Exchange: OTC | Sector: Communication Services | Industry: Internet Content Information
Q4 2024
Published: Nov 5, 2024
Earnings Highlights
Revenue of $1.50M up 13.1% year-over-year
EPS of $0.00 increased by 147.1% from previous year
Gross margin of 45.6%
Net income of 80.83K
"N/A" - N/A
Leafbuyer Technologies Inc (LBUY) QQ4 2024 Results — Revenue Up 13% YoY with Margin Expansion Amid Tight Liquidity
Executive Summary
Leafbuyer Technologies reported Q4 2024 revenue of $1.50 million, up 13% year over year and 0.28% sequentially, with gross profit of $684k and a solid gross margin of 45.6%. Operating income reached $111k, and net income was $80.8k in the quarter, marking a material improvement versus the prior year and prior quarter. Despite near-term profitability improvement, EBITDA remained negative at -$675k, underscoring ongoing cost structure pressures and the scale limitations of a small digital platform in a highly fragmented cannabis advertising ecosystem.
From a liquidity and balance-sheet perspective, Leafbuyer faces meaningful headwinds. Cash and cash equivalents stood at $165,332 at quarter-end, while total debt was $1.48 million and total liabilities exceeded assets (total liabilities $2.56 million vs. total assets $0.87 million). The company carries a negative stockholders' equity of approximately -$1.68 million, indicating a fragile capitalization structure and elevated risk of liquidity crunch absent external funding. Operating cash flow was modestly positive at $51.7k, supporting near-term cash needs but not offsetting the larger balance-sheet liability burden. Management commentary (where available) and the 10-Q filings imply a focus on revenue acceleration and cost discipline, but the path to sustained profitability hinges on continued top-line growth, margin expansion, and prudent balance-sheet management.
Overall, the QQ4 2024 results reflect a company transitioning toward profitability on the income statement while contending with a precarious capital structure and liquidity posture. Investors should weigh the improving operating metrics against the pronounced leverage and cash-position fragility, and monitor financing needs and revenue trajectory moving into 2025.
Key Performance Indicators
Revenue
1.50M
QoQ: 0.28% | YoY:13.05%
Gross Profit
684.04K
45.58% margin
QoQ: 21.49% | YoY:25.70%
Operating Income
111.01K
QoQ: 179.61% | YoY:184.72%
Net Income
80.83K
QoQ: 147.09% | YoY:147.86%
EPS
0.00
QoQ: 147.06% | YoY:147.06%
Revenue Trend
Margin Analysis
Key Insights
Revenue: $1,500,890 in Q4 2024; YoY growth 13.05%, QoQ growth 0.28% (from $1,327,639 in Q4 2023 and $1,496,714 in Q3 2024).
- Revenue: $1,500,890 in Q4 2024; YoY growth 13.05%, QoQ growth 0.28% (from $1,327,639 in Q4 2023 and $1,496,714 in Q3 2024).
- Gross Profit: $684,035; YoY growth 25.70%, QoQ growth 21.49%; Gross margin 45.58% (685k gross profit on 1.50m revenue).
- Operating Income: $111,007; YoY growth 184.72%, QoQ growth 179.61%; Operating margin 7.40% (111k on 1.50m).
- Net Income: $80,830; YoY growth 147.86%, QoQ growth 147.09%; Net margin 5.38%.
- EPS (diluted): $0.0008; YoY growth 147.06%, QoQ growth 147.06%.
- EBITDA: -$675,408; EBITDA margin -45.0%; EBITDARatio: -0.45.
- Balance sheet signals: Cash $165k, total debt $1.48m, total assets $0.874m; total liabilities $2.556m; stockholders’ equity is negative around -$1.68m.
- Cash flow: Net cash provided by operating activities $51,710; free cash flow $51,710; cash at end of period $165,332; CFO-to-revenue ratio modest at 3.45%.
- Liquidity/solvency indicators: Current ratio 0.126, quick ratio 0.126, cash ratio 0.077; debt-to-equity implied negativity; negative working capital pressure persists.
- Return metrics: ROA 9.25%, ROE -4.81%, cash conversion cycle negative -9.25 days, reflecting near-term liquidity management rather than sustained working-capital efficiency.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.50M
13.05%
0.28%
Gross Profit
684.04K
25.70%
21.49%
Operating Income
111.01K
184.72%
179.61%
Net Income
80.83K
147.86%
147.09%
EPS
0.00
147.06%
147.06%
Key Financial Ratios
currentRatio
0.13
grossProfitMargin
45.6%
operatingProfitMargin
7.4%
netProfitMargin
5.39%
returnOnAssets
9.25%
returnOnEquity
-4.81%
debtEquityRatio
-0.88
operatingCashFlowPerShare
$0
freeCashFlowPerShare
$0
priceToBookRatio
-1.1
priceEarningsRatio
5.74
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Note: No QQ4 2024 earnings-call transcript was provided in the dataset. As a result, management quotes or call-themes are not embedded in this analysis. The assessment relies on the 10-Q/annual filing data and the quarterly results release accompanying the QQ4 2024 period.
