Press Release: Locafy Reports 31% Revenue Growth for the First Nine Months of Fiscal 2026

Dow Jones06-26
   -- Subscription revenues increased 36% from the comparative year-ago period 
      to $3.0 million 
 
   -- Operating expenses decreased 13% from the comparative year-ago period 
 
   -- Net Loss improved by $1.3 million, or 36% from the comparative year-ago 
      period 

PERTH, Australia, June 26, 2026 (GLOBE NEWSWIRE) -- Locafy Limited (Nasdaq: LCFY, LCFYW) ("Locafy" or the "Company"), a globally recognized software-as-a-service (SaaS) technology company specializing in location-based Search Engine Optimization (SEO) and Answer Engine Optimization $(AEO)$ solutions, today reported financial results for the fiscal nine-month period ended March 31, 2026, with solid year-over-year improvements in all key metrics. All financial results are reported in Australian dollars (AUD).

Business Highlights

   -- Subscription revenues increased by 36% on the back of core SEO/AEO 
      product suite 
 
   -- Decreased operational expenses through automation and headcount reduction 
 
   -- Streamlined and automated product deployment 
 
   -- Preparing for launch of "Poseidon", Locafy's advanced AEO (SaaS) platform 

Management Commentary

"Our results through the first nine months of fiscal 2026 reflect continued progress against the plan we put in place last year to grow revenue, improve margins and move toward profitability," said Gavin Burnett, Chief Executive Officer of Locafy. "In addition to launching effective local SEO and AEO solutions into the market, we have made significant progress toward the release of Poseidon, our flagship AEO SaaS platform, which remains on track to launch in July 2026.

"The search landscape is rapidly evolving, with AI increasingly shaping how consumers discover and engage with businesses online. With Poseidon, we believe we have built a platform that will help businesses cost-effectively improve their visibility across traditional search engines, AI-driven search experiences and other digital discovery channels.

"As we look ahead, we believe Poseidon can become a central platform for marketing agencies and small business owners to manage key digital marketing functions, including local search, online advertising, review management and PR distribution, all from a single platform."

Fiscal Nine-Month 2026 Financial Highlights

Results compare the fiscal nine-month ended results (March 31, 2026) to the same period in 2025 (March 31, 2025) unless otherwise indicated. All financial results are reported in Australian Dollars (AUD).

   -- Total operating revenue was $3.1 million, compared to $2.4 million in the 
      same year-ago period. Total operating revenue for the respective period 
      was comprised of: 
 
          -- Subscription revenue was $3.0 million, compared to $2.2 million in 
             the same year-ago period. This increase was mainly due to the 
             launch of our Localizer product. 
 
          -- Advertising revenue was $78,000, compared to $117,000 in the same 
             year-ago period. 
 
          -- Services revenue was $58,000, compared to $47,000 in the same 
             year-ago period. 
 
   -- Other income was $38,000, compared to $257,000 in the same year-ago 
      period. This variance is attributed to the Company's assessment of the 
      extent and likelihood of its ability to claim a Research & Development 
      tax incentive in Australia for non-capitalized expenditure. 
 
   -- Total operating expenses were $5.2 million, compared to $5.9 million in 
      the same year-ago period. Localizer sales were particularly strong 
      through our Partner sales channel, leading to higher Partner commissions 
      reflected in marketing expenses. Overall, marketing expenses increased to 
      $504,000 compared to $91,000 in the year ago period. Share based payments 
      expenses decreased by 80.4% to $278,000 (2025: $1.4 million) largely due 
      to the expenses in the same year-ago period being non-recurring. 
   -- Net loss totaled $2.2 million, or $1.16 per share, compared to net loss 
      of $3.5 million, or $2.19 per share, in the comparable year-ago period. 

Key Performance Indicators (KPIs)

Unless otherwise stated, KPI data is as of the 2026 fiscal third quarter ended (March 31, 2026).

   -- Monthly recurring revenue (MRR) for the 2026 fiscal third quarter was 
      $399,000 per month, up 9.2% from 2026 fiscal second quarter and up 53.0% 
      from the comparable year ago period. 

For more information, please see Locafy's investor relations website at investors.locafy.com.

About Locafy

Founded in 2009, Locafy's (Nasdaq: LCFY, LCFYW) mission is to accelerate visibility and prominence for local, national and brand focused businesses in both online and AI search engines using advanced SEO techniques, technologies and AI driven automation. For more information, please visit www.locafy.com.

