- Expanded U.S. footprint through strategic partnerships and enterprise wins
- Delivered AI-powered product innovations enabling rapid market adoption
- Partner-led go-to-market model positioned for accelerated growth
PERTH, Australia, Aug. 29, 2025 (GLOBE NEWSWIRE) -- Locafy Limited (Nasdaq: LCFY, LCFYW) ("Locafy" or the "Company"), a globally recognized software-as-a-service technology company specializing in location-based digital marketing solutions, today reported financial results for the fiscal nine-month period ended March 31, 2025, and provided a comprehensive business update on operational achievements, strategic partnerships, and product innovations that the Company believes will lay the foundation for growth in fiscal 2026. All financial results are reported in Australian dollars (AUD).
Growth Catalysts
-- Signed multi-year, high-value partnerships in the U.S. and APAC with
large-scale deployment potential.
-- Launched AI-powered SEO product suite, including Localizer, targeting
multi-location businesses.
-- Secured large agency and enterprise clients, representing thousands of
potential locations with imminent revenue generation.
-- Established partner-led go-to-market model for scalable, high-margin
recurring revenue.
Management Commentary
"We believe our achievements over the past nine months have reshaped Locafy's position in the market," said Gavin Burnett, Chief Executive Officer of Locafy. "We've launched innovative AI-powered products, secured high-value partnerships, and expanded our channel network, creating a strong foundation to scale.
"Today, we have a clear go-to-market strategy anchored by our Localizer product, which is gaining traction with large agencies and high-volume partners. Localizer's repeatable sales model and its potential to generate meaningful recurring revenue, position it as a key growth driver going forward. In recent months, we've signed major U.S. agencies capable of driving Localizer sales at scale, including a national SEO agency with a 10-person call center dedicated to selling the product starting in September 2025, and a digital marketing group serving a leading national insurance network with thousands of locations nationwide. These partners provide us with immediate access to large, targeted customer bases and which we expect will enable us to scale more efficiently.
"As we look ahead, our focus is on converting this operational momentum into sustained revenue growth. With a partner-led model, an expanding enterprise and channel pipeline, and technology that addresses critical SEO challenges quickly and at scale, we believe Locafy is well-positioned to capture market share, improve margins, and advance decisively toward profitability."
Fiscal Nine-Month 2025 and Recent Operational Highlights
Strategic Partnerships & Market Expansion
-- U.S. Reputation Platform Partnership (June 2025): Entered a strategic
agreement with a leading U.S.-based online reputation and review
management platform to syndicate business listings for a premium segment
of its client base, including real estate agents, mortgage brokers, and
other professional service providers. The partnership expands Locafy's
U.S. listings footprint by approximately 10,000 end users, establishes a
foundation for broader adoption across additional industries, as well as
positions Locafy's "AI Search Ready" landing pages and engagement tools
as value-added upsells.
-- AI-Driven SEO Product Suite Launch (July 2025): Introduced an AI-powered
suite, headlined by Localizer, a flagship product designed to drive rapid
local and national search visibility across Google, Google Maps, and
leading AI search engines with minimal human intervention. Early trials
have shown both scalability and customer demand, leading to partnerships
with high-quality agencies to sell the product in the U.S. and Australian
markets.
-- Experience.com Partnership (July 2025): Appointed exclusive APAC
syndication partner for Experience.com's enterprise-grade review
management platform. The integration delivers a combined SEO and
reputation-management solution for professional service sectors across
APAC, anticipated to establish a long-term growth channel.
Localizer Momentum & Revenue Pipeline
-- Localizer Channel Growth (August 2025): Signed two large U.S. digital
agencies focused on insurance and home services verticals and one
Australian agency focused on multi-location clients in insurance and home
services. These partners are expected to leverage Locafy's U.S. and
Australian business listings database to drive targeted leads. Revenue
generation is expected to begin in September 2025, with significant
scalability potential across additional verticals.
-- Australian Top 50 Enterprise Win (August 2025): Signed an agreement to
manage business citations for over 1,400 locations across Australia,
creating a recurring revenue stream with potential for expansion into
other enterprise networks.
Flagship Contracts & Strategic Initiatives
-- Strategic Partner Program Launch (Early 2025): Converted select resellers
into strategic partners to deepen engagement and accelerate market
penetration, starting with Unique Point in Australia.
Technology & Product Milestones
-- Development of Localizer, an AI-driven, location-based SEO solution that
rapidly increases prominence in Google Map search results for relevant
high-value keywords, while also delivering visibility in search results
across many AI search tools such as ChatGPT, Perplexity, and Gemini.
-- Integrated Article Accelerator directly into the Locafy platform,
enabling in-house article creation, publishing, and boosting in
compliance with Google's latest SEO policies.
-- Developed AI-driven prototype for localized business articles using
directory content; initial tests reached Page 1 rankings within 30 days,
validating rapid time-to-value.
Fiscal Nine-Month 2025 Financial Highlights
Results compare the fiscal nine-month ended results (March 31, 2025) to the same period in 2024 (March 31, 2024) unless otherwise indicated. All financial results are reported in Australian Dollars (AUD).
