Difficult Environment For Cannabis Retail And Brand Customers Reflected In Leafly's Q3 Results
Portfolio Pulse from Jelena Martinovic
Leafly Holdings, Inc. (NASDAQ:LFLY) reported a 10% year-over-year decrease in Q3 revenue to $10.6 million, citing a challenging environment for cannabis retail and brand customers. Despite a reduction in total operating expenses and an improvement in gross margin, the company experienced a net loss of $2.2 million. Leafly regained compliance with Nasdaq's minimum bid price rule and expects Q4 revenue around $9.5 million with an adjusted EBITDA loss of $1.3 million. LFLY shares dropped 1.73% in pre-market trading.
November 10, 2023 | 2:59 pm
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Leafly's Q3 report indicates a revenue decline and a net loss, but with improved gross margin and reduced expenses. The company also regained Nasdaq compliance and provided Q4 guidance with expected revenue and adjusted EBITDA loss.
The reported decrease in revenue and the net loss are negative indicators that are likely to impact investor sentiment and the stock price negatively in the short term. However, the improvement in gross margin and reduction in expenses, along with regaining Nasdaq compliance, may provide some positive sentiment. The pre-market share price movement suggests a negative short-term impact.
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