Leafbuyer Technologies (LBUY) Q4 2024 Earnings Report

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.