SpringBig Holdings Reports 4% Revenue Decline in Q3 2025, Achieves Operational Profit

SpringBig Holdings, Inc. reported a decline in financial performance for the third quarter of 2025, with net revenues of $5.9 million, a decrease of 4% from $6.1 million in the same period last year. For the nine months ending September 30, 2025, total revenues were $17.2 million, down 9% from $19.0 million in 2024. The decrease in revenue was primarily attributed to a 9% drop in subscription revenue, which fell to $4.6 million, while excess-use revenue increased by 8%, indicating that customers exceeded their message volume limits. The company's net revenue retention rate also declined to 83% from 88% year-over-year, reflecting ongoing challenges in the regulated markets, particularly in the cannabis sector.

Despite the revenue decline, SpringBig achieved a gross profit of $4.1 million for the quarter, although this was a 7% decrease from the previous year. The gross margin improved slightly to 74%, up from 73%, due to lower messaging distribution costs and ongoing operational efficiencies. Total operating expenses decreased by 20% to $3.6 million, driven by reductions in selling, servicing, and marketing expenses, as well as technology and software development costs. The company reported an income from operations of $563,000, a significant turnaround from a loss of $45,000 in the prior year.

In terms of strategic developments, SpringBig completed the acquisition of ViceCRM, an AI-enabled marketing platform, in July 2025, which contributed approximately $49,000 in software assets and $17,000 in goodwill to the balance sheet. The company also appointed Jaret Christopher, the founder of ViceCRM, as CEO, effective April 1, 2025. As of September 30, 2025, SpringBig served approximately 800 clients across over 2,100 retail locations, distributing around 600 million messages annually.

Operationally, SpringBig's employee headcount has been adjusted, reflecting a focus on cost management amid challenging market conditions. The company reported a working capital deficit of approximately $2.0 million as of September 30, 2025, with cash and cash equivalents totaling $1.5 million. The company’s ability to continue as a going concern is contingent on its capacity to meet liquidity needs through revenue growth and potential capital raises. Looking ahead, SpringBig anticipates that its strategic initiatives, including the integration of ViceCRM and continued focus on customer engagement, will help stabilize and potentially grow its revenue base in the coming quarters.