Luvu Brands Announces First Quarter Fiscal 2026 Results and Operational Highlights
Luvu Brands (OTCQB:LUVU) reported Q1 fiscal 2026 results for the quarter ended September 30, 2025. Net revenue was $5.84M, up 1% year‑over‑year. Gross profit rose to $1.66M and gross margin improved to 28.4% from 26.3% (≈210 bps). Net loss narrowed 38% to $0.13M. Adjusted EBITDA turned positive at $82k versus a $(4)k loss prior year. Inventory increased to $3.81M and cash rose to $818k. Management cited sourcing renegotiations, supplier diversification, and cost discipline as drivers of margin improvement and said it will prioritize distribution expansion, new products, and manufacturing efficiency.
Luvu Brands (OTCQB:LUVU) ha riportato i risultati del primo trimestre fiscale 2026 per il trimestre terminato il 30 settembre 2025. Il fatturato netto è stato di 5,84 milioni di dollari, in aumento dell'1% annuo. Il utile lordo è salito a 1,66 milioni e il margine lordo è migliorato al 28,4% dal 26,3% (≈210 punti base). La perdita netta si è ridotta del 38% a 0,13 milioni di dollari. L'EBITDA rettificato è diventato positivo a 82 mila dollari contro una perdita di 4 mila nell'anno precedente. Le scorte sono aumentate a 3,81 milioni e la cassa è salita a 818 mila. La direzione ha citato rinegoziazioni di approvvigionamento, diversificazione dei fornitori e disciplina dei costi come driver del miglioramento dei margini e ha dichiarato che privilegerà l'espansione della distribuzione, nuovi prodotti ed efficienza di produzione.
Luvu Brands (OTCQB:LUVU) informó los resultados del primer trimestre fiscal 2026 para el trimestre terminado el 30 de septiembre de 2025. Los ingresos netos fueron de 5,84 millones de dólares, un aumento del 1% interanual. El beneficio bruto aumentó a 1,66 millones y el margen bruto mejoró al 28,4% desde 26,3% (≈210 pb). La pérdida neta se redujo un 38% a 0,13 millones de dólares. El EBITDA ajustado se volvió positivo a 82 mil frente a una pérdida de 4 mil en el año anterior. El inventario aumentó a 3,81 millones y el efectivo subió a 818 mil. La dirección citó renegociaciones de suministro, diversificación de proveedores y disciplina de costos como motores de la mejora del margen y dijo que priorizará la expansión de la distribución, nuevos productos y la eficiencia de la fabricación.
루부 브랜드스 (OTCQB:LUVU) 는 2025년 9월 30일 종료된 2026 회계연도 1분기 실적을 발표했습니다. 순매출은 5.84백만 달러로 전년동기 대비 1% 증가했습니다. 총이익은 1.66백만 달러로 상승했고 총마진은 26.3%에서 28.4%로 개선되었습니다(약 210bp). 순손실은 38% 감소한 0.13백만 달러로 축소되었습니다. 조정 EBITDA는 전년 동기 비적자에서 82천 달러로 흑자 전환했습니다. 재고는 381만 달러로 증가했고 현금은 81.8만 달러로 증가했습니다. 경영진은 소싱 재협상, 공급처 다변화, 비용 관리가 마진 개선의 동인이라고 지적했으며 배급 확대, 신제품 개발 및 제조 효율성에 우선순위를 둘 것이라고 밝혔습니다.
Luvu Brands (OTCQB:LUVU) a publié les résultats du premier trimestre fiscal 2026 pour le trimestre terminé le 30 septembre 2025. Le chiffre d'affaires net s'est élevé à 5,84 M$, (+1% d'une année sur l'autre). Le bénéfice brut est passé à 1,66 M$ et la marge brute s'est améliorée à 28,4% contre 26,3% (≈210 points de base). La perte nette a diminué de 38% pour atteindre 0,13 M$. Le EBITDA ajusté est devenu positif à 82k$ par rapport à une perte de 4k$ l'année précédente. Les stocks ont augmenté à 3,81 M$ et la trésorerie à 818k$. La direction a cité des renégociations d'approvisionnement, une diversification des fournisseurs et une discipline des coûts comme moteurs de l'amélioration des marges et a déclaré qu'elle privilégierait l'expansion de la distribution, les nouveaux produits et l'efficacité de la fabrication.
