Leafly Holdings, Inc.

Leafly reported Q2 2024 revenue of $8.7 million, down 18.3% year over year and down 3.6% sequentially. Retail revenue was $7.3 million and brand revenue was $1.4 million. Gross margin improved to 89% from 88% in Q2 2023. Net loss was $1.3 million versus $1.4 million in Q2 2023, and adjusted EBITDA was positive $483,000 versus positive $80,000 a year ago. Q2 OpEx was $8.4 million, down 17.5% year over year. For Q3 2024, management guided to revenue of around $8.4 million and adjusted EBITDA loss of less than $1 million; OpEx excluding stock-based comp is expected to be at similar levels to Q2. The company ended Q2 with $13.6 million in cash excluding restricted cash, expects Q3 cash burn to come in a little more than the $1.2 million interest payment on the convertible notes, and noted $29.4 million of convertible notes due in January 2025.

Yoko Miyashita framed the quarter around operational efficiency and Leafly’s path to profitability, saying the company is making meaningful progress even though revenue remains muted. She emphasized Leafly’s role as a trusted cannabis discovery platform and highlighted product changes meant to better monetize the connection between consumers, brands, and retailers. Her tone was constructive but cautious, pointing to opportunities in hemp-derived cannabinoids, Ohio’s recreational launch, Washington, D.C., Alberta, and possible future catalysts like Florida and federal rescheduling.

Suresh Krishnaswamy focused on the financial drivers behind the quarter’s results: revenue of $8.7 million, retail revenue of $7.3 million, brand revenue of $1.4 million, gross margin of 89%, and positive adjusted EBITDA of $483,000. He said the EBITDA beat came from collections and bad-debt recoveries, and noted year-to-date bad debt expense was 2.4% of revenue versus a 6.5% average for full-year 2023. He also said cash ended at $13.6 million, Q3 cash burn should be slightly above the $1.2 million interest payment, and the company has launched an ATM while continuing discussions about its $29.4 million convertible notes due in January 2025.

In Q&A, management was pressed on when top-line growth might return; Suresh declined to guide beyond Q3 but said the company is seeing ‘green shoots’ from new sales efforts and product enhancements. When asked about new accounts, Peter Lee said gross account adds in Q2 were similar to Q1, but net retail account declines continued; he expects delinquent-account work to help stabilize the base and said new sales initiatives are aimed at winning business and reducing churn. On Nasdaq compliance, Yoko said Leafly submitted a proposed plan in late May and is working with Nasdaq to regain compliance, while the stock remains listed and trading on Nasdaq Capital Market.