Hour Loop Reports First Quarter of 2025 Results
Hour Loop (NASDAQ: HOUR) reported mixed Q1 2025 financial results. Net revenues increased 4.7% to $25.8 million compared to $24.7 million in Q1 2024. However, net income decreased to $0.7 million ($0.02 per diluted share) from $1.1 million ($0.03 per diluted share) year-over-year.
The company's gross profit margin declined to 54.7% from 58.6%, primarily due to increased market competition and higher inbound costs. Operating expenses as a percentage of revenue improved slightly to 51.2% from 52.3%. Cash position decreased to $1.3 million from $2.1 million in December 2024, while inventories increased to $15.9 million from $14.6 million.
Management remains cautiously optimistic despite challenges from rising tariffs and marketplace fees, noting continued strong product demand in 2025. The company has withheld full-year 2025 guidance due to economic uncertainty.
Hour Loop (NASDAQ: HOUR) ha riportato risultati finanziari misti per il primo trimestre del 2025. I ricavi netti sono aumentati del 4,7%, raggiungendo 25,8 milioni di dollari rispetto ai 24,7 milioni del primo trimestre 2024. Tuttavia, l'utile netto è diminuito a 0,7 milioni di dollari (0,02 dollari per azione diluita) dai 1,1 milioni (0,03 dollari per azione diluita) dell'anno precedente.
Il margine lordo è calato al 54,7% dal 58,6%, principalmente a causa della maggiore concorrenza sul mercato e dei costi di approvvigionamento più elevati. Le spese operative in percentuale sui ricavi sono leggermente migliorate, passando dal 52,3% al 51,2%. La posizione di cassa è diminuita a 1,3 milioni di dollari dai 2,1 milioni di dicembre 2024, mentre le scorte sono aumentate a 15,9 milioni dai 14,6 milioni.
La direzione rimane cautamente ottimista nonostante le sfide derivanti dall'aumento dei dazi e delle commissioni di mercato, sottolineando una domanda di prodotti ancora forte nel 2025. L'azienda ha deciso di non fornire indicazioni per l'intero anno 2025 a causa dell'incertezza economica.
Hour Loop (NASDAQ: HOUR) reportó resultados financieros mixtos en el primer trimestre de 2025. Los ingresos netos aumentaron un 4,7% hasta 25,8 millones de dólares, en comparación con 24,7 millones en el primer trimestre de 2024. Sin embargo, el ingreso neto disminuyó a 0,7 millones de dólares (0,02 dólares por acción diluida) desde 1,1 millones (0,03 dólares por acción diluida) año tras año.
El margen bruto disminuyó al 54,7% desde el 58,6%, principalmente debido a una mayor competencia en el mercado y a mayores costos de adquisición. Los gastos operativos como porcentaje de los ingresos mejoraron ligeramente, pasando del 52,3% al 51,2%. La posición de efectivo disminuyó a 1,3 millones desde 2,1 millones en diciembre de 2024, mientras que los inventarios aumentaron a 15,9 millones desde 14,6 millones.
La gerencia se mantiene cautelosamente optimista a pesar de los desafíos derivados del aumento de aranceles y comisiones del mercado, destacando una demanda de productos fuerte en 2025. La compañía ha decidido no proporcionar una guía para todo el año 2025 debido a la incertidumbre económica.
Hour Loop (NASDAQ: HOUR)는 2025년 1분기 재무 실적에서 혼조세를 보였습니다. 순매출은 전년 동기 대비 4.7% 증가한 2,580만 달러를 기록했습니다. 그러나 순이익은 110만 달러(희석 주당 0.03달러)에서 70만 달러(희석 주당 0.02달러)로 감소했습니다.
회사의 총이익률은 58.6%에서 54.7%로 하락했으며, 이는 주로 시장 경쟁 심화와 인바운드 비용 증가 때문입니다. 영업비용 비율은 매출 대비 소폭 개선되어 52.3%에서 51.2%로 낮아졌습니다. 현금 보유액은 2024년 12월 210만 달러에서 130만 달러로 감소했고, 재고는 1,460만 달러에서 1,590만 달러로 증가했습니다.
