SPRINGBIG HOLDIN(SBIG) - 2025 Q2 - Quarterly Results

Executive Summary Q2 2025 Performance Overview Springbig reported a second consecutive quarter of positive Adjusted EBITDA and a 6% quarter-over-quarter revenue increase in Q2 2025, alongside a significant year-on-year improvement in cash flow from operations, demonstrating tangible progress in its turnaround - Second consecutive quarter with positive Adjusted EBITDA, increasing year-to-date Adjusted EBITDA to $0.6 million, representing a $0.1 million year-on-year improvement[5] - 6% quarter-over-quarter increase in revenue to $5.8 million[5] - Cash flows provided from operations of $0.2 million, an improvement of $2.1 million year-on-year[5] Half Year 2025 Performance Overview For the first half of 2025, Springbig achieved positive Adjusted EBITDA of $0.6 million, a $0.1 million improvement year-over-year, and positive cash flow from operations, despite an 11% decline in revenue due to market headwinds. This was supported by targeted cost reductions, including a $3.2 million reduction in future lease obligations - Adjusted EBITDA of $0.6 million for the first half of 2025 reflects a $0.1 million improvement compared to the same period last year[3] - Reporting year-over-year improvements in both positive Adjusted EBITDA and positive cash flow from operations for the six months ended June 30, 2025[3] - Achieved despite an 11% decline in revenue amid ongoing headwinds in regulated markets[3] - Operating expenses have decreased by 12% year-over-year, excluding one-time charges, including a new lease that reduced future lease obligation by $3.2 million[3] Strategic Initiatives & Outlook Springbig's new leadership is focused on urgent and disciplined execution, leveraging its AI-powered MarTech platform to enhance customer retention and drive ROI. The company is committed to strategic cost cuts and maintaining financial discipline to build a durable financial foundation and sustain Adjusted EBITDA growth in the second half of 2025 - Springbig's new leadership team is executing with urgency and discipline, delivering tangible progress in turnaround[2] - Through AI-powered MarTech and loyalty SaaS platform, helps regulated-market businesses increase customer retention, drive measurable ROI, and grow revenue[2] - Company remains focused on sustaining Adjusted EBITDA growth and building a durable financial foundation to support long-term shareholder value[8] Company Overview Business Description Springbig is a market-leading AI software platform specializing in customer loyalty and marketing automation solutions for retailers and brands in regulated industries across the U.S. and Canada, primarily utilizing SMS marketing, email, customer feedback, and loyalty programs - Springbig is a market-leading, AI software platform providing customer loyalty and marketing automation solutions to retailers and brands in the U.S. and Canada[11] - Springbig's AI MarTech platform connects consumers with retailers and brands, primarily through SMS marketing, as well as emails, customer feedback system, and loyalty programs[11] - Offers marketing automation solutions that provide for consistency of customer communication, thereby driving customer retention and retail foot traffic[11] Financial Performance Q2 2025 Financial Results In Q2 2025, Springbig reported a revenue of $5.8 million, a decrease from the prior year but a 6% increase QoQ. Subscription revenue constituted 84% of total revenue. Gross profit margin was strong at 74%, but operating expenses, including one-time costs, increased, leading to a net loss of $(1.1) million Q2 2025 Key Financials (YoY Comparison) | Metric | Q2 2025 (in millions) | Q2 2024 (in millions) | Change (YoY) | | :--------------------- | :-------------------- | :-------------------- | :----------- | | Revenue | $5.8 | $6.4 | -9.4% | | Subscription Revenue | $4.9 (84% of total) | $5.5 | -10.9% | | Gross Profit | $4.3 (74% margin) | $4.7 (73% margin) | -8.5% | | Operating Expenses | $5.1 | $4.7 | +7.0% | | Net Loss | $(1.1) | $(0.6) | +83.3% | | Adjusted EBITDA | $0.3 | $0.3 | 0.0% | Half Year 2025 Financial Results For the first half of 2025, Springbig's revenue was $11.4 million, down from $12.8 million in the prior year, with subscription revenue making up 86%. Gross profit margin was 76%. Operating expenses increased slightly, resulting in a net loss of $(1.9) million, though Adjusted EBITDA improved to $0.6 million H1 2025 Key Financials (YoY Comparison) | Metric | H1 2025 (in millions) | H1 2024 (in millions) | Change (YoY) | | :--------------------- | :-------------------- | :-------------------- | :----------- | | Revenue | $11.4 | $12.8 | -10.9% | | Subscription Revenue | $9.7 (86% of total) | $10.6 | -8.4% | | Gross Profit | $8.6 (76% margin) | $9.4 (73% margin) | -8.5% | | Operating Expenses | $9.8 | $9.7 | +1.0% | | Net Loss | $(1.9) | $(0.2) | +850.0% | | Adjusted EBITDA | $0.6 | $0.5 | +20.0% | | Basic Net Loss Per Share | $(0.04) | $(0.01) | +300.0% | Financial Outlook Springbig anticipates