Locafy (LCFY) Q3 2025 earnings summary

Executive summary

• Expanded U.S. presence via strategic partnerships and enterprise wins, including high-value, multi-year agreements in the U.S. and APAC.

• Launched AI-powered SEO product suite, notably Localizer, targeting multi-location businesses and driving rapid market adoption.

• Secured large agency and enterprise clients, creating a scalable, high-margin recurring revenue pipeline.

• Partner-led go-to-market model established, positioning for accelerated growth and improved operational efficiency.

Financial highlights

• Total operating revenue for the nine months ended March 31, 2025, was $2.4 million, down from $2.9 million year-over-year.

• Subscription revenue was $2.2 million (vs. $2.6 million), advertising revenue $117,000 (vs. $213,000), and services revenue $47,000 (vs. $126,000, or $25,000 adjusted).

• Other income rose to $257,000 from $32,000, mainly due to R&D tax incentive rebates.

• Operating expenses were $6.0 million, including a one-time $1.4 million share-based payment; excluding this, expenses were $4.6 million.

• Net loss totaled $3.5 million ($2.19 per share), compared to $2.1 million ($1.63 per share) year-over-year.

Outlook and guidance

• Focus on converting operational momentum into sustained revenue growth through partner-led model and expanding enterprise pipeline.

• Revenue generation from new U.S. and Australian agency partnerships expected to begin in September 2025, with significant scalability potential.

• Anticipates capturing market share, improving margins, and advancing toward profitability in fiscal 2026.