경영진은 관세 인상과 시장 수수료 증가라는 도전에도 불구하고 2025년 강한 제품 수요를 지속적으로 확인하며 조심스러운 낙관론을 유지하고 있습니다. 경제 불확실성으로 인해 2025년 전체 가이던스는 보류 중입니다.
Hour Loop (NASDAQ : HOUR) a publié des résultats financiers mitigés pour le premier trimestre 2025. Les revenus nets ont augmenté de 4,7% pour atteindre 25,8 millions de dollars, contre 24,7 millions au premier trimestre 2024. Cependant, le bénéfice net a diminué à 0,7 million de dollars (0,02 dollar par action diluée) contre 1,1 million (0,03 dollar par action diluée) sur un an.
La marge brute a diminué à 54,7 % contre 58,6 %, principalement en raison d'une concurrence accrue sur le marché et de coûts d'approvisionnement plus élevés. Les charges d'exploitation en pourcentage du chiffre d'affaires se sont légèrement améliorées, passant de 52,3 % à 51,2 %. La trésorerie a diminué à 1,3 million de dollars contre 2,1 millions en décembre 2024, tandis que les stocks ont augmenté à 15,9 millions contre 14,6 millions.
La direction reste prudemment optimiste malgré les défis liés à la hausse des tarifs douaniers et des frais de marché, notant une demande produit toujours forte en 2025. L'entreprise a décidé de ne pas fournir de prévisions pour l'ensemble de l'année 2025 en raison de l'incertitude économique.
Hour Loop (NASDAQ: HOUR) meldete gemischte Finanzergebnisse für das erste Quartal 2025. Die Nettoumsätze stiegen um 4,7% auf 25,8 Millionen US-Dollar im Vergleich zu 24,7 Millionen im ersten Quartal 2024. Allerdings ging der Nettogewinn zurück auf 0,7 Millionen US-Dollar (0,02 US-Dollar je verwässerter Aktie) von 1,1 Millionen US-Dollar (0,03 US-Dollar je verwässerter Aktie) im Jahresvergleich.
Die Bruttomarge sank von 58,6 % auf 54,7 %, hauptsächlich aufgrund gestiegener Marktkonkurrenz und höherer Eingangs kosten. Die Betriebskosten im Verhältnis zum Umsatz verbesserten sich leicht von 52,3 % auf 51,2 %. Die Barposition sank von 2,1 Millionen US-Dollar im Dezember 2024 auf 1,3 Millionen, während die Lagerbestände von 14,6 Millionen auf 15,9 Millionen stiegen.
Das Management bleibt trotz Herausforderungen durch steigende Zölle und Marktplatzgebühren vorsichtig optimistisch und weist auf eine weiterhin starke Produktnachfrage im Jahr 2025 hin. Aufgrund der wirtschaftlichen Unsicherheit hat das Unternehmen die Prognose für das Gesamtjahr 2025 zurückgehalten.
- Revenue growth of 4.7% YoY to $25.8 million despite challenging market conditions
- Maintained profitability with $0.7 million net income
- Operating expenses as percentage of revenue improved to 51.2% from 52.3%
- Strategic inventory investment increased to $15.9 million for growth opportunities
- Net income declined 36.4% to $0.7 million from $1.1 million YoY
- Gross profit margin decreased 3.9% to 54.7% due to competition and higher costs
- Cash position decreased to $1.3 million from $2.1 million in December 2024
- Unable to provide 2025 guidance due to economic uncertainty
Insights
Hour Loop reported modest 4.7% revenue growth but declining profits amid e-commerce headwinds and rising costs.
Hour Loop's Q1 2025 results present a mixed picture with some concerning trends. While the company achieved 4.7% revenue growth reaching
This profitability squeeze stems from multiple challenges. First, their gross margin contracted by
Cash flow metrics are particularly concerning - operating cash flow turned negative at
Management attributed challenges to rising marketplace fees/tariffs and a cautious consumer environment. Their strategic inventory investment in Q1 2025 indicates they're positioning for growth, but this ties up capital while cash reserves dwindle. The company's decision to implement quarterly profit-sharing for talent retention suggests they're facing personnel challenges amid e-commerce industry pressures.
