LightInTheBox Reports Second Quarter 2025 Financial Results

Rhea-AI Summary

LightInTheBox (NYSE:LITB) reported its Q2 2025 financial results, marking its fifth consecutive profitable quarter. The company achieved a net income of $2.0 million, up from $0.6 million in Q2 2024, despite total revenues declining 15% year-over-year to $58.9 million.

Key highlights include improved gross margin of 65.9% (up from 62.4%), reduced operating expenses by 14% to $36.9 million, and Adjusted EBITDA of $2.3 million. The company has successfully transformed from a traditional e-commerce platform to a design-driven, direct-to-consumer (DTC) apparel retailer with proprietary brands, including Ador.com and a new women's golf apparel line.

The company extended its share repurchase program through December 31, 2025, having already repurchased 174,999 ADSs worth approximately $0.3 million of the authorized $0.7 million program.

Positive

• Fifth consecutive profitable quarter with net income increasing to $2.0 million from $0.6 million YoY
• Gross margin improved to 65.9% from 62.4% YoY through higher-margin proprietary products
• Operating expenses decreased by 14% YoY to $36.9 million through effective cost management
• Revenue decline moderated to 15% in Q2 from 34% in Q1 2025, showing business stabilization
• Company projects return to overall revenue growth in early 2026

Negative

• Total revenues decreased 15% YoY to $58.9 million
• Gross profit declined to $38.8 million from $43.3 million YoY
• First half 2025 revenues down 25% YoY to $105.9 million

Delivers Record Fifth Consecutive Profitable Quarter

SINGAPORE, Sept. 9, 2025 /PRNewswire/ -- LightInTheBox Holding Co., Ltd. (NYSE: LITB) ("LightInTheBox" or the "Company"), a global specialty retailer, today announced its unaudited financial results for the second quarter ended June 30, 2025. The Company accelerated its transformation into a design-driven, direct-to-consumer (DTC) apparel retailer with proprietary brands, to improve margins and achieve sustained profitability. By evolving its legacy e-commerce operations from commodity-driven to bespoke, consumer-resonant offerings, LightInTheBox has stabilized its core business, moderated revenue declines, and positioned itself for renewed growth in early 2026, mirroring the scalable success of leading DTC apparel models.

Second Quarter 2025 Financial Highlights:

• Total Revenues were $58.9 million, a 15% decrease year over year, compared to a 34% decline in the first quarter of 2025, reflecting stabilization in the legacy business and a deliberate focus on margin preservation over market share in a competitive market.
• Gross Profit was $38.8 million, compared with $43.3 million in the same quarter last year.
• Gross Margin improved to 65.9% from 62.4% in the same quarter last year, driven by higher-margin proprietary product lines and bespoke legacy offerings like print-on-demand apparel.
• Operating Expenses decreased by 14% year over year to $36.9 million, mainly attributable to reduced revenue alongside effective cost management and operational efficiency enhancements.
• Fulfillment Expenses decreased by 13% year over year to $4.4 million.
• Selling and Marketing Expenses decreased by 12% year over year to $27.8 million, while conversion rates improved with efficient marketing of new product lines despite the industry-wide increase in traffic costs.
• General and Administrative Expenses decreased by 24% year over year to $4.9 million, of which Research and Development expenses were $2.6 million, underscoring the Company's commitment to innovation and product differentiation.
• Net Income reached $2.0 million, compared with $0.6 million in the same quarter last year, marking record profit since the second quarter of 2024 and sustained profitability amidst industry challenges.
• Adjusted EBITDA was $2.3 million, compared with $1.2 million in the same quarter last year.

