Executive Summary

Q4 2025 (three months ended June 30, 2025) delivered strong seasonal results: revenue $23.18M, gross margin 23.3%, operating income $2.49M, and diluted EPS $0.58, marking a clean YoY comparison with Bloomia fully consolidated and acquisition-related charges largely rolled off .
Versus Q3 2025, revenue nearly doubled on Easter/Mother’s Day timing, with EPS rising to $0.58 from $0.25; YoY, revenue grew 37% and profitability improved materially versus the prior year’s seasonal quarter .
Management emphasized record Mother’s Day sales and market share gains, while cautioning that higher bulb costs weighed on margins; they remain confident about continued growth and diversification of the customer base .
No formal quantitative guidance or Wall Street consensus estimates were available to benchmark; near‑term investor focus is on seasonality cadence, bulb cost inflation/tariffs, FX, and leverage/working capital dynamics .

What Went Well and What Went Wrong

What Went Well

Record spring demand and holiday timing drove revenue to $23.2M and gross margin 23.3% in Q4 2025; operating income reached $2.5M and adjusted EBITDA was $2.6M, reflecting operational leverage during peak season .
Management highlighted “record-breaking Mother’s Day sales” and exceeding market share targets, with momentum into the next fiscal year and a more diverse customer base .
Six-month adjusted EBITDA improved to $5.27M vs. $3.62M YoY on higher sales and reduced one-time costs, demonstrating underlying business improvement post-acquisition .

What Went Wrong

Higher bulb costs (and tariff exposure) pressured margins; gross margin would have been stronger absent cost inflation, and management raised prices only partially offsetting cost increases .
FX losses and interest expense remained notable drags (Q4 FX loss $0.70M; interest expense $0.94M), tempering bottom-line gains despite stronger operating results .
Working capital trough reflected seasonality (June 30 WC $1.10M vs. $11.03M at Dec 31), and leverage remained high ($34.08M total debt), constraining balance sheet flexibility .

Financial Results

Metric	Q4 2024 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)	Q4 2025 (Jun 30, 2025)
Revenue ($USD)	$6,192,000	$12,443,000	$23,179,000
Gross Profit ($USD)	$(582,000)	$3,889,000	$5,391,000
Gross Margin (%)	(9.4)%	31.3%	23.3%
Operating Income ($USD)	$(3,888,000)	$1,432,000	$2,485,000
Net Income from Continuing Ops ($USD)	$(3,360,000)	$617,000	$1,319,000
Diluted EPS ($USD)	$(1.66)	$0.25	$0.58
Adjusted EBITDA ($USD)	$(2,675,000)	$2,641,000	$2,633,000

YoY and QoQ drivers:

YoY (vs Q2 2024 seasonal quarter): revenue +$6.26M, operating income +$2.32M, EPS +$0.87, driven by full-period consolidation of Bloomia and strong holiday demand despite higher bulb costs .
QoQ (vs Q3 2025): revenue +$10.74M and EPS +$0.33 on seasonal peak; gross margin compressed vs Q3 on cost inflation and product mix, but operating income still improved .

Segment/Contribution (where disclosed):

Bloomia Adjusted EBITDA (6M ended Jun 30, 2025): $6,060,000; Lendway overhead: $(786,000); Total Adjusted EBITDA: $5,274,000 .
Bloomia Adjusted EBITDA (3M ended Mar 31, 2025): $2,981,000; Lendway overhead: $(340,000); Total Adjusted EBITDA: $2,641,000 .

KPIs and Balance Sheet

KPI	Q4 2024	Q3 2025	Q4 2025
Cash from Operations ($USD)	$(1,500,000)	$1,700,000	$6,300,000
Working Capital ($USD)	$11,026,000	$6,274,000	$1,098,000
Total Debt ($USD)	$42,090,000	$40,562,000	$34,083,000
Cash & Equivalents ($USD)	$1,759,000	$1,308,000	$906,000

Estimates vs Actuals (S&P Global)

Metric	Q4 2025 Consensus	Actual Q4 2025
Revenue ($USD)	N/A*	$23,179,000
Primary EPS ($USD)	N/A*	$0.58
EBITDA ($USD)	N/A*	$2,633,000