With their unwillingness to provide 2025 guidance citing tariff uncertainties, investors should note the company faces significant headwinds despite maintaining thin profitability. The declining cash position paired with expanding inventory could create liquidity concerns if revenue growth doesn't accelerate or if margins continue deteriorating.
Profitability Continues Despite Challenges for the Overall Economy
Redmond, WA, May 12, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2025.
Financial Highlights for First Quarter of 2025:
- Net revenues increased
4.7% to$25.8 million , compared to$24.7 million in the year-ago period; - Net income decreased to
$0.7 million , compared to$1.1 million for the three months ended March 31, 2024; and - Cash used in operating activities was
$0.02 million , compared with cash provided by operating activities$0.5 million for the three months ended March 31, 2025 and 2024, respectively.
Management Commentary
“We are pleased to report our results for the first quarter of 2025. During the first quarter of 2025, we continued to deliver good revenue growth, despite a more cautious consumer outlook due to rising tariffs and fees charged by the marketplace,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for the first quarter was
“However, our gross margin for the first quarter of 2025, compared with the year-ago period, was negatively affected by a challenging e-commerce environment and intense competition across the industry. Our operating expenses also increased mainly because we amended our profit-sharing frequency to quarterly for the purpose of talent retention. Overall, we believe we’ve built a solid foundation to continue generating steady growth while maintaining profitability.”
“Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2025. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.”
First Quarter of 2025 Financial Results
Net revenues in the first quarter of 2025 were
Gross profit percentage for the first quarter of 2025 decreased
Operating expenses as a percentage of net revenues decreased
Net income in the first quarter of 2025 was
As of March 31, 2025, the Company had
Inventories as of March 31, 2025, were
Full Year 2025 Financial Outlook
For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions.
About Hour Loop, Inc.
Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs.
Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law.
Investor Contact
Finance Department, Hour Loop, Inc.
finance@hourloop.com
HOUR LOOP, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars, except for share and per share data)
As of March 31, 2025 and December 31, 2024
(Unaudited)
| March 31, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 1,260,122 | $ | 2,119,581 | ||||
| Accounts receivable, net | 394,242 | 1,650,547 | ||||||
| Inventory, net | 15,889,482 | 14,640,632 | ||||||
| Prepaid expenses and other current assets | 614,685 | 327,894 | ||||||
| Total current assets | 18,158,531 | 18,738,654 | ||||||
| Property and equipment, net | 42,759 | 56,797 | ||||||
| Deferred tax assets | 821,205 | 1,060,104 | ||||||
| Operating lease right-of-use lease assets | 54,978 | 111,409 | ||||||
| Total non-current assets | 918,942 | 1,228,310 | ||||||
| TOTAL ASSETS | $ | 19,077,473 | $ | 19,966,964 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 6,859,536 | $ | 4,176,305 | ||||
| Credit cards payable | 2,404,365 | 3,389,880 | ||||||
| Short-term loan | 603,227 | 610,967 | ||||||
| Operating lease liabilities-current | 56,478 | 114,540 | ||||||
| Accrued expenses and other current liabilities | 677,726 | 2,322,535 | ||||||
| Due to related parties | 2,660,418 | 4,192,995 | ||||||
| Total current liabilities | 13,261,750 | 14,807,222 | ||||||
| Total liabilities | 13,261,750 | 14,807,222 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock: | - | - | ||||||
| Common stock: | 3,515 | 3,514 | ||||||
| Additional paid-in capital | 5,817,685 | 5,802,686 | ||||||
| Retained earnings (accumulated deficit) | 59,342 | (595,175 | ) | |||||
