LCFYW
LCFYW
Locafy LimitedIncome Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q4-2025 | $828.57K ▲ | $1.62M ▲ | $-835.25K ▼ | -100.81% ▼ | $-0.46 | $-434.73K ▼ |
| Q3-2025 | $816.45K ▲ | $1.48M ▲ | $-817.19K ▼ | -100.09% ▼ | $-0.46 ▼ | $-255.71K ▼ |
| Q1-2025 | $785.17K ▼ | $824.9K ▼ | $-55.45K ▲ | -7.06% ▲ | $-0.04 ▲ | $412.33K ▲ |
| Q4-2024 | $1.2M ▲ | $2.09M ▲ | $-900.1K ▼ | -74.79% ▼ | $-0.66 ▼ | $-524.96K ▼ |
| Q3-2024 | $911.84K | $606.75K | $-661.7K | -72.57% | $-0.51 | $-281.94K |
What's going well?
Revenue is steady and the company eliminated interest expense this quarter, which helps reduce financial pressure. There are no one-time charges distorting the results.
What's concerning?
Operating expenses are rising much faster than sales, leading to bigger losses. The company is burning cash and has no clear path to profitability, with minor share dilution adding to the risks.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q4-2025 | $594.67K ▼ | $5.83M ▼ | $2M ▲ | $3.83M ▼ |
| Q3-2025 | $1.29M ▲ | $6.17M ▼ | $1.81M ▼ | $4.36M ▲ |
| Q1-2025 | $409.38K ▲ | $6.76M ▲ | $2.65M ▼ | $4.11M ▲ |
| Q4-2024 | $275.88K ▼ | $6.16M ▼ | $2.85M ▼ | $3.31M ▼ |
| Q3-2024 | $484.59K | $7.2M | $3.34M | $3.87M |
What's financially strong about this company?
The company still has positive equity and manageable overall debt compared to its size. Customers are prepaying more, which helps with cash flow.
What are the financial risks or weaknesses?
Cash is dropping fast, debt is rising, and most assets are intangibles that could lose value. Retained losses are huge, and liquidity is getting tight.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q4-2025 | $0 | $-367.42K ▼ | $-215.15K ▲ | $-88.44K ▼ | $-691.5K ▼ | $-582.57K ▼ |
| Q3-2025 | $0 ▲ | $-148.91K ▲ | $-282.83K ▲ | $1.16M ▲ | $717.89K ▲ | $-431.74K ▲ |
| Q1-2025 | $-55.45K ▼ | $-291.04K ▼ | $-355.38K ▲ | $761.09K ▲ | $133.5K ▲ | $-646.42K ▼ |
| Q4-2024 | $0 ▲ | $113.35K ▲ | $-492.94K ▼ | $150.77K ▼ | $-208.72K ▲ | $-379.59K ▲ |
| Q3-2024 | $-661.7K | $-234.58K | $-483.42K | $493.9K | $-239.99K | $-718K |
What's strong about this company's cash flow?
Last quarter, the company was able to raise a large amount of cash by issuing stock, showing some ability to attract outside funding. No debt dependency, as they are paying down debt.
What are the cash flow concerns?
Operations are burning more cash each quarter, and free cash flow is deeply negative. Without new funding, the company will run out of cash soon, and there is no sign of improving cash generation.
5-Year Trend Analysis
A comprehensive look at Locafy Limited's financial evolution and strategic trajectory over the past five years.
Key positives include a distinctive technology platform for automated, entity‑based local SEO, supported by patents and a large business listings dataset. The company has crafted a scalable, partner‑centric distribution model that can, in principle, reach many end‑customers through a relatively small organization. On the financial side, near‑term liquidity has improved, leverage appears manageable, and cost controls have begun to reduce overhead intensity, at least marginally. The shift to positive gross profit, even if partly accounting‑driven, shows that the direct cost of delivering the service is not the main constraint.
The main concerns are persistent and sizable losses, chronically negative operating and free cash flow, and a recent reversal in revenue growth. Accumulated losses have eroded retained earnings, the asset base is increasingly dominated by intangibles, and the company has shifted from net cash to net debt, all of which point to financial fragility. The competitive landscape is crowded, customers can switch providers relatively easily, and rapid changes in search technology create ongoing execution risk. Finally, the apparent halt in reported R&D spending raises the possibility of underinvestment in innovation at exactly the time when the company’s differentiation depends on staying ahead in AI‑driven search.
Looking forward, Locafy appears to be in a high‑risk, high‑uncertainty phase. Its future will largely depend on whether it can stabilize and then re‑ignite revenue growth by successfully scaling its AI‑powered SEO and voice products through its partner network, while at the same time narrowing operating losses and reducing cash burn. If adoption and retention improve, the existing technology base and partnerships could support a more sustainable model; if not, continued reliance on external capital could become increasingly challenging. Overall, the qualitative story around innovation is promising, but the current financial track record does not yet show a clear path to durable profitability or self‑funded growth.
About Locafy Limited
https://www.locafy.comLocafy Limited operates as a software-as-a-service company (SaaS) that specializes in search engine marketing in Australia, New Zealand, Europe, North America, and internationally. The company operates in three segments: Publishing, Direct Sales, and Reseller Sales. It focuses on commercializing its SaaS online publishing technology platform that comprises an integrated suite of solutions.
