Leafly Holdings, Inc. Reports First Quarter 2024 Financial Results

Published: May 13, 2024

Leafly Holdings, Inc. Reports First Quarter 2024 Financial Results

Leafly Holdings, Inc., a leading online cannabis discovery marketplace and resource for cannabis consumers, today announced financial results for its first quarter ended March 31, 2024.

“We remain committed to boosting our operational efficiency as we focus on stabilizing revenue and prioritizing ongoing value for our partners,” said Yoko Miyashita, CEO of Leafly. “We are excited by the recent historic announcement by the DEA of its plan to reschedule cannabis, which we hope will serve as a pathway for operators to redirect capital to invest in their own businesses. When the anticipated relief arrives, we expect cannabis businesses to increase their efforts to market to and attract new shoppers.

First Quarter Financial Results

  • Revenue was $9.0 million, compared to $11.2 million in Q1 2023.
  • Retail revenue was $7.9 million, compared to $9.5 million in Q1 2023.
  • Brand revenue was $1.2 million, compared to $1.8 million in Q1 2023
  • Gross margin was 89%, an improvement over Q1 2023 gross margin of 88%.
  • Total operating expense was $9.8 million, a 34% reduction from $14.9 million in Q1 2023, reflecting operational rigor and continued focus on cost discipline.
  • Net loss was $2.4 million, compared to net loss of $5.4 million for Q1 2023.
  • Adjusted EBITDA1 loss, a non-GAAP measure, was $0.9 million compared to adjusted EBITDA loss of $3.3 million in Q1 2023.
  • Ended the quarter with $14.1 million in cash, excluding restricted cash, a decrease of $1.2 million compared to $15.3 million at the end of Q4 2023.

“Over the past 12 months, we have made substantial operating improvements and significant cost reductions to become a more efficient business,” said Suresh Krishnaswamy, CFO of Leafly. “Our team is focused on execution and returning to top line growth as we drive toward improvements in margins and profitability.”


The non-GAAP financial measures EBITDA and adjusted EBITDA are presented in this release. See the reconciliations of such non-GAAP financial measures to their most comparable GAAP measures in the table included in this release below.

Key Performance Metrics1

Three Months Ended March 31,




Change (%)

Ending retail accounts







Retailer ARPA









First Quarter Business Highlights

  • Retailer average revenue per account (“ARPA”) was $677, essentially flat over Q4 2023 ARPA of $672 and in-line with expectations.
  • Leafly continued to bolster its collections efforts, and strategically focused on removing underperforming and non-paying retailers to build a healthier, more durable customer-base.
  • The Company introduced new informational-only listings and made changes to its subscription offerings to create a better on ramp for customers and increased potential for upsale, reinforcing that there is a Leafly product for everyone.

Financial Advisors
Leafly has engaged PGP Capital Advisors and The Benchmark Company as co-advisors to explore financing and strategic opportunities that have the potential to maximize shareholder value. PGP and Benchmark have deep knowledge of the cannabis industry and offer a broad range of financial advisory and capital-raising capabilities.

Cash and Liquidity
The Company ended the quarter with $14.1 million in cash, excluding restricted cash, compared to $15.3 million at the end of 2023. The Company continues to look at various options to improve its liquidity and balance sheet, and through ongoing dialogue with its lender, converted $275,000 of outstanding principal to equity on May 7, 2024.

Financial Outlook
Today, Leafly is issuing guidance for the second quarter of 2024. Based on current business trends and conditions, we expect second quarter revenue of around $8.6 million and an adjusted EBITDA2 loss of approximately $1.1 million.


Ending retail accounts and retailer average revenue (or ARPA) per account are key performance metrics that management uses to analyze and measure the Company’s financial performance and results of operations. Please see “Definitions of Key Performance Metrics” for a further explanation of the use and how these metrics are calculated.


Leafly has not provided a quantitative reconciliation of forecasted GAAP net income (loss) to forecasted total adjusted EBITDA within this communication because the Company is unable, without making unreasonable efforts, to calculate certain reconciling items with confidence. These items include, but are not limited to: depreciation and amortization expense from new assets; impairments of assets; changes in the valuation of any derivatives; the valuation of, and changes in, grants of equity-based compensation; and gains or losses on modification or extinguishment of debt. These items, which could materially affect the computation of forward-looking GAAP net income (loss), are inherently uncertain and depend on various factors, many of which are outside of Leafly’s control. For more information regarding the non-GAAP financial measures discussed in this communication, please see “Non-GAAP Financial Measures” below.

Webcast and Conference Call Information
Leafly will host a conference call and webcast to discuss the results today, Thursday, May 9, 2024 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). A live webcast of the call can be accessed from Leafly’s Investor Relations website at https://investor.leafly.com. The live call may also be accessed via telephone at (833) 470-1428 toll-free domestically. Please reference conference ID: #475849. An archived version of the webcast will be available from the same website after the call.

About Leafly
Leafly helps millions of people discover cannabis each year. Leafly’s powerful tools help shoppers make informed purchasing decisions and empower cannabis businesses to attract and retain loyal customers through advertising and technology services. Learn more at Leafly.com or download the Leafly mobile app through Apple’s App Store or Google Play.