Hour Loop Reports Second Quarter of 2025 Results
Hour Loop (NASDAQ: HOUR), an online retailer, reported mixed Q2 2025 financial results. Net revenues decreased 3.4% to $27.1 million compared to $28.1 million in Q2 2024, while net income doubled to $1.2 million ($0.04 per diluted share) from $0.6 million.
The company achieved a gross profit margin of 57.2%, up 1.5% year-over-year, while operating expenses decreased to 51.2% of net revenues. Cash position stood at $0.3 million as of June 30, 2025, down from $2.1 million at year-end 2024. Inventory levels increased to $20.9 million from $14.6 million.
Despite challenges from new U.S. trade actions affecting Chinese imports, Hour Loop maintained profitability through improved operating efficiency and strategic price adjustments. The company withheld full-year 2025 guidance due to economic uncertainty.
Hour Loop (NASDAQ: HOUR), rivenditore online, ha riportato risultati finanziari misti per il secondo trimestre 2025. I ricavi netti sono diminuiti del 3.4% a $27.1 million rispetto a $28.1 million nel Q2 2024, mentre l'utile netto è raddoppiato a $1.2 million ($0.04 per azione diluita) da $0.6 million.
La società ha realizzato un margine lordo del 57.2%, in aumento di 1,5 punti anno su anno, mentre le spese operative sono scese al 51.2% dei ricavi netti. La posizione di cassa era di $0.3 million al 30 giugno 2025, in calo rispetto a $2.1 million alla chiusura del 2024. Le scorte sono aumentate a $20.9 million da $14.6 million.
Nonostante le difficoltà derivanti dalle nuove misure commerciali statunitensi che impattano le importazioni dalla Cina, Hour Loop ha mantenuto la redditività grazie a una maggiore efficienza operativa e ad aggiustamenti strategici dei prezzi. L'azienda ha rinunciato a fornire una guidance per l'intero 2025 a causa dell'incertezza economica.
Hour Loop (NASDAQ: HOUR), minorista online, anunció resultados financieros mixtos en el segundo trimestre de 2025. Los ingresos netos disminuyeron un 3.4% hasta $27.1 million frente a $28.1 million en el Q2 2024, mientras que el ingreso neto se duplicó a $1.2 million ($0.04 por acción diluida) desde $0.6 million.
La compañía alcanzó un margen bruto del 57.2%, 1.5 puntos porcentuales más año tras año, mientras que los gastos operativos se redujeron al 51.2% de los ingresos netos. La posición de caja era de $0.3 million al 30 de junio de 2025, desde $2.1 million a finales de 2024. El inventario aumentó a $20.9 million desde $14.6 million.
A pesar de los desafíos por las nuevas medidas comerciales de EE. UU. que afectan las importaciones chinas, Hour Loop mantuvo la rentabilidad mediante una mayor eficiencia operativa y ajustes de precios estratégicos. La compañía no ofreció una guía para todo 2025 debido a la incertidumbre económica.
Hour Loop (NASDAQ: HOUR)는 온라인 소매업체로서 2025년 2분기 실적은 엇갈렸습니다. 순수익은 3.4% 감소한 $27.1 million으로 2024년 2분기의 $28.1 million에 비해 줄었지만, 순이익은 $0.6 million에서 $1.2 million (주당 희석 $0.04)으로 두 배 증가했습니다.
회사는 57.2%의 총이익률을 기록해 전년 대비 1.5%포인트 상승했으며, 영업비용은 순수익의 51.2%로 감소했습니다. 현금성 자산은 2025년 6월 30일 기준 $0.3 million으로 2024년 말의 $2.1 million에서 줄어들었습니다. 재고는 $14.6 million에서 $20.9 million으로 증가했습니다.
중국산 수입에 영향을 주는 미국의 새로운 무역 조치로 인한 어려움에도 불구하고, Hour Loop는 운영 효율성 개선과 전략적 가격 조정으로 수익성을 유지했습니다. 회사는 경제적 불확실성으로 인해 2025년 전체 가이던스를 제시하지 않았습니다.
