Leafbuyer Technologies (LBUY) AI Stock Analysis

• Market Cap: $1.20M
• Dividend Yield: N/A
• Average Volume (3M): 67.79K
• Price to Earnings (P/E): ―
• Beta (1Y): 5.10
• Revenue Growth: -3.41%
• EPS Growth: N/A
• Country: US
• Employees: 12
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): N/A
• Shares Outstanding: 100,071,075
• 10 Day Avg. Volume: 153,720
• 30 Day Avg. Volume: 67,791
• PEG Ratio: -0.06
• Price to Book (P/B): -1.46
• Price to Sales (P/S): 0.00031
• P/FCF Ratio: <0.01
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 0.71
• Enterprise Value/Ebitda: 3.35
• 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: $0.01 ▼(-40.00% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is weighed down primarily by stressed financial condition (negative equity and leverage risk) despite improved TTM profitability and positive cash flow. Technicals also lean weak with price below longer-term moving averages and a negative MACD, while valuation (P/E ~34 with no dividend yield) provides limited support.

Positive Factors

Recurring revenue and platform model

The business sells recurring/subscription-style listings and advertising plus campaign services in a platform ecosystem. That mix creates sticky customer relationships and recurring cash flows, improving revenue predictability and customer lock-in over a 2–6 month horizon.

Improved operating cash generation

TTM operating cash flow (~$0.55M) and matching free cash flow show the company can convert earnings into cash, improving runway and lowering immediate refinancing needs. Stronger cash conversion supports operational resilience and funding of marketing/product activities, though longer-term consistency remains to be proven.

Structural gross margin strength

A ~44% gross margin indicates meaningful pricing power or low direct cost for digital marketing services. That structural margin provides room to cover fixed costs and scale toward sustainable profitability as revenues stabilize, improving long-term operational leverage potential.

Negative Factors

Negative shareholder equity

Persistent negative equity (~-$1.50M) reflects accumulated losses that materially constrain financial flexibility. It reduces ability to raise non-dilutive capital, increases creditor scrutiny, and is a structural overhang that can limit strategic initiatives and investor confidence over many months.

Leverage high relative to size

Total debt (~$1.38M) exceeds reported assets (~$1.02M), creating meaningful refinancing and liquidity risk. High leverage for a small business limits strategic optionality, raises interest/service burdens, and increases the likelihood of dilutive or costly financing if cash flow weakens.

Declining revenue and thin net margins

A ~12.9% TTM revenue decline combined with net margin near 1% and modest EBITDA margin means limited buffer against further top-line pressure. Falling revenue erodes operating leverage, so profitability gains are fragile and could reverse quickly if customer spend weakens.

Leafbuyer Technologies Business Overview & Revenue Model

Company Description

Leafbuyer Technologies, Inc., through its subsidiary, LB Media Group, LLC, provides online resources for cannabis deals and specials in the United States. The company was founded in 2012 and is headquartered in Greenwood Village, Colorado.

How the Company Makes Money

Leafbuyer Technologies primarily generates revenue by selling marketing and advertising services to cannabis dispensaries and related businesses that want to reach consumers through Leafbuyer’s platforms. Key revenue streams include: (1) recurring or subscription-style fees from dispensaries/brands for featured listings, digital advertising placements, and access to marketing tools that promote deals or improve customer acquisition/retention; (2) campaign-based advertising or promotional services sold to cannabis companies seeking targeted exposure to Leafbuyer’s user base; and (3) other service revenue tied to operating its consumer discovery/deals ecosystem (e.g., ancillary digital media or platform services). Specific terms, pricing, customer mix, or material third-party partnerships that materially drive earnings are null.

Leafbuyer Technologies Financial Statement Overview

Summary

Operating results improved with a return to modest TTM profitability and positive operating/free cash flow, supported by a solid ~44% gross margin. However, revenue is down about -12.9% TTM and profitability is very thin (~1.0% net margin), while the balance sheet is a major overhang with negative equity (~-$1.50M) and meaningful debt relative to assets.

Income Statement

TTM (Trailing-Twelve-Months) results show a return to modest profitability (net income of ~$0.05M) with positive operating earnings and an improving cost structure versus prior annual losses (FY2024 net loss of ~$0.71M, FY2023 net loss of ~$0.59M). Gross margin is solid at ~44% in TTM, but overall profitability remains very thin (net margin ~1.0% and EBITDA margin ~9.5%), leaving limited cushion if revenue softens. Revenue is also declining in TTM (about -12.9%), which tempers the improvement in earnings quality.

Balance Sheet

The balance sheet is the weakest area, driven by persistent negative shareholder equity (TTM equity about -$1.50M), which signals accumulated losses and reduces financial flexibility. Debt is meaningful relative to the company’s size (TTM total debt ~$1.38M vs. total assets ~$1.02M), increasing refinancing and liquidity risk. While leverage metrics are difficult to interpret cleanly with negative equity, the overall capital structure remains stressed and is a key overhang.

Cash Flow

Cash generation has improved meaningfully in TTM, with positive operating cash flow of ~$0.55M and essentially the same level of free cash flow, indicating limited drag from capital spending. Cash flow also tracks reported earnings closely in TTM (free cash flow roughly matching net income), which supports earnings quality. However, free cash flow is down versus the prior period (TTM free cash flow growth about -22.9%) and the company has a history of negative operating cash flow in earlier years (e.g., FY2024), so consistency is not yet proven.

Breakdown	TTM	Sep 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	5.08M	6.47B	5.60M	5.09M	3.81M	2.67M
Gross Profit	2.26M	2.82M	2.05M	2.25M	1.09M	723.15K
EBITDA	482.23K	800.70K	35.89K	307.67K	1.89M	-3.83M
Net Income	49.73K	260.67K	-709.43K	-585.21K	955.70K	-5.03M
Balance Sheet
Total Assets	1.02M	1.13M	873.69K	1.84M	2.37M	3.40M
Cash, Cash Equivalents and Short-Term Investments	969.09K	853.76K	165.33K	445.72K	367.25K	684.64K
Total Debt	1.38M	1.40M	1.48M	1.63M	2.23M	2.79M
Total Liabilities	2.52M	2.50M	2.56M	3.11M	3.78M	10.63M
Stockholders Equity	-1.50M	-1.37M	-1.68M	-1.28M	-1.41M	-7.22M
Cash Flow
Free Cash Flow	547.85K	855.49M	-131.14K	422.59K	-317.39K	-858.25K
Operating Cash Flow	547.86K	855.49M	-131.14K	422.59K	-317.39K	-858.25K
Investing Cash Flow	0.00	0.00	0.00	0.00	0.00	0.00
Financing Cash Flow	-29.24K	-167.06M	-149.24K	-344.12K	0.00	232.98K

Leafbuyer Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
KRKR	49 Neutral	$6.80M	―	-35.00%	―	―	―
LCFY	47 Neutral	$8.17M	-3.99	-105.26%	―	―	―
SLE	46 Neutral	$5.19M	-0.34	674.09%	―	-48.05%	88.88%
LBUY	43 Neutral	$1.20M	-6.20	―	―	-3.41%	―
ONFO	43 Neutral	$3.62M	-2.09	-63.25%	―	70.54%	22.59%
TC	42 Neutral	$1.63M	-9.73	-1080.13%	―	-64.20%	-18.43%