532M with positive cash from operations YTD ($0.381M); restrictive covenants and high-cost notes (17%/13% rates, potentially lower with sustained Adjusted EBITDA) may constrain financing flexibility .
Near-term trading lens: The narrative centers on sustaining profitability and Adjusted EBITDA positive prints; watch for clarity on gross margin trajectory (resolve 71% vs. 74% discrepancy) and retention/client count trends to gauge durability of the turnaround .

SpringBig Holdings, Inc. (SBIG)·Q3 2025 Earnings Summary