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SpringBig Holdings (SBIG)
OTHER OTC:SBIG
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SpringBig Holdings
(OTC:SBIG)
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Rating:40Underperform
Price Target:
$0.01
▼(-50.00% Downside)
Action:DowngradedDate:01/17/26
The score is held back primarily by weak financial performance and balance sheet risk (negative equity and ongoing unprofitability) despite improved cash generation and strong gross margins. Technicals also remain bearish with the stock below key moving averages and negative MACD. Valuation offers limited support given negative earnings and no dividend data.
Positive Factors
High Gross Margin
Sustained ~76% gross margin is characteristic of scalable SaaS unit economics, providing structural cushion to absorb sales and marketing spend. Over 2–6 months this margin supports reinvestment in product and customer success, improving path to durable operating leverage if revenue stabilizes.
Positive Operating & Free Cash Flow
A turnaround to positive operating and free cash flow indicates the business can generate internal liquidity, reducing near-term financing pressure. Over the medium term this supports organic investment in growth and limits dilution risk if management sustains cash conversion and stabilizes cash generation.
Subscription SaaS in Regulated Niche
Recurring SaaS subscriptions to cannabis/hemp retailers create sticky revenue and higher customer lifetime value versus one-off services. The regulated nature of the market raises switching costs and can favor specialized vendors long term, supporting predictable revenue if market adoption grows.
Negative Factors
Negative Stockholders' Equity
Sustained negative equity (-$11M TTM) signals a stressed capital structure that limits financial flexibility. Over months this raises recapitalization and dilution risk, may constrain ability to pursue growth initiatives, and increases dependence on external funding for operating or strategic needs.
Revenue Decline
Declining TTM revenue reduces the operating leverage that high gross margins enable. If revenue contraction persists, it will impair margin expansion, make fixed cost absorption harder, and lengthen the timeline to sustainable profitability despite favorable unit economics.
Persistent Unprofitability & Cash Volatility
Negative operating and net margins indicate the company has not yet scaled to profitability; combined with materially lower FCF growth (-37% prior period), this suggests cash generation is volatile. Structurally, that raises execution risk and may necessitate recurring capital raises.
SpringBig Holdings (SBIG) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$475.78K
Dividend YieldN/A
Average Volume (3M)41.08K
Price to Earnings (P/E)―
Beta (1Y)-0.50
Revenue Growth-15.03%
EPS Growth33.30%
CountryUS
Employees67
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)<0.01
Shares Outstanding48,548,770
10 Day Avg. Volume52,406
30 Day Avg. Volume41,080
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)-0.19
Price to Sales (P/S)0.08
P/FCF Ratio-1.85
Enterprise Value/Market Cap-1.34
Enterprise Value/Revenue-0.03
Enterprise Value/Gross Profit-0.04
Enterprise Value/Ebitda0.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$24.30M
SpringBig Holdings Business Overview & Revenue Model
Company DescriptionSpringBig Holdings, Inc. operates a software platform that provides customer loyalty and marketing automation solutions to cannabis retailers and brands in the United States and Canada. The company's platform connects consumers with retailers and brands through SMS marketing, emails, customer feedback system, and loyalty programs to support retailers and brands customer engagement and retention. Its reporting and analytics offerings deliver insights that clients utilize to understand their customer base, purchasing habits, and trends. The company was founded in 2016 and is headquartered in Boca Raton, Florida.
How the Company Makes MoneySpringBig generates revenue primarily through a subscription-based model, where cannabis retailers pay for access to its marketing platform and various services. Key revenue streams include monthly or annual subscription fees for software access, transaction fees from loyalty program redemptions, and additional charges for premium features such as advanced analytics and targeted marketing campaigns. The company also benefits from partnerships with cannabis dispensaries and retailers, allowing it to expand its customer base and enhance its service offerings. These partnerships often lead to increased customer engagement and retention, which in turn drives revenue growth for both SpringBig and its clients.
SpringBig Holdings Earnings Call Summary
Earnings Call Date:Mar 12, 2024
(Q4-2023)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Neutral
SpringBig showed resilience in revenue growth and reduced expenses, achieving positive EBITDA in December. However, challenges remain with macroeconomic pressures affecting client budgets and revenue projections. The company's expansion into new markets presents growth opportunities.Q4-2023 Updates
Positive Updates
Revenue Growth and Expense Reduction
SpringBig reported a 5% year-on-year revenue growth, reaching $28.1 million for fiscal 2023. Operating expenses were reduced by 17% year-on-year for the full year and by 31% in Q4.
Positive Adjusted EBITDA Achievement
SpringBig achieved its target of delivering positive adjusted EBITDA before the end of the fiscal year, with December being the first profitable month. Q4 adjusted EBITDA loss was reduced to $0.2 million from $3.2 million in the same quarter last year.
Successful Debt Financing
SpringBig secured $8 million in debt financing, strengthening its balance sheet. The financing consisted of a $6.4 million 8% secured convertible note and a $1.6 million 12% secured term loan.
Growth in Subscription Revenues
Subscription revenues increased by 14% year-on-year, representing 79% of total revenue compared to 73% in the prior year.
Expansion Beyond Cannabis Market
SpringBig is expanding its loyalty and messaging platform to other regulated industries such as alcohol, vape, smoke, and CBD, with 10 contracts already in place.
Negative Updates
Macroeconomic Challenges and Client Financial Stress
The company faced challenges due to broader macroeconomic concerns affecting marketing budgets and digital spend, leading to financial stress on clients, particularly in the cannabis industry.
