Locafy Ltd. (LCFY) AI Stock Analysis

• Market Cap: $5.29M
• Dividend Yield: N/A
• Average Volume (3M): 15.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.72
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 26
• Sector: Communication Services
• Sector Strength: 97
• Industry: Internet Content & Information
• EPS (TTM): -0.46
• Shares Outstanding: 1,799,055
• 10 Day Avg. Volume: 8,408
• 30 Day Avg. Volume: 15,534
• PEG Ratio: -0.92
• Price to Book (P/B): 4.49
• Price to Sales (P/S): 5.37
• P/FCF Ratio: -6.70
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 2.42
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: -21.14
• 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: 42 Neutral
• Price Target: $3.00 ▼(-5.36% Downside)

The score is driven primarily by weak financial performance, marked by ongoing losses, negative operating cash flow, and negative ROE. Technicals add further pressure with a clear downtrend and negative MACD, partly tempered by oversold signals. Valuation provides limited support because earnings are negative and there is no dividend.

Positive Factors

Subscription-based recurring revenue

Recurring subscription revenues create predictable, durable cash inflows and support scalable unit economics. Tiered pricing, setup and performance fees diversify revenue and boost lifetime value, enabling steady customer retention and capital-efficient growth for a SaaS-focused model.

Partner-based GTM and new products

A structural shift to a partner-led go-to-market, combined with product launches (Localizer, Localizer SAB), can reduce customer acquisition costs and scale distribution. Partners align incentives, expand reach across channels, and institutionalize sales motions for sustainable growth.

Early commercial traction with enterprise channels

Adoption by 145 State Farm agencies and measurable monthly subscription lift provides durable validation of product-market fit in insurance and home services. Anchor customers improve retention, enable references, and create upsell opportunities that strengthen long-term recurring revenue.

Negative Factors

Negative operating cash flow

Persistent negative operating cash flow indicates the core business isn't self-funding growth, forcing reliance on external financing or cash reserves. This constrains reinvestment, raises refinancing risk, and limits durable scalability until cash conversion improves.

Inconsistent revenue trend

A history of revenue decline followed by a one-year rebound signals uneven customer acquisition or retention. For a subscription business, volatile top-line growth undermines predictability, weakens margin leverage, and increases execution risk for scaling sales and partner channels.

Persistent negative margins and returns

Ongoing negative net margins, negative EBIT/EBITDA and a negative ROE show the company is not converting revenue into shareholder returns. Structural profitability shortfalls require sustained margin expansion or business model changes to achieve long-term financial viability.

Locafy Ltd. Business Overview & Revenue Model

Company Description

Locafy Limited operates as a software-as-a-service company (SaaS) that specializes in local search engine marketing in Australia, Europe, the United States, and internationally. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions, such as listings, landing pages, locators, and marketplace for improving the local online presence for business owners. The company's platform publishes content to various devices that uses a web browser to display web content, as well as programmatically optimizes the published content for local search. It offers its solutions directly to customers, as well as through reseller channels comprising digital agencies and search engine optimization freelancers. The company was formerly known as Moboom Limited and changed its name to Locafy Limited in January 2021. Locafy Limited was incorporated in 2009 and is headquartered in Subiaco, Australia.

How the Company Makes Money

Locafy generates revenue through a subscription-based model, where businesses pay for access to its suite of marketing tools and services. The company offers various pricing tiers based on the features and level of service provided, which allows it to cater to different business sizes and needs. Key revenue streams include subscription fees from its software platform, one-time fees for setup and optimization services, and potentially performance-based incentives tied to advertising campaigns. Additionally, significant partnerships with local business networks and marketing agencies contribute to its earnings by expanding its customer reach and enhancing service offerings.

Locafy Ltd. Financial Statement Overview

Summary

Financial performance is weak: revenue has been inconsistent with persistent losses and negative EBIT/EBITDA margins. The balance sheet shows manageable leverage but negative ROE, and cash flow remains challenged with negative operating cash flow despite improved free cash flow growth.

