Leafly Q1 Revenue Dips Nearly 20% YoY, But Weed Discovery Marketplace Also Reduced Net Loss And Cut Costs

Cannabis discovery marketplace  Leafly Holdings, Inc. LFLY reported its financial results Thursday for its first quarter ended March 31, 2024, disclosing revenue of $9.0 million, compared to $11.2 million in the first quarter of 2023. 

“We remain committed to boosting our operational efficiency as we focus on stabilizing revenue and prioritizing ongoing value for our partners,” stated Yoko Miyashita, CEO of Leafly. "We are excited by the recent historic announcement by the DEA of its plan to reschedule cannabis, which we hope will serve as a pathway for operators to redirect capital to invest in their own businesses. When the anticipated relief arrives, we expect cannabis businesses to increase their efforts to market to and attract new shoppers.  

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First Quarter Financial Summary 

• Retail revenue was $7.9 million, compared to $9.5 million in Q1 2023.  
• Brand revenue was $1.2 million, compared to $1.8 million in Q1 2023  
• The gross margin was 89%, an improvement over the Q1 2023 gross margin of 88%.  
• Total operating expense was $9.8 million, a 34% reduction from $14.9 million in Q1 2023.  
• Net loss was $2.4 million, compared to net loss of $5.4 million for Q1 2023.  
• Adjusted EBITDA was a loss of $900,000 compared to adjusted EBITDA loss of $3.3 million in Q1 2023.  
• Ended the quarter with $14.1 million in cash, excluding restricted cash, a decrease of $1.2 million compared to $15.3 million at the end of Q4 2023.  

"Over the past 12 months, we have made substantial operating improvements and significant cost reductions to become a more efficient business,” Suresh Krishnaswamy, CFO of Leafly said in a statement. “Our team is focused on execution and returning to top-line growth as we drive toward improvements in margins and profitability.” 

Price Action 

Leafly shares closed Thursday's market session 4.67% lower at $2.45 per share. 

Photo: Courtesy of C.Aphirak via Shutterstock