SpringBig Holdings Reports Slight Revenue Decline and Operational Challenges in Q1 2026

SpringBig Holdings, Inc. reported its financial results for the first quarter of 2026, revealing a slight decline in revenue and ongoing operational challenges. The company generated net revenues of $5.4 million for the three months ended March 31, 2026, a decrease of 1% compared to $5.5 million in the same period of 2025. The decline in revenue was attributed to a reduction in excess use revenue, which fell to 7% of total revenue from 9% year-over-year, reflecting tighter budgets among clients in the cannabis sector. Despite the revenue drop, SpringBig's subscription revenue remained stable at approximately $4.8 million, accounting for 88% of total revenue.

The company's gross profit also experienced a decline, decreasing by 17% to $3.6 million from $4.3 million in the prior year. This reduction was primarily due to increased messaging costs associated with a revised agreement with its largest vendor, which is expected to establish a more sustainable cost structure moving forward. Operating expenses decreased significantly by 21% to $3.7 million, driven by cost-cutting measures and improved operational efficiency. Notably, selling, servicing, and marketing expenses fell by 37%, while general and administrative expenses decreased by 24%.

SpringBig's net loss for the quarter was $494,000, an improvement from a loss of $751,000 in the same quarter of the previous year. The company reported a loss from operations of $139,000, compared to a loss of $427,000 in the prior year, indicating a positive trend in operational performance. The interest expense for the quarter was $355,000, slightly higher than the $324,000 reported in the same period last year.

Operationally, SpringBig serves approximately 750 clients across over 2,250 retail locations in North America, with a total of 640 million messages distributed annually through its platform. The company has maintained a net revenue retention rate of 86%, consistent with the previous year, despite the challenging market conditions. However, the company faces significant financial pressures, including a working capital deficit of approximately $13.2 million as of March 31, 2026, and a recent notice of default related to its secured convertible notes and term notes, raising concerns about its ability to continue as a going concern.

Looking ahead, SpringBig plans to focus on improving liquidity and meeting its obligations through increased customer engagement and acquisition, as well as potential negotiations to amend existing debt obligations. The company remains committed to leveraging its software platform to enhance customer loyalty and marketing automation solutions, particularly in the evolving cannabis market. However, the ongoing economic pressures and regulatory challenges in the cannabis industry may impact its growth prospects in the near term.