How did Locafy's revenue and expenses shift in Q1 2025 compared to previous quarters?

Locafy's revenue and expenses in Q1 2025 showed a significant shift compared to the previous quarters, particularly in the context of operating expenses and net margin.

1. **Revenue Stability**: Locafy's revenue for Q1 2025 was $2.77 million, which is relatively stable compared to the previous quarter's revenue of $2.39 million in Q4 2024. This indicates that the company's revenue trend was not significantly impacted by the change in quarters.

|code|Ticker|Name|Date|Gross Profit Margin|Total Revenue (FY)|Total Operating Expenses (FY)|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|---|---|
|LCFY|LCFY.O|Locafy|20240331|100|||-74.2976|186|
|LCFY|LCFY.O|Locafy|20240630|100|||-70.0832|186|
|LCFY|LCFY.O|Locafy|20240930|100|||-70.8517|186|
|LCFY|LCFY.O|Locafy|20241231|100|2771681.4576|4767082.2089|-71.9924|186|
|LCFY|LCFY.O|Locafy|20250331|100|||-7.0625|186|

2. **Increased Operating Expenses**: In Q1 2025, the total operating expenses were $4.77 million, which is a substantial increase from the $3.29 million reported in Q1 2024. This indicates a potential strain on the company's financial resources, possibly due to increased operational costs or strategic investments.
3. **Gross Margin Impact**: The gross margin for Q1 2025 is 100%, which is consistent with the previous quarter's gross margin. However, the fact that the company is reporting a net margin of -71.99% in Q1 2025 compared to -70.85% in Q1 2024 suggests that the net loss as a percentage of revenue has increased, indicating a worsening financial situation.
4. **Net Margin Worsening**: The net margin of -71.99% in Q1 2025 is a significant decline from the previous quarter's net margin of -70.85%. This indicates that the company's net losses are now exceeding its revenues, which is a red flag for the company's financial health and operational efficiency.

In conclusion, while Locafy's revenue remained relatively stable, the company's increased operating expenses and worsening net margin in Q1 2025 suggest that the company is facing significant challenges, and its financial performance is under pressure.