Luvu Brands (OTCQB:LUVU) hat die Ergebnisse des ersten Quartals des Geschäftsjahres 2026 für das am 30. September 2025 endende Quartal gemeldet. Der Nettoumsatz betrug 5,84 Mio. USD, ein Anstieg von 1% gegenüber dem Vorjahr. Der Bruttogewinn stieg auf 1,66 Mio. USD und die Bruttomarge verbesserte sich von 26,3% auf 28,4% (≈210 Basispunkte). Der Nettolohnverlust schrumpfte um 38% auf 0,13 Mio. USD. Der angepasste EBITDA wurde positiv mit 82 Tsd. USD gegenüber einem Verlust von 4 Tsd. USD im Vorjahr. Das Inventar stieg auf 3,81 Mio. USD und Cash stieg auf 818 Tsd. USD. Das Management nannte Neuverhandlungen bei der Beschaffung, Diversifizierung der Lieferanten und Kostendisziplin als Treiber der Margenverbesserung und sagte, man werde die Verteilungserweiterung, neue Produkte und Herstellungseffizienz priorisieren.
Luvu Brands (OTCQB:LUVU) أعلنت نتائج الربع الأول من السنة المالية 2026 للربع المنتهي في 30 سبتمبر 2025. الإيرادات الصافية بلغت 5.84 مليون دولار، بارتفاع قدره 1% على أساس سنوي. زادت الربحية الإجمالية إلى 1.66 مليون دولار وتحسن هامش الربح الإجمالي إلى 28.4% من 26.3% (≈210 نقطة أساس). تقلص الخسارة الصافية بنسبة 38% إلى 0.13 مليون دولار. EBITDA المعدلة تحولت إلى إيجابية عند 82 ألف دولار مقابل خسارة قدرها 4 آلاف دولار في العام السابق. ارتفع المخزون إلى 3.81 مليون دولار وتزايد النقد إلى 818 ألف دولار. أشارت الإدارة إلى إعادة التفاوض في التوريد، وتنويع الموردين، والانضباط في التكاليف كعوامل رئيسية في تحسين الهوامش وقالت إنها ستعطي أولوية لتوسيع التوزيع، والمنتجات الجديدة، وكفاءة التصنيع.
- Gross margin improved 210 bps to 28.4%
- Net loss narrowed 38% to $0.13M
- Adjusted EBITDA turned positive at $82k
- Cash increased ≈11% to $818k
- Inventories rose to $3.81M, tying up working capital
ATLANTA, GA / ACCESS Newswire / November 14, 2025 / Luvu Brands, Inc. (OTCQB:LUVU), a vertically integrated designer, manufacturer, and marketer of consumer lifestyle brands, today reported financial and operational results for the first quarter of fiscal 2026, ended September 30, 2025.
Financial Highlights
Three Months Ended September 30, 2025:
Net revenue increased
1% to$5.84 million , compared to$5.76 million in the prior-year period.Gross profit rose to
$1.66 million , up from$1.52 million , with gross margin improving to28.4% from26.3% . The majority of this improvement was driven by a reduction in unit costs from overseas vendors, as the Company successfully renegotiated sourcing contracts and diversified its supplier base to mitigate tariff exposure and secure more favorable pricing.Net loss narrowed to
$131,000 , a38% improvement from a loss of$210,000 in Q1 FY2025.Adjusted EBITDA* was
$82,000 , compared to a loss of$4,000 in the prior-year period.
Operational Overview
During the first quarter of fiscal 2026, Luvu Brands continued to execute on its strategy of margin improvement and operational discipline. Despite macroeconomic headwinds, the Company achieved modest revenue growth and improved gross margins through tighter cost controls and refined sourcing practices.
Inventory levels increased to
Navigating Tariff Uncertainty and Consumer Sentiment
Luvu Brands continues to manage the impact of fluctuating import tariffs and soft consumer demand with proactive sourcing and pricing strategies. The Company has diversified its supplier base to reduce reliance on tariff-sensitive imports and is actively negotiating with vendors to secure more favorable terms. These efforts have helped stabilize input costs and protect margins.