| Accumulated other comprehensive loss | (64,819 | ) | (51,283 | ) | ||||
| Total stockholders’ equity | 5,815,723 | 5,159,742 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 19,077,473 | $ | 19,966,964 | ||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(In U.S. Dollars, except for share and per share data)
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Revenues, net | $ | 25,837,090 | $ | 24,681,122 | ||||
| Cost of revenues | (11,691,792 | ) | (10,228,916 | ) | ||||
| Gross profit | 14,145,298 | 14,452,206 | ||||||
| Operating expenses | ||||||||
| Selling and marketing | 11,246,997 | 11,174,191 | ||||||
| General and administrative | 1,977,436 | 1,739,843 | ||||||
| Total operating expenses | 13,224,433 | 12,914,034 | ||||||
| Income from operations | 920,865 | 1,538,172 | ||||||
| Other income (expense) | ||||||||
| Other income (expense) | 301 | (1,156 | ) | |||||
| Interest expense | (47,055 | ) | (62,112 | ) | ||||
| Other income | 61,825 | 28,034 | ||||||
| Total other income (expense), net | 15,071 | (35,234 | ) | |||||
| Income before income taxes | 935,936 | 1,502,938 | ||||||
| Income tax expense | (281,419 | ) | (437,124 | ) | ||||
| Net income | 654,517 | 1,065,814 | ||||||
| Other comprehensive loss | ||||||||
| Foreign currency translation adjustments | (13,536 | ) | (16,533 | ) | ||||
| Total comprehensive income | $ | 640,981 | $ | 1,049,281 | ||||
| Basic and diluted earnings per common share | $ | 0.02 | $ | 0.03 | ||||
| Weighted-average number of common shares outstanding | 35,151,351 | 35,095,602 | ||||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In U.S. Dollars)
For the Three Months Ended March 31, 2025 and 2024
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 654,517 | $ | 1,065,814 | ||||
| Reconciliation of net income to net cash used in operating activities: | ||||||||
| Depreciation expenses | 14,126 | 35,273 | ||||||
| Amortization of operating lease right-of-use lease assets | 55,383 | 42,892 | ||||||
| Deferred tax assets | 238,899 | 351,127 | ||||||
| Stock-based compensation | 15,000 | 36,000 | ||||||
| Inventory allowance | 497,347 | 637,058 | ||||||
| Unrealized foreign exchange gain | (24,826 | ) | - | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,256,305 | 210,133 | ||||||
| Inventory | (1,746,197 | ) | 2,021,008 | |||||
| Prepaid expenses and other current assets | (286,791 | ) | 76,091 | |||||
| Accounts payable | 2,683,231 | (392,733 | ) | |||||
| Credit cards payable | (985,515 | ) | (2,543,010 | ) | ||||
| Accrued expenses and other current liabilities | (2,338,386 | ) | (1,093,909 | ) | ||||
| Operating lease liabilities | (56,984 | ) | (35,175 | ) | ||||
| Income taxes payable | - | 82,374 | ||||||
| Net cash (used in) provided by operating activities | (23,891 | ) | 492,943 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (720 | ) | (17,798 | ) | ||||
| Net cash used in investing activities | (720 | ) | (17,798 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments to related parties | (839,000 | ) | - | |||||
| Net cash used in financing activities | (839,000 | ) | - | |||||
| Effect of changes in foreign currency exchange rates | 4,152 | (37,218 | ) | |||||
| Net change in cash | (859,459 | ) | 437,927 | |||||
| Cash at beginning of period | 2,119,581 | 2,484,153 | ||||||
| Cash at end of period | $ | 1,260,122 | $ | 2,922,080 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 4,986 | $ | 3,380 | ||||
| Cash paid for income tax | $ | 6,230 | $ | - | ||||
| Non-cash investing and financing activities: | ||||||||
| Operating lease right-of-use of assets and operating lease liabilities recognized | $ | - | $ | 123,107 | ||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
FAQ
What were Hour Loop's (HOUR) Q1 2025 earnings results?
Why did Hour Loop's (HOUR) profit margins decline in Q1 2025?
What is Hour Loop's (HOUR) cash position as of Q1 2025?
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How much inventory does Hour Loop (HOUR) have in Q1 2025?
