Hour Loop Reports Second Quarter of 2026 Results
Rhea-AI Summary
Hour Loop (NASDAQ: HOUR) reported second quarter 2026 net revenues of $33.9 million, up 25% from $27.1 million a year earlier, primarily due to expanded inventory availability. Gross margin declined to 52.9% from 57.2%, reflecting a shift in sales strategy, while operating expenses fell to 49.2% of revenues from 51.2%.
Net income was $1.1 million, or $0.03 per diluted share, versus $1.2 million, or $0.04, in the prior-year quarter. Cash used in operating activities increased to $3.6 million from $0.9 million. Cash and cash equivalents were $1.0 million as of June 30, 2026, compared to $3.8 million at year-end 2025, largely due to related-party payments and higher inventory. Hour Loop reaffirmed its 2026 outlook, guiding for net revenue of $143–$163 million (flat to 15% growth) and net income of $0.75–$1.5 million, and highlighted an AI-first strategy with over one hundred internal AI agents.
Positive
- Q2 2026 revenue $33.9M, up 25% year over year
- Gross profit $18.0M in Q2 2026 versus $15.5M in 2025
- Operating expenses ratio reduced to 49.2% of revenue from 51.2%
- Six-month 2026 revenue $63.9M versus $52.9M in 2025
- Six-month 2026 net income $1.88M versus $1.83M in 2025
- 2026 revenue guidance reaffirmed at $143–$163M, flat to +15% YoY
Negative
- Q2 2026 net income down to $1.1M from $1.2M
- Q2 diluted EPS fell to $0.03 from $0.04 year over year
- Gross margin declined to 52.9% from 57.2% in prior-year quarter
- Cash used in operations increased to $3.6M from $0.9M
- Cash balance decreased to $1.0M from $3.8M at December 31, 2025
News Explained
At June 30, 2026, cash was $985,404 against $17,257,048 of current liabilities, while inventory was $20,852,287.
The company has reported its second-quarter results for the quarter ended
The report presents cash, inventory, and current liabilities as separate balance-sheet line items rather than as one combined pool.
It reports
For comparison, the first-quarter cash balance equaled
The six-month statement reports
Sources and calculations
- Hour Loop Reports Second Quarter of 2026 Results (2026-08-11)
- Hour Loop first-quarter 2026 fundamentals (2026-03-31)
- Cash and equivalents vs quarterly operating cash outflow, in days of cash use $992,886 / ($2,201,403 / 90) = [object Object]
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| May 12 | Q1 earnings report | Positive | -5.6% | Revenue and net income increased, but cash declined and gross margin compressed |
| Mar 24 | FY2025 earnings report | Positive | +0.5% | Revenue, net income, and operating cash flow increased year over year |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The selected earnings history was mixed: the Q1 report preceded a -5.6% reaction despite growth, while full-year results preceded a +0.53% reaction.
Key Terms
operating leverage financial
stock-keeping units technical
deferred tax assets financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Continued Profitability Despite a Challenging Economic Environment
Redmond, WA, Aug. 11, 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 June 30, 2026
Financial Highlights for Second Quarter of 2026:
- Net revenues increased
25% to$33.9 million , compared to$27.1 million in the year-ago period; - Net income decreased to
$1.1 million , compared to$1.2 million in the year-ago period; and - Cash used in operating activities was
$3.6 million , compared to cash used in operating activities of$0.9 million in the year-ago period.
Management Commentary
“This was a remarkable quarter for Hour Loop. Revenue grew
“Our vision is to automate every part of the business. Humans are optional. We believe AI will fundamentally reshape how companies operate, and Hour Loop intends to lead in this new era. Our proprietary AI system already powers more than one hundred AI agents across the organization, and we are redesigning our operations around autonomous execution, faster decisions and greater scale. We believe 2026 will be remembered as the beginning of Hour Loop’s AI-first era.”
