Snipp Interactive Reports Q2 2025 Financial Results

Executive Summary

• Snipp Interactive Inc. announced its financial results for the second quarter and first half of 2025, highlighting a 2% year-over-year revenue increase in Q2 and a 19% increase in H1.
• The company reported a decline in profitability, with Q2 EBITDA turning negative at ($1.2) million compared to a positive $0.1 million in the prior year period, driven by a 20% increase in operating expenses and a drop in gross margin.
• Management cited macroeconomic uncertainty affecting client launch decisions, resulting in a 12% decrease in Bookings Backlog, though Deferred Revenue grew significantly, indicating future revenue potential.

Key Details

• Q2 2025 Financials (Three Months Ended June 30, 2025):
  • Revenue: $4.83 million (up 2% from $4.75 million in Q2 2024).
  • Operating Expenses: $6.4 million (up 20% from $5.3 million in Q2 2024).
  • Gross Margin: 52% (down from 64% in Q2 2024).
  • EBITDA: Negative ($1.2) million (vs. positive $0.1 million in Q2 2024).
  • Operating Loss: ($1,540,908).
  • Cash at End of Quarter: $3.8 million (debt-free).
  • Cash Flow from Operating Activities: $0.5 million (down $0.83 million from comparable quarter).
• H1 2025 Financials (Six Months Ended June 30, 2025):
  • Revenue: $11.2 million (up 19% from $9.4 million in H1 2024).
  • Gross Margin: 57% (down from 59% in H1 2024).
  • EBITDA: Negative ($0.9) million (vs. negative ($0.6) million in H1 2024).
  • Deferred Revenue: Increased to $7.1 million from $5.3 million in the prior year period.
• Operational Metrics:
  • Bookings Backlog: $15.2 million at June 30, 2025, a 12% decrease from $17.2 million at June 30, 2024.
  • Non-GAAP Adjustments: EBITDA calculated as revenue minus operating expenses excluding non-cash items (share-based payments, depreciation, amortization).
• Conference Call Details:
  • Date: August 21, 2025, at 10:00 am Eastern Time.
  • Purpose: To discuss Q2/H1 financial results and plans for the year.

Notable Quotes

• "Our second quarter results mirror what we had previously communicated wherein clients are finding it difficult to decide on when to launch programs as they assess conflicting signals around inflation, supply chains and consumer sentiment... The good news is that this Deferred Revenue will eventually convert to Revenue over the next few quarters that could potentially be interesting for us from a revenue perspective." — Atul Sabharwal, Founder of Snipp.
• "We are also beginning to realize the benefits of our investments in financial reporting processes, which enabled us to file this quarter more than a week ahead of the deadline, a meaningful step forward in operational efficiency and transparency." — Atul Sabharwal, Founder of Snipp.