Lendway (LDWY) AI Stock Analysis

• Market Cap: $7.64M
• Dividend Yield: N/A
• Average Volume (3M): 2.56K
• Price to Earnings (P/E): ―
• Beta (1Y): -0.10
• Revenue Growth: 95.23%
• EPS Growth: 34.97%
• Country: US
• Employees: 103
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): -1.61
• Shares Outstanding: 1,769,599
• 10 Day Avg. Volume: 1,451
• 30 Day Avg. Volume: 2,557
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.87
• Price to Sales (P/S): 0.23
• P/FCF Ratio: -1.64
• Enterprise Value/Market Cap: 11.13
• Enterprise Value/Revenue: 1.81
• Enterprise Value/Gross Profit: 9.85
• Enterprise Value/Ebitda: 559.87
• 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: 48 Neutral
• Price Target: $4.50 ▲(26.76% Upside)

The score is held down primarily by weak financial performance—persistent losses, negative free cash flow, and very high leverage. Technicals are only mildly supportive (neutral momentum with longer-term trend still negative). Valuation is unattractive due to a negative P/E driven by losses, while the recent financing/loan amendment is a notable positive that could reduce debt risk if executed as planned.

Positive Factors

Debt reduction plan

A executed rights offering and Bloomia loan amendment would materially cut gross debt, lowering interest expense and refinancing risk. A smaller debt load improves liquidity and capital flexibility, supporting strategic investments and reducing default probability over the medium term.

Asset-backed lending model

Lendway’s core asset-backed lending generates recurring interest and fee income tied to collateral, providing structurally predictable revenue streams. Collateralization and recovery mechanics can limit downside in credit cycles, supporting durable cash generation when underwriting standards are maintained.

Improving loss trajectory

Narrowing net losses and reduced cash burn signal operational stabilization and tighter cost control. Sustained improvement reduces near-term refinancing pressure and, if maintained, can transition the firm toward break-even and eventual positive cash flow, strengthening long-term solvency.

Negative Factors

Very high leverage

Extremely high leverage limits strategic flexibility and magnifies downside risk from credit losses or revenue declines. A thin equity cushion increases the probability of covenant breaches or dilutive recapitalizations, making long-term financing and growth more precarious.

Negative free cash flow

Persistent negative operating and free cash flow require ongoing external funding to meet obligations and invest. Combined with heavy leverage, cash burn elevates liquidity risk, forces reliance on capital raises or restructurings, and constrains organic reinvestment capacity.

Declining revenue & thin margins

Falling top-line and sustained negative margins imply weak pricing power or market share erosion. Thin gross and negative operating margins limit the firm’s ability to absorb credit losses or fund growth, making durable profitability dependent on meaningful revenue recovery or structural margin improvement.

Lendway Business Overview & Revenue Model

Company Description

Lendway, Inc. provides in-store advertising solutions to consumer-packaged goods manufacturers, retailers, shopper marketing agencies, and brokerages in the United States. It offers in-store signage solutions, which provides point-of-purchase services, brand equity signs, tear pads, and display marketing solutions; display solutions, such as a range of fully customized temporary, semi-permanent, and permanent displays; merchandising solutions; and on-pack solutions, which include BoxTalk, coupons, recipes, and cross-promotions. The company also operates a non-bank lending marketplace. The company was formerly known as Insignia Systems, Inc. and changed its name to Lendway, Inc. in August 2023. The company was incorporated in 1990 and is headquartered in Minneapolis, Minnesota.

How the Company Makes Money

Lendway generates revenue primarily through the interest charged on loans provided to SMEs. The company employs a digital platform to facilitate the loan application process, allowing for efficient underwriting and risk assessment, which enables competitive interest rates. Key revenue streams include origination fees, servicing fees, and interest income from the loans disbursed. Additionally, Lendway partners with financial institutions to offer co-branded lending solutions, expanding its reach and customer base while earning commission on loans facilitated through these partnerships.

Lendway Financial Statement Overview

Summary

Financials are weak overall: revenue is declining (-3% TTM), profitability remains negative (EBIT margin ~-6.6%, net margin ~-9.2%), and cash flow is still negative (FCF -$4.2M). Balance-sheet risk is high with debt (~$78.6M) far exceeding equity (~$9.3M). Losses and cash burn have improved versus 2024, but leverage and lack of sustained profitability keep the score low.

Income Statement

TTM (Trailing-Twelve-Months) revenue is $47.0M, but growth is negative (-3.0%). Profitability remains pressured: gross margin is ~18% while operating results are loss-making (EBIT margin ~-6.6%) and net margin is ~-9.2%. Compared with 2024, net losses narrowed (from -$5.7M to -$4.3M) and EBIT improved, but the business is still not consistently profitable and margins remain thin for the industry.