“We are deeply grateful to our employees for their ambition and execution, and to our shareholders for their continued confidence. We believe the next several years can be transformative for Hour Loop, and we have never been more optimistic about the opportunity ahead.”
Second Quarter of 2026 Financial Results
Net revenues in the Second Quarter of 2026 were
Gross profit as a percentage of net revenues decreased to
Operating expenses as a percentage of net revenues in the Second Quarter of 2026 decreased to
Net income in the Second Quarter of 2026 was
As of June 30, 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 SHEIN. 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 Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995, including with respect to Hour Loop’s business strategy, product development and industry trends. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. 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. The contents of any website referenced in this press release are not incorporated by reference herein.
Investor Contact
Finance Department, Hour Loop, Inc.
finance@hourloop.com
Item 1. Financial Statements.
HOUR LOOP, INC.
CONSOLIDATED BALANCE SHEETS
(In U.S. Dollars, except for share and per share data)
As of June 30, 2026 and December 31, 2025
(Unaudited)
| June 30, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 985,404 | $ | 3,792,033 | ||||
| Accounts receivable, net | 2,706,742 | 235,959 | ||||||
| Inventory, net | 20,852,287 | 18,298,935 | ||||||
| Prepaid expenses and other current assets | 1,143,145 | 619,261 | ||||||
| Total current assets | 25,687,578 | 22,946,188 | ||||||
| Property and equipment, net | 75,791 | 95,917 | ||||||
| Deferred tax assets | 293,089 | 609,964 | ||||||
| Operating lease right-of-use lease assets | 124,861 | 169,368 | ||||||
| Total non-current assets | 493,741 | 875,249 | ||||||
| TOTAL ASSETS | $ | 26,181,319 | $ | 23,821,437 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 8,454,369 | $ | 6,200,526 | ||||
| Credit cards payable | 3,666,375 | 3,707,976 | ||||||
| Short-term loan | 628,931 | 637,348 | ||||||
| Operating lease liabilities-current | 91,142 | 92,362 | ||||||
| Income taxes payable | 172,762 | 51,147 | ||||||
| Accrued expenses and other current liabilities | 833,051 | 2,226,387 | ||||||
| Due to related parties | 3,410,418 | 3,810,418 | ||||||
| Total current liabilities | 17,257,048 | 16,726,164 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities-non-current | 38,357 | 83,271 | ||||||
| Deferred tax liabilities | 546 | 18,143 | ||||||
| Total non-current liabilities | 38,903 | 101,414 | ||||||
| Total liabilities | 17,295,951 | 16,827,578 | ||||||
| Commitments and contingencies | - | |||||||
| Stockholders’ equity | ||||||||
| Preferred stock: | - | - | ||||||
| Common stock: | 3,519 | 3,518 | ||||||
| Additional paid-in capital | 5,892,681 | 5,862,683 | ||||||
| Retained earnings | 2,984,841 | 1,109,674 | ||||||
| Accumulated other comprehensive income | 4,327 | 17,984 | ||||||
| Total stockholders’ equity | 8,885,368 | 6,993,859 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 26,181,319 | $ | 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 and Six Months Ended June 30, 2026 and 2025
(Unaudited)
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Revenues, net | $ | 33,944,191 | $ | 27,103,106 | $ | 63,874,533 | $ | 52,940,196 | ||||||||
| Cost of revenues | (15,976,053 | ) | (11,605,754 | ) | (29,888,620 | ) | (23,297,546 | ) | ||||||||
| Gross profit | 17,968,138 | 15,497,352 | 33,985,913 | 29,642,650 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling and marketing | 14,518,903 | 11,715,571 | 27,117,544 | 22,962,568 | ||||||||||||
