Lendway, Inc. Announces Quarter Ended March 31, 2025 Financial Results
- Operating income turned positive to $1.4M from -$1.6M loss YoY
- Net income improved to $0.4M ($0.25/share) from -$1.2M loss YoY
- Gross margin increased to 31.3% from 21.7% YoY
- Revenue grew 54.9% to $12.4M from $8.0M YoY
- Adjusted EBITDA increased to $2.6M from $1.6M YoY
- Debt reduced from $42.1M to $40.6M quarter-over-quarter
- Cash and equivalents decreased to $1.3M from $1.8M QoQ
- Working capital declined to $6.3M from $11.0M QoQ
- High debt level at $40.6M relative to cash position
- Interest expense increased significantly to $970K from $225K YoY
Insights
Lendway transitions from losses to profits with strong Q1 2025 performance driven by full-quarter Bloomia operations.
Lendway's Q1 2025 results show a compelling turnaround story with a shift from operating losses to profitability. Net revenue reached
The improved performance stems primarily from having a full quarter of Bloomia operations in 2025 versus only six weeks in 2024 following the February 2024 acquisition. This fuller integration is evident in the
From a profitability perspective, net income attributable to Lendway reached
The balance sheet shows some interesting dynamics. Cash decreased from
Looking forward, management's comments highlight the seasonality of Bloomia's business, with Q1-Q2 typically being the strongest periods due to spring tulip season, Easter, and Mother's Day. The pending fiscal year change (from December 31 to June 30) will provide a cleaner year-over-year comparison in coming quarters as acquisition-related costs roll off.
The substantial
MINNEAPOLIS, MN / ACCESS Newswire / May 13, 2025 / Lendway, Inc. (Nasdaq:LDWY) ("Lendway" or the "Company") today announced its financial results for the quarter ended March 31, 2025.
Overview
Quarter ended March 31, 2025
Net revenue was
$12.4 million .Gross profit was
$3.9 million , or31.3% of sales.Operating income of
$1.4 million compared to an operating loss of$1.6 million in the quarter ended March 31, 2024.Net income from continuing operations was
$0.6 million compared to a loss of$1.5 million in the quarter ended March 31, 2024.Net income attributable to Lendway was
$0.4 million , or income of$0.25 per basic and diluted share, compared to net loss of$1.2 million , or a loss of$0.67 per basic and diluted share in the quarter ended March 31, 2024.Adjusted EBITDA was
$2.6 million compared to$1.6 million in the quarter ended March 31, 2024.At March 31, 2025, cash and cash equivalents were
$1.3 million and working capital was$6.3 million .Cash provided by continuing operations was
$1.7 million compared to$1.4 million in the quarter ended March 31, 2024.
Lendway's Chairman and Co-Chief Executive Officer, Mark Jundt, commented, "We're pleased to report strong financial performance this quarter, with notable improvements in both revenue and EBITDA. These results reflect and highlight the strong spring tulip season. With the impact of Easter and Mother's Day sales ahead of us, we expect these positive trends to continue. The team is working tirelessly to fulfill strong demand, and we are very proud of them and their efforts." Co-Chief Executive Officer Dan Philp added, "Next quarter's results will, for the first time, allow us to report a full year over year quarterly comparison of Bloomia's operations under Lendway's ownership. With partial quarter results and acquisition-related costs rolling off that lookback, we're excited at the opportunity to report a clean look at why we feel so strongly about this business."
As previously announced, Lendway's board of directors has approved a change in fiscal year end from December 31 to June 30 each calendar year. Lendway intends to report a six-month transition period starting January 1, 2025 and ending June 30, 2025, which is the period between the closing of the most recent fiscal year on December 31, 2024 and the opening date of the new fiscal year starting on July 1, 2025.
Quarter Results
Net Revenue
Net revenue was
Gross profit
Gross profit in the three months ended March 31, 2025 was
Operating income (loss)
The Company had operating income of
Net income (loss) from continuing operations
Net income from continuing operations was
Net income (loss) attributable to Lendway
Net income attributable to Lendway for the three months ended March 31, 2025 was
Adjusted EBITDA
In the three months ended March 31, 2025, adjusted EBITDA was
Bloomia Adjusted EBITDA
Bloomia had
Balance Sheet
As of March 31, 2025, cash and cash equivalents totaled
About Lendway, Inc.
