Here Is What You Need To Know Before Investing In Locafy Limited (LCFY)

Locafy Limited (NASDAQ:LCFY) is among the 12 Best Australian Stocks to Buy Right Now, based on hedge fund sentiment. However, 2025 has been a challenging year for the stock, with its shares declining 34% year-to-date, as of August 14.

Last month, the company received a non-compliance notice from NASDAQ over not filing Form 6-K containing an interim income statement and balance sheet for its second quarter of fiscal 2025, which ended December 31, 2024. While the notice has no immediate effect on the stock’s listing or trading, Locafy Limited (NASDAQ:LCFY) has until September 1, 2025, to submit a plan on regaining compliance.

Locafy Limited (NASDAQ:LCFY) last reported financial results for the quarter ended September 30, 2024, posting a 27.8% decline in total operating revenue and a net loss of AUD 55,000. The company’s current ratio stood at 0.92, reflecting potential challenges in meeting short-term obligations.

Despite what appears to be a difficult situation, it is not all gloom for Locafy Limited (NASDAQ:LCFY). The global SEO software market is projected to grow at a CAGR of 13.5% between 2024 and 2030, which could prove to be a tailwind, boosting the company’s revenue.

The news of a strategic partnership with a leading American reputation platform in June this year was also well-received by investors, resulting in a significant surge in its share price.

Locafy Limited (NASDAQ:LCFY) is a software-as-a-service technology company having expertise in local search engine marketing.

While we acknowledge the potential of LCFY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.