Executive Summary
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.
Key Performance Indicators
QoQ: 197.56% | YoY:149.05%
QoQ: 550.45% | YoY:134.01%
QoQ: 600.00% | YoY:131.82%
Key Insights
Revenue: $1,717,127 for QQ2 2025, up 19.73% YoY and 6.69% QoQ. Gross Profit: $754,198; Gross Margin: 43.92% (vs. 43.92% historically in this period). EBITDA: $212,571; EBITDA Margin: 12.38%. Operating Income: $96,668; Operating Margin: 5.63%.
Net Income: $74,815; Net Margin: 4.36%. EPS: $0.0007 (diluted). Weighted Avg Shares Out: 100,071,075.
Cash Flow: Net cash provided by operating activities $226,411; Free cash flow $226,411; Net change in cash $219,100; Cash at end of period $450,481.
Balan...
Financial Highlights
Revenue: $1,717,127 for QQ2 2025, up 19.73% YoY and 6.69% QoQ. Gross Profit: $754,198; Gross Margin: 43.92% (vs. 43.92% historically in this period). EBITDA: $212,571; EBITDA Margin: 12.38%. Operating Income: $96,668; Operating Margin: 5.63%.
Net Income: $74,815; Net Margin: 4.36%. EPS: $0.0007 (diluted). Weighted Avg Shares Out: 100,071,075.
Cash Flow: Net cash provided by operating activities $226,411; Free cash flow $226,411; Net change in cash $219,100; Cash at end of period $450,481.
Balance Sheet: Total assets $910,777; Total liabilities $2,468,961; Total stockholders’ equity $(1,558,184). Short-term debt $923,046; Long-term debt $489,409; Cash $450,481; Accounts receivable, net $96,787; Intangible assets $361,670; Current ratio 0.28; Quick ratio 0.28; Cash ratio 0.23.
Valuation/Leverage: Debt-to-Total-Asset exposure high; Enterprise Value Multiple ~13.71; Price-to-Sales ~1.14; Price-to-Book ~-1.25; Net debt ~$961,974.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
1.72M |
19.73% |
6.69% |
| Gross Profit |
754.20K |
374.24% |
0.66% |
| Operating Income |
96.67K |
149.05% |
197.56% |
| Net Income |
74.82K |
134.01% |
550.45% |
| EPS |
0.00 |
131.82% |
600.00% |
Key Financial Ratios
operatingProfitMargin
5.63%
operatingCashFlowPerShare
$0
Management Commentary
Note: No earnings call transcript was provided in the data set; as a result, qualitative management commentary from the QQ2 2025 earnings call could not be extracted here. The analysis below reflects the reported results and publicly filed disclosures without verbatim management quotes. If a transcript becomes available, these highlights can be updated to include precise management themes and quotes by topic (strategy, execution, market conditions, guidance).
Forward Guidance
The company did not publish formal forward guidance in the QQ2 2025 release. Given the mixed balance sheet and liquidity pressures, near-term guidance is likely to remain conservative unless the company secures additional financing or accelerates monetization of its platform. Industry dynamics for cannabis deals platforms suggest potential upside from expanded advertiser base, greater AD spend efficiency, and monetization of ancillary services (targeted offers, affiliate revenue, data services). Management commentary (where available) would be expected to emphasize platform growth, customer acquisitions, and improving gross margins from scale. Achievability hinges on: (1) sustainable revenue growth at or above the current pace, (2) cost discipline to preserve margins while investing in product and sales, and (3) access to funding to support working capital and debt service needs. Key factors investors should monitor include liquidity runway (current ratio trajectory), debt maturities, any capital raises or debt refinancings, and progress in user/merchant adoption on the Leafbuyer platform.