Snipp Interactive (SPN) AI Stock Analysis

• Market Cap: C$10.99M
• Dividend Yield: N/A
• Average Volume (3M): 172.98K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.53
• Revenue Growth: 1.45%
• EPS Growth: 19.48%
• Country: CA
• Employees: 130
• Sector: Technology
• Sector Strength: 88
• Industry: Advertising Agencies
• EPS (TTM): 0.00
• Shares Outstanding: 274,674,740
• 10 Day Avg. Volume: 169,969
• 30 Day Avg. Volume: 172,980
• PEG Ratio: 0.28
• Price to Book (P/B): 3.15
• Price to Sales (P/S): 0.87
• P/FCF Ratio: 25.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: C$0.04 ▼(-20.00% Downside)

The score is held back primarily by weak and inconsistent profitability with negative free cash flow, despite improving revenue and a sharp gross margin step-up. Technicals are mildly bearish (below key longer-term moving averages with negative MACD), and valuation signals elevated risk due to losses and no stated dividend yield.

Positive Factors

Gross margin improvement and revenue growth

A sharp step-up in gross margin to ~70% alongside 5.5% TTM revenue growth signals materially improved unit economics and pricing or mix benefits. Sustained high gross margins on a scalable promotions platform support durable profitability upside as revenue scales and fixed costs leverage down.

Conservative leverage / balance-sheet flexibility

Very low debt relative to equity provides financial flexibility to invest in product development, marketing or tuck‑in M&A without undue interest burden. A conservative capital structure reduces bankruptcy risk and supports multi‑period strategy execution through industry cycles.

Positive operating cash flow

Positive operating cash flow indicates the core promotions and loyalty platform can generate cash from client activity despite reported losses. Reliable cash generation supports reinvestment in product and client success functions, and reduces dependency on external funding if sustained.

Negative Factors

Negative net and operating profitability

Persistent negative net and EBIT margins mean the company is not yet converting revenue into sustainable profits. Even with strong gross margins, elevated operating expenses or scale inefficiencies threaten long‑term shareholder returns unless management demonstrably controls costs or grows revenue faster.

Negative free cash flow and declining FCF

Negative and deteriorating free cash flow shows that operational cash generation is insufficient once investments and working capital are accounted for. Over months this can force reliance on external financing, constrain strategic spending, and increase dilution or leverage risk if not reversed.

Negative return on equity and inconsistent profits

ROE of about -18.7% and a history of volatile profits imply the company’s capital base is not producing acceptable returns. This structural underperformance signals deeper issues with pricing, client economics or cost structure that must be addressed for sustainable long‑term value creation.

Snipp Interactive Business Overview & Revenue Model

Company Description

Snipp Interactive (SPN) is a technology company specializing in providing marketing solutions that enhance consumer engagement and brand loyalty. Operating primarily in the digital marketing sector, Snipp offers a range of services including mobile marketing, promotional campaigns, and data analytics. The company's core products include its proprietary platforms that enable brands to run interactive marketing campaigns and track consumer interaction across various channels.

How the Company Makes Money

Snipp Interactive generates revenue through multiple streams, primarily by providing its digital marketing solutions to brands and agencies. The company earns money through subscription fees for its platforms, performance-based marketing campaigns, and the sale of data analytics services. Additionally, Snipp has formed strategic partnerships with various brands, allowing it to expand its market reach and offer bundled services. The effectiveness of its technology in driving consumer engagement contributes to repeat business and long-term contracts, further solidifying its financial stability.

Snipp Interactive Financial Statement Overview

Summary

Revenue rose 5.5% TTM and gross margin improved to ~70%, but profitability remains weak (negative net and EBIT margins) with only slightly positive EBITDA. Cash generation is mixed with positive operating cash flow but negative free cash flow, and returns on equity are negative despite low leverage.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 5.5% and gross margin improved sharply to ~70%, signaling better unit economics and/or mix. However, profitability remains weak: net margin is still negative (~-4.5%) and EBIT is negative, with EBITDA only slightly positive (~0.4% margin). Results have also been volatile over time (profitable in 2021, losses in most subsequent years), which lowers confidence in earnings quality and consistency.

Balance Sheet

Leverage appears conservative, with low debt relative to equity in TTM (debt-to-equity ~0.09), providing balance-sheet flexibility. Total assets and equity have grown versus earlier years, supporting scale. The key weakness is ongoing negative returns on equity in TTM (ROE ~-18.7%), indicating the capital base is not currently generating profits despite modest leverage.