Income Statement
| Period | Revenue | Operating Expense | Net Income | Net Profit Margin | Earnings Per Share | EBITDA |
|---|---|---|---|---|---|---|
| Q4-2025 | $828.57K ▲ | $1.62M ▲ | $-835.25K ▼ | -100.81% ▼ | $-0.46 | $-434.73K ▼ |
| Q3-2025 | $816.45K ▲ | $1.48M ▲ | $-817.19K ▼ | -100.09% ▼ | $-0.46 ▼ | $-255.71K ▼ |
| Q1-2025 | $785.17K ▼ | $824.9K ▼ | $-55.45K ▲ | -7.06% ▲ | $-0.04 ▲ | $412.33K ▲ |
| Q4-2024 | $1.2M ▲ | $2.09M ▲ | $-900.1K ▼ | -74.79% ▼ | $-0.66 ▼ | $-524.96K ▼ |
| Q3-2024 | $911.84K | $606.75K | $-661.7K | -72.57% | $-0.51 | $-281.94K |
What's going well?
Revenue is steady and the company eliminated interest expense this quarter, which helps reduce financial pressure. There are no one-time charges distorting the results.
What's concerning?
Operating expenses are rising much faster than sales, leading to bigger losses. The company is burning cash and has no clear path to profitability, with minor share dilution adding to the risks.
Balance Statement
| Period | Cash & Short-term | Total Assets | Total Liabilities | Total Equity |
|---|---|---|---|---|
| Q4-2025 | $594.67K ▼ | $5.83M ▼ | $2M ▲ | $3.83M ▼ |
| Q3-2025 | $1.29M ▲ | $6.17M ▼ | $1.81M ▼ | $4.36M ▲ |
| Q1-2025 | $409.38K ▲ | $6.76M ▲ | $2.65M ▼ | $4.11M ▲ |
| Q4-2024 | $275.88K ▼ | $6.16M ▼ | $2.85M ▼ | $3.31M ▼ |
| Q3-2024 | $484.59K | $7.2M | $3.34M | $3.87M |
What's financially strong about this company?
The company still has positive equity and manageable overall debt compared to its size. Customers are prepaying more, which helps with cash flow.
What are the financial risks or weaknesses?
Cash is dropping fast, debt is rising, and most assets are intangibles that could lose value. Retained losses are huge, and liquidity is getting tight.
Cash Flow Statement
| Period | Net Income | Cash From Operations | Cash From Investing | Cash From Financing | Net Change | Free Cash Flow |
|---|---|---|---|---|---|---|
| Q4-2025 | $0 | $-367.42K ▼ | $-215.15K ▲ | $-88.44K ▼ | $-691.5K ▼ | $-582.57K ▼ |
| Q3-2025 | $0 ▲ | $-148.91K ▲ | $-282.83K ▲ | $1.16M ▲ | $717.89K ▲ | $-431.74K ▲ |
| Q1-2025 | $-55.45K ▼ | $-291.04K ▼ | $-355.38K ▲ | $761.09K ▲ | $133.5K ▲ | $-646.42K ▼ |
| Q4-2024 | $0 ▲ | $113.35K ▲ | $-492.94K ▼ | $150.77K ▼ | $-208.72K ▲ | $-379.59K ▲ |
| Q3-2024 | $-661.7K | $-234.58K | $-483.42K | $493.9K | $-239.99K | $-718K |
What's strong about this company's cash flow?
Last quarter, the company was able to raise a large amount of cash by issuing stock, showing some ability to attract outside funding. No debt dependency, as they are paying down debt.
What are the cash flow concerns?
Operations are burning more cash each quarter, and free cash flow is deeply negative. Without new funding, the company will run out of cash soon, and there is no sign of improving cash generation.
5-Year Trend Analysis
A comprehensive look at Locafy Limited's financial evolution and strategic trajectory over the past five years.
Key positives include a distinctive technology platform for automated, entity‑based local SEO, supported by patents and a large business listings dataset. The company has crafted a scalable, partner‑centric distribution model that can, in principle, reach many end‑customers through a relatively small organization. On the financial side, near‑term liquidity has improved, leverage appears manageable, and cost controls have begun to reduce overhead intensity, at least marginally. The shift to positive gross profit, even if partly accounting‑driven, shows that the direct cost of delivering the service is not the main constraint.
The main concerns are persistent and sizable losses, chronically negative operating and free cash flow, and a recent reversal in revenue growth. Accumulated losses have eroded retained earnings, the asset base is increasingly dominated by intangibles, and the company has shifted from net cash to net debt, all of which point to financial fragility. The competitive landscape is crowded, customers can switch providers relatively easily, and rapid changes in search technology create ongoing execution risk. Finally, the apparent halt in reported R&D spending raises the possibility of underinvestment in innovation at exactly the time when the company’s differentiation depends on staying ahead in AI‑driven search.
Looking forward, Locafy appears to be in a high‑risk, high‑uncertainty phase. Its future will largely depend on whether it can stabilize and then re‑ignite revenue growth by successfully scaling its AI‑powered SEO and voice products through its partner network, while at the same time narrowing operating losses and reducing cash burn. If adoption and retention improve, the existing technology base and partnerships could support a more sustainable model; if not, continued reliance on external capital could become increasingly challenging. Overall, the qualitative story around innovation is promising, but the current financial track record does not yet show a clear path to durable profitability or self‑funded growth.
CEO
Gavin Burnett
Compensation Summary
(Year )
Split Record
| Date | Type | Ratio |
|---|---|---|
| 2022-12-08 | Reverse | 1:20 |
Ratings Snapshot
Rating : C-