Leafly Holdings, Inc. ( (LFLY) ) has released its Q3 earnings. Here is a breakdown of the information Leafly Holdings, Inc. presented to its investors.
Leafly Holdings, Inc. operates as a leading online cannabis discovery marketplace, providing resources for cannabis consumers and businesses through advertising and technology services. The company is based in Seattle and is publicly traded on NASDAQ under the symbol LFLY.
In its third quarter of 2024, Leafly Holdings reported a revenue of $8.4 million, alongside a net loss of $1.1 million and an adjusted EBITDA of $0.4 million. The company has achieved positive adjusted EBITDA for two consecutive quarters, signaling a potential stabilization in its retail business.
Key financial metrics highlight a year-over-year revenue decline from $10.6 million in Q3 2023, attributed to reduced customer spending and a decline in retail accounts. However, Leafly has maintained a gross margin of 89%, and has successfully reduced operating expenses by 27% compared to the previous year. The average revenue per retail account rose by 8%, reflecting strategic price adjustments and a focus on retaining high-value accounts.
While the company faces challenges, including the maturity of convertible notes due in January 2025, Leafly is actively pursuing solutions to improve its financial position. Despite ending Q3 2024 with $13.6 million in cash, the company has expressed substantial doubt regarding its ability to continue as a going concern.
Looking ahead, Leafly remains committed to enhancing its operational efficiency and exploring strategic opportunities to address its financial obligations. The company is poised to leverage its stabilized retail base for future growth, while navigating the ongoing challenges of the cannabis industry and financial markets.
