SpringBig Narrows Loss, Bets on AI and New Markets for Turnaround

BOCA RATON, Fla. – May 14, 2026 – SpringBig Holdings (OTCQB: SBIG) today announced first-quarter financial results that paint a complex picture of a company in transition, showcasing significant progress in operational discipline while navigating a challenging core market and persistent financial pressures.

The marketing and CRM software provider reported a narrowed net loss and its second consecutive quarter of positive Adjusted EBITDA, signaling that an aggressive cost-cutting strategy is bearing fruit. However, with revenues slightly down year-over-year and a formal “going concern” warning lingering, the company is betting its future on a strategic pivot beyond cannabis and deeper investment in its AI-powered platform.

For the quarter ending March 31, 2026, SpringBig posted a net loss of $0.5 million, a 34% improvement from the $0.8 million loss in the same period last year. The company achieved a positive Adjusted EBITDA of $0.1 million, a key non-GAAP metric that management points to as evidence of a successful turnaround. This improved profitability came despite a slight dip in total revenue to $5.4 million from $5.5 million a year prior.

A Turnaround Built on Discipline

The driving force behind SpringBig’s improved bottom line is a rigorous focus on cost control. Total operating expenses were slashed by $1.0 million, or 21% year-over-year. The cuts were deep and specific: general and administrative expenses fell by 24%, while selling, servicing, and marketing expenses plummeted by 37%.

These figures reflect a concerted effort that began over a year ago, including a significant workforce reduction in late 2022. The results are now clearly visible on the income statement, allowing the company to nearly break even on an operating basis, with a loss from operations of just $(0.1) million compared to $(0.4) million in Q1 2025.

“Our first quarter results reflect the operating discipline and cost structure we have established over the past year,” said Jaret Christopher, Chief Executive Officer of SpringBig, in the company's official statement. He noted the achievement of positive Adjusted EBITDA and a one-third reduction in net loss were accomplished while sustaining the company's subscription revenue base, which held steady at $4.8 million and constituted 88% of total revenue.

The company’s gross profit of $3.6 million was affected by what it described as “one-time messaging costs” related to renegotiating its largest vendor agreement. While this impacted short-term profit, management asserted that the new deal establishes a “more sustainable cost structure on a go-forward basis,” further reinforcing the theme of long-term operational efficiency.

Beyond Cannabis: A Strategic Bet on New Verticals

While internal discipline shores up the financials, SpringBig is aggressively pursuing external growth by diversifying away from its core cannabis market, which continues to face what Christopher called “macroeconomic pressure.” These pressures, including intense price compression, high taxes, and fierce competition from illicit markets, have squeezed the cannabis retailers that form SpringBig's primary client base.

In a clear sign of its diversification strategy gaining traction, SpringBig reported that its non-cannabis revenue surged by over 200% in the first quarter of 2026 compared to the fourth quarter of 2025. This expansion into adjacent regulated industries like iGaming, casinos, alcohol, and nutraceuticals is now a central pillar of the company's growth narrative.

Christopher stated, “We are expanding the platform into gaming and other adjacent regulated markets, where SpringBig’s marketing and CRM infrastructure represents a natural fit and a meaningful growth opportunity beyond our cannabis core.”

This is not just a theoretical expansion. The company has already demonstrated tangible success in the gaming sector. An early collaboration with a major skilled gaming client saw message delivery rates jump to 90%, click-through rates hit 15%, and the cost per customer re-engagement drop from over $100 to just $15. This pivot is designed to reduce reliance on a single volatile sector and leverage its expertise in compliant, high-volume messaging for a broader clientele.

AI as the Engine for Resilience and Growth

Underpinning both its resilience in the cannabis market and its expansion into new verticals is SpringBig's technology platform. Despite a challenging environment for its clients, engagement with the platform is growing, with the number of messages distributed increasing 11% year-over-year to 147 million in the first quarter.

Management credits this to its “continued investment in our AI capabilities.” SpringBig is actively repositioning itself as an “AI-first company,” aiming to automate manual marketing tasks and simplify complex data analysis for its retail clients. A key recent innovation is the “AI Audience Builder,” launched in April 2026. This tool allows marketers to use plain English commands to create highly targeted customer segments in seconds, a task that previously required technical expertise and significant time.

By embedding AI throughout its suite—from campaign automation and personalized messaging to loyalty optimization—SpringBig aims to deliver undeniable ROI, a critical value proposition for retailers operating on thin margins in any regulated industry. This technological edge is what the company believes makes its platform sticky and adaptable, whether the client is a cannabis dispensary or an online casino.

Navigating Persistent Financial Headwinds

Despite the positive operational narrative, SpringBig’s financial foundation remains precarious. The company’s own SEC filings for the quarter include a stark “going concern” warning, citing a history of recurring losses and an accumulated deficit that has swelled to approximately $42.2 million. This disclosure signals “substantial doubt about its ability to continue as a going concern.”

Liquidity is tight. While the cash burn has slowed, the company still saw a net decrease in cash and cash equivalents of $229,000 during the quarter, ending with $1.27 million on hand. Furthermore, the company’s stability was tested by a notice of default received in late April related to its $9.8 million in secured notes, adding another layer of financial pressure that must be resolved.

While net revenue retention remains a respectable 86%, indicating loyalty among the remaining clients, the total number of retail clients has declined, reflecting the consolidation and closures plaguing the cannabis industry. The path forward requires a delicate balance: continuing to execute the operational turnaround and successful diversification strategy while carefully managing a fragile balance sheet and satisfying debt holders. The positive momentum in Q1 is a crucial step, but the journey to sustainable, long-term profitability is far from over.