N/A
— N/A
N/A
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Forward Guidance
No formal forward guidance was published in the provided QQ4 2024 materials. Given the revenue uptick and margin stabilization in Q4, the company could be positioned for sequential improvement if it can sustain top-line growth and further optimize operating expenses. Key factors to monitor include: (1) revenue growth trajectory and monetization of Leafbuyer’s platform offerings, (2) ongoing cost discipline to convert gross profit gains into positive EBITDA, (3) liquidity management including potential debt refinancings or equity financing to shore up the balance sheet, and (4) cash burn rate versus available liquidity. In the absence of additional financing, continued negative stockholders’ equity and modest CFO generation raise the risk of liquidity shortfalls should revenue growth falter.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
LBUY Focus
45.58%
7.40%
-4.81%
5.74%
ALEAF
12.40%
-43.30%
1.35%
-55.50%
CVSI
45.80%
-14.20%
-29.90%
-1.64%
DGTHF
40.10%
-40.40%
-7.59%
361.96%
ITHUF
22.40%
-24.40%
31.30%
-2.26%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Leafbuyer’s QQ4 2024 results show improving top-line performance and margin stabilization on a small scale, but the company remains burdened by a fragile balance sheet and constrained liquidity. The positive net income and modest operating income in the quarter indicate operational progress; however, the negative EBITDA and substantial debt load imply the business needs scale, efficiency gains, and/or external financing to achieve durable profitability. Relative to cannabis-advertising peers, Leafbuyer demonstrates a credible gross margin, but the pronounced liabilities and negative equity create meaningful downside risk if revenue growth stalls or financing conditions tighten.
Investment stance: High risk with a narrow-margin recovery thesis. A decision to invest would ideally wait for signs of sustained revenue acceleration, a move toward EBITDA profitability or a credible refinancing plan that strengthens liquidity and shifts the balance sheet away from net liabilities. For current holders, focus on the trajectory of cash burn, debt maturities, and any announced strategic partnerships or monetization initiatives. In any case, given the OTC listing and balance-sheet dynamics, maintain a disciplined risk approach and seek catalysts such as additional financing terms, debt refinancings, or a plan to achieve meaningful profitability before committing significant capital.
Key Investment Factors
Growth Potential
Growth potential centers on accelerating adoption of Leafbuyer's cannabis deals platform, expanding advertiser base, and introducing higher-margin premium services/listings. The Q4 2024 revenue uptick provides initial evidence of demand, with a gross margin of 45.6% signaling potential for margin leverage as the platform scales. Watch for monetization upgrades, better ad yields, and cross-state expansion where regulatory frameworks allow.
Profitability Risk
Key risks include a fragile balance sheet (negative equity, high debt), limited liquidity (cash ~$165k), negative EBITDA, and dependence on volatile cannabis-market regulation. The OTC listing increases funding costs and dilution risk if equity raises are needed. Competitive pressures in a fragmented online cannabis advertising space could compress margins or slow user growth.
Financial Position
Financial position remains tight despite quarterly profitability improvement. Cash and equivalents are minimal, debt remains material, and liabilities exceed assets. The company must secure additional financing or materially improve profitability to regain a sustainable net-positive balance sheet.
SWOT Analysis
Strengths
Niche online platform focused on cannabis deals with a defensible, targeted user base.
Gross margin of ~45.6% in Q4 2024 suggests pricing power and efficiency gains as scale increases.
Positive quarterly operating income and net income in QQ4 2024 indicate a path toward profitability at scale.
Weaknesses
Negative stockholders’ equity and high total liabilities create leverage and balance-sheet fragility.
Very low liquidity (current ratio ~0.13) and constrained cash runway increase financing risk.
EBITDA remains negative; earnings quality is sensitive to revenue volatility and cost control.
Opportunities
Growing legalization and consumer cannabis activity could expand the addressable market for online cannabis deals.
Opportunity to monetize more aggressively via premium listings, targeted advertising, or partnerships with retailers and brands.
Potential strategic financing or partnerships to strengthen liquidity and enable expansion.
Threats
Regulatory risk and evolving state-by-state cannabis policies could impact user advertising spend and market growth.
Intense competition in cannabis advertising/affiliate spaces could erode market share or pricing.
Capital markets volatility and reliance on external funding could delay or dilute equity.
Macro headwinds and sector downturns could compress ad spend and platform monetization.