-- Total operating revenue was $2.4 million, compared to $2.9 million in the
same year-ago period. Total operating revenue for the respective period
was comprised of:
-- Subscription revenue was $2.2 million, compared to $2.6 million in
the same year-ago period.
-- Advertising revenue was $117,000, compared to $213,000 in the same
year-ago period.
-- Services revenue was $47,000, compared to $126,000 in the same
year-ago period. Services revenue for the fiscal nine months of
2024 included consulting fees relating to the Company's engagement
with Localista, which was subsequently revised lower on a "fair
value" basis. Adjusting for this revision, services revenue in the
comparable year-ago period was $25,000.
-- Other income was $257,000, compared to $32,000 in the same year-ago
period. The variance was attributed to the Company's assessment (as at
the respective reporting period) of the extent and likelihood of its
ability to claim a Research & Development tax incentive in Australia, for
non-capitalized expenditure. During the quarter ended December 31, 2024,
and after authorizing the Fiscal 2024 Financial Statements, the Company
assessed its eligibility to receive an R&D Tax Incentive rebate relating
to Fiscal 2024 of $770,000. On a similar basis, the Company expects that
its eligibility to receive an R&D Tax Incentive rebate will extend to R&D
expenditure incurred during Fiscal 2025 and has accrued for an R&D tax
refund receivable of $357,000 for the nine months ended March 31, 2025.
The $257,000 in other income represents the R&D Tax Incentive rebates
related to non-capitalized expenditure of both Fiscal 2024 ($226,000) and
the nine-month period ended March 31, 2025 ($31,000), with the balance
($870,000) applied as a reduction to the carrying amount of capitalized
development costs.
-- Operating expenses were $6.0 million, compared to $5.0 million in the
same year-ago period. Operating expenses included a one-time $1.4 million
share-based payment expense as it related to the conferral of shares in
recognition of liabilities converted to equity (via the issue of
performance rights, which subsequently expired) to assist the Company in
preserving cash and maintaining compliance with the Nasdaq Capital Market
listing requirements. Excluding this one-time adjustment, operating
expenses were $4.6 million, with the decrease driven by lower
employment-related costs and marketing expenses, partially offset by
higher technology expenses and depreciation and amortization expenses.
-- Net loss totaled $3.5 million, or $2.19 per share, compared to net loss
of $2.1 million, or $1.63 per share, in the comparable year-ago period.
Key Performance Indicators (KPIs)
Unless otherwise stated, KPI data is as of the 2025 fiscal third quarter ended (March 31, 2025).
-- Monthly recurring revenue (MRR) for the 2025 fiscal third quarter was
$261,000, up 1% sequentially and down 2% year-over-year.
For more information, please see Locafy's investor relations website at investors.locafy.com.
About Locafy
Founded in 2009, Locafy's (Nasdaq: LCFY, LCFYW) mission is to accelerate visibility and prominence for local, national and brand focused businesses in both online and AI search engines using advanced SEO techniques, technologies and AI driven automation. For more information, please visit www.locafy.com.
About Key Performance Indicators
Locafy defines MRR as the value of all recurring subscription contracts with active entitlements as at the end of each month. MRR across a period is the average of each month's MRR within that period.
The Company may introduce additional KPIs in future quarters if deemed relevant long-term indicators of performance.
Forward-Looking Statements
This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "subject to", "believe," "anticipate," "plan," "expect," "intend," "estimate," "project," "may," "will," "should," "would," "could," "can," the negatives thereof, variations thereon and similar expressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors and risk factors, including those discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Restated Annual Report on Form 20-F/A filed with the SEC on August 22, 2025, and available on its website . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
Investor Relations Contact
Matt Glover
Gateway Investor Relations
(949) 574-3860
LCFY@gateway-grp.com
-Financial Tables to Follow-
Locafy Limited
Consolidated Statement of Profit or Loss and Other
Comprehensive Income
6 months to 3 months to 9 months to 9 months to
31 Dec 2024 31 Mar 2025 31 Mar 2025 31 Mar 2024
AUD $ AUD $ AUD $ AUD $
(unaudited) (unaudited) (unaudited) (unaudited)
Revenue 1,557,673 816,448 2,374,121 2,947,522
Other income 247,238 9,356 256,594 32,241
Technology
expense (625,138) (318,808) (943,946) (676,447)
Employee
benefits
expense (906,906) (388,212) (1,295,118) (2,322,417)
Share based
payments
expense (1,422,547) - (1,422,547) -
Occupancy
expense (53,182) (26,151) (79,333) (75,055)
