Leafly Holdings, Inc. reported a net loss of $5.7 million for the fiscal year ended December 31, 2024, a significant improvement compared to the $9.5 million net loss in 2023. Revenue for 2024 totaled $34.6 million, an 18% decrease from the $42.3 million reported in 2023. This decline stemmed from a 17% decrease in retail revenue to $29.9 million and a 25% drop in brand revenue to $4.7 million. The company attributed these decreases to customer budget constraints, the removal of non-paying customers, and reduced brand advertising spending due to macroeconomic challenges impacting the cannabis industry.
Cost of revenue decreased by 23% to $3.7 million in 2024, primarily due to increased efficiency and lower platform costs. Operating expenses also saw a 23% reduction, falling to $34.1 million, primarily due to cost-cutting measures implemented in 2023, including headcount reductions. The company's total employee count decreased from 131 to 111 during the year. Despite these cost reductions, the company's cash, cash equivalents, and restricted cash decreased to $14.8 million by the end of 2024, compared to $15.5 million at the end of 2023.
Significant developments during the year included the delisting of the company's common stock and warrants from the Nasdaq Capital Market in January 2025, following a failure to meet continued listing standards. The company's securities now trade on the OTC Pink Open Market. Additionally, the company modified its 2022 Notes, extending the maturity date to July 1, 2025, and adding financial maintenance covenants. A 12.5% principal reduction was also implemented. The company also terminated its ATM program and deregistered unsold securities in March 2025.
Key operational developments included a 15% year-over-year decrease in ending retail accounts to 3,480, while retailer average revenue per account increased by 14% to $692. Leafly attracted an average of 5.1 million monthly visitors to its platform in 2024. The company ended the year with 111 employees, 109 of whom were located in the U.S. and 2 in Canada. The company's 2024 revenue was concentrated in Arizona (23%), California (12%), and Oregon (10%), with no other state contributing 10% or more.
The company acknowledged substantial doubt about its ability to continue as a going concern due to its negative working capital, recurring operating losses, and upcoming debt maturity. Management is exploring options to address these concerns, including potentially taking the company private. The company stated that it does not expect to pay cash dividends in the foreseeable future. The company's 10-K filing included numerous risk factors related to its business, industry, and regulatory environment, including the ongoing illegality of cannabis under U.S. federal law.
About Leafly Holdings, Inc. /DE
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.