Snipp Interactive (SPN) Q2 2025 earnings summary

Executive summary

• Revenue for Q2 2025 was $4.8 million, up 2% year-over-year, and H1 2025 revenue rose 19% to $11.2 million, despite delayed program launches due to client indecision amid macro uncertainty.

• Deferred revenue increased 33%-34% year-over-year, indicating strong future revenue potential as pent-up client programs are expected to launch.

• Bookings backlog at June 30, 2025, was $15.2 million, providing visibility into future revenue despite a year-over-year decline.

• The company remains debt-free, with $3.8 million in cash and a healthy accounts receivable profile.

• Operational efficiency improved, with financial reporting filed over a week ahead of deadline.

Financial highlights

• Gross profit for Q2 was $2.5 million, with a gross margin of 52%, down from 64% in Q2 last year due to increased investment in infrastructure and personnel.

• Q2 2025 EBITDA was negative $1.2 million, a $1.1 million decrease from Q2 2024, and H1 2025 EBITDA was negative $0.9 million.

• Operating expenses in Q2 2025 increased 20% to $6.4 million.

• Cash flow from operations was $0.5 million, down $0.8 million year-over-year, reflecting ongoing investments.

• Combined cash and accounts receivable totaled $6.9 million, flat year-to-date.

Outlook and guidance

• Deferred revenue is expected to convert to recognized revenue within 12-14 months, with potential for faster conversion if macro conditions stabilize.

• Management maintains a base case for 15%-20% annual growth at 55%-60% gross margin, with no plans to raise external capital unless a transformational opportunity arises.

• EBITDA is expected to return to positive for the remainder of the fiscal year as deferred revenue is recognized.

• Management is focused on expanding new products and partnerships, with announcements anticipated soon.