I didn’t have Snipp Interactive on the bingo card to review, but I conducted another poll in the Wolf Den discord, and Snipp came out on top with 42% of the vote beating out BRED and CHER.
Snipp Interactive, is a global loyalty and promotions company, which focuses on developing marketing engagement platforms that generate insights and drive sales. They are not the DIY vasectomy and organization that their name might imply.
My last review of Snipp was back in June of last year after their first quarter. While it received an upgrade to 2.75 stars achieving a Wolf Trifecta of double digit revenue gains, margin improvement and operational leverage, I was not a big fan of management. A history of late filings, trading halts, and a bloated C suite with a retail unfriendly SBC plan whom rewarded options in almost generous manner. The fact they went with SPN over SNP or something else I find highly disturbing too.
Other than that I loved them.
The stock is down 40% since those financials five quarters ago, proving questions in leadership trumps a Wolf Trifecta
The stock currently sits at 4 cents, and has touched all time lows of 3.5 on a handful of instances this year. Their financials released last week haven’t moved the needle one way or another. The company has delivered $30M (CAD) in TTM revenue yet are priced at an $11M market cap for a .34 P/S ratio.
That usually suggests some issues. Let’s find out what they are, or if the market is getting it wrong.
(Amounts in USD unless otherwise stated)
Balance Sheet:
If you just looked at Snipp’s current ratio it wouldn’t be pleasant. But 70% of their current liabilities are made up of deferred revenue, and to better measure for liquidity, that needs to be adjusted for. A standard method of doing so is to remove that from their one year financials commitments. Therefore their Adjusted current ratio is a very healthy 3.4, which is a slight improvement from when they were last reviewed in June of 2025.
They have $6.2M in cash, $3.1M in receivables and $1.5M in other current assets over just $3.2M in liability commitments over the next twelve months.
Snipp does not provide a typical aging report but does note they have $112k over 90 days. That’s just under 4% which isn’t overly concerning but I’d still like to have more detail. Note, that they do have some customer concentration with just three customers making up half of their A/R and potentially their whole business.
The company’s only debt is comprised of $2.67M of convertible debentures which were issued this February. They bear interest at 3.45% for 36 months with quarterly interest. They have multiple conversion prices depending on date exercised. Eight cents by Feb 2027 and ten cents thereafter. Given the current stock price of four cents, early redemption appears unlikely. A full 12 cent warrant was issued with each.
Cash Flow:
Halfway through the year, Snipp generated $556k of operational cash flow, 6% higher than last year. There is quite a bit of working capital adjustments in both years. While not concerning, I’m going to suggest their OCF as presented is slightly better than actuality.
They received an initial $3.2M from convertible debentures earlier in the year and spent $728k in software platform development.
Overall their cash position is up 85% from the start of the year thanks to the debenture offering.
Share Capital:
287.1M shares outstanding with only 1M shares in dilution since I last reviewed them
31.4M options outstanding. during the 1M were exercised (5 cents), 640k were cancelled and another 4M expired worthless. None of the remaining options are ITM.
56.25M shares would convert at 8 cents (CAD) and another 56.25M warrants at 12 cents (CAD) in potential dilution related to the February convertible debentures. Yikes.
2.1M options awarded post financials at ten cents
30% insider ownership. No recent insider activity on the open market but there was in the debenture raise
Income Statement:
After back to back dreadful quarters on the revenue line, Snipp was able to get back into the green in a big way in Q2 with a 25% improvement on the top line to $6M vs $4.8M.
SPN uses Campaign Infrastructure as their COGS to calculate their gross margin as they cite in their news release.
Unlike most of the civilized worth however, the company chooses not to show that line in their financial statement. Margin improved by 360 basis points as they note and that helped to drive an additional 33% of gross profit dollars.
Cash burning operational expenses declined by an impressive 14%, mainly driven by an 18% reduction in payroll expenses. Therefore in back to back reviews, they are awarded once again with a Wolf Trifecta quarter.
Unfortunately, all of that improvement still resulted in a $187k net loss in Q2. That is a heck of improvement over the $1.7M loss from a year ago however.
On a YTD basis, that 25% growth in Q2 wasn’t quite enough to get them back to flat through six months, so they remain 1.5% down on that metric. Margin is up by 60 basis points to 57.2% and that nearly got them back to flat in terms of gross profit dollars. Their improvement in cash burning expenses continues with nearly 11% savings, driven once again by payroll costs which are down 12%.
That translates to a 54% improvement in their net losses, from $1.88M last year down to $875k at their midway point of 2026.
Summary:
In the introduction I mention they have achieved $30M (CAD) in revenue on a TTM basis. That figure is less than they achieved in any of their last full four years. In each of those full years, they lost anywhere between 4% and 11% of revenue on the bottom line. So far YTD in 2026, revenue is a little worse than flat and they have lost 8% on the bottom line.
So if your sensing my lack of enthusiasm, you’d be bang on.
If you read their press releases from a couple of years ago, you’d see many of the same bullet points. Revenue were up or down “x”, margins up and down “y” and backlog equals “z”. Backlog was $19M here but it was $17M two years ago in Q2 and their revenue has been lumpier than a bad bowl of oatmeal. So why should I get excited now?
The last thing I’ll discuss is their float. I felt it was getting bloated last year and in fairness they have only added a million shares since my last review. But this latest debenture raise causes a couple of other problems.
If the convertible debentures fully convert within the next few years, that’s an additional 40% dilution which would put the share count over 400M outstanding. That would mean the share price would be at or above 12 cents which would put more 23M options ITM bringing it closer to 425M.
While these debentures were done well above market at the time, I think they have created some massive overhang here if the share price ever does approach 8 cents again.
Solid quarter, but they have had them before too. If they can string two or three more together then maybe they’ll be worth some discussion.
As for now, I’d opt for that DIY vasectomy over taking a position of Snipp Interactive.
Downgrading to 2.25 stars.
Disclaimer:
My intent is for my reviews to be a bolt on to due diligence that you have already completed. I receive dozens of review requests a week, therefore my own DD may be great or none whatsoever. Unless otherwise stated or implied, my opinions are on the financial performance of the company based on their most recent filings. I conduct these reviews to assist other retail investors whose research skills are limited when it comes to reviewing financial statements. I do not accept compensation of any kind from company’s I review.
Wolf FINS Reviews are intended to be informational and are based on personal opinion. They are not intended to be financial advice, and all readers are encouraged to perform their own due diligence prior to their investment decisions, including discussions with their investment advisor.