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LEAFBUYER TECHNOLOGIES, INC. (Exact name of registrant as specified in its charter) FORM 10-Q

Press release·05/17/2025 07:56:19

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Leafbuyer Technologies, Inc. (the “Company”) filed its quarterly report for the period ended March 31, 2025, which did not include any securities registered under Section 12(b) of the Securities Exchange Act of 1934. The Company reported no revenue and a net loss of $1.4 million for the quarter. As of March 31, 2025, the Company had a cash balance of $1.1 million and total assets of $1.3 million. The Company’s management’s discussion and analysis of financial condition and results of operations highlights the Company’s focus on developing its technology and expanding its business, but notes that the Company has not yet generated significant revenue. The Company’s unaudited interim condensed financial statements are included in the report.

Summary and Analysis of Key Points

Overview of Financial Performance

The company’s financial report for the three and nine months ended March 31, 2025 shows a strong improvement in its financial performance compared to the same periods in 2024. Key highlights include:

Revenues increased by 16% and 23% for the three and nine-month periods, respectively, driven by growth in text services.
Gross profit margins improved significantly, rising 44% and 69% for the three and nine-month periods, respectively, due to the increased revenues with minimal increase in third-party costs.
Operating expenses decreased by 20% and 6% for the three and nine-month periods, respectively, primarily due to lower sales costs and stock-based compensation.
The company reported net income of $235,154 and $319,456 for the three and nine-month periods, respectively, compared to net losses in the prior year.

Revenue and Profit Trends

The company’s revenue growth was driven by increased demand for its text services. This, combined with effective cost management, led to substantial improvements in gross profit margins. The reduction in operating expenses, particularly sales costs and stock-based compensation, further contributed to the company’s return to profitability.

Strengths and Weaknesses

Strengths:

Strong revenue growth and improving profitability
Effective cost control measures
Reduction in interest expense due to debt repayment

Weaknesses:

Reliance on equity financing to fund operations
Working capital deficit, indicating potential liquidity challenges

Outlook and Future Prospects

The company’s financial performance has improved significantly, with a return to profitability in both the three and nine-month periods. However, the company remains dependent on equity financing to fund its operations, and it faces a working capital deficit, which could pose liquidity challenges in the future.

To address these issues, the company will need to continue to focus on revenue growth, cost management, and finding ways to improve its overall financial position, such as through additional debt or equity financing. The company’s ability to maintain its profitability and address its liquidity concerns will be crucial in determining its long-term prospects.