Hour Loop (NASDAQ: HOUR), un détaillant en ligne, a publié des résultats financiers mixtes pour le deuxième trimestre 2025. Les revenus nets ont diminué de 3.4% à $27.1 million comparés à $28.1 million au T2 2024, tandis que le résultat net a doublé pour atteindre $1.2 million ($0.04 par action diluée) contre $0.6 million.
La société a enregistré une marge brute de 57.2%, en hausse de 1,5 point d'une année sur l'autre, tandis que les charges d'exploitation ont diminué pour représenter 51.2% des revenus nets. La trésorerie s'élevait à $0.3 million au 30 juin 2025, contre $2.1 million à la fin de 2024. Les stocks ont augmenté à $20.9 million contre $14.6 million.
Malgré les difficultés liées aux nouvelles mesures commerciales américaines affectant les importations chinoises, Hour Loop a maintenu sa rentabilité grâce à une meilleure efficacité opérationnelle et des ajustements stratégiques des prix. L'entreprise a renoncé à fournir des prévisions pour l'ensemble de 2025 en raison de l'incertitude économique.
Hour Loop (NASDAQ: HOUR), ein Online-Händler, meldete gemischte Finanzergebnisse für das zweite Quartal 2025. Die Nettoumsätze sanken um 3.4% auf $27.1 million gegenüber $28.1 million im Q2 2024, während der Nettogewinn sich von $0.6 million auf $1.2 million ($0.04 je verwässerte Aktie) verdoppelte.
Das Unternehmen erreichte eine Bruttogewinnmarge von 57.2%, ein Anstieg um 1,5 Prozentpunkte gegenüber dem Vorjahr, während die Betriebskosten auf 51.2% der Nettoumsätze zurückgingen. Die Cash-Position betrug $0.3 million zum 30. Juni 2025, gegenüber $2.1 million zum Jahresende 2024. Die Lagerbestände stiegen auf $20.9 million von $14.6 million.
Trotz Herausforderungen durch neue US-Handelsmaßnahmen, die chinesische Importe betreffen, hielt Hour Loop die Profitabilität durch verbesserte operative Effizienz und strategische Preisanpassungen aufrecht. Das Unternehmen enthielt sich angesichts der wirtschaftlichen Unsicherheit einer Jahresprognose für 2025.
- Net income doubled to $1.2 million compared to Q2 2024
- Gross profit margin improved by 1.5% to 57.2%
- Operating expenses decreased to 51.2% of net revenues
- Strategic price adjustments successfully defended margins
- Net revenues declined 3.4% year-over-year to $27.1 million
- Cash and cash equivalents decreased significantly to $0.3 million from $2.1 million
- Cash used in operating activities was $0.9 million vs. $0.9 million provided last year
- Company unable to provide forward-looking guidance due to economic uncertainty
Insights
Hour Loop doubled Q2 net income to $1.2M despite 3.4% revenue drop, showing resilience through improved margins amid trade disruptions.
Hour Loop's Q2 2025 results reveal a company successfully navigating economic headwinds. Despite a
The company's margin improvement is particularly noteworthy. Gross profit percentage increased by
However, there are concerning signs in the cash flow and balance sheet. Cash used in operating activities for the first half of 2025 was
The inventory buildup is substantial, increasing from
The results demonstrate Hour Loop's ability to improve profitability even with revenue challenges, but the cash burn and inventory accumulation will require careful monitoring in coming quarters.
Profitability Continues Despite Challenges for the Overall Economy
Redmond, WA, Aug. 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 June 30, 2025.
Financial Highlights for Second Quarter of 2025:
- Net revenues decreased
3.4% to$27.1 million , compared to$28.1 million in the year-ago period; - Net income increased to
$1.2 million , compared to$0.6 million in the year-ago period; and - Cash used in operating activities for the six months ended June 30, 2025, was
$0.9 million , compared to cash provided by operating activities of$0.9 million in the year-ago period.
Management Commentary
“The second quarter of 2025 brought meaningful disruption to the retail sector as new U.S. trade actions targeting Chinese imports reshaped sourcing dynamics, pressured margins, and introduced heightened uncertainty across global supply chains. Retailers had to adapt quickly to rising costs and increased operational complexity.” said Sam Lai, CEO and interim CFO of Hour Loop.