Income Statement

Locafy Ltd. has shown a declining revenue trend over the years, with a recent revenue growth rate of 14.17% in 2025, following a decline in 2024. The company has consistently reported negative net profit margins, indicating ongoing profitability challenges. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage. However, the return on equity is negative, indicating that the company is not generating sufficient returns on shareholders' investments. The equity ratio is relatively stable, but the negative ROE is a concern.

Cash Flow

Locafy Ltd. has experienced significant fluctuations in free cash flow, with a notable growth rate of 75.92% in 2025. However, the operating cash flow remains negative, and the ratios of operating and free cash flow to net income indicate cash flow challenges. The company needs to improve its cash generation capabilities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	2.43M	3.20M	4.15M	5.38M	4.22M	2.19M
Gross Profit	2.43M	3.20M	4.15M	-1.61M	-1.99M	-819.68K
EBITDA	-278.10K	-2.48M	-1.44M	-2.50M	-3.50M	-558.15K
Net Income	-1.71M	-4.31M	-2.99M	-3.89M	-5.09M	-995.77K
Balance Sheet
Total Assets	5.83M	5.83M	6.16M	9.23M	8.55M	2.78M
Cash, Cash Equivalents and Short-Term Investments	594.67K	594.67K	305.82K	3.17M	4.16M	650.73K
Total Debt	631.19K	631.19K	604.18K	719.34K	758.52K	566.30K
Total Liabilities	2.00M	2.00M	2.85M	4.24M	3.44M	3.62M
Stockholders Equity	3.83M	3.83M	3.31M	4.99M	5.12M	-835.48K
Cash Flow
Free Cash Flow	-1.66M	-2.56M	-3.28M	-3.88M	-4.24B	-938.45K
Operating Cash Flow	-807.37K	-688.67K	-1.11M	-2.26M	-4.24B	-496.03K
Investing Cash Flow	-853.37K	-1.88M	-2.13M	-1.62M	-2.01M	-442.42K
Financing Cash Flow	1.83M	2.89M	341.13K	2.85M	9.18M	1.43M

Locafy Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.17
• 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 LCFY, the sentiment is Negative. The current price of 3.17 is below the 20-day moving average (MA) of 3.28, below the 50-day MA of 3.40, and below the 200-day MA of 4.49, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 42.28 is Neutral, neither overbought nor oversold. The STOCH value of 4.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LCFY.

Locafy Ltd. 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	$9.66M	-1.58	-35.00%	―	―	―
SLE	46 Neutral	$5.23M	-0.01	-2074.24%	―	-48.05%	88.88%
FENG	46 Neutral	$21.74M	-3.24	-4.12%	―	9.16%	-15.28%
ONFO	43 Neutral	$3.76M	-1.38	-63.02%	―	70.54%	22.59%
LCFY	42 Neutral	$5.29M	-1.53	-118.07%	―	―	―

Locafy Ltd. Corporate Events

Locafy Reports Commercial Growth with Expanding Localizer Adoption in 2025

On December 17, 2025, Locafy Limited reported continued growth in subscription revenue, propelled by expanding adoption of its Localizer platform across the U.S. market. The company saw a $24,000 increase in monthly subscription sales since November 2025, with Localizer utilized by 145 independent State Farm agencies as well as growth in the home services sector. Strong partner collaborations and measurable results have bolstered operations, positioning Locafy for further scaling of its SaaS platform heading into 2026.

The most recent analyst rating on (LCFY) stock is a Sell with a $3.50 price target. To see the full list of analyst forecasts on Locafy Ltd. stock, see the LCFY Stock Forecast page.

Locafy Limited Announces Strategic Shifts and Growth Plans in 2025 Financial Report

On November 12, 2025, Locafy Limited reported its fiscal fourth quarter and full year 2025 results, highlighting significant strategic shifts and operational developments. The company transitioned to a partner-based go-to-market model, enhancing its sales strategy and aligning incentives with performance. This change, along with the launch of new products like Localizer and Localizer SAB, has positioned Locafy for scalable growth, particularly in the U.S. market. Despite a decrease in total operating revenue for the fiscal year, the company anticipates strong subscription revenue growth in fiscal 2026, driven by its refined product offerings and expanded partner network.

The most recent analyst rating on (LCFY) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Locafy Ltd. stock, see the LCFY Stock Forecast page.