SpringBig reported third‑quarter 2025 revenue of $5.871 million, a 4.5% decline from $6.144 million in the same period last year but essentially flat compared with $5.8 million in Q2 2025. The drop reflects clients’ tighter messaging budgets and a modest reduction in volume, while the lack of a QoQ swing indicates the company’s core business is holding steady.
Gross margin expanded to 74% in Q3 2025, up from 70.6% in Q2. The improvement is driven by a higher mix of high‑margin AI‑enabled marketing contracts and disciplined cost control, which reduced operating expenses by roughly 20% year‑over‑year.
Operating income turned positive at $563,000, compared with a $600,000 loss in Q2. The turnaround is largely attributable to the margin expansion and the company’s focus on scaling its AI platform while trimming non‑core spend.
Net income rose to $219,000, a sharp improvement from the $554,000 loss recorded in Q3 2024 and the $1.1 million loss in Q2. The gain reflects both the operating income lift and the absence of one‑time charges that weighed on prior periods.
Adjusted EBITDA was $889,000, the first positive figure in the quarter and a sign that the company’s cost‑control program is bearing fruit. The figure is up from a negative EBITDA in Q2, underscoring the effectiveness of the company’s expense‑management initiatives.
The company added Larry Ellis to its board of directors during the quarter, signaling confidence in its governance structure and a commitment to strengthening oversight as it pursues new growth initiatives.
SpringBig’s platform processed 464 million messages year‑to‑date in Q3 2025, lower than the 600 million‑message claim in the original article. The figure still represents a substantial volume, but the discrepancy highlights the need for precise messaging about operational metrics.
Clients of SpringBig’s platform reported over $7 billion in gross merchandise value, a figure that underscores the company’s deep penetration in the cannabis and regulated‑industry markets, though the exact number could not be independently verified in the available sources.
CEO Jaret Christopher emphasized that the company’s AI‑driven marketing platform is delivering measurable value, noting that “advanced automation, enhanced analytics, and personalized engagement tools” are driving client revenue growth. CFO Jason Moos highlighted the quarter’s “continued operational strength and expense control,” reinforcing the narrative that disciplined spending is driving profitability.
The company’s strategic trajectory includes the July 31 acquisition of VICE CRM, an AI‑enabled performance‑marketing platform, and the launch of new revenue streams such as VIP subscriptions and gift‑card payment options. Management reiterated its expectation of maintaining Adjusted EBITDA positivity for the full year and signaled confidence in the company’s ability to navigate broader market headwinds while pursuing growth opportunities.
The results beat revenue consensus of $5.75 million, with EPS of $0.00 in line with analyst expectations. The beat reflects the company’s cost discipline and the ability to sustain margins despite a modest revenue decline. However, the company faces headwinds, including a decline in retail clients from 1,022 to 768 year‑to‑year and a drop in net revenue retention to 83%, indicating pressure on client growth and retention.
Management cautioned that liquidity remains a concern, citing a negative working capital of approximately $2.0 million and a current ratio of 0.59. The company’s long‑term debt of $9.219 million and an Altman Z‑Score that suggests a high bankruptcy risk underscore the importance of continued cost control and strategic investment in high‑return verticals.
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