About Key Performance Indicators

Locafy defines MRR as the value of all recurring subscription contracts with active entitlements as at the end of each month. MRR across a period is the average of each month's MRR within that period.

The Company may introduce additional KPIs in future quarters if deemed relevant long-term indicators of performance.

Forward-Looking Statements

This press release contains "forward-looking statements" that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "subject to", "believe," "anticipate," "plan," "expect," "intend," "estimate," "project," "may," "will," "should," "would," "could," "can," the negatives thereof, variations thereon and similar expressions, or by discussions of strategy, although not all forward-looking statements contain these words. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors and risk factors, including those discussed in the Company's filings with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 20-F filed with the SEC on November 12, 2025, and available on its website . All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Investor Relations Contact

Matt Glover

Gateway Investor Relations

(949) 574-3860

LCFY@gateway-grp.com

-Financial Tables to Follow-

 
                             Locafy Limited 
           Consolidated Statement of Profit or Loss and Other 
                          Comprehensive Income 
 
                6 months to   3 months to   9 months to   9 months to 
                31 Dec 2025   31 Mar 2026   31 Mar 2026   31 Mar 2025 
                   AUD $         AUD $         AUD $         AUD $ 
                (unaudited)   (unaudited)   (unaudited)   (unaudited) 
Revenue           1,910,867     1,199,988     3,110,855     2,374,121 
Other income         25,274        12,583        37,857       256,594 
 
Operational 
expenses 
Technology 
 expense           (625,881)     (365,004)     (990,885)     (943,946) 
Employee 
 benefits 
 expense           (842,132)     (525,573)   (1,367,705)   (1,295,118) 
Share based 
 payments 
 expense            (56,667)     (222,108)     (278,775)   (1,422,547) 
Occupancy 
 expense            (52,519)      (13,004)      (65,523)      (79,333) 
Marketing 
 expense           (298,091)     (205,604)     (503,695)      (90,809) 
Consultancy 
 expense           (428,546)     (264,743)     (693,289)     (613,087) 
Other expenses     (182,612)      (86,509)     (269,121)      (87,477) 
Depreciation 
 and 
 amortization 
 expense           (672,440)     (336,882)   (1,009,322)   (1,259,594) 
Expected 
 credit loss 
 expense            (57,000)            -       (57,000)     (184,593) 
                -----------   -----------   -----------   ----------- 
Operating loss   (1,279,747)     (806,856)   (2,086,603)   (3,345,789) 
                ----------- 
Foreign 
 exchange 
 (loss) / 
 gain               (17,399)      (66,418)      (83,817)       39,830 
Financial cost      (50,704)      (22,615)      (73,319)     (173,024) 
                -----------   -----------   -----------   ----------- 
Loss before 
 income tax      (1,347,850)     (895,889)   (2,243,739)   (3,478,983) 
Income tax 
expense                   -             -             -             - 
                -----------   -----------   -----------   ----------- 
Loss for the 
 period after 
 tax             (1,347,850)     (895,889)   (2,243,739)   (3,478,983) 
                -----------   -----------   -----------   ----------- 
 
Other 
comprehensive 
income 
Items that 
will be 
reclassified 
subsequently 
to profit and 
loss 
Exchange 
 differences 
 on 
 translating 
 foreign 
 operations          14,079        14,393        28,472       (35,197) 
                -----------   -----------   -----------   ----------- 
Total 
 comprehensive 
 loss for the 
 period          (1,333,771)     (881,496)   (2,215,267)   (3,514,180) 
                -----------   -----------   -----------   ----------- 
 
Earnings per 
share 
Basic loss per 
 share                (0.74)        (0.41)        (1.16)        (2.19) 
Diluted loss 
 per share            (0.74)        (0.41)        (1.16)        (2.19) 
 
