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Leafly Holdings, Inc. (LFLY)
:LFLY
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Leafly Holdings, Inc.
(OTC:LFLY)
37Underperform
Leafly Holdings, Inc. (LFLY) vs. S&P 500 (SPY)
Market Cap
$516.83K
Dividend YieldN/A
Average Volume (3M)5.37K
Price to Earnings (P/E)―
Beta (1Y)-0.33
Revenue Growth-18.01%
EPS Growth50.37%
CountryUS
Employees119
SectorHealthcare
Sector Strength74
IndustryMedical - Pharmaceuticals
Share Statistics
EPS (TTM)-2.40
Shares Outstanding3,128,490
10 Day Avg. Volume5,255
30 Day Avg. Volume5,367
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.02
Price to Cash Flow (P/CF)1.60
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$6.00Price Target Upside3650.00% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Leafly Holdings, Inc. Business Overview & Revenue Model
Company DescriptionLeafly Holdings, Inc. (LFLY) is a leading online cannabis discovery marketplace and resource for consumers seeking information on cannabis products, strains, and dispensaries. Operating primarily in the cannabis industry, Leafly provides a platform where users can explore cannabis-related content, including reviews, news, and educational articles. The company's core services include a comprehensive database of cannabis strains and legal dispensary locations, as well as a user-friendly interface to connect consumers with cannabis retailers.
How the Company Makes MoneyLeafly Holdings, Inc. generates revenue primarily through advertising and subscription services. The company offers advertising solutions for cannabis brands, dispensaries, and other businesses within the cannabis ecosystem, providing them with exposure to Leafly's extensive user base. In addition to advertising, Leafly offers subscription-based listings for dispensaries, enhancing their visibility on the platform and enabling them to reach more consumers. These listings often include premium features such as enhanced search visibility and detailed business profiles. Significant partnerships with cannabis industry stakeholders also contribute to the company's earnings, helping to broaden its reach and enhance its service offerings.
Leafly Holdings, Inc. Financial Statement Overview
Summary
Leafly Holdings, Inc. faces significant financial challenges with declining revenue, operational inefficiencies, high leverage, and negative equity. Cash flow has shown some improvement, yet overall financial health remains concerning. Strategic measures are needed to stabilize operations and improve financial performance.Income Statement
Leafly Holdings, Inc. shows declining revenue with a negative revenue growth rate in the TTM (Trailing-Twelve-Months). Gross profit margin remains high, indicating efficient production, but negative EBIT and EBITDA margins highlight ongoing operational inefficiencies. Net profit margin is also negative, reflecting overall losses.45
Neutral
Balance Sheet
The company has a negative stockholders' equity, indicating financial instability. High debt levels result in a negative equity ratio. The debt-to-equity ratio is not meaningful due to negative equity, suggesting potential solvency risks.30
Negative
Cash Flow
Operating cash flow showed improvement in the TTM period, but free cash flow is still negative. Both operating and free cash flow to net income ratios are not meaningful due to negative net income, indicating cash flow challenges.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 35.87M | 42.25M | 47.36M | 43.04M | 36.39M | 30.07M | Gross Profit |
| 31.98M | 37.45M | 41.50M | 38.05M | 31.43M | 26.16M | EBIT |
| -2.82M | -7.05M | -28.00M | -10.63M | -9.30M | -31.99M | EBITDA |
