The cannabis marketing firm also slashed its losses during the latest quarter.
Florida-based cannabis marketing firm Springbig Holdings Inc. (OTCQX: SBIG) this week reported a $554,000 loss for the third quarter of the year, against declining revenues and a struggling national marijuana market.
The results bring Springbig’s loss for the year to just $784,000 however, though revenue dipped year-over-year to $6.4 million from $6.8 million, and for the calendar year so far to $19.5 million from $21.2 million in 2023. In the coming fourth quarter, Springbig said it expects to land between $6.5 million and $6.8 million in revenue.
Losses also contracted significantly, down from $2.7 million in the third quarter last year, and from $7 million for the first nine months of 2023, Springbig reported.
Springbig CFO Paul Sykes said in a press release that the company had been navigating an “8% decline in revenue due to clients being increasingly budget-conscious in managing their messaging volumes.”
“We continue to manage the optimization of our operating expenses, which have reduced by 38% year-on-year,” Sykes said. Springbig’s operating expenses for the year so far were $14.2 million.
During the most recent quarter, Springbig also amended two loans it holds, with one lender agreeing to 12-month maturity extensions on one loan for $6.4 million at 13% and another for $1.6 million at 17%, with both now due in January 2027.
“The extended maturity provides additional financing flexibility to the company. This represents our only remaining debt obligation, and we anticipate generating strong free cash flow during 2025,” Sykes said.
At the end of September, Springbig had $7.4 million in total assets, including $847,000 in cash, against $16.3 million in total liabilities.
The cannabis marketing firm also slashed its losses during the latest quarter. Read More
