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Leafbuyer Technologies

LBUY
47
Internet Content & Information · Communication Services
Price
$0.25
+0.00 (+0.00%)
Market Cap
$25.0M
Winston Score
47
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+18.6% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 84.3M (2021) → 100.1M (2025)

Leafbuyer Technologies is a digital marketing and deals platform built specifically for the legal cannabis industry. It connects cannabis dispensaries with consumers by listing deals, menus, and promotions on its website and through partner networks. The company essentially acts like a coupon and discovery site for marijuana products, helping shoppers find nearby dispensaries and helping those businesses attract customers.

Leafbuyer makes money by charging dispensaries subscription and advertising fees to be listed and promoted on its platform. It operates primarily in the United States, focused on states where cannabis is legal, and remains a very small company with a market cap near zero. The cannabis industry is still fragmented and heavily regulated, which creates both an opportunity and a major risk — federal restrictions on cannabis limit how dispensaries can advertise through mainstream channels, but those same restrictions also cap how large and stable Leafbuyer's customer base can realistically grow.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-34.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

-39.1% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$0/ year

0.0% of revenue

Below sector average (12%)

Research and development spending

Insider Activity

22.8%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Runway

5+ years

Quarterly Free Cash Flow

→ Burn rate stable

$956,154 cash & investments at current burn rate

Revenue declining

Leafbuyer Technologies's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
53.6%
Healthy — 53.6% gross margin
Operating Margin
11.0%
Modest — 11.0% operating margin
ROCE
716.2%
Exceptional — 716.2% return on capital

ROIC above 25%. Every dollar invested in the business earns more than 25 cents back per year.

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Growth

Sales YoY
-7.9%
Shrinking sales (-7.9% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
4/8 quarters
Earnings inconsistent quarter-to-quarter

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Cash Flow

Cash Conversion
204%
Turns 204% of profit into real cash
FCF Margin
9.1%
Modest free cash flow (9.1%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
6.24x
Adequate interest coverage (6.2x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
108.7x
Expensive — P/E 108.7

P/E over 35. The market is pricing in heavy, sustained growth.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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