Breaking Down Leafly Holdings, Inc. (LFLY) Financial Health: Key Insights for Investors

As investors, we're always seeking to understand the financial health of companies we consider investing in. Have you ever wondered how Leafly Holdings, Inc. (LFLY), a prominent name in the online cannabis marketplace, is performing? In 2024, the company faced a challenging year with an annual revenue of $34.64 million, marking an 18.01% decrease from the previous year. While the company reported a net loss of $5.7 million, it's worth noting that this is an improvement compared to the net loss of $9.5 million in the prior year, thanks to cost-saving measures. With total assets of A$32.55 Million and total debt of C$40.67 Million as of December 2024, let's dive deeper into Leafly's financials to uncover key insights for investors.

Leafly Holdings, Inc. (LFLY) Revenue Analysis

Leafly Holdings, Inc. (LFLY) generates revenue primarily through marketplace revenue and services revenue. Marketplace revenue is derived from cannabis retailers and brands that pay a fee to list products on Leafly's platform. Services revenue comes from subscriptions and advertising services provided to cannabis businesses.

Analyzing Leafly's revenue streams reveals important insights into the company's financial performance. Here's a breakdown:

• Primary Revenue Sources: Marketplace revenue from cannabis retailers and brands, and services revenue from subscriptions and advertising.
• Year-over-Year Revenue Growth Rate: For the year 2023, Leafly reported total revenue of $45.5 million, which represents a decrease of 11% compared to the $51.1 million in 2022.
• Contribution of Business Segments: In 2023, marketplace revenue accounted for a substantial portion of the total revenue, while services revenue contributed the remainder.
• Significant Changes in Revenue Streams: The decrease in revenue in 2023 was primarily driven by a decline in retail advertising revenue due to challenging macroeconomic conditions and industry-specific headwinds.

To provide a clearer picture, here's a table summarizing Leafly's revenue performance:

The 11% decrease in revenue for 2023 is a critical point for investors. This decline is attributed to reduced retail advertising revenue, reflecting broader economic challenges and specific pressures within the cannabis industry. Understanding these factors is essential for assessing Leafly's financial health and future prospects.

For additional insights, you can explore: Breaking Down Leafly Holdings, Inc. (LFLY) Financial Health: Key Insights for Investors

Leafly Holdings, Inc. (LFLY) Profitability Metrics

Analyzing Leafly Holdings, Inc.'s (LFLY) profitability involves examining several key metrics to understand its financial health and operational efficiency. These include gross profit, operating profit, and net profit margins, which provide insights into the company's ability to generate earnings from its revenue and manage its expenses.

As of the fiscal year 2024 data, here's a breakdown of what to look for in Leafly's profitability metrics:

• Gross Profit: This is the revenue remaining after deducting the cost of goods sold (COGS). It indicates how efficiently Leafly manages its production costs relative to its revenue.
• Operating Profit: This metric subtracts operating expenses (such as salaries, rent, and marketing) from the gross profit. It reflects the profitability of Leafly's core business operations before considering interest and taxes.
• Net Profit: This is the profit remaining after all expenses, including interest and taxes, have been deducted from revenue. It represents Leafly's bottom-line profitability.

To assess the trends in Leafly's profitability over time, one might consider:

• Historical Data: Examining past financial statements to identify patterns in gross, operating, and net profit margins.
• Quarterly and Annual Reports: Comparing profitability ratios across different periods to understand the company's performance trajectory.

When comparing Leafly's profitability ratios with industry averages, consider these points:

• Benchmarking: Comparing Leafly's margins with those of its competitors and the industry as a whole to gauge its relative performance.
• Industry-Specific Factors: Taking into account the unique characteristics of the cannabis industry, such as regulatory challenges and market dynamics, which can impact profitability.

Analyzing operational efficiency involves:

• Cost Management: Evaluating Leafly's ability to control its costs of goods sold and operating expenses.
• Gross Margin Trends: Monitoring the trend in gross margins to identify improvements or declines in production efficiency.

For example, if Leafly's gross profit margin has increased from 50% in 2022 to 55% in 2024, it indicates that the company has become more efficient in managing its production costs. Similarly, if the operating profit margin has improved from 10% to 15% over the same period, it suggests that Leafly has also become more effective in controlling its operating expenses.

A comprehensive profitability analysis would also involve examining the company's financial statements and comparing its performance with that of its peers. This would provide a more complete picture of Leafly's financial health and its ability to generate sustainable profits.

For additional insights into Leafly's mission and vision, you can explore: Mission Statement, Vision, & Core Values of Leafly Holdings, Inc. (LFLY).

Leafly Holdings, Inc. (LFLY) Debt vs. Equity Structure

Understanding Leafly Holdings, Inc. (LFLY)'s financial health requires a close look at its debt and equity structure. This involves assessing the levels of debt the company holds, how it compares to its equity, and how these factors influence its financial stability and growth prospects. A balanced approach to debt and equity is crucial for sustainable growth.

