Locafy Ltd. (LCFY) AI Stock Analysis

• Market Cap: $8.53M
• Dividend Yield: N/A
• Average Volume (3M): 69.94K
• Price to Earnings (P/E): ―
• Beta (1Y): 2.77
• 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: 45,962
• 30 Day Avg. Volume: 69,944
• 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: 1.09
• Enterprise Value/Revenue: 3.84
• Enterprise Value/Gross Profit: 3.84
• Enterprise Value/Ebitda: -33.55
• 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: 47 Neutral
• Price Target: $4.50 ▲(41.96% Upside)
• Action: Reiterated Date: 02/19/26
• Date: Action: Reiterated 02/19/26

The score is held down primarily by weak financial performance (persistent losses, negative margins/ROE, and negative operating cash flow). Technicals are a relative positive with price above key moving averages and positive momentum, but valuation remains challenged due to a negative P/E and no dividend support.

Positive Factors

Recurring SaaS and licensing revenue model

Locafy's core business collects recurring subscription fees plus licensing and partner platform fees, creating predictable revenue streams. This SaaS-centric model supports higher customer lifetime value, easier scaling across partners and publishers, and more durable cash flow versus one-off services.

Recent free cash flow and revenue improvement

A sharp free cash flow increase and a 2025 revenue rebound signal improving operational leverage. Sustained FCF growth provides runway to invest in product and sales, reducing near-term dilution risk and enabling reinvestment into customer acquisition and platform development over the next several quarters.

Product traction: Localizer adoption by partners

Growing adoption of the Localizer platform by State Farm agencies and home-service partners indicates tangible product-market fit and channel credibility. Such partner wins create durable distribution, referenceability, and potential network effects that support recurring licensing and scaled sales expansion.

Negative Factors

Persistent negative profit margins

Ongoing negative net and operating margins show the company has yet to demonstrate sustainable profitability. Over months this limits retained earnings, constrains self-funding for growth initiatives, and keeps the firm dependent on external capital to scale operations or weather downturns.

Negative operating cash flow

Negative operating cash flow implies core operations are not yet cash-generative. Even with FCF gains, persistent negative cash from operations forces reliance on financing or equity issuance for day-to-day needs and investment, which can dilute shareholders and limit strategic flexibility.

Negative return on equity (ROE)

A negative ROE indicates the business is not producing adequate returns on invested capital. This structural weakness hampers long-term shareholder value creation, constrains the firm's ability to attract low-cost capital, and raises questions about capital allocation effectiveness.

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

Financials are weak: declining/volatile revenue history with only a recent rebound, persistent negative margins (net/EBIT/EBITDA), negative ROE, and negative operating cash flow. Free cash flow improved in 2025, but overall profitability and cash generation remain major concerns.

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

Locafy Ltd. Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LCFY, the sentiment is Positive. The current price of 3.17 is below the 20-day moving average (MA) of 3.57, below the 50-day MA of 3.41, and below the 200-day MA of 4.42, indicating a bullish trend. The MACD of 0.39 indicates Negative momentum. The RSI at 69.76 is Neutral, neither overbought nor oversold. The STOCH value of 94.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	$7.02M	-1.14	-35.00%	―	―	―
LCFY	47 Neutral	$8.53M	―	―	―	―	―
SLE	46 Neutral	$4.61M	>-0.01	-2074.24%	―	-48.05%	88.88%
FENG	46 Neutral	$20.90M	-3.12	-4.12%	―	9.16%	-15.28%
ONFO	43 Neutral	$2.88M	-1.06	-63.02%	―	70.54%	22.59%

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.