| -1.44M | -5.73M | 8.33M | -10.19M | -661.22K | -31.62M | Net Income Common Stockholders |
| -5.26M | -9.50M | 38.15M | -13.32M | -10.57M | -32.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 367.78K | 15.29M | 24.59M | 28.57M | 4.82M | 5.74M | Total Assets |
| 131.27M | 21.84M | 32.71M | 36.15M | 9.46M | 10.77M | Total Debt |
| 0.00 | 29.09M | 28.86M | 31.38M | 183.00K | 6.52M | Net Debt |
| -367.78K | 13.79M | 4.27M | 2.81M | -4.63M | 781.00K | Total Liabilities |
| 217.31K | 34.29M | 39.12M | 44.73M | 7.39M | 15.95M | Stockholders Equity |
| 5.00M | -12.46M | -6.41M | -8.57M | 2.07M | -5.19M |
| Cash Flow | Free Cash Flow | ||||
| -665.00K | -9.95M | -30.56M | -6.93M | -9.80M | -29.54M | Operating Cash Flow |
| 718.00K | -8.60M | -28.09M | -6.85M | -9.79M | -28.77M | Investing Cash Flow |
| -1.38M | -1.32M | -2.47M | -87.00K | 15.00K | -1.22M | Financing Cash Flow |
| -242.00K | 262.00K | 27.07M | 30.70M | 8.86M | 34.76M |
Leafly Holdings, Inc. Technical Analysis
Negative
0.16
Price Trends
0.25
Negative
0.76
Negative
1.38
Negative
Market Momentum
-0.04
Negative
39.98
Neutral
15.04
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LFLY, the sentiment is Negative. The current price of 0.16 is below the 20-day moving average (MA) of 0.22, below the 50-day MA of 0.25, and below the 200-day MA of 1.38, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 15.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for LFLY.
Leafly Holdings, Inc. Risk Analysis
Leafly Holdings, Inc. disclosed 90 risk factors in its most recent earnings report. Leafly Holdings, Inc. reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Leafly Holdings, Inc. Peers Comparison
Overall Rating
UnderperformOutperform
Sector (48)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | C$921.90M | 15.63 | 3.80% | ― | 35.87% | ― | |
59 Neutral | $357.65M | ― | -8.00% | ― | -2.89% | 47.06% | |
48 Neutral | $6.36B | 1.28 | -45.04% | 2.64% | 19.24% | 1.69% | |
47 Neutral | $328.76M | 25.76 | 4.78% | ― | 16.39% | -98.10% | |
46 Neutral | $533.54M | ― | -31.06% | ― | 11.22% | -108.58% | |
42 Neutral | C$228.17M | ― | -84.50% | ― | -16.27% | ― | |
37 Underperform | $516.83K | ― | 36.31% | ― | -18.01% | 50.37% |
* Healthcare Sector Average
Performance Comparison
LFLY
Leafly Holdings, Inc.
0.17
-2.59
-93.84%
TLRY
Tilray
0.50
-1.40
-73.68%
SNDL
SNDL
1.37
-0.72
-34.45%
TSE:WEED
Canopy Growth
1.19
-9.95
-89.32%
TSE:CRON
Cronos Group
2.32
-1.15
-33.14%
TSE:ACB
Aurora Cannabis
5.71
-3.69
-39.26%
Leafly Holdings, Inc. Earnings Call Summary
Earnings Call Date: Mar 26, 2025 | % Change Since: -27.27% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
While Leafly achieved a positive adjusted EBITDA and made strategic expansions, significant revenue declines, retail account reductions, and ongoing payment delinquencies present notable challenges. The positive aspects are countered by financial and operational hurdles.Highlights
Positive Adjusted EBITDA
Leafly reported a positive adjusted EBITDA of $483,000 for Q2, reflecting continued focus on profitability despite muted revenue performance.
Improved Gross Margin
Gross margin improved to 89% in Q2 compared to 88% in the same quarter last year.
Ohio Recreational Program Launch
Leafly sees strong momentum with the early launch of Ohio's recreational cannabis program, with projected annual sales reaching $2.8 billion by 2030.
Expansion with Uber Eats in Alberta
Leafly expanded its partnership with Uber Eats in Alberta, Canada, enabling legal cannabis delivery directly to consumers' homes.
Lowlights
Revenue Decline
Leafly reported a Q2 revenue of $8.7 million, down 18.3% year-over-year and 3.6% sequentially.