Marketing
expense (40,601) (50,208) (90,809) (179,151)
Consultancy
expense (358,410) (254,677) (613,087) (657,926)
Other expenses (59,711) (27,766) (87,477) (46,962)
Depreciation
and
amortization
expense (840,939) (418,655) (1,259,594) (1,079,660)
Reversal /
(Impairment)
of financial
assets (184,593) - (184,593) 67,146
----------- ----------- ----------- -----------
Operating loss (2,687,116) (658,673) (3,345,789) (1,990,709)
-----------
Foreign
exchange
gain 55,520 (15,690) 39,830 -
Financial cost (30,201) (142,823) (173,024) (97,660)
----------- ----------- ----------- -----------
Loss before
income tax (2,661,797) (817,186) (3,478,983) (2,088,369)
Income tax
expense - - - -
----------- ----------- ----------- -----------
Loss for the
period after
tax (2,661,797) (817,186) (3,478,983) (2,088,369)
----------- ----------- ----------- -----------
Other
comprehensive
income
Items that
will be
reclassified
subsequently
to profit and
loss
Exchange
differences
on
translating
foreign
operations (41,797) 6,600 (35,197) (9,251)
----------- ----------- ----------- -----------
Total
comprehensive
profit/(loss)
for the
period (2,703,594) (810,586) (3,514,180) (2,097,620)
----------- ----------- ----------- -----------
Earnings per
share
Basic loss per
share (1.78) (0.46) (2.19) (1.63)
Diluted loss
per share (1.78) (0.46) (2.19) (1.63)
Locafy Limited
Consolidated Statement of Financial Position
As at
As at As at 30 Jun 2024
31 Mar 2025 31 Dec 2024 AUD $
AUD $ AUD $ (restated)
(unaudited) (unaudited) (audited)
Assets
Current assets
Cash and cash
equivalents 1,286,175 568,286 275,875
Trade and other
receivables 905,812 1,560,981 904,564
Other assets 326,144 222,132 294,355
------------ ------------ ------------
Total current assets 2,518,131 2,351,399 1,474,794
------------ ------------ ------------
Non-current assets
Property, plant and
equipment 122,426 146,590 196,929
Right of use assets 193,662 222,711 280,810
Intangible assets 3,336,564 3,443,321 4,204,966
------------ ------------ ------------
Total non-current
assets 3,652,652 3,812,622 4,682,705
------------ ------------ ------------
Total assets 6,170,783 6,164,021 6,157,499
------------ ------------ ------------
Liabilities
Current liabilities
Trade and other
payables 409,597 865,993 1,252,503
Borrowings 249,100 261,600 271,600
Provisions 106,589 122,255 211,300
Accrued expenses 514,693 401,404 496,749
Lease liabilities 137,562 134,017 128,669
Contract and other
liabilities 141,816 147,111 147,640
------------ ------------ ------------
Total current
liabilities 1,559,357 1,932,380 2,508,461
------------ ------------ ------------
Non-current liabilities
Lease liabilities 99,449 135,483 203,909
Provisions 147,783 145,054 133,399
Total non-current
liabilities 247,232 280,537 337,308
------------ ------------ ------------
Total liabilities 1,806,589 2,212,917 2,845,769
------------ ------------ ------------
Net assets 4,364,194 3,951,104 3,311,730
------------ ------------ ------------
Equity
Issued capital 53,208,868 51,985,189 48,588,888
Reserves 451,876 445,278 1,878,243
Accumulated losses (49,296,550) (48,479,363) (47,155,401)
------------ ------------ ------------
Total equity 4,364,194 3,951,104 3,311,730
------------ ------------ ------------
Locafy Limited
Consolidated Statement of Cash Flows
6 months to 3 months to 9 months to
31 Dec 2024 31 Mar 2025 31 Mar 2025
AUD $ AUD $ AUD $
(unaudited) (unaudited) (unaudited)
Cash flows from
operating
activities
Receipts from
customers (inclusive
of GST) 1,710,444 670,591 2,381,035
Payments to suppliers
and employees
(inclusive of GST) (2,344,083) (1,483,172) (3,335,755)
R&D Tax Incentive and
government grants - 806,495 806,495
Financial cost (30,201) (142,823) (173,024)
------------ ------------ ------------
Net cash used by
operating
activities (663,840) (148,909) (321,249)
------------ ------------ ------------
Cash flows from
investing
activities
Capitalised
development costs (733,872) (258,686) (992,558)
Purchase of
intellectual
property (152,417) (24,146) (668,063)
------------
Net cash used by
investing
activities (886,289) (282,832) (1,660,621)
------------ ------------ ------------
Cash flows from
financing
activities
Proceeds from issue
of shares 1,992,063 1,267,385 3,259,448
Transaction costs on
issuance of shares (104,128) (60,561) (164,689)
Repayment of
borrowings (10,000) (12,500) (22,500)
Repayment of lease
liabilities (63,078) (32,489) (95,567)
------------ ------------
Net cash from
financing
activities 1,814,857 1,161,835 2,976,692
------------ ------------ ------------
Net increase in cash
and cash
equivalents 264,728 730,094 994,822
------------ ------------ ------------
Net foreign exchange
difference 27,683 (12,205) 15,478
Cash and cash
equivalents at the
beginning of the
period 275,875 568,286 275,875
------------ ------------ ------------
Cash and cash
equivalents at the
end of the period 568,286 1,286,175 1,286,175
------------ ------------ ----
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