SpringBig Holdings Inc. Reports Q3 2025 Financial Results: A Mixed Bag Amidst Market Challenges

SpringBig, founded in 2016, has carved a niche in providing tailored solutions for the cannabis retail sector, which has been grappling with stringent regulations that limit traditional marketing avenues. Operating a subscription-based model, the company’s platform allows clients to manage loyalty programs and engage consumers effectively. Currently, SpringBig services approximately 800 clients across over 2,100 retail locations in North America, facilitating the distribution of around 600 million messages annually.

Although no significant recent developments were noted in the latest report, the company's strategic focus remains on enhancing customer engagement and retention while navigating the complexities of the cannabis regulatory landscape.

In Q3 2025, SpringBig reported revenues of $5.9 million, a 4% decrease from the $6.1 million reported in Q3 2024. The decline was largely attributed to a 9% drop in subscription revenue, which now represents 78% of total revenue, compared to 82% last year. However, the company did see an increase in excess-use revenue, which rose by 8%, now making up 10% of total revenue.

The net revenue retention rate has also taken a hit, dropping to 83% from the previous year’s rate of 88%, reflecting the ongoing challenges faced in the cannabis sector.

Despite the revenue drop, SpringBig achieved a gross profit of $4.1 million for the quarter, down from $4.4 million in 2024, indicating a gross margin improvement to 74%. The company effectively managed its operating expenses, which decreased by 20% to $3.6 million, driven by reductions across various categories, including a 22% decrease in selling, servicing, and marketing expenses.

Interest expenses for the quarter were $0.3 million, down from $0.6 million in the prior year, thanks to the repayment of high-interest cash advances. The change in the fair value of warrants issued by SpringBig was minimal, reported at approximately $10,000 for the quarter.

For the nine months ending September 30, 2025, the company reported revenues totaling $17.2 million, reflecting a 9% decrease from $19.0 million in 2024. This decline was primarily driven by a 14% fall in subscription revenue. Gross profit for this period was $12.8 million, with an improved gross margin of 76%.

Operating expenses also saw a decrease of $0.8 million (6%) year-over-year, although general and administrative expenses rose due to costs associated with separation agreements for former executives.

The net loss for the nine months was $1.7 million, with cash provided by operating activities amounting to $0.4 million. Cash flows from investing activities were minimal, while financing activities in the previous year included significant proceeds from the issuance of secured notes. SpringBig's liquidity remains a concern, as the company has experienced net losses since its inception and has financed operations primarily through equity sales.

The net change in cash for Q3 2025 was $149,000, showing a slight uptick from the $123,000 change in cash from the previous year. This reflects the ongoing efforts to streamline operations and manage expenses effectively.

SpringBig Holdings Inc. continues to navigate a challenging market landscape while seeking to solidify its position as a leader in the cannabis retail sector. The company’s ability to turn a profit in Q3 2025 amidst declining revenues demonstrates resilience and effective management strategies. Going forward, stakeholders will be keenly watching how SpringBig adapts to the ongoing regulatory challenges and capitalizes on new growth opportunities in the evolving market.

As the cannabis industry is expected to double in value by 2025, SpringBig's strategic initiatives and performance metrics will be critical in determining its future trajectory in this burgeoning market.