SpringBig Holdings, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, revealing a mixed performance compared to the same periods in 2023. The company, which provides marketing and customer engagement services to cannabis dispensaries and brands, generated revenues of $6.425 million for the three months ended September 30, 2024, a decrease of 7% from $6.888 million in the prior year. For the nine-month period, revenues totaled $19.511 million, down 8% from $21.259 million in 2023.

Gross profit for the third quarter was $4.435 million, reflecting a 16% decline from $5.284 million in 2023. The gross profit margin also decreased from 77% to 69%. For the nine months, gross profit fell to $13.812 million from $16.794 million, an 18% year-over-year reduction. The decline in revenue was attributed to a 27% drop in excess use revenue, influenced by challenging economic conditions in the cannabis sector.

Operating expenses significantly decreased, totaling $4.480 million for the third quarter, down 44% from $7.976 million in 2023. For the nine months, operating expenses were $14.196 million, a reduction of 38% from $22.987 million. This reduction was primarily due to lower selling, servicing, and marketing expenses, as well as decreased general and administrative costs. The company reported a loss from operations of $(45,000) for the third quarter, a substantial improvement from a loss of $(2.692 million) in the same period last year. For the nine months, the loss from operations was $(384,000), compared to $(6.193 million) in 2023.

Net loss for the third quarter was $(554,000), significantly improved from $(2.742 million) in 2023. For the nine months, net loss was $(784,000), down from $(7.032 million) in the prior year. The weighted-average common shares outstanding increased to 46.300 million for the third quarter of 2024, compared to 41.898 million in 2023.

As of September 30, 2024, cash and cash equivalents rose to $847,000 from $331,000 at the end of 2023. The company also reported total assets of $7.482 million, up from $5.105 million at the end of the previous fiscal year. The accumulated deficit increased to $(37.349 million) from $(36.565 million) at the end of 2023.

In terms of strategic developments, on November 11, 2024, SpringBig amended the terms of its 12% Secured Term Notes and 8% Secured Convertible Notes, extending the maturity to January 23, 2027, and adjusting interest rates to 17% and 13%, respectively. The company continues to focus on its operational efficiency and aims to leverage growth opportunities in the cannabis market as regulations evolve.