Leafbuyer Technologies (LBUY) Q1 2025 Earnings Report

Leafbuyer Technologies reported QQ1 2025 results with a revenue of $1.61 million, up 37.6% year over year and 7.2% quarter over quarter, signaling moderate demand for its cannabis-deals platform amid a consolidating online cannabis information ecosystem. Gross profit rose to $0.75 million, producing a gross margin of approximately 46.6%, while operating income expanded to $32.5 thousand and EBITDA reached $0.16 million, underscoring a path toward profitability on an operating basis as the business scales. Net income was a modest $11.5 thousand for the quarter, translating to a net margin of roughly 0.7% and earnings per share (basic) of $0.0001, indicating limited earnings leverage at this stage but positive trajectory on profitability metrics.

Cash flow remained solid in the quarter, with net cash provided by operating activities of about $0.21 million and free cash flow of the same magnitude, contributing to a cash balance of approximately $0.23 million at period end. The balance sheet shows a significant liquidity and leverage challenge: total liabilities of about $2.45 million versus total assets of roughly $0.81 million, resulting in a negative stockholders’ equity position around -$1.65 million. The company also reports a net debt position of about $1.10 million, highlighting ongoing reliance on external financing.

Management commentary is not available in the provided transcript data, limiting the ability to quote management perspectives directly. Given the scale of Leafbuyer’s business and the OTC listing status, the company appears to be navigating a high-visibility, highly fragmented market with limited margin of error on cost controls and financing. The quarter indicates improving gross margins and a positive, albeit small, bottom-line contribution, but the balance sheet remains the primary overhang for near-term valuation and financing considerations.