Snipp Interactive reported second-quarter revenue of US$6.0 million, up 24.6% from a year earlier, as contracted client programmes moved into delivery. The recovery did not fully reverse a weaker first quarter: revenue for the six months ended June 30 was US$11.1 million, down 1.5% year on year. The company announced the results on August 27. [S01]
The figures describe the whole loyalty and promotions business. They are relevant to gift-card programme operators because Snipp supplies digital and physical gift cards alongside other rewards, but the release provides no separate gift-card revenue or transaction-volume figure. Its group growth cannot be treated as a measure of growth in gift-card demand. [S02]
Reward value and service economics move differently
Snipp combines purchase validation, marketing services and reward fulfilment. Its platform lets clients deliver gift cards through an API or managed service, with reporting on issuance and redemption. The financial statements distinguish funding from delivery: customer reward funds are collected in advance and held as deferred revenue until fulfilment. Reward fulfilment revenue is recognised gross because Snipp acts as principal; unused refundable amounts move to accounts payable. That places the company between a brand's qualifying promotion and the benefit received by a customer. [S02][S04]
This structure helps explain why the results distinguish revenue from gross margin. Snipp defines its gross-margin measure as revenue after campaign infrastructure costs, including prize fulfilment, rewards and other programme value passed through to consumers. The company says that pass-through value carries little or no margin. [S01]
Second-quarter gross margin was 55.7%, compared with 52.1% a year earlier, with gross-margin dollars rising to US$3.3 million. The measure is defined by management and is not a standardised IFRS measure. It gives a different view of the business from the total value of programmes delivered, and it should not be confused with the margin earned on an individual gift card. [S01]
Snipp company-defined gross margin
Gross margin percentage across the stated comparative periods.
percent of group revenue
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Source
Three months ended June 30. Company-defined non-GAAP revenue less campaign infrastructure costs, divided by revenue. This is a mixed-business measure, not the margin on an individual gift card.
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| Category | Reported value |
|---|---|
| Q2 2025 | 52.1 percent of group revenue |
| Q2 2026 | 55.7 percent of group revenue |
Signed programmes still depend on client timing
Contracted bookings backlog stood at US$19.1 million at June 30, above US$15.2 million a year earlier but below US$20.6 million at the end of March. Snipp attributed the quarterly reduction to programmes converting into recognised revenue. Backlog represents signed work that has not yet been earned; it is neither cash nor a guarantee that revenue will arrive on a fixed schedule. [S01]
Chief executive Atul Sabharwal cautioned against treating one quarter as a continuing revenue pace. He said promotion timing remains in clients' hands and that budget caution continued, even as longer-term loyalty and rebate programmes proceeded. For reward suppliers, that distinction matters: a signed campaign and its eventual fulfilment can fall in different reporting periods. [S01]
Snipp contracted backlog at reporting dates
Contracted bookings backlog across the stated comparative periods.
USD million
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Source
Signed work less recognised revenue; reporting-date balances, not quarterly revenue or cash. The company attributes the quarterly decline to programme conversion, but this is not a complete flow reconciliation or a fixed delivery schedule.
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| Category | Reported value |
|---|---|
| June 30, 2025 | 15.2 USD million |
| March 31, 2026 | 20.6 USD million |
| June 30, 2026 | 19.1 USD million |
A narrower loss, with a disclosure limitation
The company reported a second-quarter net loss of US$186,878, down from US$1,715,955 a year earlier. The release contains inconsistent exact EBITDA amounts between its highlights and reconciliation table. The separately reviewed MD&A consistently supports the reconciliation: Q2 EBITDA of US$181,100 against a loss of US$1,165,921, and a first-half loss of US$138,508 against US$903,441. The underlying financial-statement inputs agree with those reconciled figures. That additional evidence clarifies which figures are supported while leaving the release's inconsistency visible. [S01][S03][S04]
The revenue recovery and stronger gross margin therefore show progress without establishing sustained profitability. The first-half sales decline, client-controlled programme timing and inconsistent EBITDA disclosure remain material qualifications to the quarter's improvement.
Snipp second-quarter net loss
Net loss across the stated comparative periods.
USD
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Source
Three months ended June 30. Negative values represent IFRS net losses in the unaudited interim statements, which were not reviewed by the auditor. This comparison concerns the entire business and is separate from the conflicting EBITDA highlights.
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| Category | Reported value |
|---|---|
| Q2 2025 | -1,715,955 USD |
| Q2 2026 | -186,878 USD |
In this article
Maya Bennett
Maya Bennett covers customer loyalty, employee rewards and incentive programmes for Gift Card News.