Hour Loop Reports Results for Three and Nine Months Ended September 30, 2026

Rhea-AI Summary

Hour Loop (HOUR) reported lower third-quarter revenue and profit, while maintaining profitability and narrowing its full-year revenue guidance. Third-quarter revenue fell 4% to $32.1 million, reflecting lower order volume with lower inventory levels. Net income declined to $0.4 million from $0.5 million, and diluted earnings per share fell to $0.01 from $0.02. Gross margin decreased to 50.6% from 51.4%.

Nine-month revenue rose 11% to $95.9 million, while net income decreased to $2.3 million from $2.4 million. Operating cash use increased to $4.1 million from $0.4 million. Cash fell to $1.1 million from $3.8 million at December 31, 2025, primarily reflecting inventory investment ahead of the holidays. Hour Loop expects 2026 revenue of $147.0 million to $152.0 million, representing 3% to 6% growth, and continues to expect net income of $0.75 million to $1.5 million.

9 points · 0 major

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0 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointNine-month revenue increased 11% to $95.9 million from $86.4 million a year earlier.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year revenue guidance narrowed to $147.0 million–$152.0 million, with expected year-over-year growth of 3%–6%.
• Moderate pointNine-month gross profit rose to $50,219,470 from $46,817,958 a year earlier.
• Moderate pointRelated-party financing provided $2,956,000 in proceeds during the first nine months of 2026. 5.2% of market cap
• Minor point. Forward-looking: it has not happened yet and may not happen.Full-year net income expectations remain $0.75 million–$1.5 million.

4 minor points

• Minor pointThird-quarter selling and marketing expenses fell to $13,782,339 from $14,665,407 a year earlier.
• Minor pointCredit cards payable decreased to $3,216,530 from $3,707,976 at December 31, 2025.
• Minor pointStockholders’ equity increased to $9,324,904 from $6,993,859 at December 31, 2025.
• Minor point. Forward-looking: it has not happened yet and may not happen.AI agents support core operations; Hour Loop believes they enable scaling without proportional headcount growth.

Negative

• Moderate pointThird-quarter revenue fell 4% to $32.1 million from $33.4 million, reflecting lower orders and inventory levels.
• Moderate pointThird-quarter net income fell to $0.4 million from $0.5 million; diluted EPS declined to $0.01 from $0.02.
• Moderate pointNine-month operating cash use increased to $4.1 million from $0.4 million a year earlier.
• Moderate pointCash declined to $1.1 million from $3.8 million at December 31, 2025, primarily reflecting holiday inventory investment.
• Moderate pointAccounts payable increased to $13,095,516 from $6,200,526 at December 31, 2025.

8 minor points

• Minor pointThird-quarter gross margin fell to 50.6% from 51.4%, primarily reflecting lower platform inventory reimbursements.
• Minor pointThird-quarter operating income declined to $492,111 from $742,006 a year earlier.
• Minor pointNine-month net income declined to $2.3 million from $2.4 million; diluted EPS remained $0.07.
• Minor pointNine-month operating income decreased to $2,918,625 from $3,283,722 a year earlier.
• Minor pointNine-month selling and marketing expenses increased to $40,899,883 from $37,627,975 a year earlier.
• Minor pointGeneral and administrative expenses rose to $1,959,107 for the quarter and $6,400,962 for nine months.
• Minor pointAccounts receivable increased to $2,638,732 from $235,959 at December 31, 2025.
• Minor pointAmounts due to related parties increased to $4,130,418 from $3,810,418 at December 31, 2025.

News Explained

In the first nine months, Hour Loop received $2.956 million from related parties and paid $1.486 million to them; financing activities provided a net $1.470 million, a cash-flow source distinct from the reported operating cash use.

