Highlights 

  • Fiscal 2025 revenue declined 22.8% year-over-year to AUD 3.2 Mn 
  • FY2025 net loss widened to AUD 4.3 Mn from AUD 1.9 Mn in FY2024 
  • Localizer launch generated AUD 156 K in new monthly recurring revenue 

Locafy Limited (NASDAQ:LCFY), a software-as-a-service company focused on “entity-based” search engine optimization, reported its financial results for the fiscal fourth quarter and full year ended June 30, 2025. 

Totaloperating revenuefor fiscal 2025 was AUD 3.2 Mn, a decrease of 22.8% compared to AUD 4.2 Mn in 2024. Subscriptionrevenuefell 9.8% to AUD 3.0 Mn from AUD 3.3 Mn, primarily reflecting the transition from a reseller-based structure to a partner model. Advertising revenue dropped 43.9% to AUD 141 K, while services revenue declined 91.1% to AUD 50 K, mainly due to the non-recurrence of large consulting projects completed in the previous fiscal year. 

Other income rose 432.3% to AUD 327 K, driven mainly by R&D tax incentive rebates.Operating expensesincreased 27.0% to AUD 7.7 Mn from AUD 6.0 Mn, largely due to accounting adjustments related to share-based payments. Excluding these non-cash items, pro forma operating expenses decreased 11.9% to AUD 6.2 Mn. 

The company recorded a net loss of AUD 4.3 Mn, or AUD 2.63 per diluted share, compared to a net loss of AUD 1.9 Mn, or AUD 1.49 per diluted share, in fiscal 2024. 

Fiscal Fourth Quarter 2025 Results 

For the quarter ended June 30, 2025, total operating revenue declined 31.2% to AUD 829 K from AUD 1.2 Mn in the same period last year. Subscription revenue increased 9.7% to AUD 801 K, while service-related revenue dropped to AUD 3 K due to the absence of large consulting projects undertaken in the prior year. 

Operating expenses rose 58.1% to AUD 1.7 Mn, primarily reflecting share-based payment accounting impacts. The company reported a quarterly net loss of AUD 835 K, or AUD 0.46 per diluted share, compared to a net profit of AUD 147 K in Q4 2024. 

Operational Developments 

In fiscal 2025, Locafy launched Localizer, a subscription-based SEO and AI Engine Optimization product for local businesses, in the U.S. market. Within two months of launch, Localizer generated AUD 156 K in new monthly recurring subscriptions, equivalent to approximately AUD 1.9 Mn in annualized recurring revenue. 

In October 2025, Locafy introduced Localizer SAB, a new SEO/AEO solution for Service Area Businesses. The product features a setup fee of USD 4,000 and a monthly subscription starting at USD 2,000 per location. The company also entered into a partnership with a leading U.S. review-management platform, integrating its AI-search-ready landing-page technology across roughly 10,000 existing business users. 

Monthly recurring revenue for the fourth quarter was AUD 267 K, reflecting a 4.2% increase year-over-year and a 2.4% rise from the previous quarter. 

Management Commentary 

Locafy CEO Gavin Burnett commented: 
“Our fiscal 2025 laid the foundation for scalable sales of our core products across key target markets, as evidenced by the recent rapid increase in monthly subscription revenues announced last week. As we transitioned from product development to commercial execution, we took deliberate steps to simplify our focus and position Locafy for sustainable, recurring growth.” 

About Locafy 

Founded in 2009, Locafy Limited (NASDAQ:LCFY) develops SEO and AI-powered automation solutions that enhance visibility and prominence for local, national, and brand-focused businesses across online and AI-driven search platforms.