 
                            Locafy Limited 
             Consolidated Statement of Financial Position 
 
                            As at          As at          As at 
                          31 Mar 2026    31 Dec 2025    30 Jun 2025 
                             AUD $          AUD $          AUD $ 
                          (unaudited)    (unaudited)     (audited) 
Assets 
Current assets 
Cash and cash 
 equivalents                1,441,709        459,921        594,671 
Trade and other 
 receivables                  732,722        430,197        876,347 
Other assets                  401,503        371,332        458,654 
                         ------------   ------------   ------------ 
Total current assets        2,575,934      1,261,450      1,929,672 
                         ------------   ------------   ------------ 
Non-current assets 
Property, plant and 
 equipment                     57,071         51,701         98,016 
Right of use assets            77,465        106,514        164,613 
Intangible assets           3,736,645      3,582,284      3,634,794 
                         ------------   ------------   ------------ 
Total non-current 
 assets                     3,871,181      3,740,499      3,897,423 
                         ------------   ------------   ------------ 
Total assets                6,447,115      5,001,949      5,827,095 
                         ------------   ------------   ------------ 
 
Liabilities 
Current liabilities 
Trade and other 
 payables                     560,192        450,265        382,473 
Borrowings                    244,680        327,265        427,280 
Provisions                    259,895        245,602        136,508 
Accrued expenses              525,194        349,714        518,930 
Lease liabilities              99,449        135,483        141,174 
Contract and other 
 liabilities                  181,429        207,862        170,215 
                         ------------   ------------   ------------ 
Total current 
 liabilities                1,870,839      1,716,191      1,776,580 
                         ------------   ------------   ------------ 
Non-current liabilities 
Lease liabilities                   -              -         62,736 
Provisions                     81,688         84,055        162,102 
Total non-current 
 liabilities                   81,688         84,055        224,838 
                         ------------   ------------   ------------ 
Total liabilities           1,952,527      1,800,246      2,001,418 
                         ------------   ------------   ------------ 
Net assets                  4,494,588      3,201,703      3,825,677 
                         ------------   ------------   ------------ 
 
Equity 
Issued capital             56,144,520     54,164,134     53,201,097 
Reserves                      725,603        517,216        756,377 
Accumulated losses        (52,375,535)   (51,479,647)   (50,131,797) 
                         ------------   ------------   ------------ 
Total equity                4,494,588      3,201,703      3,825,677 
                         ------------   ------------   ------------ 
 
 
                            Locafy Limited 
                 Consolidated Statement of Cash Flows 
 
                         6 months to    3 months to    9 months to 
                          31 Dec 2025    31 Mar 2026    31 Mar 2026 
                             AUD $          AUD $          AUD $ 
                          (unaudited)    (unaudited)    (unaudited) 
Cash flows from 
operating activities 
Receipts from customers 
 (inclusive of GST)         1,899,195        719,251      2,618,446 
Payments to suppliers 
 and employees 
 (inclusive of GST)        (1,993,616)    (1,067,398)    (3,061,014) 
R&D Tax Incentive             571,418              -        571,418 
Financial cost                (50,704)       (22,615)       (73,319) 
                         ------------   ------------   ------------ 
Net cash used by 
 operating activities         426,293       (370,762)        55,531 
                         ------------   ------------   ------------ 
 
Cash flows from 
investing activities 
Capitalised development 
 costs                     (1,086,934)      (246,249)    (1,333,183) 
Purchase of 
 intellectual property              -       (151,293)      (151,293) 
Purchase of property, 
 plant and equipment                -        (25,839)       (25,839) 
                         ------------ 
Net cash used by 
 investing activities      (1,086,934)      (423,381)    (1,510,315) 
                         ------------   ------------   ------------ 
 
Cash flows from 
financing activities 
Proceeds from issue of 
 shares                       781,582      1,976,699      2,758,281 
Transaction costs on 
 issuance of shares           (62,364)       (98,284)      (160,648) 
Repayment of borrowings      (138,979)       (80,843)      (219,822) 
Repayment of lease 
 liabilities                  (68,427)       (36,034)      (104,461) 
                         ------------                  ------------ 
Net cash from financing 
 activities                   511,812      1,761,538      2,273,350 
                         ------------   ------------   ------------ 
 
 
Net increase in cash 
 and cash equivalents        (148,829)       967,395        818,566 
                         ------------   ------------   ------------ 
Net foreign exchange 
 difference                    14,079         14,393         28,472 
Cash and cash 
 equivalents at the 
 beginning of the 
 period                       594,671        459,921        594,671 
                         ------------   ------------   ------------ 
Cash and cash 
 equivalents at the end 
 of the period                459,921      1,441,709      1,441,709 
                         ------------   ------------   ---- 

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June 26, 2026 08:00 ET

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