*Estimates data retrieved from S&P Global; consensus for LDWY Q4 2025 was unavailable.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue trajectory	Remainder FY 2026	None provided	Management expects revenue to increase as more bulbs in inventory are grown into stems (subject to normal growing risks)	Positive outlook (directional)
Gross margin	Remainder FY 2026	None provided	Management expects gross margin to improve as more stems are available; pricing raised to partially offset bulb/tariff cost increases	Positive outlook (directional)
Liquidity	Next 12 months	None provided	Belief cash balance, operations, and Credit Agreement availability will provide adequate liquidity for at least the next 12 months	Maintained adequate liquidity (qualitative)

Note: No formal quantitative ranges (revenue, margins, opex, tax rate) were provided in company disclosures for Q4 2025 .

Earnings Call Themes & Trends

No Q4 2025 earnings call transcript was available; themes below are drawn from company press releases/8-Ks.

Topic	Previous Mentions (Q3 2025)	Current Period (Q4 2025)	Trend
Seasonality/holiday timing	Strong spring tulip season; anticipation of Easter/Mother’s Day impact	Peak demand realized; record Mother’s Day sales achieved	Positive momentum in peak season
Bulb costs/tariffs	Noted higher costs impacting margins	Continued cost inflation; tariffs on bulbs; pricing raised to partially offset	Ongoing headwind; mitigation via pricing
Market share/customer base	Expectation to show clean YoY comparison post-acquisition	Exceeded market share goal; more diverse customer base	Structural improvement
FX and interest expense	FX gain in Q3; higher interest expense	FX loss $0.70M; interest expense $0.94M	Mixed: FX volatility, interest burden persists
Liquidity/credit agreement	Confidence in liquidity via Credit Agreement	Belief in adequate liquidity for next 12 months	Stable access; focus on working capital seasonality

Management Commentary

“We’re extremely proud to share the results from this last quarter, including record-breaking Mother’s Day sales… We’re excited to keep growing with our customers and to keep this incredible momentum going.” — Mark Jundt, Chairman & Co-CEO .
“We set a goal to grow market share this year and we exceeded our goal… record breaking revenue and a more diverse customer base.” — Dan Philp, Co-CEO .
On costs/margins: higher bulb prices and tariffs reduced profitability; prices have been raised to partially offset .
On forward outlook: confidence in adequate liquidity resources for the next twelve months, supported by operations and credit availability .

Q&A Highlights

No Q4 2025 earnings call transcript was available to extract Q&A; company disclosures did not provide call Q&A content [List: earnings-call-transcript returned 0].

Estimates Context

S&P Global consensus estimates for LDWY Q4 2025 revenue, EPS, and EBITDA were unavailable; therefore, no beat/miss determination versus Street can be made for this quarter. Investors should focus on sequential and YoY directional trends and management commentary on seasonality and cost mitigation. Values retrieved from S&P Global.

Key Takeaways for Investors

Seasonality delivered: Q4 2025 showed peak-cadre profitability with EPS $0.58 and operating income $2.49M; momentum was underpinned by record Mother’s Day and market share gains .
Cost inflation/tariffs are the margin swing factor: gross margin compressed vs Q3 on higher bulb costs; pricing actions partially offset but watch margin trajectory as inventory converts to stems .
FX and interest remain non-operating headwinds; bottom-line sensitivity to these items persists despite stronger operating results .
Working capital trough at fiscal year-end reflects tulip seasonality; debt reduced to $34.08M vs. Dec 31, but leverage remains elevated—monitor liquidity use vs. Credit Agreement capacity through the cycle .
Absence of Street estimates limits beat/miss framing; trade the narrative: spring peak strength, pricing vs. tariff inflation, and execution on market share gains as near-term catalysts. Values retrieved from S&P Global.
Medium-term: focus on scaling Bloomia, diversifying customers, and disciplined cost management to translate seasonal strength into sustained EBITDA/FCF improvement .

Citations:

LENDWAY, INC. (LDWY)·Q4 2025 Earnings Summary