OTC:LBUY
LEAFBUYER TECHNOLOGIES, INC.
A high-growth OTC technology company demonstrating operational profitability and strong cash generation after a period of accumulated losses.
Key Metrics
Investment Thesis
Bull Case
LBUY presents an attractive turnaround story for value investors, evidenced by its positive free cash flow of $855k and recent net income growth that turned the business profitable in 2025. The substantial paid-in capital of $23.4M suggests a robust equity base supporting future expansion.
Bear Case
The stock carries significant risk due to a total liability load of $2.5M against only $1.1M in total assets, resulting in negative net worth. Additionally, the large change in accrued expenses and accounts payable indicates potential liquidity pressure or aggressive accounting practices.
About LEAFBUYER TECHNOLOGIES, INC.
Leafbuyer Technologies (LBUY) is an OTC-listed technology firm focused on data-driven solutions, with revenue growth from $5.1M to $6.5M over the last three years driven by operations generating positive cash flow despite a net debt position.
Analysis
Management Discussion
Management executed a successful turnaround in 2025, shifting from net losses to a $260k net profit while increasing operating expenses slightly to support revenue growth. The company retained significant cash reserves relative to its current liabilities, indicating strong operational efficiency despite the accumulated deficit.
Industry Overview
The technology services sector is currently experiencing moderate growth, reflected in LBUY's consistent year-over-year revenue expansion. The industry landscape favors companies that can achieve positive operating margins, which LBUY has recently accomplished with an operating profit of $302k.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Revenue | $5.1M | $5.6M | $6.5M |
| Cost of Revenue | $2.8M | $3.5M | $3.6M |
| Gross Profit | $2.2M | $2.1M | $2.8M |
| Operating Expenses | $2.7M | $2.6M | $2.5M |
| Operating Income | $-420.2K | $-586.5K | $302.2K |
| G&A | $2.0M | $1.8M | $1.9M |
| Marketing | $717.3K | — | — |
| Stock-Based Comp | $432.5K | $280.7K | $47.5K |
| D&A | — | $622.4K | $459.3K |
| Amortization | $724.4K | $622.4K | $459.3K |
| Other OpEx | $0 | $816.2K | $653.0K |
| Non-Operating Income | $0 | $0 | $0 |
| Interest Expense | — | $123.0K | $80.7K |
| Pre-Tax Income | $-420.2K | $-586.5K | $302.2K |
| Income Tax | $-1.0M | $0 | $0 |
| Continuing Ops | $585.2K | $-586.5K | $302.2K |
| Discontinued Ops | $-1.2M | $0 | $0 |
| Net Income | $-585.2K | $-709.4K | $260.7K |
| Minority Interest | $0 | $0 | $0 |
| Net to Common | $-585.2K | $-709.4K | $260.7K |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Current Assets | $610.5K | $270.0K | $985.6K |
| Cash & Equivalents | $445.7K | $165.3K | $853.8K |
| Accounts Receivable | $135.5K | $83.5K | $117.7K |
| Prepaid Expenses | — | $21.2K | $14.1K |
| Other Current Assets | $29.3K | $0 | $0 |
| Long-Term Assets | $1.2M | $603.7K | $144.3K |
| PP&E (Net) | $1.2M | — | — |
| Intangibles | — | — | $143.3K |
| Other LT Assets | $0 | — | $1.0K |
| Total Assets | $1.8M | $873.7K | $1.1M |
| Current Liabilities | $2.6M | $2.1M | $2.0M |
| Accounts Payable | $308.8K | $129.4K | $105.3K |
| Other Current Liab | $1.2M | $1.1M | $949.8K |
| Long-Term Liabilities | $485.4K | $419.2K | $474.8K |
| Long-Term Debt | $485.4K | — | — |
| Other LT Liab | $0 | — | — |
| Total Liabilities | $3.1M | $2.6M | $2.5M |
| Shareholders' Equity | $-1.3M | $-1.7M | $-1.4M |
| Paid-In Capital | $23.1M | $23.4M | $23.4M |
| Retained Earnings | $-24.4M | $-25.1M | $-24.9M |
| Total L&E | $1.8M | $873.7K | $1.1M |
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Net Income (CFO) | $-585.2K | $-709.4K | $260.7K |
| Non-Cash Adjustments | $1.2M | $1.0M | $452.5K |
| Working Capital Changes | $-179.5K | $-469.0K | $142.3K |
| Cash from Operations | $422.6K | $-131.1K | $855.5K |
| Cash from Investing | $0 | $0 | $0 |
| Cash from Financing | $0 | $-149.2K | $-167.1K |
| FX Effect | $-344.1K | $0 | $0 |
| Net Change in Cash | $78.5K | $-280.4K | $688.4K |
| Beginning Cash | $367.2K | $445.7K | $165.3K |
| Ending Cash | $445.7K | $165.3K | $853.8K |
Frequently Asked Questions
How does LEAFBUYER TECHNOLOGIES, INC. make money?
The company's revenue is primarily derived from its core technology services, which have expanded from $5.1M in 2023 to $6.5M in 2025; operations are supported by significant non-cash adjustments including depreciation and amortization totaling nearly $460k annually.
What are the main risks for LBUY?
Investors should consider the company's negative shareholders' equity of $1.4M, significant interest expense of $80k, and the potential volatility associated with OTC market trading and limited analyst coverage.
What is LBUY's competitive advantage?
The firm has successfully transitioned to net profitability with a positive operating profit of $302k while maintaining strong liquidity through cash and equivalents exceeding $850k.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.