Balance Sheet

Leverage is the key weakness. In TTM (Trailing-Twelve-Months), total debt is ~$78.6M versus equity of ~$9.3M, implying very high balance-sheet risk (debt is ~8.4x equity). Returns to shareholders are negative (ROE ~-41%), reflecting ongoing losses on a relatively small equity base. Assets are ~$105.0M, but the capital structure is heavily debt-weighted, leaving limited cushion if operating performance weakens.

Cash Flow

Cash generation is currently weak: TTM (Trailing-Twelve-Months) operating cash flow is -$3.4M and free cash flow is -$4.2M, following similarly negative cash flow in 2024. While free cash flow improved versus 2024 (less negative), the business is still consuming cash, which can increase funding risk given the high leverage.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	46.97M	37.77M	0.00	0.00	19.50M	17.48M
Gross Profit	8.64M	6.51M	0.00	3.30M	3.23M	2.86M
EBITDA	152.00K	11.25M	-3.51M	-2.38M	-3.40M	-4.30M
Net Income	-4.30M	-5.74M	2.41M	10.05M	-3.53M	-4.62M
Balance Sheet
Total Assets	105.03M	99.98M	16.67M	20.97M	10.65M	14.29M
Cash, Cash Equivalents and Short-Term Investments	1.84M	1.76M	16.08M	14.44M	3.85M	7.13M
Total Debt	78.61M	75.55M	7.00K	284.00K	184.00K	1.11M
Total Liabilities	93.51M	88.09M	1.14M	7.57M	7.46M	7.62M
Stockholders Equity	9.32M	9.84M	15.53M	13.40M	3.19M	6.67M
Cash Flow
Free Cash Flow	-4.20M	-5.22M	479.00K	10.66M	-3.11M	-1.64M
Operating Cash Flow	-3.40M	-4.05M	518.00K	10.66M	-3.00M	-1.58M
Investing Cash Flow	-791.00K	-35.15M	1.51M	-29.00K	-90.00K	139.00K
Financing Cash Flow	4.21M	24.88M	-473.00K	39.00K	-187.00K	1.06M

Lendway Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LDWY, the sentiment is Positive. The current price of 3.55 is below the 20-day moving average (MA) of 3.74, below the 50-day MA of 3.62, and below the 200-day MA of 4.52, indicating a bullish trend. The MACD of 0.18 indicates Negative momentum. The RSI at 66.99 is Neutral, neither overbought nor oversold. The STOCH value of 71.17 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LDWY.

Lendway 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%
LDWY	48 Neutral	$7.64M	-3.28	―	―	95.23%	34.97%
CNET	44 Neutral	$4.04M	-1.40	-50.26%	―	-66.59%	67.63%
DRCT	42 Neutral	$3.67M	-0.04	―	―	-62.46%	-12.90%
TNMG	41 Neutral	$11.19M	-0.06	-164.27%	―	4.59%	-920.35%
YDKG	25 Underperform	$5.01M	>-0.01	-113.86%	―	2482.80%	-169.59%

Lendway Corporate Events

Lendway Amends Bloomia Loan and Launches Rights Offering

On January 19, 2026, Lendway’s Bloomia subsidiaries amended their existing $12.75 million bridge loan tied to the Bloomia acquisition, securing the right to prepay the full amount at a discounted $7.33 million before April 15, 2026 without interest or penalties, in exchange for releasing the former owners from remaining warranty and indemnity liabilities under the sale agreement. The bridge loan, which carries a step-up interest rate schedule through its March 24, 2029 maturity and had accumulated $2.843 million in accrued interest as of December 31, 2025, is expected to be repaid using proceeds from a newly announced rights offering, which aims to raise up to $15.5 million and could immediately reduce overall company debt by up to 40% and potentially by as much as 70% by early summer, while also funding related-party note settlements, strategic investments and a rebranding of the listed entity as Bloomia Holdings, Inc. with a planned Nasdaq ticker change to TULP.

The most recent analyst rating on (LDWY) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Lendway stock, see the LDWY Stock Forecast page.

Lendway Increases Authorized Shares After Stockholder Vote

On November 19, 2025, Lendway, Inc. filed a Certificate of Amendment to increase its authorized common stock shares from 5,714,285 to 10,000,000, following approval by the Board of Directors and stockholders. During the 2025 Annual Meeting of Stockholders, six directors were elected, executive compensation was approved, Boulay PLLP was ratified as the accounting firm, and the amendment for increasing authorized shares was passed.