Leafbuyer Technologies (LBUY) Q2 2025 Earnings Report

Leafbuyer Technologies reported a solid sequential and improving year-over-year performance in Q2 2025, with revenue of $1.717 million, up 19.7% year over year and 6.7% quarter over quarter. The company generated an EBITDA of $0.213 million and net income of $0.075 million, translating to an EPS of $0.0007 on diluted shares of ~100.07 million. Gross margin stood at 43.9%, reflecting a healthy gross profit of $0.754 million on revenue of $1.718 million. Operating margin reached 5.63%, supported by disciplined SG&A despite ongoing platform investments. Operating cash flow was positive at $0.226 million, with free cash flow also $0.226 million, and the company ended the period with $0.450 million in cash and equivalents.

Despite these operating positives, the balance sheet presents material leverage and liquidity risks. Total liabilities exceeded assets by roughly $2.47 million against total assets of $0.91 billion? (Note: total assets $910,777 thousand) and negative stockholders’ equity of about $1.56 million. The current ratio and quick ratio are both 0.28, indicating tight short-term liquidity with substantial short-term debt of $0.923 million and total debt of $1.412 million. Net debt stood at approximately $0.962 million. These leverage and liquidity metrics imply near-term funding flexibility concerns and potential financing needs if operating conditions deteriorate or if growth investments intensify.

Overall, the QQ2 2025 quarter shows a favorable revenue trajectory and improving profitability, but the sustainability of the earnings and the ability to deleverage remain key questions for investors. The stock’s valuation metrics (e.g., price-to-sales around 1.14 and enterprise value multiple near 13.7) imply selectively positive sentiment embedded in a high-risk, small-cap OTC context.