Locafy Ltd. (LCFY) AI Stock Analysis

• Market Cap: $6.42M
• Dividend Yield: N/A
• Average Volume (3M): 16.57K
• 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: 10,847
• 30 Day Avg. Volume: 16,570
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 40 Underperform
• Price Target: $3.50 ▼(-1.96% Downside)

Locafy Ltd. is currently facing significant financial and operational challenges, with persistent losses and negative cash flows being the most critical factors. The technical analysis indicates a bearish trend, and the valuation metrics highlight ongoing profitability issues. These factors collectively result in a low overall stock score.

Positive Factors

Strategic Shifts

The shift to a partner-based model can enhance scalability and efficiency, aligning sales incentives with performance and potentially boosting revenue.

Product Adoption

Strong initial adoption of the Localizer product indicates market demand and potential for sustained revenue growth, especially in the insurance sector.

Nasdaq Compliance

Regaining Nasdaq compliance secures the company's market position and investor confidence, crucial for long-term strategic initiatives.

Negative Factors

Negative Cash Flow

Persistent negative cash flow challenges the company's ability to fund operations and growth, necessitating improvements in cash generation.

Profitability Issues

Ongoing profitability challenges, indicated by negative margins, can hinder financial stability and limit reinvestment in growth opportunities.

Revenue Decline

A declining revenue trend suggests potential market challenges or competitive pressures, impacting long-term growth prospects.

Locafy Ltd. Business Overview & Revenue Model

Company Description

Locafy Ltd. (LCFY) is a technology company specializing in location-based marketing solutions. The company operates primarily in the digital marketing sector, providing tools and services that enable businesses to enhance their online visibility and drive foot traffic through targeted local advertising. Locafy offers a suite of products that includes digital listings, local SEO optimization, and analytics solutions designed to help businesses engage effectively with their local customer base.

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

Locafy Ltd. faces significant financial challenges, with persistent losses and negative cash flows. Despite some improvements in revenue growth and free cash flow, the company needs to address its profitability and operational efficiency issues to achieve financial stability.

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: 3.57
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 3.57 is below the 20-day moving average (MA) of 3.63, below the 50-day MA of 4.12, and below the 200-day MA of 4.73, indicating a bearish trend. The MACD of -0.11 indicates Negative momentum. The RSI at 40.96 is Neutral, neither overbought nor oversold. The STOCH value of 5.08 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	48 Neutral	$7.88M	-1.29	-35.00%	―	―	―
FENG	46 Neutral	$23.84M	-3.56	-4.12%	―	9.16%	-15.28%
SLE	45 Neutral	$6.86M	-0.02	-2074.24%	―	-48.05%	88.88%
LCFY	40 Underperform	$6.42M	-1.85	-118.07%	―	―	―
ONFO	40 Underperform	$27.28M	-1.42	-63.02%	―	70.54%	22.59%

Locafy Ltd. Corporate Events

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.

Locafy Sees Rapid Growth with Localizer Product in Insurance Sector

On September 25, 2025, Locafy Limited announced a significant boost in sales following the rapid adoption of its Localizer product by 74 independent State Farm Insurance agencies within the first eight days of its launch. This adoption has added approximately $51,000 in monthly recurring revenue, equating to over $613,000 in annual recurring revenue. The Localizer solution, which leverages AI to enhance visibility in local search results, is expected to continue its growth trajectory, highlighting the demand for AI-driven marketing strategies in competitive industries such as insurance. The company’s expansion includes launching an AI sales team in the U.S. and signing new partner agreements, indicating a strong foundation for further national rollouts.