Revenue Decline in Q1 2024 Guidance
Guidance for Q1 2024 indicates a sequential decline in revenue, attributed to seasonality and ongoing macroeconomic challenges.
Churn and Payment Issues with Clients
SpringBig experienced high churn rates and payment issues with some clients, leading to the cessation of services for nonpaying clients.
Gross Margin Impact from Increased Messaging Costs
Gross profit margin decreased in Q4 due to higher message distribution costs charged by telecom operators, impacting overall profitability.
Company Guidance
During the SpringBig Q4 2023 earnings call, the company provided guidance for the first quarter and full year of 2024. They expect Q1 revenue to be between $6.4 million and $6.7 million, with an adjusted EBITDA profit ranging from $0.2 million to $0.4 million. For the full year, they anticipate total revenue to be between $29 million and $32 million, representing a 10% year-on-year growth at the midpoint. The projected adjusted EBITDA profit for the year is estimated between $3.5 million and $5.0 million. SpringBig's CEO, Jeffrey Harris, highlighted the company's strong position, with a 5% revenue growth year-on-year and a significant reduction in operating expenses by 31% in Q4. They reported a positive adjusted EBITDA in December, with a Q4 loss of just $200,000 compared to $3.2 million the previous year. The company also secured $8 million in debt financing to bolster their balance sheet and drive future growth initiatives.SpringBig Holdings Financial Statement Overview
Summary
High gross margin (~76% TTM) and a turnaround to positive TTM operating and free cash flow are positives, but TTM revenue is down (-2.4%), profitability remains negative (EBIT/EBITDA/net margin), and the balance sheet is stressed with negative stockholders’ equity (about -$11.0M TTM), raising funding/dilution risk.Income Statement
TTM (Trailing-Twelve-Months) revenue is down (-2.4%) and the business remains unprofitable (negative EBIT, EBITDA, and net margin). A key positive is consistently strong gross margin (~76% TTM), indicating solid unit economics for a software model, and losses have improved substantially versus 2022–2023. Still, profitability remains elusive and the recent return to negative EBITDA (TTM) highlights ongoing cost/scale challenges.33
Negative
Balance Sheet
The balance sheet is the main weakness: stockholders’ equity is negative across recent periods (TTM equity of about -$11.0M), which limits financial flexibility and raises recapitalization risk. Total debt is low in TTM (~$0.4M) and has fallen sharply from 2024 levels, but negative equity makes leverage metrics less meaningful and underscores a stressed capital structure despite the lower debt load.18
Very Negative
Cash Flow
Cash flow is mixed but improving: TTM operating cash flow is positive (~$0.8M) and free cash flow is also positive (~$0.7M), a notable turnaround from negative operating/free cash flow in 2022–2024. However, TTM free cash flow is down materially versus the prior period (free cash flow growth -37%), suggesting volatility and that the cash generation is not yet stable.46
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.36M | 24.65M | 28.05M | 26.63M | 24.02M | 15.18M |
| Gross Profit | 16.97M | 17.99M | 21.56M | 19.93M | 17.09M | 10.21M |
| EBITDA | -1.13M | 879.00K | -7.30M | -11.55M | -5.58M | -1.58M |
| Net Income | -2.77M | -1.88M | -10.23M | -13.08M | -5.75M | -1.60M |
Balance Sheet | ||||||
| Total Assets | 5.16M | 6.83M | 5.11M | 9.66M | 7.04M | 12.32M |
| Cash, Cash Equivalents and Short-Term Investments | 1.53M | 1.18M | 331.00K | 3.55M | 2.23M | 10.45M |
| Total Debt | 417.00K | 11.28M | 4.68M | 9.05M | 0.00 | 780.95K |
| Total Liabilities | 16.13M | 16.60M | 13.78M | 13.29M | 2.58M | 2.80M |
| Stockholders Equity | -10.97M | -9.77M | -8.67M | -3.63M | 4.46M | 9.53M |
Cash Flow | ||||||
| Free Cash Flow | 734.00K | -1.02M | -4.33M | -14.67M | -8.14M | -1.20M |
| Operating Cash Flow | 762.00K | -953.00K | -3.98M | -14.52M | -7.88M | -1.00M |
| Investing Cash Flow | -28.00K | -64.00K | -351.00K | -413.00K | -374.00K | -195.37K |
| Financing Cash Flow | -49.00K | 1.86M | 1.11M | 16.25M | 38.00K | 9.02M |
SpringBig Holdings Technical Analysis
Negative
0.02
Price Trends
0.01
Negative
0.02
Negative
0.04
Negative
Market Momentum
>-0.01
Positive
38.41
Neutral
23.08
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SBIG, the sentiment is Negative. The current price of 0.02 is above the 20-day moving average (MA) of 0.01, above the 50-day MA of 0.01, and below the 200-day MA of 0.04, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 38.41 is Neutral, neither overbought nor oversold. The STOCH value of 23.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SBIG.
SpringBig Holdings Risk Analysis
SpringBig Holdings disclosed 67 risk factors in its most recent earnings report. SpringBig Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SpringBig Holdings Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $341.66M | -11.78 | -20.20% | ― | -6.23% | 28.57% | |
65 Neutral | $632.45M | 383.71 | 4.45% | ― | 22.97% | 49.49% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $105.10M | 8.91 | 18.24% | ― | 0.59% | ― | |
51 Neutral | $342.73M | -1.60 | -25.34% | ― | -7.43% | 61.36% | |
46 Neutral | $205.82M | -4.51 | -41.00% | ― | 6.33% | -66.34% | |
40 Underperform | $475.78K | -0.17 | ― | ― | -15.03% | 33.30% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.