| General and administrative | 2,164,849 | 2,160,930 | 4,441,855 | 4,138,366 | ||||||||||||
| Total operating expenses | 16,683,752 | 13,876,501 | 31,559,399 | 27,100,934 | ||||||||||||
| Income from operations | 1,284,386 | 1,620,851 | 2,426,514 | 2,541,716 | ||||||||||||
| Other (expense) income | ||||||||||||||||
| Other expense | (448 | ) | (2,300 | ) | (2,256 | ) | (1,999 | ) | ||||||||
| Interest expense | (46,335 | ) | (43,782 | ) | (80,273 | ) | (90,837 | ) | ||||||||
| Other income | 20,073 | 7,912 | 46,831 | 69,737 | ||||||||||||
| Total other (expense) income, net | (26,710 | ) | (38,170 | ) | (35,698 | ) | (23,099 | ) | ||||||||
| Income before income taxes | 1,257,676 | 1,582,681 | 2,390,816 | 2,518,617 | ||||||||||||
| Income tax expense | (205,991 | ) | (405,680 | ) | (515,649 | ) | (687,099 | ) | ||||||||
| Net income | 1,051,685 | 1,177,001 | 1,875,167 | 1,831,518 | ||||||||||||
| Other comprehensive income (loss) | ||||||||||||||||
| Foreign currency translation adjustments | 3,959 | 154,939 | (13,657 | ) | 141,403 | |||||||||||
| Total comprehensive income | $ | 1,055,644 | $ | 1,331,940 | $ | 1,861,510 | $ | 1,972,921 | ||||||||
| Basic and diluted earnings per common share | $ | 0.03 | $ | 0.04 | $ | 0.05 | $ | 0.06 | ||||||||
| Weighted-average number of common shares outstanding | 35,191,368 | 35,160,095 | 35,187,524 | 35,155,795 | ||||||||||||
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, 2026 and 2025
(Unaudited)
| Six Months Ended June 30, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 1,875,167 | $ | 1,831,518 | ||||
| Reconciliation of net income to net cash used in operating activities: | ||||||||
| Depreciation expenses | 24,700 | 23,517 | ||||||
| Amortization of operating lease right-of-use lease assets | 42,575 | 122,018 | ||||||
| Deferred tax assets | 316,875 | 546,952 | ||||||
| Deferred tax liabilities | (17,597 | ) | 19,464 | |||||
| Stock-based compensation | 29,999 | 30,001 | ||||||
| Inventory allowance | 370,981 | 416,196 | ||||||
| Unrealized foreign exchange gain | (26,655 | ) | 237,028 | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (2,470,783 | ) | 1,172,592 | |||||
| Inventory | (2,924,333 | ) | (6,716,310 | ) | ||||
| Prepaid expenses and other current assets | (523,884 | ) | (197,393 | ) | ||||
| Accounts payable | 2,253,843 | 4,407,785 | ||||||
| Credit cards payable | (41,601 | ) | (409,341 | ) | ||||
| Accrued expenses and other current liabilities | (2,543,336 | ) | (2,283,745 | ) | ||||
| Operating lease liabilities | (44,130 | ) | (125,712 | ) | ||||
| Income taxes payable | 121,615 | - | ||||||
| Net cash used in operating activities | (3,556,564 | ) | (925,430 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (5,705 | ) | (801 | ) | ||||
| Net cash used in investing activities | (5,705 | ) | (801 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments to related parties | (884,000 | ) | (839,000 | ) | ||||
| Proceeds from related parties | 1,634,000 | - | ||||||
| Net cash provided by (used in) financing activities | 750,000 | (839,000 | ) | |||||
| Effect of changes in foreign currency exchange rates | 5,640 | (28,996 | ) | |||||
| Net change in cash | (2,806,629 | ) | (1,794,227 | ) | ||||
| Cash at beginning of period | 3,792,033 | 2,119,581 | ||||||
| Cash at end of period | $ | 985,404 | $ | 325,354 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 10,743 | $ | 11,095 | ||||
| Cash paid for income tax | $ | 397,770 | $ | 52,841 | ||||
| Non-cash investing and financing activities: | ||||||||
| Operating lease right-of-use of assets and operating lease liabilities recognized | - | 134,648 | ||||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.
