Springbig's Q2 2025 Financial Report: Positive Growth Ahead
Springbig Holdings Inc Shows Positive Growth in Q2 2025
Springbig Holdings Inc (OTCQB: SBIG), a leading provider of AI MarTech solutions for regulated industries, recently released its financial results for the second quarter of 2025, highlighting significant improvements in crucial metrics.
Financial Performance Highlights
In this latest report, Springbig achieved its second consecutive quarter of positive Adjusted EBITDA, with year-to-date Adjusted EBITDA reaching $0.6 million. This represents an improvement of $0.1 million compared to the previous year.
The company's revenue saw a quarter-over-quarter increase of 6%, totaling $5.8 million, which is a positive sign of recovery amid ongoing challenges in regulated markets. In addition, Springbig reported cash flows from its operations amounting to $0.2 million, marking an improvement of $2.1 million on a year-over-year basis.
Operational Improvements and Strategic Moves
Jaret Christopher, CEO and Chairman of Springbig, remarked on the effectiveness of the new leadership team's strategies. He emphasized the urgency and disciplined execution in the company's operations, noting tangible progress in their turnaround efforts. The focus remains on leveraging their AI-powered MarTech platform, which assists businesses in regulated markets to enhance customer retention, measure return on investments (ROI), and grow revenues.
Insights from the CFO
Springbig's CFO, Jason Moos, provided further context regarding the financial improvements. He indicated that despite an 11% decline in revenue year-over-year, the first half of 2025 saw enhancements in both Adjusted EBITDA and cash flow. The strategic cost-cutting measures put in place include renegotiating vendor contracts and securing more favorable lease terms. As a result, they've effectively reduced their future lease obligations by $3.2 million, and overall operating expenses have seen a 12% reduction when excluding one-time charges.
Quarterly Financial Summary
For Q2 2025, here are some additional financial highlights:
- Revenue totaled $5.8 million, a decrease from the previous year's $6.4 million.
- Subscription revenue made up 84% of total revenue, totaling $4.9 million.
- Gross profit was reported at $4.3 million, reflecting a margin of 74%.
- Operating expenses, factoring in one-time costs, rose 7% year-on-year to $5.1 million.
- There was a net loss of $(1.1) million compared to a net loss of $(0.6) million in the prior year.
- Adjusted EBITDA remained positive at $0.3 million, consistent with the previous year.
Half-Year Financial Performance
During the first half of 2025, Springbig showed resilience with the following key figures:
- Total revenue was $11.4 million, down from $12.8 million in the same period last year.
- Subscription revenue accounted for 86% of total revenue, amounting to $9.7 million.
- Gross profit reached $8.6 million, with a margin of 76%.
- Net loss was $(1.9) million compared to $(0.2) million in the prior year.
- Adjusted EBITDA showed an increase to $0.6 million up from $0.5 million.
Outlook for the Future
As Springbig enters the second half of 2025, the company is optimistic about maintaining its momentum. With a strong focus on enhancing revenue quality, financial discipline, and sustainable growth strategies, Springbig aims to generate long-term value for its clients and shareholders.
For further details or inquiries, please contact Claire Bollettieri, VP of Investor Relations at ir@springbig.com.
Frequently Asked Questions
What are the main positive outcomes from Springbig's Q2 2025 report?
Springbig reported positive Adjusted EBITDA, improved cash flows, and a quarter-over-quarter revenue increase of 6%.
How did Springbig reduce its operating expenses?
The company renegotiated vendor contracts and secured a more favorable lease reducing future obligations significantly.
What percentage of Springbig's revenue comes from subscriptions?
Subscription revenue accounted for 84% of total revenue in Q2 2025.
What measures is Springbig taking for long-term growth?
Springbig is focusing on enhancing customer retention, leveraging its AI MarTech platform, and maintaining financial discipline.
Who can be contacted for investor relations inquiries?
Investor relations inquiries can be directed to Claire Bollettieri at ir@springbig.com.
About The Author
Contact Owen Jenkins privately here. Or send an email with ATTN: Owen Jenkins as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.