Key Figures

Q3 net revenue: $32.1 million, down 4% Nine-month net revenue: $95.9 million, up 11% Q3 net income: $0.4 million vs. $0.5 million +5 more

Q3 net revenue

$32.1 million, down 4%

Third quarter 2026 vs. year-ago period

Nine-month net revenue

$95.9 million, up 11%

Nine months ended September 30, 2026 vs. year-ago period

Q3 net income

$0.4 million vs. $0.5 million

Third quarter 2026 vs. year-ago period

Nine-month net income

$2.3 million vs. $2.4 million

Nine months ended September 30, 2026 vs. year-ago period

Cash used in operating activities

$4.1 million vs. $0.4 million

Nine months ended September 30, 2026 vs. year-ago period

Gross profit as a percentage of net revenues

50.6% vs. 51.4%

Third quarter 2026 vs. same period last year

2026 net revenue outlook

$147.0 million to $152.0 million

Narrowed full-year guidance; representing 3% to 6% year-over-year growth

2026 net income outlook

$0.75 million to $1.5 million

Full-year 2026 expected range

Historical Context

1 past event · Latest: Aug 11

1 event

1. Aug 11

   Q2 earnings

   24h Move

   -2.6%

   Revenue grew 25%, but net income and margin fell while operating cash outflow increased.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

stock-keeping units, accounts receivable, diluted income per common share

3 terms

stock-keeping units technical

"Hour Loop manages more than 100,000 stock-keeping units"

A stock-keeping unit (SKU) is a unique code or identifier a retailer or manufacturer assigns to a specific product, including its size, color, model and packaging, so each distinct item can be tracked separately in inventory systems. Investors care because SKUs reveal how detailed a company’s inventory management is, affecting sales tracking, restocking efficiency and margin control—think of SKUs like barcoded name tags that let a business know exactly what it has and how fast it’s selling.

accounts receivable financial

"Accounts receivable, net"

Money a company is owed by its customers for goods or services already delivered but not yet paid for. Think of it like a stack of IOUs or open tabs: it represents future cash the business expects to collect. Investors watch accounts receivable because large or growing balances can signal strong sales or potential cash shortfalls if customers don’t pay, affecting liquidity, working capital and the company’s financial health.

diluted income per common share financial

"Basic and diluted income per common share"

Diluted income per common share shows how much profit each share of a company's stock earns, assuming all possible new shares (like stock options or convertible bonds) are sold. It matters because it gives a more realistic picture of a company's profitability per share, especially if many new shares could be created in the future, which can make existing shares seem less valuable.

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Continued Profitability Despite a Challenging Economic Environment

Redmond, WA, Nov. 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 three and nine months ended September 30, 2026.

Financial Highlights for Three and Nine Months Ended September 30, 2026:

	·	Net revenues for the third quarter of 2026 decreased 4% to $32.1 million, compared to $33.4 million in the year-ago period;
	·	Net income for the third quarter of 2026 decreased to $0.4 million, compared to $0.5 million in the year-ago period;
	·	For the nine months ended September 30, 2026, net revenues increased 11% to $95.9 million, compared to $86.4 million in the year-ago period;
	·	Net income for the nine months ended September 30, 2026 decreased to $2.3 million, compared to $2.4 million for the year-ago period; and
	·	Cash used in operating activities for the nine months ended September 30, 2026 was $4.1 million, compared to $0.4 million in the year-ago period.

Management Commentary

“Through the first nine months of 2026, Hour Loop grew net revenues 11% and earned $2.3 million in net income, and we stayed profitable through a tougher third quarter,” said Sam Lai, Chief Executive Officer and Interim Chief Financial Officer. “We made a deliberate choice to protect our margins rather than chase low-quality sales, and we believe that discipline puts us in a strong position as we head into the holiday season, the most important time of our year.”

“We are building an AI-first company, and AI is already changing how we work every day. AI agents now support core parts of our operations – purchasing and replenishment, advertising, pricing, inbound shipments, inventory reconciliation, customer service and compliance. In purchasing, our agents help us make smarter, faster buying decisions. Agents now handle much of the day-to-day work. As routine work shifts to AI, our teams are freed to focus on higher-value decisions, and we believe this will allow us to scale the business without growing headcount at the same pace.”