“Despite these headwinds, Hour Loop delivered a strong quarter. Net income was nearly double compared to the same period last year, even as revenue declined modestly — marking our best second quarter performance to date.”
“This outcome was not accidental. Over the past several years, we’ve made focused investments to improve our operating efficiency, streamline our cost base, and build margin resilience. In the second quarter of 2025, we saw that effort materialize through expanded margins and reduced operating expenses. These improvements weren’t short-term fixes — they are structural gains that we believe position us to weather volatility and outperform through cycles.”
“Looking forward, we believe we are well-positioned for the second half of the year. Our strengthened operating model gives us the flexibility to defend margins or pursue growth offensively as conditions evolve.”
“To our shareholders — thank you for your continued trust. To our team around the world — your focus and execution made this performance possible. We’re proud of what we’ve accomplished together, and we remain committed to building long-term value, even in uncertain times.”
Second Quarter of 2025 Financial Results
Net revenues in the second quarter of 2025 were
Gross profit percentage for the second quarter of 2025 increased
Operating expenses as a percentage of net revenues decreased
Net income in the second quarter of 2025 was
As of June 30, 2025, the Company had
Inventories as of June 30, 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 June 30, 2025 and December 31, 2024
(Unaudited)
| June 30, 2025 | December 31, 2024 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 325,354 | $ | 2,119,581 | ||||
| Accounts receivable, net | 477,955 | 1,650,547 | ||||||
| Inventory, net | 20,940,746 | 14,640,632 | ||||||
| Prepaid expenses and other current assets | 525,287 | 327,894 | ||||||
| Total current assets | 22,269,342 | 18,738,654 | ||||||
| Property and equipment, net | 40,574 | 56,797 | ||||||
| Deferred tax assets | 513,152 | 1,060,104 | ||||||
| Operating lease right-of-use lease assets | 137,465 | 111,409 | ||||||
| Total non-current assets | 691,191 | 1,228,310 | ||||||
| TOTAL ASSETS | $ | 22,960,533 | $ | 19,966,964 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 8,584,090 | $ | 4,176,305 | ||||
| Credit cards payable | 2,980,539 | 3,389,880 | ||||||
| Short-term loan | 683,760 | 610,967 | ||||||
| Operating lease liabilities-current | 75,897 | 114,540 | ||||||
| Accrued expenses and other current liabilities | 732,367 | 2,322,535 | ||||||
| Due to related parties | 2,660,418 | 4,192,995 | ||||||
| Total current liabilities | 15,717,071 | 14,807,222 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities-non-current | 61,334 | - | ||||||
| Deferred tax liabilities | 19,464 | - | ||||||
| Total non-current liabilities | 80,798 | - | ||||||
| Total liabilities | 15,797,869 | 14,807,222 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock: | - | - | ||||||
| Common stock: | 3,516 | 3,514 | ||||||
| Additional paid-in capital | 5,832,685 | 5,802,686 | ||||||
| Retained earnings (accumulated deficit) | 1,236,343 | (595,175 | ) | |||||
| Accumulated other comprehensive income (loss) | 90,120 | (51,283 | ) | |||||
| Total stockholders’ equity | 7,162,664 | 5,159,742 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 22,960,533 | $ | 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 and Six Months Ended June 30, 2025 and 2024
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Revenues, net | $ | 27,103,106 | $ | 28,070,707 | $ | 52,940,196 | $ | 52,751,829 | ||||||||
| Cost of revenues | (11,605,754 | ) | (12,445,297 | ) | (23,297,546 | ) | (22,674,213 | ) | ||||||||
| Gross profit | 15,497,352 | 15,625,410 | 29,642,650 | 30,077,616 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 11,715,571 | 12,843,697 | 22,962,568 | 24,017,888 | ||||||||||||