Retail Account Reduction
The number of retail accounts decreased to 3,595, a decline of 245 accounts compared to the previous quarter, with significant declines in Florida, California, and Oklahoma.
Brand Revenue Drop
Brand revenue was $1.4 million, down 25% year-over-year, although it increased from $1.2 million in Q1.
Payment Delinquencies
Payment delinquencies accounted for nearly 40% of the monthly recurring revenue lost in the quarter, reflecting broader industry capital challenges.
Company Guidance
During the Leafly Q2 2024 earnings call, the company provided guidance for the third quarter, projecting revenue of around $8.4 million and an adjusted EBITDA loss of less than $1 million. For Q2, Leafly reported revenue of $8.7 million, a net loss of $1.3 million, and a positive adjusted EBITDA of $483,000, surpassing guidance. The company highlighted a 6.4% reduction in retail accounts, ending the quarter with 3,595 accounts, and noted that payment delinquencies accounted for nearly 40% of the monthly recurring revenue lost. Despite a 25% year-over-year decline in brand revenue to $1.4 million, there was an observed increase from Q1, attributed to seasonal spending around the 420 holiday. Leafly also reported improvements in gross margin, which stood at 89%, and a decrease in operating expenses, down 17.5% year-over-year. The company continues to focus on operational efficiency and stabilizing revenues while expressing optimism about ongoing projects and market opportunities in regions like Ohio and Washington, D.C.Leafly Holdings, Inc. Corporate Events
Executive/Board ChangesPrivate Placements and FinancingShareholder MeetingsStock SplitBusiness Operations and Strategy
Leafly Holdings Issues Preferred Stock for Strategic Proposal
Neutral
Apr 7, 2025
On April 1, 2025, Leafly Holdings, Inc. entered into a Subscription Agreement with its CEO, Yoko Miyashita, to issue one share of Series A Preferred Stock for $100. This move aligns with the company’s strategic efforts to facilitate a Reverse Stock Split Proposal, as the Series A Preferred Stock carries significant voting power specifically for this proposal. The issuance alters the voting dynamics by ensuring the preferred stock votes in line with common stockholder decisions, minimizing the impact of abstentions. Additionally, Alan Pickerill resigned from the Board of Directors, and the company amended its bylaws to reduce the quorum requirement for stockholder meetings.
Spark’s Take on LFLY Stock
According to Spark, TipRanks’ AI Analyst, LFLY is a Underperform.
Leafly Holdings, Inc. faces significant risks, primarily due to financial instability and technical weaknesses. The negative equity and operating losses highlight financial challenges, while the bearish technical indicators suggest further downside potential. The impending delisting exacerbates liquidity concerns. These factors collectively result in a low overall stock score, signaling caution for potential investors.
To see Spark’s full report on LFLY stock, click here.
Executive/Board ChangesBusiness Operations and Strategy
Leafly Holdings Appoints Yoko Miyashita as Secretary
Neutral
Feb 18, 2025
On February 11, 2025, Leafly Holdings, Inc. appointed Yoko Miyashita as the Secretary of the Company, where she also serves as Chief Executive Officer. On the same date, the Board terminated the Company’s Employee Stock Purchase Plan, opting to return all contributions to participants for the purchase period ending March 15, 2025, with no new purchase periods to commence.
Delistings and Listing ChangesPrivate Placements and Financing
Leafly Holdings Faces Delisting and Note Agreement Changes
Negative
Jan 16, 2025
On January 15, 2025, Leafly Holdings, Inc. announced an amendment to their Note Purchase Agreement, extending the maturity date of their 8.00% Convertible Senior Notes to July 1, 2025, and introducing additional financial covenants. Concurrently, the company was notified by Nasdaq of its impending delisting due to non-compliance with listing standards, resulting in a shift of its trading to the OTC Pink Open Market. This transition is expected to create a less liquid market for Leafly’s securities, potentially impacting trading prices, although it will not affect the company’s business operations.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.