“We are very excited about where Hour Loop is headed. With a disciplined operating model, powered by AI to drive greater efficiency, we are confident in the long-term opportunity ahead. We thank our employees for their drive and our shareholders for their continued support.”

Third Quarter of 2026 Financial Results

Net revenues in the third quarter of 2026 were $32.1 million, compared to $33.4 million in the same period last year. The decrease was primarily due to lower order volume with lower inventory levels.

Gross profit as a percentage of net revenues decreased to 50.6%, compared to 51.4% in the same period last year. The decrease was primarily due to lower inventory reimbursements from platforms, partially offset by tariff-related refunds from vendors.

Operating expenses as a percentage of net revenues in the third quarter of 2026 decreased to 49.1%, compared to 49.2% in the same period last year. The decrease was mainly attributable to lower selling and marketing expenses in line with lower revenues.

Net income in the third quarter of 2026 was $0.4 million, or $0.01 per diluted share, compared to net income of $0.5 million, or $0.02 per diluted share, in the same period last year. The decrease was primarily driven by lower net revenues and gross margin for the reasons mentioned above.

As of September 30, 2026, the Company had $1.1 million in cash and cash equivalents, compared to $3.8 million as of December 31, 2025. The decrease was primarily driven by investment in inventory ahead of the holiday season.

Full Year 2026 Financial Outlook

Hour Loop narrows its guidance for the full year, anticipating 2026 net revenue to be in the range of $147.0 million to $152.0 million, representing 3% to 6% year-over-year growth. The Company continues to expect 2026 net income to be in the range of $0.75 million to $1.5 million.

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," within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, 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
As of September 30, 2026 and December 31, 2025

		September 30, 2026				December 31, 2025
		(Unaudited)
ASSETS
Current assets
Cash		$	1,121,671			$	3,792,033
Accounts receivable, net			2,638,732				235,959
Inventory, net			26,253,504				18,298,935
Prepaid expenses and other current assets			803,717				619,261
Total current assets			30,817,624				22,946,188
Property and equipment, net			100,736				95,917
Deferred tax assets			323,111				609,964
Operating lease right-of-use lease assets			511,608				169,368
Total non-current assets			935,455				875,249
TOTAL ASSETS		$	31,753,079			$	23,821,437
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable		$	13,095,516			$	6,200,526
Credit cards payable			3,216,530				3,707,976
Short-term loan			628,931				637,348
Operating lease liabilities-current			232,918				92,362
Income taxes payable			-				51,147
Accrued expenses and other current liabilities			828,508				2,226,387
Due to related parties			4,130,418				3,810,418
Total current liabilities			22,132,821				16,726,164
Non-current liabilities
Operating lease liabilities-non-current			294,808				83,271
Deferred tax liabilities			546				18,143
Total non-current liabilities			295,354				101,414
Total liabilities			22,428,175				16,827,578
Commitments and contingencies			-				-
Stockholders’ equity
Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding as of September 30, 2026 and December 31, 2025			-				-
Common stock: $0.0001 par value, 300,000,000 shares authorized, 35,199,820 and 35,176,320 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively			3,520				3,518
Additional paid-in capital			5,907,681				5,862,683
Retained earnings			3,406,667				1,109,674
Accumulated other comprehensive income			7,036				17,984
Total stockholders’ equity			9,324,904				6,993,859
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	31,753,079			$	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
For the Three and Nine Months Ended September 30, 2026 and 2025
(Unaudited)

