Hour Loop Reports First Quarter of 2026 Results
Rhea-AI Summary
Hour Loop (NASDAQ:HOUR) reported first quarter 2026 net revenues of $29.9 million, up 16% year-over-year, and net income of $0.82 million, or $0.02 per diluted share.
Gross margin declined to 53.5%, operating expenses fell to 49.7% of revenue, cash decreased to $0.9 million, and 2026 guidance was reaffirmed with revenue of $143–$163 million and net income of $0.75–$1.5 million.
AI-generated analysis. Not financial advice.
Positive
- Net revenues increased 16% year-over-year to $29.9 million
- Net income rose to $0.82 million; diluted EPS remained $0.02
- Operating expenses improved to 49.7% of net revenues from 51.2%
- 2026 net revenue guidance reaffirmed at $143–$163 million, flat to +15% YoY
- 2026 net income guidance reaffirmed at $0.75–$1.5 million
Negative
- Gross margin decreased to 53.5% from 54.7% year-over-year
- Cash used in operating activities was $2.2 million versus $0.0 million prior-year
- Cash and cash equivalents declined to $0.9 million from $3.8 million at year-end 2025
- Higher storage fees and inbound costs tied to a larger inventory base
Key Figures
Market Reality Check
Peers on Argus
Peers showed mixed moves: DIBS -2.38%, OCG -14.21%, BZUN -1.82%, while NHTC +3.59% and MOGU +5.31%. With only one peer in the momentum scanner and no clear common direction, HOUR’s setup appears stock-specific.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 24 | Full-year results | Positive | +0.5% | Reported 2025 revenue and net income growth with stronger operating cash flow. |
| Nov 12 | Quarterly results | Positive | +22.3% | Q3 2025 revenue growth and margin/expense mix that lifted net income. |
Recent fundamental updates with revenue and earnings growth have been followed by positive next-day price reactions.
In the last few quarters, Hour Loop has reported steady top-line growth and improving profitability. On Nov 12, 2025, Q3 results showed rising revenues, higher net income and lower operating expense ratios, and the stock gained 22.28% the next day. On Mar 24, 2026, full-year 2025 results with higher revenue, net income and operating cash flow prompted a positive 0.53% reaction. Today’s Q1 2026 report continues this theme of profitable growth amid cost pressures.
Market Pulse Summary
This announcement highlights continued revenue and net income growth in Q1 2026, with net revenues of $29.9M and net income of $0.82M, alongside a modest gross margin decline to 53.5%. Operating efficiency improved as expenses fell to 49.7% of revenue, but cash used in operations rose and cash fell to $0.9M. Investors may watch future quarters for margin stability, cash generation and delivery against the reaffirmed $143M–$163M revenue outlook.
Key Terms
gross margin financial
operating expenses financial
cash used in operating activities financial
AI-generated analysis. Not financial advice.
Continued Profitability Despite a Challenging Economic Environment
Redmond, WA, May 12, 2026 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop” or the “Company”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2026.
Financial Highlights for First Quarter of 2026:
- Net revenues increased
16% to$29.9 million , compared to$25.8 million in the year-ago period; - Net income increased to
$0.82 million , compared to$0.65 million in the year-ago period; and - Cash used in operating activities was
$2.2 million , compared to cash used in operating activities of$0.0 million in the year-ago period.
Management Commentary
“We are pleased to share our first quarter 2026 financial results as we kicked off the year with strong momentum,” said Sam Lai, CEO and interim CFO of Hour Loop. “Revenue grew
“Gross margin was modestly lower compared to the year-ago period, primarily due to higher inbound costs and storage fees, as we took a more proactive approach to inventory purchasing following the discontinuation of the platform’s labeling service. While this approach resulted in higher inventory levels, we believe maintaining a stronger inventory position is important to supporting product availability and more stable sales performance over time.”
“We also remained disciplined in managing operating expenses, which increased only
“We would like to thank our team members around the world for their continued dedication and contributions, as well as our shareholders for their continued trust and support. We remain focused on reinforcing the foundation we have built, while positioning the Company for future opportunities. We believe that everything we are doing today—strengthening our operations, improving efficiency, expanding opportunities and maintaining financial discipline—represents a critical building block for sustainable growth and long-term value creation.”
