Lendway, Inc. announced its financial results for the quarter ended March 31, 2025, showcasing the first full quarter of Bloomia's operations. Revenue surged to $12.44 million, a 55% increase from $8.03 million in the same period of 2024. Gross profit dramatically improved to $3.89 million from $1.74 million, expanding the gross profit margin to 31.3% from 21.7%.
The company achieved operating income of $1.43 million, a significant turnaround from an operating loss of $1.64 million in Q1 2024. This improvement was driven by increased gross profit and a reduction in sales, general, and administrative expenses to $2.46 million. Non-GAAP EBITDA also increased to $2.58 million year-over-year.
However, the Bloomia acquisition introduced substantial interest expense, which jumped to $970,000 in Q1 2025 from $225,000 in Q1 2024. Cash and cash equivalents stood at $1.31 million, down from $1.76 million at December 31, 2024. Net cash provided by operating activities was $1.74 million for the quarter.
Lendway was in breach of its maximum senior cash flow leverage ratio covenant as of March 31, 2025, primarily due to the timing of the Easter holiday. This covenant breach was a significant financial event.
The company's lender provided a waiver for this breach, indicating flexibility in the debt agreement. Management projects compliance with financial covenants for at least the next twelve months, expecting sufficient liquidity from operations and existing credit facilities.
The company also noted that its change in fiscal year end to June 30 aligns reporting cycles with the seasonal nature of the tulip business. This strategic adjustment aims to provide investors with a clearer view of performance relative to the peak sales season.
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