		For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues, net		$	32,075,230			$	33,424,703			$	95,949,763			$	86,364,899
Cost of revenues			(15,841,673	)			(16,249,395	)			(45,730,293	)			(39,546,941	)
Gross profit			16,233,557				17,175,308				50,219,470				46,817,958
Operating expenses
Selling and marketing			13,782,339				14,665,407				40,899,883				37,627,975
General and administrative			1,959,107				1,767,895				6,400,962				5,906,261
Total operating expenses			15,741,446				16,433,302				47,300,845				43,534,236
Income from operations			492,111				742,006				2,918,625				3,283,722
Other (expenses) income
Other expense			(576	)			(8,186	)			(2,832	)			(10,185	)
Interest expense			(47,660	)			(42,496	)			(127,933	)			(133,333	)
Other income			9,463				22,607				56,294				92,344
Total other expenses, net			(38,773	)			(28,075	)			(74,471	)			(51,174	)
Income before income taxes			453,338				713,931				2,844,154				3,232,548
Income tax expense			(31,512	)			(183,340	)			(547,161	)			(870,439	)
Net income			421,826				530,591				2,296,993				2,362,109
Other comprehensive income (loss)
Foreign currency translation adjustments			2,709				(38,581	)			(10,948	)			102,822
Total comprehensive income		$	424,535			$	492,010			$	2,286,045			$	2,464,931
Basic and diluted income per common share		$	0.01			$	0.02			$	0.07			$	0.07
Weighted-average number of common shares outstanding			35,199,735				35,171,320				35,191,668				35,161,068

The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

HOUR LOOP, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30, 2026 and 2025
(Unaudited)

		Nine Months Ended September 30,
		2026				2025
Cash flows from operating activities
Net income		$	2,296,993			$	2,362,109
Reconciliation of net income to net cash used in operating activities:
Depreciation expenses			39,448				31,109
Amortization of operating lease right-of-use lease assets			100,584				141,320
Deferred tax assets			286,853				676,368
Deferred tax liabilities			(17,597	)			18,731
Stock-based compensation			45,000				45,000
Inventory allowance			509,611				499,752
Unrealized foreign exchange (gain) loss			(26,584	)			156,087
Gain on disposal of property and equipment			-				(3,016	)
Changes in operating assets and liabilities:
Accounts receivable			(2,402,773	)			1,104,073
Inventory			(8,464,180	)			(14,735,382	)
Prepaid expenses and other current assets			(184,456	)			(497,449	)
Accounts payable			6,894,990				11,236,895
Credit cards payable			(491,446	)			470,430
Accrued expenses and other current liabilities			(2,547,879	)			(1,791,077	)
Operating lease liabilities			(90,605	)			(139,950	)
Income taxes payable			(51,147	)			-
Net cash used in operating activities			(4,103,188	)			(425,000	)
Cash flows from investing activities:
Proceeds from disposal of property and equipment			-				3,016
Purchases of property and equipment			(45,559	)			(51,979	)
Net cash used in investing activities			(45,559	)			(48,963	)
Cash flows from financing activities:
Payments to related parties			(1,486,000	)			(839,000	)
Proceeds from related parties			2,956,000				-
Net cash provided by (used in) financing activities			1,470,000				(839,000	)
Effect of changes in foreign currency exchange rates			8,385				(10,311	)
Net change in cash			(2,670,362	)			(1,323,274	)
Cash at beginning of period			3,792,033				2,119,581
Cash at end of period		$	1,121,671			$	796,307
Supplemental disclosures of cash flow information:
Cash paid for interest		$	16,155			$	16,370
Cash paid for income tax		$	473,000			$	163,015
Non-cash investing and financing activities:
Operating lease right-of-use of assets and operating lease liabilities recognized			446,496				131,472

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How did Hour Loop perform in the third quarter of 2026?

Hour Loop reported $32.1 million in revenue, down 4% year over year, and net income of $0.4 million versus $0.5 million. Diluted earnings per share declined to $0.01 from $0.02. Lower order volume with lower inventory levels drove the revenue decline.

What is Hour Loop's full-year 2026 guidance?

Hour Loop expects $147.0 million to $152.0 million in revenue, representing 3% to 6% year-over-year growth. The company narrowed its revenue guidance and maintained its net income expectation of $0.75 million to $1.5 million.

How is Hour Loop using AI in its operations?

Hour Loop uses AI agents in purchasing and replenishment, advertising, pricing, inbound shipments, inventory reconciliation, customer service and compliance. The company believes shifting routine work to AI will let employees focus on higher-value decisions and allow the business to scale without headcount growing at the same pace.