SpringBig Holdings Reports 24% Revenue Decline and $2.4 Million Net Loss in Q2 2026

SpringBig Holdings, Inc. reported a decline in financial performance for the second quarter of 2026, with net revenues of $4.4 million, down 24% from $5.8 million in the same period last year. For the first half of 2026, revenues totaled $9.9 million, a decrease of 13% compared to $11.4 million in the first half of 2025. The company attributed this decline primarily to customer attrition and reduced messaging activity from certain enterprise customers, although new customer additions provided some offset. Gross profit also fell, decreasing to $2.9 million for the quarter, resulting in a gross margin of approximately 65%, down from 74% in the prior year.

Operating expenses saw a significant reduction, decreasing by 43% to $2.9 million for the three months ended June 30, 2026, compared to $5.1 million in the same period of 2025. This reduction was driven by lower selling, servicing, and marketing expenses, which fell by 31%, as well as a 58% decrease in general and administrative expenses. Despite these cost-cutting measures, the company reported a net loss of $2.4 million for the quarter, compared to a loss of $1.1 million in the prior year. Interest expenses surged to $2.3 million, primarily due to accrued default interest related to the company's outstanding secured convertible and term notes.

In terms of operational metrics, SpringBig served approximately 706 clients across over 2,600 retail locations in North America as of June 30, 2026. The company distributed around 138 million messages during the quarter, a decrease from 151 million in the same period last year. The net revenue retention rate also declined to 66%, down from 78% in the previous year, indicating challenges in maintaining revenue from existing customers.

A significant strategic development occurred after the reporting period, as SpringBig completed a reorganization on July 13, 2026, transferring its ownership interest in SpringBig, Inc. to LS Round II, LLC. This transaction released the company from approximately $12.5 million in obligations under its secured notes. Following this reorganization, SpringBig no longer owns the business previously conducted through SpringBig, Inc. and is now focused on evaluating strategic alternatives, including potential business combinations. The company has expressed that if it is unable to consummate a strategic transaction, it may need to liquidate its operations.

Looking ahead, SpringBig's management is assessing its future direction and potential opportunities for growth, while acknowledging the substantial doubt about its ability to continue as a going concern due to its working capital deficit and limited cash resources. The company had cash and cash equivalents of approximately $340,000 as of June 30, 2026, down from $1.5 million at the end of 2025, and a working capital deficit of approximately $15.5 million.