Leafly's Q2 2023 Earnings Report Highlights Positive EBITDA Amid Revenue Dip

Leafly Holdings Inc. LFLY, an online cannabis discovery marketplace, reported its Q2 2023 financial results Thursday afternoon.

Yoko Miyashita, Leafly’s CEO, attributed the performance to strategic focus and enhanced customer experiences.

"Our second quarter results reflect a continued focus on our strategy and our commitment to building a sustainable path to profitability," Miyashita said. "Our new go-to-market initiatives, coupled with Leafly's strong value proposition have deepened relationships with high-value customers. Just as importantly, we continue to enhance the consumer experience, providing more value with deal types, delivery options, and deeper search capabilities to drive conversion to sales back to retailers and brands."

The company generated $10.7 million in revenue, marking an 11% decline from the same period last year. However, in Q2, Leafly had a positive adjusted EBITDA of $0.1 million.

Second Quarter Financial Results

• Revenue was $10.7 million, down 11% from Q2 2022.
• The gross margin was 88%, consistent with Q2 2022.
• Net loss for Q2 2023 was $1.4 million.
• Net income was $14.8 million for Q2 2022, including a $24.4 million non-cash benefit from derivative liabilities.
• Adjusted EBITDA was positive $0.1 million compared to adjusted EBITDA loss for Q2 2022 of $8.4 million.

Outlook

Leafly forecasts Q3 2023 revenue of approximately $11 million, albeit with an anticipated adjusted EBITDA loss of around $0.5 million.

Price Action

Leafly's shares were trading up 0.03% at $0.30 per share, at the time of writing Thursday evening.

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