Lendway's Blooming Challenges: A Deep Dive into Q4 and Full Year 2024 Financials

Ladies and gentlemen, buckle up! We're diving headfirst into the financial rollercoaster that is Lendway, Inc. (NASDAQ:LDWY). The company just dropped its Q4 and full-year 2024 financial results, and let me tell you, it's a wild ride. So, grab your popcorn and let's get started!



First things first, let's talk about the elephant in the room: the acquisition of Bloomia. This deal has been a game-changer for Lendway, but it's also brought a whole new set of challenges. In Q4 2024, Lendway reported an operating loss of $3.9 million, compared to $0.5 million in Q4 2023. That's an 800% increase in operating loss, folks! And the full-year 2024 operating loss was $6.7 million, up from $3.5 million in 2023. Ouch!

But wait, there's more! The net loss from continuing operations in Q4 2024 was $3.4 million, compared to $0.4 million in Q4 2023. And for the full year 2024, the net loss from continuing operations was $6.9 million, up from $3.0 million in 2023. This is a company that's bleeding cash, and it's not pretty.

Now, let's talk about the elephant in the room: the acquisition of Bloomia. This deal has been a game-changer for Lendway, but it's also brought a whole new set of challenges. In Q4 2024, Lendway reported an operating loss of $3.9 million, compared to $0.5 million in Q4 2023. That's an 800% increase in operating loss, folks! And the full-year 2024 operating loss was $6.7 million, up from $3.5 million in 2023. Ouch!

But wait, there's more! The net loss from continuing operations in Q4 2024 was $3.4 million, compared to $0.4 million in Q4 2023. And for the full year 2024, the net loss from continuing operations was $6.9 million, up from $3.0 million in 2023. This is a company that's bleeding cash, and it's not pretty.

But here's the thing: Lendway's management is not sitting idly by. They're fighting back with a vengeance! They've refreshed and updated their management team, and they're working hard to integrate the Bloomia business and team into Lendway. And it's paying off! Despite the seasonality of the Bloomia business, which typically sees stronger sales in the first and second quarters, Lendway managed to close the year with $1.0 million of Adjusted EBITDA. That's right, folks! A positive Adjusted EBITDA in the face of all this adversity.

But let's not forget about the cash position. As of December 31, 2024, Lendway's cash and cash equivalents were $1.8 million, down from $16.1 million at the beginning of the year. That's a 89% reduction in cash position, folks! And the debt? It's ballooned to $42.1 million. This is a company that's walking a financial tightrope, and one wrong move could send it tumbling into the abyss.

So, what's the verdict? Is Lendway a buy, a sell, or a hold? Well, that's a tough call. On one hand, the acquisition of Bloomia has the potential to be a game-changer for the company. But on the other hand, the financial challenges are real, and they're not going away anytime soon. So, do your own research, and make your own decision. But one thing's for sure: Lendway is a company to watch in 2025. So, stay tuned, folks! This story is far from over.