Snipp Interactive price target cut at Paradigm Capital

Paradigm Capital analyst Daniel Rosenberg maintained his “Buy” rating but lowered his target price on Snipp Interactive (Snipp Interactive Stock Quote, Chart, News, Analysts, Financials TSXV:SPN) to C$0.15 from C$0.25 in an Aug. 21 report, following weaker-than-expected second-quarter results.

“Macroeconomic uncertainty resulted in customers delaying their campaigns,” Rosenberg said. “Despite these delays, management noted that customer budgets remain healthy. The full-year outlook was mixed, with management hoping to recover some delayed revenue in H2. The company is focused on scaling its SnippOffers and SnippMedia products and expects a major partnership announcement in the coming weeks. We continue to favour the company’s valuable data and integrations with major banks, but scaling the business will take more time.”

Snipp reported Q2 2025 revenue of $4.8-million, up 1.5% year-over-year but below Paradigm’s $6.0-million estimate. Gross profit fell 17.1% to $2.5-million, with margins contracting to 52.1% from 63.8% a year earlier due to higher infrastructure costs and softer sales. Adjusted EBITDA was a loss of $1.2-million, missing the forecast of a $0.1-million loss. Backlog stood at $15.2-million, down from $17.2-million in Q2 2024.

Snipp ended the quarter with $3.8-million in cash and virtually no debt. Operating cash flow was negative $1.8-million, reflecting weaker revenue. Deferred revenue increased to $7.1-million in Q2, up from $6.1-million in Q1 and $5.3-million in Q4 2024, which management expects to convert within 14 months.

Rosenberg highlighted SnippMedia as a promising growth driver. The platform connects retailers to financial institutions’ rewards programs for targeted campaigns and leverages SKU-level data (tracking individual items purchased), which management views as a key differentiator. “Management noted Snipp’s SKU-level data as a key differentiator among competitors. We view the new offering as a compelling and promising growth driver,” Rosenberg wrote.

Despite the soft results, Rosenberg emphasized Snipp’s long-term opportunity in loyalty and promotions. The company’s platform helps brands capture purchase data and derive customer insights, addressing what he described as a gap in a $77-billion incentives market. Snipp counts six of the world’s 10 largest consumer packaged goods companies as clients and is expanding into financial services partnerships. “We see a meaningful opportunity for Snipp to scale within its existing client base through both geographic and brand portfolio expansion,” Rosenberg said.

Paradigm values Snipp using a blend of EV/2026 revenue multiples and discounted cash flow analysis, resulting in the new C$0.15 target. Comparable firms in loyalty and analytics trade at about 1.3 times 2026 revenue, while Snipp trades at 0.4 times. “We continue to favour Snipp for its interesting technology and notable growth opportunities,” Rosenberg wrote.

Rosenberg now expects Snipp to generate negative $1.1-million in Adjusted EBITDA on revenue of $23.2-million in fiscal 2025, down from his prior forecast of positive $1.5-million on $25.8-million. For fiscal 2026, he projects $1.1-million in Adjusted EBITDA on revenue of $25.5-million, versus previous estimates of $2.4-million and $28.3-million, respectively.

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