Business/Financial Results (Form 8-K)

FOR IMMEDIATE RELEASE

LENDWAY, INC. ANNOUNCES SEPTEMBER 30, 2025 FINANCIAL RESULTS

MINNEAPOLIS, MN - November 10, 2025 - Lendway, Inc. (Nasdaq: LDWY) ("Lendway" or the "Company") today announced its financial results for the three months ended September 30, 2025.

Overview

Three months ended September 30, 2025

Lendway's Chairman and Co-Chief Executive Officer, Mark Jundt, commented, "This quarter reflects the natural seasonality of our business, but we're encouraged by the momentum we're building. The Company is laying the groundwork for a successful year ahead, and we feel as confident as ever in our future." Co-Chief Executive Officer Dan Philp added, "This quarter is an important quarter in terms of buying our bulbs and preparing our growing programs for the upcoming busy season. We believe that we have set ourselves up to capture the full potential of the peak season ahead."

Three Months Results

Net Revenue

Net revenue was $5.2 million for the three months ended September 30, 2025 compared to $6.6 million in the three months ended September 30, 2024. The decrease in revenue is due to strategically growing tulips earlier in the calendar year to meet higher demand near Mother's Day, resulting in fewer stems to sell this quarter. Additionally, the Company purchased fewer Dutch bulbs in 2024, so there were less stems to grow at the end of the Dutch bulb season, which is typically July and August. Management expects revenue to increase in the remaining quarters of fiscal year 2026 as a result of more bulbs in inventory which the Company will grow into stems to sell, subject to normal growing risks.

Gross (loss) profit

Gross loss in the three months ended September 30, 2025 was $0.06 million, or 1.2% of sales, compared to gross profit of $1.4 million, or 21.7% of sales, in the three months ended September 30, 2024. The Company strategically accelerated the growing of stems to meet spring demand which led to less stems available for sale in the quarter to cover fixed costs such as rent. Additionally, the average price a bulb increased and bulbs are now subject to tariffs which reduces profitability. The Company has raised prices to partially offset the higher costs. Management expects gross margin to improve in the remaining quarters of fiscal year 2026 as the Company has more bulbs to grow into stems to sell.

Operating loss

The Company had operating loss of $3.0 million in the three months ended September 30, 2025, compared to operating loss of $1.4 million in the three months ended September 30, 2024. The reduction is primarily due to lower revenue and higher bulb costs.

Net loss from continuing operations

Net loss from continuing operations was $3.4 million in the three months ended September 30, 2025 compared to a loss of $1.5 million in the three months ended September 30, 2024. The decrease is primarily due to lower operating income and an increase in foreign exchange losses.

Net loss attributable to Lendway

Net loss attributable to Lendway for the three months ended September 30, 2025 was $2.9 million, or $1.61 per diluted share, compared to net loss attributable to Lendway of $1.1 million, or a loss of $0.64 per diluted share, in the three months ended September 30, 2024. The decrease is due to the increase in operating loss.

EBITDA

In the three months ended September 30, 2025, EBITDA was a loss of $2.4 million, compared to a loss of $0.6 million in the three months ended September 30, 2024. The decrease is due to lower sales and higher bulb costs.

Bloomia EBITDA

Bloomia had an EBITDA loss of $1.8 million in the three months ended September 30, 2025 compared to $0.1 million of EBITDA income in the three months ended September 30, 2024. The decrease is due to lower sales and higher bulb costs.

Balance Sheet

As of September 30, 2025, cash and cash equivalents totaled $1.8 million, compared to $0.9 million as of June 30, 2025. The increase is primarily due to debt proceeds in the three months ended September 30, 2025 to fund the purchase of tulip bulbs in the quarter. Working capital (current assets less current liabilities) was $11.3 million at September 30, 2025, compared to $1.1 million at June 30, 2025. The increase is due to the purchasing of bulbs for "high season" in the spring. Working capital has historically been near its peak as of December 31 and near the trough at June 30 due to the seasonality of the business. Debt, including a $6.4 million note payable to a related party, was $45.5 million as of September 30, 2025, compared to $34.1 million at June 30, 2025. The increase is a result of the Company drawing on its revolving line of credit and borrowing funds pursuant to additional promissory notes, primarily to purchase tulip bulbs in the quarter.

About Lendway, Inc.

Lendway, Inc (Nasdaq: LDWY) is a specialty ag company focused on making and managing its ag investments in the U.S. and internationally. The Company is the majority owner of Bloomia, one of the largest producers of fresh-cut tulips in the United States. For additional information, contact (800) 874-4648 or visit our website at www.lendway.com. Investor inquiries can be submitted to [email protected].