The company exhibits a structural revenue erosion trend, highlighted by a 31.2% year-over-year decline in 2025Q4 and an operating margin of -95.5% that reflects a failure to achieve necessary scale.
| Sales/Revenue | 3.2M | 4.15M | 5.38M | 4.22M | 2.19M | 1.99M |
| Revenue Growth % | -22.85% | -22.79% | 27.33% | 92.69% | 10.38% | - |
| Cost of Goods Sold | 0 | 0 | 6.99M | 6.22M | 3.01M | 3.37M |
| COGS % of Revenue | - | - | 129.94% | 147.24% | 137.4% | 169.66% |
| Gross Profit | 3.2M | 4.15M | -1.61M | -1.99M | -819.68K | -1.38M |
| Gross Margin % | 100% | 100% | -29.94% | -47.24% | -37.4% | -69.66% |
| Gross Profit Growth % | -22.85% | 357.91% | 19.31% | -143.35% | 40.73% | - |
| Operating Expenses | 7.34M | 7.03M | 2.18M | 2.35M | 117.17K | 4.19M |
| OpEx % of Revenue | 229.16% | 169.24% | 40.48% | 55.59% | 5.35% | 210.99% |
| Selling, General & Admin | 4.31M | 4.43M | 6.62M | 6.77M | 2.88M | 3.43M |
| SG&A % of Revenue | 134.45% | 106.66% | 123.11% | 160.33% | 131.48% | 172.8% |
| Research & Development | 0 | 0 | 1.72M | 1.81M | 651.64K | 979.16K |
| R&D % of Revenue | - | - | 31.97% | 42.76% | 29.74% | 49.32% |
| Other Operating Expenses | 3.03M | 2.6M | -6.16M | -6.23M | -3.42M | -220.91K |
| Operating Income | -4.14M | -2.87M | -3.79M | -4.34M | -936.85K | -2.21M |
| Operating Margin % | -129.16% | -69.24% | -70.42% | -102.83% | -42.75% | -111.48% |
| Operating Income Growth % | -43.92% | 24.09% | 12.8% | -363.48% | 57.67% | - |
| EBITDA | -2.46M | -1.4M | -2.43M | -3.49M | -539.35K | -1.85M |
| EBITDA Margin % | -76.79% | -33.73% | -45.21% | -82.64% | -24.61% | -93.2% |
| EBITDA Growth % | -75.64% | 42.4% | 30.34% | -547.04% | 70.85% | - |
| D&A (Non-Cash Add-back) | 1.68M | 1.47M | 1.36M | 852.36K | 397.51K | 362.92K |
| EBIT | -4.16M | -2.91M | -3.85M | -4.36M | -955.66K | -2.24M |
| Net Interest Income | -155.85K | -78.46K | -105.37K | -748.19K | -58.91K | -108.47K |
| Interest Income | 0 | 0 | 0 | 734.8K | 40.11K | 86.13K |
| Interest Expense | 155.85K | 78.46K | 105.37K | 734.8K | 40.11K | 86.13K |
| Other Income/Expense | -177.48K | -114.2K | -105.37K | -748.19K | -58.91K | -108.47K |
| Pretax Income | -4.31M | -2.99M | -3.89M | -5.09M | -995.77K | -2.32M |
| Pretax Margin % | -134.71% | -71.99% | -72.38% | -120.55% | -45.44% | -116.95% |
| Income Tax | 0 | 0 | 0 | 0 | 0 | 0 |
| Effective Tax Rate % | 0% | 0% | 0% | 0% | 0% | 0% |
| Net Income | -4.31M | -2.99M | -3.89M | -5.09M | -995.77K | -2.32M |
| Net Margin % | -134.71% | -71.99% | -72.38% | -120.55% | -45.44% | -116.95% |
| Net Income Growth % | -44.36% | 23.21% | 23.55% | -411.2% | 57.11% | - |
| Net Income (Continuing) | -4.31M | -2.99M | -3.89M | -5.09M | -995.77K | -2.32M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -2.40 | -2.30 | -3.69 | -4.94 | -0.96 | -2.19 |
| EPS Growth % | -4.35% | 37.67% | 25.3% | -412.14% | 55.96% | - |
| EPS (Basic) | -2.40 | -2.30 | -3.69 | -4.94 | -0.96 | -2.19 |
| Diluted Shares Outstanding | 1.8M | 1.3M | 1.05M | 1.03M | 1.03M | 1.03M |
| Basic Shares Outstanding | 1.8M | 1.3M | 1.05M | 1.03M | 1.03M | 1.03M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Insufficient liquidity and churn
As indicated by the most recent quarterly data, LCFY's revenue has experienced a significant 31.2% year-over-year decline, reflecting a broader pattern of top-line erosion that suggests the company is struggling to maintain its market position within the competitive local search and digital marketing services landscape.
The consistent downward trajectory in quarterly revenue suggests that the company's programmatic SEO model is failing to gain traction or retain its existing client base. This contraction appears to be exacerbated by a reliance on third-party reseller channels, which may be deprioritizing the platform in favor of more stable or higher-performing alternatives.
Based on reported financial statements, LCFY exhibits a 100% gross margin, a figure that appears to be a structural accounting anomaly likely resulting from the classification of all platform-related hosting and API costs within operating expenses rather than as direct costs of revenue generation.
This reporting structure obscures the true unit economics of the platform, making it difficult to assess the actual variable cost of service delivery. Investors should monitor whether this classification is intended to mask the underlying inefficiency of the programmatic content generation engine.
According to recent SEC filings, LCFY's operating margin of -95.5% in the latest quarter highlights a failure to achieve the necessary scale to amortize fixed costs, as the company continues to burn capital despite the absence of significant cost of goods sold on the income statement.
The inability to scale operating income alongside revenue suggests that the company's cost structure is largely inelastic and poorly aligned with its current revenue generation capacity. Without a substantial pivot in top-line growth, the current operating leverage profile appears unsustainable for long-term viability.
Financial data reveals that LCFY maintains a high fixed cost base relative to its shrinking revenue, with SG&A expenses consistently consuming the majority of the company's gross profit, thereby preventing any path toward operational break-even under the current business model and expense management framework.
The company's reliance on fixed personnel and administrative overhead in the face of declining billings indicates a lack of expense discipline. This cost structure warrants further investigation into whether management can implement meaningful reductions before the company's limited cash reserves are fully exhausted.
As reported in financial statements, the company's reliance on programmatic content generation faces significant headwinds, as evidenced by the 31.2% revenue decline, which may indicate that search engine algorithm updates are increasingly penalizing the automated landing pages that form the core of LCFY's value proposition.
Short-term observers should be wary of the assumption that the company's technology provides a defensible moat. If the core product is susceptible to search engine de-indexing or quality penalties, the current revenue base may be at risk of further, more rapid deterioration.
Quick answers to the most common questions about buying LCFY stock.
For fiscal year 2025, Locafy Limited (LCFY) reported total revenue of $3.2M. This represents a 61.3% increase compared to $2.0M in 2020.
Locafy Limited (LCFY) reported a net loss of $4.3M for the fiscal year ending 2025.
Locafy Limited (LCFY) reported an operating income of $-4.1M, resulting in an operating profit margin of -129.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Locafy Limited (LCFY) generated $3.2M in gross profit for the year, representing a gross profit margin of 100.0%. This demonstrates the company's core pricing power and production efficiency.