First Half 2025 Financial Highlights

• Total Revenues were $105.9 million, a 25% decrease year over year, primarily due to the Company's pivot to margin preservation in a highly competitive e-commerce environment, with declines moderating significantly from the first quarter of 2025 to the second quarter of 2025.
• Gross Profit was $69.4 million, compared with $84.7 million in the same period last year.
• Gross Margin improved to 65.6% from 60.3% in 2024, driven by the successful introduction of higher-margin proprietary product lines.
• Operating Expenses decreased by 23% year over year to $67.4 million, mainly attributable to reduced revenue and enhanced cost management.
• Fulfillment Expenses decreased by 24% year over year to $8.2 million.
• Selling and Marketing Expenses decreased by 23% year over year to $49.7 million, with improved conversion rates from efficient marketing of new product lines.
• General and Administrative Expenses decreased by 28% year over year to $9.8 million, of which Research and Development expenses were $5.2 million, reinforcing focus on product innovation.
• Net Income reached $2.1 million, compared with a loss of $3.2 million in 2024, showcasing remarkable profitability turnaround.
• Adjusted EBITDA was $3.0 million, compared with a loss of $1.9 million in the same period last year.

"In 2024, we transformed LightInTheBox from a traditional e-commerce platform into a leading DTC apparel retailer, and our Q2 2025 results - marking five consecutive profitable quarters with a net income of $2.0 million, up from $0.6 million in Q2 2024 - demonstrate the power of this pivot," said Jian He, CEO of LightInTheBox. "Faced with fierce competition, we considered exiting our legacy e-commerce business but instead repositioned it as an agile, profitable operation. By shifting from low-margin commodities to bespoke, consumer-resonant products like print-on-demand apparel, we've boosted average selling prices and margins, creating a resilient core that complements our DTC growth. Our proprietary brands, led by Ador.com, deliver designer-quality apparel at prices significantly lower than competitors'. Our design studios in Campbell, California, and China integrate real-time customer feedback to drive higher repurchase rates and retail partnership invitations."

"Our emerging women's golf apparel brand taps into an affluent, growing demographic, blending style and functionality to capture a high-potential market, while additional proprietary lines are expanding our portfolio," Mr. He continued. "These DTC initiatives, mirroring the success of leading apparel brands, are our growth engine. The stabilization of our legacy business, with Q2 revenue declines moderating to 15% from Q1's 34%, signals a turning point. We expect to return to overall revenue growth in early 2026 as we scale distribution channels, enhance brand awareness, and deepen customer loyalty."

"We are confident that our strategic transformation positions LightInTheBox to unlock scalable growth, creating lasting value for shareholders in a dynamic market," Mr. He concluded.

Share Repurchase Program

On March 31, 2025, the Company's board of directors authorized a share repurchase program under which the Company may repurchase up to $0.7 million of its ordinary shares in the form of ADSs no later than June 30, 2025. The Company has since extended the share repurchase program through December 31, 2025. As of September 5, 2025, the Company has repurchased 174,999 ADSs with a total aggregate value of approximately $0.3 million.

About LightInTheBox Holding Co., Ltd.:

LightInTheBox is a global specialty retail company, providing a diverse range of affordable lifestyle products directly to consumers worldwide since 2007. In 2024, the Company shifted its focus to apparel design and launched its first proprietary brand, Ador.com, to meet the growing global demand for accessible higher-end fashion. Ador.com specializes in designer-quality clothing for women aged 35-55 at competitive prices and operates design studios and sample shops in both the U.S. and China, including a boutique and design studio in Campbell, California. Additionally, LightInTheBox offers a comprehensive suite of services to e-commerce companies, including advertising, supply chain management, payment processing, order fulfillment, and shipping and delivery solutions.

For more information, please visit https://ir.ador.com.

Non-GAAP Financial Measure

In evaluating the business, the Company considers and uses a non-GAAP measure, Adjusted EBITDA, as a supplemental measure to review and assess operating performance. The presentation of this non-GAAP financial measure is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The Company's non-GAAP financial measure excludes share-based compensation expenses, depreciation and amortization expenses, interest income, interest expenses and income tax expense.

