Lendway Reports 22.2% Revenue Decline and Increased Losses for Q3 2025

Lendway, Inc. reported a net revenue of $5.15 million for the three months ending September 30, 2025, a decline of 22.2% from $6.63 million in the same period last year. The company experienced a gross loss of $60,000, compared to a gross profit of $1.44 million in the prior year, reflecting a gross margin of -1.2% versus 21.7%. The operating loss widened to $3.04 million from $1.35 million, primarily due to increased costs associated with higher bulb prices and tariffs, as well as a strategic decision to grow tulips earlier in the year to meet seasonal demand, which resulted in fewer stems available for sale during the quarter.

In terms of financial position, Lendway's total assets increased to $105.03 million as of September 30, 2025, up from $96.10 million at the end of the previous fiscal period. Current assets rose significantly, driven by an increase in inventories, which jumped to $18.80 million from $6.70 million. However, the company’s total liabilities also increased, with long-term debt rising to $36.85 million from $28.35 million, reflecting the financing of its acquisition of Bloomia, a fresh-cut tulip producer. The company reported a net loss attributable to Lendway, Inc. of $2.85 million, compared to a loss of $1.13 million in the prior year.

Strategically, Lendway completed the acquisition of Bloomia B.V. in February 2024, which has since become a significant part of its operations. Bloomia operates in the U.S., Netherlands, and South Africa, and has established relationships with major retailers, contributing to Lendway's market presence. The company has also invested in automation to enhance production efficiency at its U.S. greenhouse. As of September 30, 2025, Lendway maintained a workforce of 1,770 employees, consistent with the previous period.

Operationally, Lendway's customer base remains concentrated, with three customers accounting for approximately 69% of total revenues in the latest quarter. The company anticipates that revenue will improve in the upcoming quarters as it increases its bulb inventory, which is expected to translate into higher sales. The management has indicated that they are focused on addressing the challenges posed by rising costs and market conditions while leveraging their strategic investments to enhance operational performance.

Looking ahead, Lendway expects to navigate the current market dynamics by optimizing its inventory management and production strategies. The company is also focused on maintaining compliance with its financial covenants under the amended credit agreement, which has temporarily increased its revolving credit capacity to support ongoing operations. Management remains optimistic about the potential for revenue growth as they capitalize on their investments in Bloomia and the broader market for fresh-cut tulips.