Cash Flow

TTM operating cash flow is positive (~$0.54M), showing some cash-generation capability despite losses. However, free cash flow is negative in TTM (~-$0.66M) and has declined versus the prior annual period, implying reinvestment needs and/or working-capital pressure are consuming cash. Cash conversion is mixed across years (notably negative operating cash flow in 2023), pointing to uneven cash flow reliability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.89M	22.73M	30.55M	24.66M	15.28M	8.69M
Gross Profit	18.11M	2.82M	591.87K	2.51M	3.07M	1.17M
EBITDA	114.50K	-184.81K	-2.27M	-827.47K	1.03M	327.43K
Net Income	-1.17M	-1.01M	-3.38M	-1.39M	2.13M	-1.32M
Balance Sheet
Total Assets	21.43M	15.21M	13.43M	15.50M	7.45M	6.27M
Cash, Cash Equivalents and Short-Term Investments	5.38M	4.72M	4.14M	5.55M	1.74M	1.92M
Total Debt	656.75K	495.66K	526.53K	0.00	0.00	294.40K
Total Liabilities	14.06M	8.90M	7.00M	6.16M	3.89M	4.79M
Stockholders Equity	7.37M	6.31M	6.43M	9.34M	3.56M	1.48M
Cash Flow
Free Cash Flow	-664.58K	767.25K	-2.69M	-868.81K	224.64K	695.21K
Operating Cash Flow	540.67K	2.00M	-1.40M	19.33K	1.02M	1.47M
Investing Cash Flow	-1.42M	-1.23M	-1.29M	-877.81K	-1.10M	-777.72K
Financing Cash Flow	-44.22K	231.62K	-14.84K	5.07M	19.63K	294.40K

Snipp Interactive Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SPN, the sentiment is Negative. The current price of 0.05 is above the 20-day moving average (MA) of 0.04, above the 50-day MA of 0.05, and below the 200-day MA of 0.06, indicating a bearish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 39.67 is Neutral, neither overbought nor oversold. The STOCH value of >-0.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SPN.

Snipp Interactive Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KDOZ	68 Neutral	C$56.46M	68.25	9.46%	―	32.71%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
IQ	59 Neutral	C$13.36M	61.33	2.70%	―	4.42%	-53.42%
SPN	50 Neutral	C$10.99M	-6.45	-22.44%	―	1.45%	19.48%
EQ	44 Neutral	C$66.11M	-45.02	―	―	5.43%	68.55%
LPS	42 Neutral	C$14.90M	-4.38	-341.84%	―	27.76%	-0.37%

Snipp Interactive Corporate Events

Snipp Interactive Wins Strong Shareholder Backing for Governance and Financing Flexibility

Snipp Interactive Inc. reported that shareholders approved all items at its January 9 annual general and special meeting, including the re-election of four directors and the appointment of RSM Canada LLP as auditor, while fixing the board size at five. Investors also endorsed an amended fixed number stock option plan, the creation of two control persons tied to a potential secured convertible debenture financing, and a potential share consolidation, signaling strong shareholder support for the company’s capital structure flexibility and strategic financing options as it pursues growth in the loyalty and promotions market.

The most recent analyst rating on (TSE:SPN) stock is a Hold with a C$0.05 price target. To see the full list of analyst forecasts on Snipp Interactive stock, see the TSE:SPN Stock Forecast page.

Snipp Interactive Reports Q3 2025 Financial Results Amid Strategic Expansion

Snipp Interactive reported a 13% decline in Q3 2025 revenue compared to the previous year, with operating expenses also decreasing by 12%. Despite the revenue drop, the company achieved a higher gross margin and positive operating cash flow, reflecting strategic adjustments to market volatility. The company’s deferred revenue increased, indicating strong client confidence, and its strategic partnership for the Snipp Financial Media network is expanding, with over 500 offers live and a national rollout planned.

The most recent analyst rating on (TSE:SPN) stock is a Hold with a C$0.05 price target. To see the full list of analyst forecasts on Snipp Interactive stock, see the TSE:SPN Stock Forecast page.

Snipp Interactive Wins $745,560 Contract for Pet Care Loyalty Program

Snipp Interactive has secured a $745,560 contract to develop a specialized loyalty program for a global CPG company’s pet care brand. This program targets professional pet trainers, breeders, and handlers, offering rewards and educational resources to enhance brand engagement. The contract win underscores Snipp’s expertise in digital marketing and loyalty solutions, as the client transitions from a long-standing provider to Snipp’s advanced platform. This partnership highlights Snipp’s capabilities in machine learning and AI-powered fraud monitoring, which are expected to optimize the program’s effectiveness and security.

Snipp Interactive Secures $1.3 Million Contract Extension for Loyalty Programs

Snipp Interactive has secured a US$1.3 million contract to extend its loyalty program services for a leading FMCG company in the U.S. until September 2028. This contract renewal underscores Snipp’s growing influence in the CPG and FMCG sectors, as it continues to provide scalable and secure loyalty solutions that enhance consumer engagement. The company’s SnippLoyalty platform integrates seamlessly with the client’s digital ecosystem, offering robust backend support and AI-powered fraud detection, which further solidifies its position as a trusted partner in the industry.