The Company presents this non-GAAP financial measure because it is used by management to evaluate operating performance and formulate business plans. The Company believes that the non-GAAP financial measure helps identify underlying trends in its business. The Company also believes that the non-GAAP financial measure could provide further information about the Company's results of operations and enhance the overall understanding of the Company's past performance and future prospects.

The non-GAAP financial measure is not defined under U.S. GAAP and is not presented in accordance with U.S. GAAP. The non-GAAP financial measure has limitations as an analytical tool. The Company's non-GAAP financial measure does not reflect all items of income and expenses that affect the Company's operations and does not represent the residual cash flow available for discretionary expenditures. Further, the non-GAAP measure may differ from the non-GAAP information used by other companies, including peer companies, and therefore their comparability may be limited. The Company compensates for the limitations by reconciling the non-GAAP financial measure to the nearest U.S. GAAP performance measure, all of which should be considered when evaluating performance. The Company encourages you to review the Company's financial information in its entirety and not rely on a single financial measure.

For more information on the non-GAAP financial measure, please see the table captioned "Unaudited Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Safe Harbor Statement:

This press release contains forward-looking statements that involve risks and uncertainties. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "potential," "continue," "ongoing," "targets" and similar statements. Among other things, statements that are not historical facts, including statements about LightInTheBox's beliefs and expectations, the business outlook and quotations from management in this announcement, as well as LightInTheBox's strategic and operational plans, are or contain forward-looking statements.

LightInTheBox may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (the "SEC"), in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: LightInTheBox's goals and strategies; LightInTheBox's future business development, results of operations and financial condition; the expected growth of the global online retail market; LightInTheBox's ability to attract customers and further enhance customer experience and product offerings; LightInTheBox's ability to strengthen its supply chain efficiency and optimize its logistics network; LightInTheBox's expectations regarding demand for and market acceptance of its products; competition; fluctuations in general economic and business conditions; changes in tariffs and trade policies; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in LightInTheBox's filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and LightInTheBox does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Investor Relations Contact
Investor Relations
LightInTheBox Holding Co., Ltd.
Email: ir@ador.com

LightInTheBox Holding Co., Ltd.
Unaudited Condensed Consolidated Balance Sheets
(U.S. dollars in thousands, or otherwise noted)
		As of December 31,				As of June 30,
		2024				2025
ASSETS
Current Assets
Cash and cash equivalents			17,945				18,474
Restricted cash			1,800				1,858
Accounts receivable, net of allowance for credit losses			976				1,045
Inventories			3,641				4,471
Prepayments and other current assets			2,610				2,111
Total current assets			26,972				27,959
Property and equipment, net			2,185				1,718
Intangible assets, net			2,745				2,463
Goodwill			26,663				27,155
Operating lease right-of-use assets			9,930				8,112
Long-term rental deposits			806				432
Long-term investments			73				78
TOTAL ASSETS			69,374				67,917
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Short-term borrowings			685				698
Accounts payable			10,378				8,451
Advance from customers			8,357				10,375
Operating lease liabilities			4,047				4,128
Accrued expenses and other current liabilities			54,091				51,776
Total current liabilities			77,558				75,428
Operating lease liabilities			4,780				2,754
Deferred tax liabilities			101				108
Unrecognized tax benefits			107				-
TOTAL LIABILITIES			82,546				78,290
STOCKHOLDERS' DEFICIT
Ordinary shares			17				17
Additional paid-in capital			282,766				280,641
Treasury shares			(30,880)				(28,875)
Statutory reserves			390				390
Accumulated other comprehensive loss			(3,265)				(2,481)
Accumulated deficit			(262,200)				(260,065)
TOTAL STOCKHOLDERS' DEFICIT			(13,172)				(10,373)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT			69,374				67,917

 

 

