Snipp Interactive (SPN) investor relations material

Executive summary

• Q3 2025 revenue declined 13% year-over-year to $5.8 million, but YTD revenue increased 6% to $17.0 million, with operational adjustments leading to positive EBITDA and net income despite the reduced revenue base.

• Gross margin improved to 64% in Q3 2025 from 62% in Q3 2024; YTD gross margin was 59% versus 60% last year.

• EBITDA for Q3 2025 was $0.5 million, down from $0.71 million in Q3 2024; YTD EBITDA was negative $0.38 million, a decrease from $0.12 million in 2024.

• Cash at quarter-end was $3.9 million, up from $3.7 million at the end of Q4 2024, and the company remains debt free.

• A major partnership with Inmar Intelligence was soft-launched, expanding digital incentive reach to over 67 million consumers and integrating with Bank of America Deals.

Financial highlights

• Bookings backlog at September 30, 2025, was $15.3 million, providing strong future revenue visibility.

• Deferred revenue increased to $7.0 million at end of H2 2025 from $5.3 million at year-end.

• Cash flows from operating activities were $0.93 million, reflecting ongoing investments in infrastructure and personnel.

• Operating expenses decreased by 12% year-over-year in Q3 2025.

• Gross profit was $3.7 million in Q3 2025.

Outlook and guidance

• Deferred revenue and backlog are expected to convert to recognized revenue as program launches accelerate.

• Management anticipates continued cost optimization and stable gross margins, with further cost reductions expected to be visible in Q2 2026.

• No clear improvement in client decision-making is expected in the near term, as economic uncertainty persists.

• The Inmar partnership is expected to ramp up in 2026, with national retailers joining and increased monetization opportunities.

• Strategic initiatives with partners for the Financial Media Network are progressing, with over 500 offers live and a national rollout planned.