As of December 31, 2023, Leafly Holdings, Inc. (LFLY) reported the following debt figures:

• Short-term debt: $0
• Long-term debt: $30.0 million

The company's total liabilities amounted to $47.17 million, while total assets were $63.31 million. Stockholders' equity stood at $16.14 million.

The debt-to-equity ratio is a key metric in evaluating a company's financial leverage. Leafly Holdings, Inc. (LFLY)'s debt-to-equity ratio can be calculated as follows:

Debt-to-Equity Ratio = Total Liabilities / Stockholders' Equity

Using the figures from December 31, 2023:

Debt-to-Equity Ratio = $47.17 million / $16.14 million ≈ 2.92

A debt-to-equity ratio of approximately 2.92 indicates that Leafly Holdings, Inc. (LFLY) has about $2.92 in liabilities for every $1 of equity. This ratio is relatively high, suggesting that the company relies more on debt financing compared to equity. It is important to compare this ratio with industry standards to determine whether it is within a reasonable range. Different industries have different capital structures, so a direct comparison provides more context.

Recent activities, such as debt issuances, credit ratings, or refinancing, can significantly impact a company's financial structure. As of now, specific details on recent debt issuances, credit ratings, or refinancing activities for Leafly Holdings, Inc. (LFLY) were not readily available in the provided search results. Further investigation into the company's financial filings and news releases would be needed to provide a comprehensive overview.

Leafly Holdings, Inc. (LFLY) needs to strike a balance between debt and equity to fund its operations and growth. While debt financing can provide capital without diluting equity, it also introduces fixed interest payments and the risk of financial distress if the company cannot meet its obligations. Equity funding, on the other hand, does not require fixed payments but can dilute existing shareholders' ownership. The optimal mix depends on the company's growth strategy, risk tolerance, and market conditions.

Balancing debt and equity is crucial for Leafly Holdings, Inc. (LFLY)'s long-term financial health. Monitoring these components helps investors assess the company's stability and growth potential. For additional insights, you can explore: Breaking Down Leafly Holdings, Inc. (LFLY) Financial Health: Key Insights for Investors.

Leafly Holdings, Inc. (LFLY) Liquidity and Solvency

When evaluating Leafly Holdings, Inc.'s financial health, understanding its liquidity and solvency is crucial for investors. Liquidity refers to the company's ability to meet its short-term obligations, while solvency assesses its ability to meet long-term liabilities.

Assessing Leafly Holdings, Inc.'s Liquidity:

Analyzing Leafly's liquidity involves examining several key financial ratios and statements:

• Current and Quick Ratios: These ratios provide insights into Leafly's ability to cover its current liabilities with its current assets. The current ratio is calculated by dividing current assets by current liabilities, while the quick ratio excludes inventories from current assets to provide a more conservative measure.
• Analysis of Working Capital Trends: Monitoring the trend of Leafly's working capital (current assets minus current liabilities) helps in understanding its operational efficiency and short-term financial health.
• Cash Flow Statements Overview: A review of Leafly's cash flow statements, including operating, investing, and financing activities, is essential to evaluate its cash generation and usage.

As of the fiscal year 2024, Leafly Holdings, Inc. (LFLY) reported the following figures:

• Cash and cash equivalents: $15.6 million
• Total Current Assets: $20.9 million
• Total Assets: $63.1 million
• Total Current Liabilities: $26.7 million
• Total Liabilities: $47.2 million

Based on these numbers, we can calculate the following liquidity ratios:

• Current Ratio: Approximately 0.78x (Total Current Assets / Total Current Liabilities = $20.9 million / $26.7 million).

A current ratio of 0.78x indicates that Leafly's current assets are not sufficient to cover its current liabilities. Generally, a current ratio of 1 or higher is preferred, suggesting that the company has enough liquid assets to cover its short-term liabilities.

The following table summarizes Leafly's cash flow activities for the year 2024:

The cash flow statement reveals that Leafly used $23.9 million in operating activities and $0.2 million in investing activities. Financing activities provided $1.1 million. Overall, there was a net decrease of $23.1 million in cash and cash equivalents.

Potential Liquidity Concerns and Strengths:

• Concerns: The negative cash flow from operating activities and a current ratio below 1 raise concerns about Leafly's short-term liquidity. The company is using more cash than it is generating from its operations.
• Strengths: While the cash flow from operations is negative, the company still has some cash reserves.

For further insights into Leafly's investor profile, you might find this resource helpful: Exploring Leafly Holdings, Inc. (LFLY) Investor Profile: Who’s Buying and Why?

Leafly Holdings, Inc. (LFLY) Valuation Analysis

Determining whether Leafly Holdings, Inc. (LFLY) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. Here's a breakdown of essential valuation metrics:

Price-to-Earnings (P/E) Ratio: As Leafly Holdings, Inc. (LFLY) does not currently have positive earnings, the P/E ratio is not applicable for valuation purposes. This is because the P/E ratio is calculated by dividing the stock price by earnings per share, and negative or non-existent earnings render this metric unusable.

Price-to-Book (P/B) Ratio: The P/B ratio compares a company's market capitalization to its book value of equity. As of now, Leafly Holdings, Inc.'s (LFLY) P/B ratio is not available, suggesting that either the data is not reported or is not meaningful in the context of the company's financial situation.

Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The EV/EBITDA ratio is used to assess a company's valuation relative to its earnings before interest, taxes, depreciation, and amortization. Similar to the P/E ratio, if a company has negative EBITDA, the EV/EBITDA ratio is not a reliable indicator of valuation. For Leafly Holdings, Inc. (LFLY), the current EV/EBITDA ratio is not applicable due to negative EBITDA.

Stock Price Trends: Analyzing the stock price trends provides insights into market sentiment and investor confidence. Over the past year, Leafly Holdings, Inc. (LFLY) has shown a volatile stock performance. As of April 18, 2025, the stock traded at $1.40. The 52-week high was $4.70, while the 52-week low was $1.14. This indicates significant price fluctuation, reflecting the speculative nature of the stock and potential sensitivity to market news and company announcements.

Dividend Yield and Payout Ratios: As Leafly Holdings, Inc. (LFLY) does not currently pay dividends, dividend yield and payout ratios are not applicable. The company is likely prioritizing reinvesting earnings to fuel growth rather than distributing dividends.

Analyst Consensus: Analyst consensus provides a summarized view of professional opinions on the stock. The consensus for Leafly Holdings, Inc. (LFLY) is currently a 'hold' rating, with a price target of $2.00. This suggests that analysts, on average, believe the stock is fairly valued at its current levels, with a modest potential upside based on the price target. However, it's essential to consider that analyst ratings can vary and should be used as one component of a broader investment analysis.

For more detailed insights, you can refer to: Breaking Down Leafly Holdings, Inc. (LFLY) Financial Health: Key Insights for Investors

Leafly Holdings, Inc. (LFLY) Risk Factors

Leafly Holdings, Inc. (LFLY) faces a variety of risks that could significantly impact its financial health. These risks span internal operational challenges and external market dynamics. Investors should be aware of these potential pitfalls when evaluating LFLY's prospects.

Here’s an overview of key risks:

• Industry Competition: The cannabis industry is intensely competitive. LFLY faces competition from other online cannabis platforms, as well as traditional brick-and-mortar dispensaries. This competition could pressure LFLY's pricing and market share.
• Regulatory Changes: The cannabis industry is subject to evolving and often unpredictable regulations. Changes in laws regarding cannabis use, sales, and advertising could significantly impact LFLY's ability to operate and grow.
• Market Conditions: General economic downturns or shifts in consumer preferences could negatively affect the demand for cannabis products and, consequently, LFLY's revenue.

Operational, financial, and strategic risks are often detailed in Leafly Holdings, Inc.'s earnings reports and filings. These documents provide insights into the company's perspective on its most pressing challenges. While specific details from 2024 reports would offer the most current view, it's crucial to consult those resources directly for an in-depth understanding.

Examples of risks discussed in filings might include:

• Operational Risks: Difficulties in managing growth, maintaining platform reliability, or ensuring data security.
• Financial Risks: The need to raise additional capital, manage cash flow, or achieve profitability.
• Strategic Risks: The ability to adapt to changing market trends, successfully integrate acquisitions, or maintain a competitive edge.

Mitigation strategies are sometimes outlined in company communications. These plans may involve efforts to diversify revenue streams, improve operational efficiency, strengthen relationships with regulators, or enhance the user experience on LFLY's platform. However, the effectiveness of these strategies is not guaranteed.

For additional insights into Leafly Holdings, Inc.'s mission, vision, and core values, you can explore: Mission Statement, Vision, & Core Values of Leafly Holdings, Inc. (LFLY).

Leafly Holdings, Inc. (LFLY) Growth Opportunities

Leafly Holdings, Inc. (LFLY) faces a dynamic landscape with several factors influencing its future growth. Analysis of these drivers, along with strategic initiatives, is crucial for investors.

Key growth drivers for Leafly include:

• Product Innovations: Enhancing their platform with new features and tools for both consumers and retailers.
• Market Expansions: Targeting new geographic markets as cannabis legalization evolves.
• Acquisitions: Strategically acquiring complementary businesses to expand service offerings and market reach.

While specific future revenue growth projections and earnings estimates are subject to market conditions and company performance, several strategic initiatives could significantly drive growth:

• Partnerships: Collaborating with cannabis brands and retailers to enhance platform offerings and drive user engagement.
• Technological Advancements: Investing in technology to improve user experience, data analytics, and platform efficiency.
• Regulatory Changes: Capitalizing on favorable regulatory changes in key markets to expand operations and increase market share.

Leafly's competitive advantages that position the company for growth are:

• Brand Recognition: Established brand name and reputation in the cannabis industry.
• Extensive Data: Access to a wealth of data on cannabis strains, products, and consumer preferences.
• Comprehensive Platform: Offering a comprehensive platform that connects consumers, retailers, and brands.

For more detailed insights into Leafly Holdings, Inc.'s financial health, you can refer to this analysis: Breaking Down Leafly Holdings, Inc. (LFLY) Financial Health: Key Insights for Investors