Lendway, Inc (Nasdaq:LDWY) is a specialty ag company focused on making and managing its ag investments in the U.S. and internationally. The Company is the majority owner of Bloomia, one of the largest producers of fresh-cut tulips in the United States. For additional information, contact (800) 874-4648 or visit our website at www.lendway.com. Investor inquiries can be submitted to info@lendway.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements in this press release that are not statements of historical or current facts are considered "forward-looking statements" within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance of the Company to be materially different from the results or performance expressed or implied by such forward-looking statements. The words "anticipate," "believe," "could," "estimate," "expect," "future," "intend," "likely," "may," "plan," "project," "will" and similar expressions identify forward-looking statements. Forward-looking statements include statements expressing the intent, belief or current expectations of the Company and members of our management team regarding, for instance: (i) our belief that our cash balance, cash generated by operations and borrowings available under our Credit Agreement, will provide adequate liquidity and capital resources for at least the next twelve months, (ii) regarding the potential for growth and other opportunities for our business, and (iii) the nature and timing of the Company's intended financial reporting during its transition to a fiscal year ending June 30. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. These statements are subject to the risks and uncertainties that could cause actual results to differ materially and adversely from the forward-looking statements. These forward-looking statements are based on current information, which we have assessed and which by its nature is dynamic and subject to rapid and even abrupt changes.
Factors that could cause our estimates and assumptions as to future performance, and our actual results, to differ materially include the following: (1) our ability to integrate and continue to successfully operate the newly acquired Bloomia business, (2) our ability to compete, (3) concentration of Bloomia's historical revenue among a small number of customers, (4) changes in interest rates, (5) ability to comply with the requirements of the Credit Agreement and operate within its restrictions, (6) economic and market conditions that may restrict or delay appropriate or desirable opportunities, (7) our ability to develop and maintain necessary processes and controls relating to our businesses, (8) reliance on one or a small number of employees, (9) potential adverse classifications of our Company if we are unsuccessful in executing our business plans, (10) other economic, international, business, market, financial, competitive and/or regulatory factors affecting the Company's businesses generally, (11) our ability to attract and retain highly qualified managerial, operational and sales personnel, and (12) the availability of additional capital on desirable terms, if at all. Forward-looking statements involve known and unknown risks, uncertainties and other factors, including those set forth in our Annual Report on Form 10-K for the year ended December 31, 2024 and additional risks, identified in our Quarterly Reports on Form 10-Q and our Current Reports on Form 8-K filed with the SEC. Such forward-looking statements should be read in conjunction with the Company's filings with the SEC. The Company assumes no responsibility to update the forward-looking statements contained in this press release or the reasons why actual results would differ from those anticipated in any such forward-looking statement, other than as required by law.
Lendway, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS) (Unaudited)
(Values are rounded to the nearest thousand dollars and thousand shares)
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Revenue, net | $ | 12,443,000 | $ | 8,033,000 | ||||
Cost of goods sold | 8,554,000 | 6,289,000 | ||||||
Gross profit | 3,889,000 | 1,744,000 | ||||||
Sales, general and administrative expenses | 2,457,000 | 3,388,000 | ||||||
Operating income (loss) | 1,432,000 | (1,644,000 | ) | |||||
Foreign exchange gain | (335,000 | ) | (45,000 | ) | ||||
Interest expense, net | 970,000 | 225,000 | ||||||
Other expense, net | 24,000 | 9,000 | ||||||
Income (loss) from continuing operations before income taxes | 773,000 | (1,833,000 | ) | |||||
Income tax expense (benefit) | 156,000 | (347,000 | ) | |||||
Net income (loss) from continuing operations | 617,000 | (1,486,000 | ) | |||||
Income from discontinued operations, net of tax | 10,000 | 72,000 | ||||||
Net income (loss) including noncontrolling interest | 627,000 | (1,414,000 | ) | |||||
Less: Net income (loss) attributable to noncontrolling interest | 178,000 | (251,000 | ) | |||||
Net income (loss) attributable to Lendway, Inc. | 449,000 | (1,163,000 | ) | |||||
Other comprehensive income (foreign currency translation) | 22,000 | 3,000 | ||||||
Less: Comprehensive income attributable to noncontrolling interest | 4,000 | - | ||||||
Comprehensive income (loss) attributable to Lendway, Inc. | $ | 467,000 | $ | (1,160,000 | ) | |||
Net income (loss) per basic and diluted share attributable to Lendway, Inc.: | ||||||||
Continuing operations | $ | 0.25 | $ | (0.71 | ) | |||
Discontinued operations | 0.01 | 0.04 | ||||||
Basic and diluted earnings per share | $ | 0.25 | $ | (0.67 | ) | |||
Shares used in calculation of net income (loss) per share: | ||||||||
Basic and diluted | 1,770,000 | 1,743,000 | ||||||
SELECTED BALANCE SHEET DATA
March 31, 2025 | December 31, 2024 | |||||||
Cash and cash equivalents | $ | 1,308,000 | $ | 1,759,000 | ||||
Working capital | 6,274,000 | 11,026,000 | ||||||
Total assets | 100,514,000 | 99,985,000 | ||||||
Total debt | 40,562,000 | 42,090,000 | ||||||
Total liabilities | 87,946,000 | 88,091,000 | ||||||
Stockholders' equity | 12,568,000 | 11,894,000 | ||||||
Working capital represents current assets less current liabilities.
