Lendway 2025 Q1 Earnings Strong Turnaround as Net Income Swings 144.3%

Lendway (LDWY) reported its fiscal 2025 Q1 earnings on May 13th, 2025. The company experienced a significant turnaround, with a 144.3% positive swing in net income compared to the previous year's Q1. Lendway's earnings exceeded expectations, as the company returned to profitability with an EPS of $0.25, reversing from a loss of $0.67 per share in 2024 Q1. The company's guidance remains optimistic, anticipating continued strong sales trends driven by seasonal demand. This performance highlights the successful integration of Bloomia and the positive impacts of the spring tulip season.

Revenue

Lendway's total revenue surged by 54.9% in 2025 Q1, reaching $12.44 million compared to $8.03 million in 2024 Q1. The supermarket segment was the largest contributor, generating $10.70 billion, followed by the wholesaler segment with $1.66 billion and the other segment with $79 million.

Earnings/Net Income

Lendway returned to profitability in 2025 Q1, posting an EPS of $0.25, shifting from a loss of $0.67 per share in 2024 Q1. The company achieved a net income of $627,000, marking a dramatic improvement from the net loss of $1.41 million in the previous year. This EPS turnaround is a positive indicator for Lendway's financial health.

Price Action

The stock price of Lendway edged down 1.16% during the latest trading day, declined 2.96% over the most recent full trading week, but has climbed 7.62% month-to-date.

Post-Earnings Price Action Review

Investors following the strategy of buying Lendway shares on the revenue report release date and holding for 30 days have seen a respectable 4.68% annualized return over the past five years, slightly below the market average. This strategy yielded a total return of 96.42% over the period, outperforming the market by 4.68% annually. As of the latest data, an initial investment of $1,000 in this strategy would now be valued at $2,452.17, reflecting the compound growth. Despite being below the market average, this strategy demonstrates effective risk management and competitive returns, aligning well with Lendway's overall market performance.

CEO Commentary

Mark Jundt, Co-Chief Executive Officer of Lendway, expressed satisfaction with the company's strong financial performance this quarter, highlighting significant improvements in revenue and EBITDA attributed to a successful spring tulip season. He noted the positive impact of upcoming Easter and Mother's Day sales and praised the team's dedication in meeting strong demand. Co-Chief Executive Officer Dan Philp emphasized the excitement of reporting a full year-over-year comparison of Bloomia's operations, anticipating clearer insights into the business's performance as acquisition-related costs decrease.

Guidance

Lendway expects to continue benefiting from strong sales trends driven by seasonal demand, with positive performance anticipated to extend into the next quarter. The company is poised to provide a comprehensive year-over-year comparison of Bloomia's operations, reflecting confidence in its growth trajectory and operational efficiency as acquisition-related costs roll off.

Additional News

In recent developments, Lendway announced a leadership transition with Mark Jundt and Dan Philp taking over as Co-Chief Executive Officers, effective July 1, 2024. This change follows the resignation of former CEO Randy Uglem. The company highlighted this dual leadership structure as a strategic move to enhance its initiatives and corporate governance. Furthermore, William Prescott was appointed as Sales Manager for Bloomia, Lendway's primary business unit. Prescott brings over 15 years of sales experience, aiming to expand Bloomia's presence in the Western United States. Additionally, Lendway continues to build on its strategic acquisitions, with Bloomia being a key contributor to its growing specialty agricultural segment.