Leafbuyer Technologies Reports 28% Revenue Growth and Net Income Turnaround in Latest Financial Filing

Leafbuyer Technologies, Inc. reported significant financial improvements in its latest 10-Q filing for the six months ending December 31, 2024. The company generated revenues of $3.3 million, a 28% increase from $2.6 million in the same period the previous year. This growth was attributed primarily to the expansion of its text services. The gross profit also saw a substantial rise, reaching $1.5 million, compared to $804,942 in the prior year, marking an 87% increase. The cost of revenue increased slightly by 2%, but the overall financial performance led to a net income of $86,317, a notable turnaround from a net loss of $618,608 in the previous year.

In the three-month period ending December 31, 2024, Leafbuyer reported revenues of $1.7 million, up 20% from $1.4 million in the same quarter of 2023. The gross profit for this quarter was $754,198, reflecting a 68% increase year-over-year. Operating expenses remained relatively stable, with a slight increase of 2% to $657,530. The company also reduced its interest expenses, resulting in a net income of $74,815 for the quarter, compared to a loss of $220,010 in the same quarter of the previous year.

Operationally, Leafbuyer has focused on expanding its marketing technology platform, which serves medical and recreational cannabis dispensaries. The company has enhanced its offerings, including a customizable white-label application that allows dispensaries to engage with customers more effectively. The platform's user engagement metrics have improved, with millions of cannabis consumers accessing its services monthly. Leafbuyer continues to pursue geographic expansion into all legal cannabis states, aiming to increase its market share.

Despite the positive financial results, the company reported a working capital deficit of $1.4 million and an accumulated deficit of $25 million as of December 31, 2024. Leafbuyer indicated that its ability to continue as a going concern is contingent upon generating profitable operations and securing additional financing. The management plans to finance operations through existing cash reserves and potential equity financing, although there are no guarantees regarding the success of these efforts.

Looking ahead, Leafbuyer Technologies aims to maintain its growth trajectory by further developing its product offerings and expanding its market presence. The company recognizes the challenges posed by the highly regulated cannabis industry but remains optimistic about its strategic initiatives to enhance customer acquisition and retention. The management's focus on innovation and market penetration is expected to drive future revenue growth, although the company acknowledges the inherent risks and uncertainties in achieving these objectives.