Lendway Reports Significant Revenue Growth, Operating Loss in Latest Quarter

Lendway, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on specialty agricultural investments, experienced a substantial increase in total assets, rising to $102.5 million from $16.7 million at the end of 2023. However, total stockholders' equity decreased to $15.3 million from $15.5 million during the same period.

For the three months ended September 30, 2024, Lendway generated revenue of $6.6 million, with total revenue for the nine months reaching $31.6 million. This revenue was primarily driven by the acquisition of Bloomia B.V., a producer of fresh cut tulips, which Lendway acquired on February 22, 2024, for a total consideration of $53.4 million. Bloomia's operations contributed $6.6 million in revenue for the quarter and $31.6 million for the nine months, reflecting a strategic shift towards agricultural investments.

Despite the revenue growth, Lendway reported an operating loss of $1.4 million for the third quarter and a net loss from continuing operations of $1.5 million. For the nine months, the net loss from continuing operations totaled $3.5 million. The company’s sales, general, and administrative expenses surged to $2.8 million for the quarter, up from $1.6 million in the same period last year, largely due to costs associated with the Bloomia acquisition.

Lendway's cash and cash equivalents saw a significant decline, dropping to $1.3 million from $16.1 million at the end of 2023. This decrease was attributed to cash used in investing activities, primarily related to the Bloomia acquisition, which accounted for $34.7 million in cash outflows. The company also reported net cash provided by financing activities of $22.5 million, primarily from a credit agreement established to fund the acquisition.

The company has made strategic decisions to focus solely on its agricultural business, discontinuing its non-bank lending operations through Farmland Credit, Inc., following the resignation of its CEO in June 2024. This shift aligns with Lendway's commitment to enhancing its agricultural investments, particularly in the tulip market, which is characterized by seasonal sales patterns.

Overall, Lendway's financial performance reflects both the challenges and opportunities associated with its recent acquisition and strategic realignment within the agricultural sector.