SpringBig Holdings, Inc. Reports First Quarter 2026 Financial Results: Positive Adjusted EBITDA, Cost Reductions, and Strategic Expansion
Key Financial Highlights
- Revenue: \$5.4 million, down slightly from \$5.5 million in Q1 2025.
- Subscription Revenue: \$4.8 million, making up 88% of total revenue and remaining stable year-over-year.
- Gross Profit: \$3.6 million, impacted by one-time messaging costs due to an amended vendor agreement, which is expected to reduce future costs.
- Operating Expenses: Reduced by 21% year-over-year, with general and administrative expenses down 24% and selling, servicing, and marketing expenses down 37%.
- Net Loss: Narrowed by 34% year-over-year to \$(0.5) million, from \$(0.8) million.
- Adjusted EBITDA: Positive at \$0.1 million, a continued improvement marking operational progress.
- Message Volume: 147 million messages distributed, up 11% year-over-year—demonstrating increased platform engagement.
- Net Revenue Retention: 86%, consistent with Q1 2025.
- Non-Cannabis Revenue: Increased over 200% from Q4 2025 to Q1 2026, signaling successful expansion beyond cannabis markets.
Management Commentary
Jaret Christopher, CEO, emphasized the company’s operational discipline and cost structure improvements, highlighting the delivery of positive Adjusted EBITDA and a narrowed net loss, even as the broader cannabis market faces macroeconomic pressures.
Christopher also reiterated SpringBig’s commitment to ongoing operational optimization, further cost reductions, and investment in AI capabilities. Importantly, the company is making strategic moves to expand its platform into gaming and other regulated markets such as iGaming, casino, alcohol, and nutraceuticals, leveraging its core marketing and CRM infrastructure for broader growth opportunities.
Balance Sheet & Financial Position
- Cash & Cash Equivalents: \$1.27 million as of March 31, 2026, down from \$1.5 million at year-end 2025.
- Total Assets: \$4.28 million (down from \$4.63 million at December 31, 2025).
- Total Liabilities: \$17.19 million, with a significant shift of long-term debt to current liabilities during Q1 2026.
- Stockholders’ Deficit: \$(12.91) million, slightly higher than \$(12.49) million at year-end.
The company’s balance sheet shows increased pressure from current liabilities, mainly due to the reclassification of long-term debt, which could be a point of concern for shareholders regarding liquidity and financial flexibility.
Operations & Cash Flow
- Net Cash Used in Operating Activities: \$(229) thousand for Q1 2026, slightly higher outflow compared to \$(86) thousand in Q1 2025.
- Interest Paid: \$136 thousand (up from \$170 thousand in Q1 2025).
- No cash was used in investing or financing activities during Q1 2026.
EBITDA and Adjusted EBITDA Reconciliation
- EBITDA: \$(134) thousand, improved from \$(394) thousand in Q1 2025.
- Adjusted EBITDA: \$130 thousand, compared to \$326 thousand in Q1 2025. The Q1 2025 figure included higher severance and related payments.
The improvement in EBITDA, alongside positive Adjusted EBITDA, highlights the effectiveness of the company’s cost control measures.
Strategic and Price-Sensitive Disclosures
- Cost Structure: The resolution of one-time messaging costs and a more sustainable vendor agreement are expected to benefit future margins.
- Expansion: The marked growth in non-cannabis revenue (+200% QoQ) and entry into gaming and other regulated markets are potential growth catalysts.
- Debt and Liquidity: The reclassification of long-term debt to current liabilities and mention of a notice of default related to secured notes could be material for shareholders, raising questions about liquidity and ongoing concern.
Forward-Looking Statements and Risks
The company has cautioned investors about forward-looking statements, particularly regarding growth prospects, cost structure, strategic initiatives, expansion into adjacent verticals, liquidity, and the resolution of issues related to secured notes. The risk factors include the company’s short operating history, rapidly evolving industry landscape, and the potential for declining revenue if client retention and market expansion targets are not met.
Investor Considerations
- Operational Turnaround: Continued positive Adjusted EBITDA and narrowed net loss provide confidence in management’s turnaround strategy.
- Growth Potential: Expansion into non-cannabis verticals and increased message volume position the company for potential top-line growth.
- Financial Health: The company’s liquidity and reclassification of debt present ongoing risks that investors should monitor closely. Any developments regarding the secured notes or liquidity position could significantly impact share value.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with a financial advisor before making any investment decisions. The information is based on the company’s publicly released financial statements and may be subject to change. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially.
