Lark Distilling Co. Ltd. (LRK) AI Stock Analysis

• Market Cap: AU$60.44M
• Dividend Yield: N/A
• Average Volume (3M): 23.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: 2.62%
• EPS Growth: -85.79%
• Country: AU
• Employees: 8
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Wineries & Distilleries
• EPS (TTM): -0.08
• Shares Outstanding: 106,967,340
• 10 Day Avg. Volume: 15,073
• 30 Day Avg. Volume: 23,904
• PEG Ratio: -0.05
• Price to Book (P/B): 0.57
• Price to Sales (P/S): 3.86
• P/FCF Ratio: -9.26
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: AU$0.55 ▼(-12.10% Downside)

Lark Distilling Co. Ltd. faces significant challenges, primarily due to its poor financial performance and bearish technical indicators. The company's negative profitability and cash flow issues are compounded by a negative P/E ratio, making it less attractive from a valuation standpoint. Despite a stable balance sheet, the overall outlook remains cautious.

Positive Factors

Artisanal brand strength

Lark's artisanal Tasmanian positioning and reputation create durable brand premium and customer loyalty. This supports sustained direct-to-consumer sales, tastes/tours and premium pricing, aiding long-term margin resilience and international niche expansion.

Low leverage and strong equity

Extremely low financial leverage gives the company flexibility to fund inventory aging and selective growth without heavy interest burdens. A strong equity base reduces insolvency risk and enables strategic investment or M&A if executed prudently over the medium term.

Healthy gross margins

A 57.5% gross margin indicates efficient production and material pricing power for core spirits. That structural margin provides a meaningful buffer to absorb SG&A and scaling costs; with operational improvements or higher volumes, net profitability can be restored long term.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow undermines the company's ability to self-fund inventory, maturation and expansion. For distillers, cash strain forces reliance on external financing, raising execution risk and potentially delaying growth initiatives tied to long ageing cycles.

Sustained unprofitability

Large net losses and negative operating profitability indicate structural issues converting gross margin into sustainable earnings. Without durable cost control or meaningful revenue scale, continued losses will deplete equity and restrict reinvestment and marketing needed for longer-term growth.

Very small operating scale

An extremely small workforce points to limited production, distribution and commercial scale versus peers. Scaling spirits requires capital, staff and time (for aging); limited scale constrains negotiating power, distribution reach and the ability to achieve economies of scale over months.

Lark Distilling Co. Ltd. Business Overview & Revenue Model

Company Description

Lark Distilling Co. Ltd engages in the production, marketing, distribution, and sale of craft spirits. The company operates through three segments: Whisky, Gin, and Other. It also offers brandy and liqueurs. The company was formerly known as Australian Whisky Holdings Limited and changed its name to Lark Distilling Co. Ltd in May 2020. Lark Distilling Co. Ltd was incorporated in 2003 and is based in Hobart, Australia.

How the Company Makes Money

Lark Distilling Co. Ltd. generates revenue primarily through the sale of its spirits, with key revenue streams including direct sales to consumers through its own distillery and online platforms, as well as distribution through retail partners and international wholesalers. The company capitalizes on the growing demand for craft spirits, leveraging its brand reputation and unique product offerings to attract both connoisseurs and casual drinkers. Additionally, Lark engages in strategic partnerships with bars, restaurants, and liquor retailers to enhance its market presence and expand its customer base. Special releases, limited editions, and collaborations with other brands also contribute to its earnings, alongside tours and tastings at its distillery, which create additional revenue opportunities while promoting brand loyalty.

Lark Distilling Co. Ltd. Financial Statement Overview

Summary

Lark Distilling Co. Ltd. shows a mixed financial performance. While revenue growth is positive at 5.77% and the balance sheet is stable with low leverage, the company struggles with profitability, evidenced by a negative net profit margin of -65.93% and negative cash flow. The strong equity position and gross profit margin provide some stability, but overall financial health is weak.