First Quarter of 2026 Financial Results
Net revenues in the first quarter of 2026 were
Gross profit as a percentage of net revenues decreased to
Operating expenses as a percentage of net revenues in the first quarter of 2026 decreased to
Net income in the first quarter of 2026 was
As of March 31, 2026, the Company had
Full Year 2026 Financial Outlook
Hour Loop reaffirms its guidance for the full year, anticipating 2026 net revenue to be in the range of
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, 2026 and December 31, 2025
(Unaudited)
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 992,886 | $ | 3,792,033 | ||||
| Accounts receivable, net | 865,136 | 235,959 | ||||||
| Inventory, net | 21,087,764 | 18,298,935 | ||||||
| Prepaid expenses and other current assets | 815,044 | 619,261 | ||||||
| Total current assets | 23,760,830 | 22,946,188 | ||||||
| Property and equipment, net | 87,666 | 95,917 | ||||||
| Deferred tax assets | 398,429 | 609,964 | ||||||
| Operating lease right-of-use lease assets | 145,424 | 169,368 | ||||||
| Total non-current assets | 631,519 | 875,249 | ||||||
| TOTAL ASSETS | $ | 24,392,349 | $ | 23,821,437 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 9,784,011 | $ | 6,200,526 | ||||
| Credit cards payable | 3,068,467 | 3,707,976 | ||||||
| Short-term loan | 626,076 | 637,348 | ||||||
| Operating lease liabilities-current | 90,728 | 92,362 | ||||||
| Income taxes payable | 105,962 | 51,147 | ||||||
| Accrued expenses and other current liabilities | 764,060 | 2,226,387 | ||||||
| Due to related parties | 2,060,418 | 3,810,418 | ||||||
| Total current liabilities | 16,499,722 | 16,726,164 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities-non-current | 60,081 | 83,271 | ||||||
| Deferred tax liabilities | 17,822 | 18,143 | ||||||
| Total non-current liabilities | 77,903 | 101,414 | ||||||
| Total liabilities | 16,577,625 | 16,827,578 | ||||||
| Commitments and contingencies | - | |||||||
| Stockholders’ equity | ||||||||
| Preferred stock: | - | - | ||||||
| Common stock: | 3,518 | 3,518 | ||||||
| Additional paid-in capital | 5,877,682 | 5,862,683 | ||||||
| Retained earnings | 1,933,156 | 1,109,674 | ||||||
| Accumulated other comprehensive income | 368 | 17,984 | ||||||
| Total stockholders’ equity | 7,814,724 | 6,993,859 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 24,392,349 | $ | 23,821,437 | ||||
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, 2026 and 2025
(Unaudited)
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | |||||||||||
| Revenues, net | $ | 29,930,342 | $ | 25,837,090 | ||||||||
| Cost of revenues | (13,912,567 | ) | (11,691,792 | ) | ||||||||
| Gross profit | 16,017,775 | 14,145,298 | ||||||||||
| Operating expenses | ||||||||||||
| Selling and marketing | 12,598,641 | 11,246,997 | ||||||||||
| General and administrative | 2,277,006 | 1,977,436 | ||||||||||
| Total operating expenses | 14,875,647 | 13,224,433 | ||||||||||
| Income from operations | 1,142,128 | 920,865 | ||||||||||
| Other (expense) income | ||||||||||||
| Other (expense) income | (1,808 | ) | 301 | |||||||||
| Interest expense | (33,938 | ) | (47,055 | ) | ||||||||
| Other income | 26,758 | 61,825 | ||||||||||
| Total other (expense) income, net | (8,988 | ) | 15,071 | |||||||||
| Income before income taxes | 1,133,140 | 935,936 | ||||||||||
| Income tax expense | (309,658 | ) | (281,419 | ) | ||||||||
| Net income | 823,482 | 654,517 | ||||||||||
| Other comprehensive loss | ||||||||||||
| Foreign currency translation adjustments | (17,616 | ) | (13,536 | ) | ||||||||
| Total comprehensive income | $ | 805,866 | $ | 640,981 | ||||||||
| Basic and diluted earnings per common share | $ | 0.02 | $ | 0.02 | ||||||||
| Weighted-average number of common shares outstanding | 35,183,554 | 35,151,351 | ||||||||||
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, 2026 and 2025
(Unaudited)
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | |||||||||||
| Cash flows from operating activities | ||||||||||||
| Net income | $ | 823,482 | $ | 654,517 | ||||||||
| Reconciliation of net income to net cash used in operating activities: | ||||||||||||
| Depreciation expenses | 12,245 | 14,126 | ||||||||||
| Amortization of operating lease right-of-use lease assets | 21,038 | 55,383 | ||||||||||
| Deferred tax assets | 211,535 | 238,899 | ||||||||||
| Stock-based compensation | 14,999 | 15,000 | ||||||||||
| Inventory allowance | 409,455 | 497,347 | ||||||||||
| Unrealized foreign exchange gain | (35,568 | ) | (24,826 | ) | ||||||||
| Changes in operating assets and liabilities: | ||||||||||||
| Accounts receivable | (629,177 | ) | 1,256,305 | |||||||||
| Inventory | (3,198,284 | ) | (1,746,197 | ) | ||||||||
| Prepaid expenses and other current assets | (195,783 | ) | (286,791 | ) | ||||||||
| Accounts payable | 3,583,485 | 2,683,231 | ||||||||||
| Credit cards payable | (639,509 | ) | (985,515 | ) | ||||||||
| Accrued expenses and other current liabilities | (2,612,327 | ) | (2,338,386 | ) | ||||||||
| Operating lease liabilities | (21,809 | ) | (56,984 | ) | ||||||||
| Income taxes payable | 54,815 | - | ||||||||||
| Net cash used in operating activities | (2,201,403 | ) | (23,891 | ) | ||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchases of property and equipment | (5,662 | ) | (720 | ) | ||||||||
| Net cash used in investing activities | (5,662 | ) | (720 | ) | ||||||||
| Cash flows from financing activities: | ||||||||||||
| Payments to related parties | (600,000 | ) | (839,000 | ) | ||||||||
| Net cash used in financing activities | (600,000 | ) | (839,000 | ) | ||||||||
| Effect of changes in foreign currency exchange rates | 7,918 | 4,152 | ||||||||||
| Net change in cash | (2,799,147 | ) | (859,459 | ) | ||||||||
| Cash at beginning of period | 3,792,033 | 2,119,581 | ||||||||||
| Cash at end of period | $ | 992,886 | $ | 1,260,122 | ||||||||
| Supplemental disclosures of cash flow information: | ||||||||||||
| Cash paid for interest | $ | 5,302 | $ | 4,986 | ||||||||
| Cash paid for income tax | $ | 2,630 | $ | 6,230 | ||||||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