To offset variability in consumer spending, Luvu has sharpened its marketing focus on high-conversion channels and introduced product designs that align with evolving customer preferences. By maintaining lean operations and investing in automation, the Company is better positioned to absorb external shocks and sustain profitability.
CEO Louis Friedman commented, "We're encouraged by the margin expansion and operational progress this quarter. Our team remains focused on driving profitability and shareholder value through disciplined execution and strategic investment. By staying agile in the face of economic uncertainty, we're building resilience and preparing for long-term growth."
Strategic Initiatives
Looking ahead, the Company will prioritize initiatives that expand distribution channels, introduce new product offerings, and improve manufacturing efficiency. These efforts are designed to support long-term growth and strengthen Luvu Brands' competitive position in the lifestyle products market.
Additional Information
Visit www.luvubrands.com for updates on events, press releases, and product launches. For investor inquiries, please contact Christopher Knauf at chris.knauf@luvubrands.com.
Company Contact:
Luvu Brands, Inc.
Christopher Knauf
Chief Financial Officer
770-246-6426
Chris.knauf@LuvuBrands.com
Forward-Looking Statements
Certain matters discussed in this press release may be forward-looking statements. Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q. Examples of forward-looking statements in this release include statements related to new products, anticipated revenue, and profitability. The Company assumes no obligation to update the cautionary information in this release.
*Use of Non-GAAP Measures - Adjusted EBITDA
Luvu Brands management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. While Adjusted EBITDA is not a measure of performance in accordance with GAAP, management believes that this non-GAAP measure provides useful information about the Company's operating results. The table below provides a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure. As used herein, Adjusted EBITDA income represents net income (loss) before interest income, interest expense, income taxes, depreciation, amortization, and stock-based compensation expense.
Three Months Ended | ||||||||
September 30, | ||||||||
2025 | 2024 | |||||||
(in thousands, except share data) | ||||||||
Net Sales | $ | 5,841 | $ | 5,756 | ||||
Cost of goods sold (excluding depreciation expense presented below) | 4,185 | 4,239 | ||||||
Gross profit | 1,656 | 1,517 | ||||||
Operating expenses: | ||||||||
Advertising and promotion | 249 | 231 | ||||||
Other selling and marketing | 422 | 414 | ||||||
General and administrative | 913 | 885 | ||||||
Depreciation | 87 | 109 | ||||||
Total operating expenses | 1,671 | 1,639 | ||||||
Operating income/(loss) | (15 | ) | (122 | ) | ||||
Other income (expense): | ||||||||
Interest expense and financing costs | (116 | ) | (88 | ) | ||||
Total other income (expense) | (116 | ) | (88 | ) | ||||
Loss from operations before income taxes | (131 | ) | (210 | ) | ||||
Provision for income taxes | 0 | 0 | ||||||
Net loss | $ | (131 | ) | $ | (210 | ) | ||
Net loss per share: | ||||||||
Basic | $ | (0 | ) | $ | (0 | ) | ||
Diluted | $ | (0 | ) | $ | (0 | ) | ||
Shares used in calculation of net income per share: | ||||||||
Basic | 76,834,057 | 76,834,057 | ||||||
Diluted | 76,834,057 | 76,834,057 | ||||||
Consolidated Balance Sheets
September 30, | ||||||||
2025 | June 30, | |||||||
(unaudited) | 2025 | |||||||
Assets: | (in thousands, except share data) | |||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 818 | $ | 735 | ||||
Accounts receivable, net of allowance for doubtful accounts and allowance for discounts and returns of | 1,552 | 1,600 | ||||||
Inventories, net of allowance for inventory reserve of | 3,805 | 3,585 | ||||||
Other current assets | 132 | 108 | ||||||