Income Statement

Lark Distilling Co. Ltd. shows a mixed performance in its income statement. The company has experienced a slight revenue growth of 5.77% in the most recent year, but it continues to struggle with profitability, as evidenced by a negative net profit margin of -65.93% and negative EBIT and EBITDA margins. The gross profit margin is relatively healthy at 57.50%, indicating some efficiency in production, but the overall profitability is hampered by high operating expenses.

Balance Sheet

The balance sheet of Lark Distilling Co. Ltd. reflects a stable financial position with a low debt-to-equity ratio of 0.018, suggesting minimal leverage and financial risk. However, the return on equity is negative at -9.72%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio is strong, showing that a significant portion of the company's assets is financed by equity.

Cash Flow

The cash flow statement reveals challenges in cash generation, with negative operating cash flow and free cash flow. Despite a positive free cash flow growth rate of 16.66%, the company struggles with cash flow sustainability, as indicated by a negative operating cash flow to net income ratio. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	16.23M	17.17M	16.73M	19.88M	24.34M	16.54M
Gross Profit	9.59M	9.87M	9.46M	3.48M	8.49M	5.46M
EBITDA	-5.37M	-4.66M	-3.85M	-5.05M	803.87K	1.52M
Net Income	-5.37M	-11.32M	-4.57M	-4.91M	-470.40K	3.44M
Balance Sheet
Total Assets	133.69M	126.06M	110.63M	116.14M	121.59M	60.37M
Cash, Cash Equivalents and Short-Term Investments	23.57M	23.11M	2.36M	7.16M	16.10M	7.65M
Total Debt	1.93M	2.07M	2.19M	4.59M	6.68M	6.75M
Total Liabilities	9.06M	9.63M	9.26M	11.46M	12.84M	9.98M
Stockholders Equity	124.62M	116.43M	101.36M	104.68M	108.75M	50.40M
Cash Flow
Free Cash Flow	-6.13M	-7.15M	-4.79M	-6.27M	-9.97M	-7.16M
Operating Cash Flow	-5.74M	-2.92M	-4.22M	-5.45M	-7.72M	-6.38M
Investing Cash Flow	-7.11M	65.00K	-237.03K	1.75M	-39.50M	-637.10K
Financing Cash Flow	23.89M	23.60M	-348.80K	-5.24M	55.66M	8.54M

Lark Distilling Co. Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:LRK, the sentiment is Negative. The current price of 0.62 is above the 20-day moving average (MA) of 0.60, below the 50-day MA of 0.64, and below the 200-day MA of 0.75, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 33.77 is Neutral, neither overbought nor oversold. The STOCH value of 13.68 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AU:LRK.

Lark Distilling Co. Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FRM	66 Neutral	AU$49.62M	7.12	29.12%	―	2.63%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
EDV	60 Neutral	AU$7.07B	16.56	11.20%	5.12%	-2.04%	-16.79%
MBH	54 Neutral	AU$41.66M	-1.73	-31.14%	―	-15.07%	29.45%
LRK	43 Neutral	AU$60.44M	-5.03	-10.39%	―	2.62%	-85.79%

Lark Distilling Co. Ltd. Corporate Events

Lark Distilling CFO to Depart as Whisky Maker Reaffirms Growth Strategy

Lark Distilling Co. Ltd has announced that Chief Financial Officer Iain Short will resign at the end of March to take a CFO role at another ASX-listed company outside the spirits sector, with Short remaining in place through the half-year reporting period and assisting with the transition to a permanent successor. Chair Domenic Panaccio emphasised Short’s role in strengthening processes, governance and the operational platform for long-term value creation, and reiterated that under CEO Stuart Gregor the company remains committed to its strategy of building Lark into a globally recognised luxury brand, signalling continuity in strategic direction despite the leadership change.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Announces Lapse of Over 3.3 Million Performance and Share Rights

