Financial Performance - For the three months ended September 30, 2025, revenue was $5.871 million, a decrease of 4.4% from $6.144 million in the same period of 2024[137]. - The net loss for the three months ended September 30, 2025, was $219,000, compared to a net loss of $554,000 in the same period of 2024[137]. - Adjusted EBITDA for the three months ended September 30, 2025, was $889,000, an increase of 117.6% from $409,000 in the same period of 2024[137]. - Revenue for the three months ended September 30, 2025, was $5.9 million, a 4% decrease from $6.1 million in 2024, primarily due to a 9% decline in subscription revenue to $4.6 million[163]. - Gross profit for the same period was $4.1 million, down 7% from $4.4 million in 2024, with a slight improvement in gross margin to 74% from 73%[165]. - For the nine months ended September 30, 2025, revenue was $17.2 million, a 9% decrease from $19.0 million in 2024, driven by a 14% decline in subscription revenue[170]. - Gross profit for the nine months ended September 30, 2025, was $12.8 million, a 7% decline from $13.8 million in 2024, with gross margin improving to 76% from 73%[171]. - The company reported a net loss of $1.7 million for the nine months ended September 30, 2025, compared to a net loss of $0.7 million for the same period in 2024, indicating a worsening of 142.9%[190][191]. Client Metrics - SpringBig serves approximately 800 clients across over 2,100 retail locations, distributing around 600 million messages annually, resulting in over $6.1 billion in gross merchandise value for clients using the platform[134]. - The number of retail clients decreased to 768 in September 2025 from 1,022 in September 2024, indicating a significant reduction in client base[137]. - Net revenue retention rate improved to 95% for the three months ended September 30, 2025, compared to 88% in the same period of 2024[137]. - The net revenue retention rate was 83% for the twelve months ended September 30, 2025, compared to 88% for the same period in 2024[164]. Operational Efficiency - Total operating expenses decreased by 20% to $3.6 million for the three months ended September 30, 2025, compared to $4.5 million in 2024[166]. - Interest expense for the three months ended September 30, 2025, was $0.3 million, down 39% from $0.6 million in 2024[167]. - General and administrative expenses increased by 14% to $6.7 million for the nine months ended September 30, 2025, primarily due to separation agreements and lease termination fees[173]. Cash Flow and Financing - As of September 30, 2025, cash and cash equivalents increased to $1,532,000 from $1,179,000 as of December 31, 2024, representing a growth of 30%[187]. - Cash provided by operating activities was $381,000 for the nine months ended September 30, 2025, a significant improvement from cash used in operating activities of $(1,334,000) in 2024[188]. - Cash used in investing activities was $28,000 for the nine months ended September 30, 2025, down from $64,000 in 2024, reflecting a reduction of 56.3%[192]. - There were no cash flows from financing activities in the nine months ended September 30, 2025, compared to $1.9 million provided by financing activities in 2024[193][194]. - The company may need to raise additional funds through equity or debt financing due to insufficient cash from operations to fund future activities[187]. Market Outlook - SpringBig's platform is expected to benefit from the legalization of cannabis in more jurisdictions, which may enhance growth opportunities[152]. - The company anticipates intensified competition as the cannabis market matures and more established companies enter the space[153]. - SpringBig's revenue growth is driven by acquiring and retaining customers, with a focus on expanding relationships to increase revenue per customer[150]. Accounting and Compliance - The company is evaluating the impact of recent accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2025-05[206][207]. - The company maintains a critical accounting estimate for the allowance for credit losses, which is based on historical data and specific customer circumstances[204]. - The company has no off-balance sheet arrangements that could materially affect its financial condition as of September 30, 2025[195].
SPRINGBIG HOLDIN(SBIG) - 2025 Q3 - Quarterly Report