Non-GAAP Reconciliations
This press release includes adjusted EBITDA, and Bloomia Adjusted EBITDA, which are non-GAAP financial measures. Non-GAAP financial measures, which are not calculated or presented in accordance with U.S. generally accepted accounting principles ("GAAP"), have been provided as information supplemental and in addition to the financial measures presented in accordance with GAAP. Such non-GAAP financial measures are not substitutes for, or as an alternative to, and should be considered in conjunction with, the respective GAAP financial measures. The non-GAAP financial measures presented may differ from similarly named measures used by other companies.
Included below are reconciliations of EBITDA and adjusted EBITDA to net income (loss) from continuing operations, the most directly comparable GAAP measure. We have included these non-GAAP performance measures as a comparable measure to eliminate the effects of non-recurring transactions that occurred during the three months ended March 31, 2025 and 2024. We believe adjusted EBITDA provides meaningful supplemental information about our operating performance as this measure excludes amounts from income from discontinued operations that we do not consider part of our core operating results when assessing our performance. Items excluded from adjusted EBITDA consist of acquisition-related costs and other costs, such as the cost of inventory that was stepped up to fair value as a result of the purchase accounting related to our acquisition of a majority interest in Bloomia. Adjusted EBITDA does not reflect our cash expenditures, the cash requirements for the replacement of depreciated and amortized assets, or changes in cash requirements for our working capital needs.
The following table reconciles net income (loss) from continuing operations and adjusted EBITDA for the three months ended March 31, 2025 and 2024:
Three Months Ended | ||||||||
March 31, | ||||||||
2025 | 2024 | |||||||
Net income (loss) from continuing operations | $ | 617,000 | $ | (1,486,000 | ) | |||
Interest expense, net | 970,000 | 225,000 | ||||||
Income tax expense (benefit) | 156,000 | (347,000 | ) | |||||
Depreciation and amortization | 835,000 | 300,000 | ||||||
EBITDA | 2,578,000 | (1,308,000 | ) | |||||
Acquisition and integration-related related costs | 24,000 | 1,542,000 | ||||||
Non-cash step-up inventory write-off | - | 1,360,000 | ||||||
Severance | 39,000 | - | ||||||
Adjusted EBITDA | $ | 2,641,000 | $ | 1,594,000 | ||||
The following table reconciles Bloomia adjusted EBITDA to total Company adjusted EBITDA. Management excludes Lendway corporate overhead when evaluating its investment in Bloomia.
Three Months Ended | Three Months Ended | |||||||||||
March 31, 2025 | March 31, 2025 | |||||||||||
Bloomia | Lendway Overhead | Total | ||||||||||
Income (loss) from continuing operations before income taxes | $ | 1,117,000 | $ | (344,000 | ) | $ | 773,000 | |||||
Depreciation and amortization | 831,000 | 4,000 | 835,000 | |||||||||
Interest expense, net | 970,000 | - | 970,000 | |||||||||
EBITDA | 2,918,000 | (340,000 | ) | 2,578,000 | ||||||||
Acquisition and integration-related costs | 24,000 | - | 24,000 | |||||||||
Severance | 39,000 | - | 39,000 | |||||||||
Adjusted EBITDA | $ | 2,981,000 | $ | (340,000 | ) | $ | 2,641,000 | |||||
Acquisition to | Three Months Ended | |||||||||||
March 31, 2024 | March 31, 2024 | |||||||||||
Bloomia | Lendway Overhead | Total | ||||||||||
Loss from continuing operations before income taxes | $ | (1,347,000 | ) | $ | (486,000 | ) | $ | (1,833,000 | ) | |||
Depreciation and amortization | 296,000 | 4,000 | 300,000 | |||||||||
Interest expense (income), net | 351,000 | (126,000 | ) | 225,000 | ||||||||
EBITDA | (700,000 | ) | (608,000 | ) | (1,308,000 | ) | ||||||
Acquisition and integration-related costs | 1,542,000 | - | 1,542,000 | |||||||||
Non-cash step-up inventory write-off | 1,360,000 | - | 1,360,000 | |||||||||
Adjusted EBITDA | $ | 2,202,000 | $ | (608,000 | ) | $ | 1,594,000 | |||||
We believe these non-GAAP financial measures will be useful to permit investors to compare results with prior periods that did not include the one-time events and the resulting accounting charges. Management has used EBITDA and Adjusted EBITDA (a) to evaluate our historical and prospective financial performance and trends as well as our performance relative to competitors and peers; (b) to measure operational profitability consistently; (c) in presentations to the members of our Board of Directors; and (d) to evaluate compliance with covenants and restricted activities under the terms of our Credit Agreement.
Contact:
Lendway, Inc.
Biz McShane, CFO
(763) 392-6200
SOURCE: Lendway, Inc.
View the original press release on ACCESS Newswire
FAQ
What were LDWY's Q1 2025 earnings per share?
How much revenue did Lendway (LDWY) generate in Q1 2025?
What is Lendway's (LDWY) current debt level?
What was LDWY's adjusted EBITDA for Q1 2025?
What is Lendway's (LDWY) cash position as of Q1 2025?