Total current assets | 6,307 | 6,028 | ||||||
Equipment, property and leasehold improvements, net | 1,389 | 1,476 | ||||||
Finance lease assets | 104 | 104 | ||||||
Operating lease assets | 923 | 1,057 | ||||||
Other assets | 96 | 96 | ||||||
Total assets | $ | 8,819 | $ | 8,761 | ||||
Liabilities and stockholders' equity: | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,991 | $ | 1,858 | ||||
Current debt | 1,936 | 1,949 | ||||||
Other accrued liabilities | 733 | 553 | ||||||
Operating lease liability | 620 | 646 | ||||||
Total current liabilities | 5,280 | 5,006 | ||||||
Noncurrent liabilities: | ||||||||
Deferred Tax Liability | 119 | 119 | ||||||
Long-term debt | 722 | 704 | ||||||
Long-term operating lease liability | 401 | 513 | ||||||
Total noncurrent liabilities | 1,242 | 1,336 | ||||||
Total liabilities | 6,522 | 6,342 | ||||||
Stockholders' equity (deficit): | ||||||||
Preferred stock, 5,700,000 shares authorized, | - | - | ||||||
Series A Convertible Preferred stock, 4,300,000 shares authorized | - | - | ||||||
Common stock, | 766 | 766 | ||||||
Additional paid-in capital | 6,298 | 6,289 | ||||||
Accumulated deficit | (4,767 | ) | (4,636 | ) | ||||
Total stockholders' equity | 2,297 | 2,419 | ||||||
Total liabilities and stockholders' equity | $ | 8,819 | $ | 8,761 | ||||
Consolidated Statement of Cash Flow
(unaudited)
Three Months Ended | ||||||||
September 30, | ||||||||
2025 | 2024 | |||||||
(in thousands) | ||||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | (131 | ) | $ | (210 | ) | ||
Adjustments to reconcile net incometo net cash provided by operating activities: | ||||||||
Depreciation and amortization | 87 | 109 | ||||||
Stock-based compensation expense | 9 | 9 | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable | 48 | (137 | ) | |||||
Inventory | (219 | ) | 283 | |||||
Prepaid expenses and other assets | (24 | ) | (31 | ) | ||||
Accounts payable | 132 | (63 | ) | |||||
Accrued expenses and interest | 180 | 178 | ||||||
Operating lease liability | (138 | ) | (141 | ) | ||||
Amortization of operating lease asset | 134 | 135 | ||||||
Net cash provided by operating activities | $ | 79 | $ | 132 | ||||
INVESTING ACTIVITIES: | ||||||||
Investment in equipment, software and leasehold improvements | $ | - | $ | (1 | ) | |||
Net cash used in investing activities | $ | - | $ | (1 | ) | |||
FINANCING ACTIVITIES: | ||||||||
Borrowing (repayment) under revolving line of credit | $ | (59 | ) | $ | 10 | |||
Repayment of unsecured line of credit | - | (1 | ) | |||||
Proceeds from unsecured notes payable | 189 | - | ||||||
Proceeds from unsecured line of credit | 65 | - | ||||||
Payments on equipment notes | (184 | ) | (94 | ) | ||||
Principal payments on capital leases | (7 | ) | (6 | ) | ||||
Net cash used in financing activities | $ | 5 | $ | (91 | ) | |||
Net increase (decrease) in cash and cash equivalents | 84 | 40 | ||||||
Cash and cash equivalents at beginning of period | $ | 735 | $ | 1,028 | ||||
Cash and cash equivalents at end of period | $ | 819 | $ | 1,068 | ||||
Supplemental Disclosure of Cash Flow Information: | ||||||||
Cash paid during the year for: | ||||||||
Interest | $ | 64 | $ | 86 | ||||
Income taxes | - | - | ||||||
SUPPLEMENTAL FINANCIAL INFORMATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Reconciliation of Net Loss to Adjusted EBITDA income for the three months ended September 30, 2025 and 2024:
Three Months Ended | ||||||||
September 30, | ||||||||
2025 | 2024 | |||||||
(in thousands) | ||||||||
Net income (loss) | $ | (131 | ) | $ | (210 | ) | ||
Plus interest expense, financing costs and income tax | 116 | 88 | ||||||
Plus depreciation and amortization expense | 88 | 109 | ||||||
Plus stock-based compensation expense | 9 | 9 | ||||||
Adjusted EBITDA | $ | 82 | $ | (4 | ) | |||
SOURCE: Luvu Brands, Inc.
View the original press release on ACCESS Newswire
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