Leafbuyer Technologies (LBUY) Q3 2024 Earnings Report

Leafbuyer Technologies Inc (OTC: LBUY) reported Q3 2024 revenue of $1.4967 million, up 16.37% year over year and 4.36% quarter over quarter, supported by ongoing demand for cannabis-deals-focused content. Gross profit reached $563.1k with a gross margin of 37.6%, illustrating a stable product contribution but profitability remained constrained by elevated operating costs. The quarter produced an EBITDA of $41.7k (2.78% margin) but the company continued to incur a net loss of $171.6k, translating to an EPS of -$0.0017. Operating income was negative at -$139.4k, highlighting that, even with improving gross margins, G&A and selling expenses plus other costs outweighed operating performance.

From a balance-sheet and cash-flow perspective, Leafbuyer exhibits notable liquidity and leverage weaknesses. Cash and cash equivalents stood at $0.156 million at quarter end, with total current liabilities of $2.383 million and long-term debt of $0.456 million (short-term debt of $1.067 million), culminating in a current ratio of 0.156 and a net debt position of approximately $1.367 million. Operating cash flow was negative by about $0.053 million, and free cash flow was also negative by approximately $0.053 million, underscoring ongoing cash burn and balance-sheet risk. The company carried negative shareholders' equity (~$1.787 million), suggesting financial flexibility constraints absent additional financing or strategic restructuring.

Management commentary is not captured in the provided transcripts, and there is no earnings-call transcript available in the data set to anchor forward guidance. Given regulatory and competitive dynamics in cannabis advertising, the near-term path to sustainability will likely hinge on continued revenue monetization, cost discipline, and any capital-structure actions. Investors should monitor liquidity runway, debt maturities, gross-margin stability, and the trajectory of revenue growth to assess the potential for a meaningful path to profitability.