Free cash flow remains deeply negative at -70.3% of revenue in 2025Q4, indicating that the firm's capital expenditure requirements continue to outpace its ability to generate internal cash.
| Cash from Operations | -688.67K | -1.11M | -2.26M | -4.24M | -496.03K | -1.48M |
| Operating CF Margin % | -21.5% | -26.81% | -42.05% | -100.42% | -22.64% | -74.78% |
| Operating CF Growth % | 38.12% | 50.78% | 46.68% | -754.87% | 66.59% | - |
| Net Income | -2.79M | 0 | -3.89M | -5.84M | -995.77K | -2.32M |
| Depreciation & Amortization | 0 | 0 | 0 | 852.36K | 0 | 0 |
| Stock-Based Compensation | 0 | 0 | 0 | 359.54K | 0 | 30.8K |
| Deferred Taxes | 0 | 0 | 0 | 822.53K | 0 | 0 |
| Other Non-Cash Items | -688.67K | -1.28M | 2.41M | 745.72K | 499.74K | 806.44K |
| Working Capital Changes | 0 | 167.9K | -774.97K | -1.18M | 0 | 0 |
| Change in Receivables | 0 | -22.88K | -780.32K | -1.18M | 0 | 0 |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -1.88M | -2.13M | -1.62M | -2.01M | -442.42K | -54.14K |
| Capital Expenditures | -1.88M | -2.17M | -2.17K | -2.01M | -442.42K | -54.14K |
| CapEx % of Revenue | 58.57% | 52.19% | 0.04% | 47.49% | 20.19% | 2.73% |
| Acquisitions | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - |
| Other Investing | 0 | -2.17M | -1.62M | 0 | 0 | 0 |
| Cash from Financing | 2.89M | 341.13K | 2.85M | 9.18M | 1.43M | 1.4M |
| Debt Issued (Net) | -206.51K | -115.17K | -32.67K | -59.42K | -17.79K | -13.23K |
| Equity Issued (Net) | 3.26M | 769.94K | 3.3M | 9.98M | 1.74M | 1.5M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | -800K |
| Other Financing | -164.69K | -313.64K | -409.87K | -736.93K | -294.22K | -89.85K |
| Net Change in Cash | 318.8K | -2.9M | -909.03K | 3.43M | 489.54K | -140.76K |
| Free Cash Flow | -2.56M | -3.28M | -3.88M | -4.24B | -938.45K | -1.54M |
| FCF Margin % | -80.07% | -79% | -72.17% | -100467.77% | -42.82% | -77.5% |
| FCF Growth % | 21.8% | 15.49% | 99.91% | -451967.07% | 39.01% | - |
| FCF per Share | -1.43 | -2.52 | -3.68 | -4133.16 | -0.91 | -1.50 |
| FCF Conversion (FCF/Net Income) | 0.16x | 0.37x | 0.58x | 0.83x | 0.50x | 0.64x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 |
Insufficient liquidity and churn
According to recent financial disclosures, LCFY's operating cash flow consistently trails net income, with the OCF/NI ratio fluctuating wildly, including a notable 0.44 reading in 2025Q4, which suggests that reported accounting losses are not fully capturing the underlying cash burn required to sustain the platform's operations.
The persistent gap between net income and operating cash flow indicates that the company's accrual-based earnings are failing to reflect the actual cash requirements of the business. Investors should monitor this divergence, as it suggests that the firm's operational model is fundamentally cash-negative regardless of how non-cash items are treated in the income statement.
As reported in quarterly filings, LCFY's free cash flow margins remain deeply negative, reaching -70.3% in 2025Q4, which highlights a structural inability to generate self-sustaining cash flow despite the company's attempts to scale its programmatic SEO platform across diverse international markets.
The trajectory of free cash flow suggests that the company is trapped in a cycle of high capital intensity relative to its shrinking revenue base. This trend warrants further investigation into whether the current level of spending is truly necessary for growth or if it represents an inefficient allocation of limited capital.
Based on the provided data, LCFY's capital expenditure as a percentage of revenue has remained elevated, peaking at 74.2% in 2024Q2, which indicates that the firm is heavily reinvesting in its platform infrastructure despite a clear and persistent contraction in top-line performance.
The high ratio of CapEx to revenue suggests that the company is prioritizing platform development over immediate profitability. This strategy appears increasingly risky given the lack of revenue growth, as it implies that the firm is betting on future technological efficacy that has yet to materialize in the form of stable cash inflows.
Financial statements indicate that LCFY has no capacity for dividends or share repurchases, with all available cash resources being consumed by operating losses and capital expenditures, leaving the company with a precarious cash balance of approximately $594,671 as of the most recent reporting period.
The absence of capital return programs is a logical outcome of the company's current burn rate and lack of operational profitability. Investors should monitor the company's liquidity position closely, as the current deployment strategy is entirely focused on survival rather than shareholder value creation.
Quick answers to the most common questions about buying LCFY stock.
Locafy Ltd (LCFY) generated $-0.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Locafy Ltd (LCFY) reported negative free cash flow of $2.6M in 2025, indicating capital requirements exceeded cash from operations.
Locafy Ltd (LCFY) spent $1.9M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.