Lark Distilling Co. Ltd has notified the market that a total of 3,330,994 equity-linked securities have ceased, comprising 3,137,078 performance rights and 193,916 share rights that lapsed on 31 December 2025 because their vesting or performance conditions were not met or became incapable of being satisfied. The lapse of these rights effectively reduces potential future equity dilution for existing shareholders and signals that the underlying performance or service-based hurdles attached to these instruments were not achieved within the specified timeframe, which may reflect on recent performance outcomes and alters the company’s prospective capital structure.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Director Converts 300,000 Performance Rights Into Ordinary Shares

Lark Distilling Co. Ltd has disclosed a change in the interests of director Warren Randall, who has exercised 300,000 performance rights into fully paid ordinary shares under the company’s Equity Incentive Plan. Following the transaction on 23 December 2025, Randall now holds 300,000 ordinary shares directly and maintains his existing indirect holding of 20,355,095 ordinary fully paid shares via Seppeltsfield Pty Ltd, with no cash consideration attached to the conversion; the move underscores the ongoing use of equity incentives to reward and retain key executives and reinforces significant director alignment with shareholders.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Seeks ASX Quotation for 300,000 New Ordinary Shares

Lark Distilling Co. Ltd has applied for quotation on the ASX of 300,000 new fully paid ordinary shares, to be issued on 23 December 2025. The additional securities, arising from the exercise or conversion of existing options or other convertible instruments, will modestly increase the company’s free float and capital base, potentially enhancing liquidity in LRK shares and slightly diluting existing shareholders while supporting ongoing corporate and operational funding needs.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Co. Successfully Concludes 2025 AGM with All Resolutions Carried

Lark Distilling Co. Ltd. held its 2025 Annual General Meeting, where all resolutions, including the adoption of the remuneration report and the re-election of directors, were successfully carried. The approval of equity securities under the company’s Equity Incentive Plan was also confirmed, indicating strong shareholder support and potentially positive implications for the company’s future growth and strategic initiatives.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Co. Ltd Reports Strong Growth and Strategic Developments in 2025

Lark Distilling Co. Ltd reported a pivotal year in 2025, achieving a 12% growth in net sales and a strategic partnership with Seppeltsfield Wines, which secures barrel supply and opens new opportunities for premium whisky innovation. The company completed a significant brand restage, enhancing its market potential, and expanded its international sales, particularly in Asia and Global Travel Retail. Despite disappointing share price performance, Lark’s strengthened operations and growth strategy position it well for future success, with Stuart Gregor set to take over as CEO in January 2026.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$0.50 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Co. Ltd Expands Market Presence with New Securities Issuance

Lark Distilling Co. Ltd has announced the issuance of 44,333 fully paid ordinary securities, which will be quoted on the Australian Securities Exchange (ASX) under the code LRK. This move is part of the company’s ongoing efforts to enhance its market presence and provide value to its stakeholders by expanding its financial base and increasing liquidity in its shares.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Co. Ltd Reports Strong Quarterly Growth and Strategic Advancements

Lark Distilling Co. Ltd reported a strong performance for the quarter ending September 2025, with net sales increasing by 10% compared to the previous year. The company saw significant growth in direct-to-consumer sales and international exports, particularly in Asia, despite a decline in domestic business-to-business sales due to a transition in sales models. The company is advancing its strategic priorities, including a brand restage and expansion of its flagship Pontville site. Additionally, Lark is undergoing a leadership transition with Stuart Gregor set to become CEO in January 2026, bringing extensive industry experience to further drive the company’s growth.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.

Lark Distilling Co. Announces 2025 Annual General Meeting

Lark Distilling Co. Ltd has announced its 2025 Annual General Meeting, scheduled for November 19, 2025, to be held as a hybrid meeting. This announcement is significant for stakeholders as it outlines the company’s ongoing commitment to transparency and shareholder engagement, potentially impacting its market position and investor relations.

The most recent analyst rating on (AU:LRK) stock is a Hold with a A$1.00 price target. To see the full list of analyst forecasts on Lark Distilling Co. Ltd. stock, see the AU:LRK Stock Forecast page.