| General and administrative | 2,160,930 | 1,844,517 | 4,138,366 | 3,584,360 | ||||||||||||
| Total operating expenses | 13,876,501 | 14,688,214 | 27,100,934 | 27,602,248 | ||||||||||||
| Income from operations | 1,620,851 | 937,196 | 2,541,716 | 2,475,368 | ||||||||||||
| Other (expenses) income | ||||||||||||||||
| Other expense | (2,300 | ) | (4,777 | ) | (1,999 | ) | (5,933 | ) | ||||||||
| Interest expense | (43,782 | ) | (61,984 | ) | (90,837 | ) | (124,096 | ) | ||||||||
| Other income | 7,912 | 59,477 | 69,737 | 87,511 | ||||||||||||
| Total other expenses, net | (38,170 | ) | (7,284 | ) | (23,099 | ) | (42,518 | ) | ||||||||
| Income before income taxes | 1,582,681 | 929,912 | 2,518,617 | 2,432,850 | ||||||||||||
| Income tax expense | (405,680 | ) | (280,762 | ) | (687,099 | ) | (717,886 | ) | ||||||||
| Net income | 1,177,001 | 649,150 | 1,831,518 | 1,714,964 | ||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Foreign currency translation adjustments | 154,939 | (8,058 | ) | 141,403 | (24,591 | ) | ||||||||||
| Total comprehensive income | $ | 1,331,940 | $ | 641,092 | $ | 1,972,921 | $ | 1,690,373 | ||||||||
| Basic and diluted income per common share | $ | 0.04 | $ | 0.02 | $ | 0.06 | $ | 0.05 | ||||||||
| Weighted-average number of common shares outstanding | 35,160,095 | 35,108,804 | 35,155,795 | 35,102,203 | ||||||||||||
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 Six Months Ended June 30, 2025 and 2024
(Unaudited)
| Six Months | Six Months | |||||||
| Ended | Ended | |||||||
| June 30, | June 30, | |||||||
| 2025 | 2024 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 1,831,518 | $ | 1,714,964 | ||||
| Reconciliation of net income to net cash used in operating activities: | ||||||||
| Depreciation expenses | 23,517 | 70,920 | ||||||
| Amortization of operating lease right-of-use lease assets | 122,018 | 98,773 | ||||||
| Deferred tax assets | 546,952 | 571,296 | ||||||
| Deferred tax liabilities | 19,464 | - | ||||||
| Stock-based compensation | 30,001 | 36,000 | ||||||
| Inventory allowance | 416,196 | 645,379 | ||||||
| Unrealized foreign exchange gain | 237,028 | - | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 1,172,592 | (5,594 | ) | |||||
| Inventory | (6,716,310 | ) | (1,026,905 | ) | ||||
| Prepaid expenses and other current assets | (197,393 | ) | 37,203 | |||||
| Accounts payable | 4,407,785 | 1,875,374 | ||||||
| Credit cards payable | (409,341 | ) | (2,120,514 | ) | ||||
| Accrued expenses and other current liabilities | (2,283,745 | ) | (888,522 | ) | ||||
| Operating lease liabilities | (125,712 | ) | (92,899 | ) | ||||
| Income taxes payable | - | 33,700 | ||||||
| Net cash (used in) provided by operating activities | (925,430 | ) | 949,175 | |||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (801 | ) | (34,593 | ) | ||||
| Net cash used in investing activities | (801 | ) | (34,593 | ) | ||||
| 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 | (28,996 | ) | (51,838 | ) | ||||
| Net change in cash | (1,794,227 | ) | 862,744 | |||||
| Cash at beginning of the period | 2,119,581 | 2,484,153 | ||||||
| Cash at end of the period | $ | 325,354 | $ | 3,346,897 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 11,095 | $ | 9,883 | ||||
| Cash paid for income tax | $ | 52,841 | $ | 109,260 | ||||
| Non-cash investing and financing activities: | ||||||||
| Operating lease right-of-use of assets and operating lease liabilities recognized | $ | 134,648 | $ | 172,903 | ||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
FAQ
What were Hour Loop's (NASDAQ:HOUR) Q2 2025 earnings results?
How did Hour Loop's profit margins change in Q2 2025?
What is Hour Loop's cash position as of Q2 2025?
How has Hour Loop's inventory changed in 2025?
What is Hour Loop's guidance for full-year 2025?