entering the second half of 2025 with positive momentum, strengthened by improved revenue quality, disciplined operations, and expanding profitability, with a strategic focus on sustaining Adjusted EBITDA growth and building a robust financial foundation for long-term shareholder value - Springbig enters the second half of 2025 with positive momentum, strengthened by improved revenue quality, disciplined operations, and expanding profitability[8] - The company remains focused on sustaining Adjusted EBITDA growth and building a durable financial foundation to support long-term shareholder value[8] Financial Statements Condensed Consolidated Balance Sheets The balance sheet as of June 30, 2025, shows a decrease in total assets and total liabilities compared to December 31, 2024, with a continued stockholders' deficit. Key changes include a significant reduction in the Right of Use asset and operating lease liabilities Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Total Current Assets | $4,134 | $3,864 | | Right of Use Asset | $470 | $2,757 | | Total Assets | $4,629 | $6,825 | | Total Current Liabilities | $6,966 | $5,670 | | Total Liabilities | $15,956 | $16,596 | | Total Stockholders' Deficit | $(11,327) | $(9,771) | Condensed Consolidated Statement of Operations The statement of operations for Q2 and H1 2025 shows a decline in net revenues and an increase in net loss compared to the prior year periods. Gross profit margins remained high, but increased operating expenses and other losses contributed to the higher net loss Condensed Consolidated Statement of Operations Highlights (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net Revenues | $5,837 | $6,422 | $11,350 | $12,818 | | Gross Profit | $4,338 | $4,697 | $8,645 | $9,377 | | Total Operating Expenses | $5,064 | $4,754 | $9,799 | $9,716 | | Loss from Operations | $(726) | $(57) | $(1,154) | $(339) | | Net Loss | $(1,141) | $(647) | $(1,892) | $(230) | | Basic and Diluted Net Loss per Share | $(0.02) | $(0.01) | $(0.04) | $(0.01) | Statement of Cash Flows For the six months ended June 30, 2025, Springbig generated $0.2 million in cash from operating activities, a significant improvement from a net cash outflow in the prior year. Investing activities remained minimal, and financing activities did not provide cash in 2025, leading to a net increase in cash and cash equivalents Condensed Consolidated Statement of Cash Flows Highlights (in thousands) | Metric | H1 2025 | H1 2024 | | :------------------------------------ | :------ | :------ | | Net cash provided by (used in) operating activities | $218 | $(1,919) | | Net cash used in investing activities | $(14) | $(63) | | Net cash provided by financing activities | $0 | $2,375 | | Net increase in cash and cash equivalents | $204 | $393 | | Cash and cash equivalents, at end of period | $1,383 | $724 | Non-GAAP Financial Measures Definition and Rationale Springbig uses non-GAAP financial measures, specifically EBITDA and Adjusted EBITDA, to provide investors with additional information. These metrics are crucial for management in evaluating operating performance, planning, and making strategic decisions, offering improved comparability between fiscal periods, despite their inherent limitations - EBITDA and Adjusted EBITDA are non-GAAP financial measures calculated as net income before interest, taxes, depreciation, and amortization, with further adjustments for unusual/infrequent costs[14] - These metrics are key measures used by management to evaluate operating performance, generate future operating plans, and make strategic decisions[15] - Limitations include not reflecting cash capital expenditure requirements, changes in working capital needs, or tax payments[16][17] Reconciliation of Net Loss to EBITDA and Adjusted EBITDA The reconciliation table details the adjustments made to net loss to arrive at EBITDA and Adjusted EBITDA for Q2 and H1 2025 and 2024. Adjusted EBITDA for H1 2025 was $0.61 million, an improvement from $0.48 million in H1 2024 Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | | Net (loss) income | $(1,141) | $(647) | $(1,892) | $(230) | | EBITDA | $(828) | $(58) | $(1,223) | $1,284 | | Adjusted EBITDA | $285 | $330 | $610 | $480 | Legal and Investor Information Forward-Looking Statements This section serves as a standard disclaimer, indicating that certain statements in the press release are forward-looking and subject to various risks and uncertainties, and the company does not commit to updating them unless legally required - Statements are 'forward-looking statements' subject to risks and uncertainties, including those described in the Company's Form 10-K[13] - Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation to update or revise them other than as required by applicable law[13] Investor Relations Contact Provides the contact details for investor relations, facilitating communication between the company and its investors - Investor Relations Contact: Claire Bollettieri, VP of Investor Relations, ir@springbig.com[17]