LightInTheBox Holding Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations
(U.S. dollars in thousands, except per share data, or otherwise noted)
		Three Months Ended June 30,								Six Months Ended June 30,
		2024				2025				2024				2025
Revenues
Product sales			67,152				56,671				134,983				101,471
Services and others			2,210				2,211				5,548				4,429
Total revenues			69,362				58,882				140,531				105,900
Cost of revenues
Product sales			(25,513)				(19,635)				(54,583)				(35,484)
Services and others			(559)				(445)				(1,209)				(967)
Total Cost of revenues			(26,072)				(20,080)				(55,792)				(36,451)
Gross profit			43,290				38,802				84,739				69,449
Operating expenses
Fulfillment			(5,010)				(4,355)				(10,756)				(8,225)
Selling and marketing			(31,527)				(27,849)				(64,268)				(49,745)
General and administrative			(6,411)				(4,857)				(13,670)				(9,819)
Other operating income, net			277				163				563				367
Total operating expenses			(42,671)				(36,898)				(88,131)				(67,422)
Income / (loss) from operations			619				1,904				(3,392)				2,027
Interest income			14				3				84				5
Interest expense			-				(5)				-				(9)
Other (expense) / income, net			(9)				12				102				5
Total other income			5				10				186				1
Income / (loss) before income taxes			624				1,914				(3,206)				2,028
Income tax (expense) / benefit			(1)				107				(1)				107
Net income / (loss)			623				2,021				(3,207)				2,135
Net income / (loss) attributable to LightInTheBox Holding Co., Ltd.			623				2,021				(3,207)				2,135
Weighted average numbers of shares used in    calculating net income / (loss) per ordinary    share
-Basic			220,684,859				219,963,072				221,640,704				220,320,143
-Diluted			221,451,741				220,156,552				221,640,704				220,567,883
Net income / (loss) per ordinary share
-Basic			0.00				0.01				(0.01)				0.01
-Diluted			0.00				0.01				(0.01)				0.01
Net income / (loss) per ADS (12 ordinary    shares equal to 1 ADS)
-Basic			0.03				0.11				(0.17)				0.12
-Diluted			0.03				0.11				(0.17)				0.12

 

 

LightInTheBox Holding Co., Ltd.
Unaudited Reconciliations of GAAP and Non-GAAP Results
(U.S. dollars in thousands, or otherwise noted)
		Three Months Ended June 30,								Six Months Ended  June 30,
		2024				2025				2024				2025
Net income / (loss)			623				2,021				(3,207)				2,135
Less: Interest income			14				3				84				5
Interest expense			-				(5)				-				(9)
Income tax (expense) / benefit			(1)				107				(1)				107
Depreciation and amortization			(521)				(426)				(1,147)				(866)
EBITDA			1,131				2,342				(2,143)				2,898
Less: Share-based compensation			(52)				(1)				(276)				(87)
Adjusted EBITDA*			1,183				2,343				(1,867)				2,985
* Adjusted EBITDA represents net income / (loss) before share-based compensation expense, interest income, interest expense, income tax (expense) / benefit and depreciation and amortization expenses.

 

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SOURCE LightInTheBox Holding Co., Ltd.

FAQ

What were LightInTheBox (LITB) Q2 2025 earnings results?

LITB reported Q2 2025 net income of $2.0 million on revenues of $58.9 million. Gross margin improved to 65.9%, while operating expenses decreased 14% YoY to $36.9 million.

How has LightInTheBox's business transformation affected its profitability?

The transformation to a design-driven DTC apparel retailer has led to five consecutive profitable quarters, with Q2 2025 net income increasing to $2.0 million from $0.6 million YoY, despite lower revenues.

What is the status of LITB's share repurchase program?

LITB has repurchased 174,999 ADSs worth $0.3 million of the authorized $0.7 million program, which has been extended through December 31, 2025.

When does LightInTheBox expect to return to revenue growth?

The company projects a return to overall revenue growth in early 2026 as it scales distribution channels, enhances brand awareness, and deepens customer loyalty.

How much did LightInTheBox's operating expenses decrease in Q2 2025?

Operating expenses decreased by 14% year over year to $36.9 million, with reductions across fulfillment, selling and marketing, and general administrative expenses.