MySize Reports Second Quarter 2025 Financial Results; Narrows Losses and Positions Percentil as a Leader in Europe's Circular Fashion Economy

Rhea-AI Summary

MySize (NASDAQ:MYSZ) reported Q2 2025 financial results, showing strategic progress in its European circular fashion economy initiatives. The company recorded Q2 revenue of $2.0 million, up 2% year-over-year, while significantly reducing its operating loss by 49% to $586,000.

The recently acquired Percentil platform contributed $180,000 in revenue since its May acquisition. The company maintains a solid cash position of $4.28 million with $2.90 million in inventory. MySize's strategy aligns with new EU legislation mandating sustainability in apparel, positioning Percentil as a key solution for brands requiring regulatory compliance in circular fashion.

Positive

• None.

Negative

• H1 2025 revenue declined 30% year-over-year to $3.5 million
• H1 2025 gross profit decreased 30% year-over-year to $1.5 million
• Orgad segment experiencing sales decrease due to market changes

Insights

Financial Analyst

MySize narrows losses while strategically positioning in circular fashion economy, though revenue growth remains modest with mixed financial signals.

The Q2 2025 results for MySize present a mixed financial picture with some encouraging trends amid ongoing challenges. While quarterly revenue increased by a modest 2% year-over-year to $2.0 million, the six-month revenue shows a concerning 30% decline to $3.5 million, attributed to decreasing sales at their Orgad division.

The most promising signal is the substantial improvement in operating losses, which decreased by 49% for the quarter to $586,000 and by 25% for the half-year to $1.6 million. This cost discipline suggests management is effectively streamlining operations while pursuing strategic growth initiatives.

MySize maintains a reasonable financial cushion with $4.28 million in cash and $2.90 million in inventory. While not abundant, this provides runway for their strategic repositioning. The recent Percentil acquisition contributed $180,000 in revenue since May—a modest but potentially scalable addition.

The company's strategic pivot toward Europe's circular fashion economy through Percentil represents a calculated bet on regulatory-driven market changes. The transition of Orgad to Fulfillment by Amazon appears to be a pragmatic move to reduce costs and improve operational efficiency.

Looking ahead, investors should watch for acceleration in Percentil's contribution during H2 2025, as management expects this segment to benefit from increasing regulatory compliance demands in Europe. The company's triple-revenue model (SaaS sizing, e-commerce, and resale) creates potential for diversification, but execution across these different business models will be critical for long-term success.

Sustainability Policy Expert

MySize strategically positions Percentil to capitalize on EU's mandatory circular fashion regulations, creating potential first-mover advantage.

MySize's acquisition of Percentil represents a sophisticated strategic positioning within the European regulatory landscape. The EU's Circular Economy Action Plan and upcoming Extended Producer Responsibility (EPR) for textiles create a structural market transformation that Percentil is specifically designed to address.

The timing is particularly noteworthy. Rather than waiting for full implementation of these regulations, MySize is establishing infrastructure now to capture market share as brands scramble to comply with new mandates for durability, repairability, recyclability, and traceability in apparel. This proactive approach could create significant competitive advantages as these regulations become enforced.

Percentil's operational capabilities in AI-powered product matching, garment grading, and logistics integration directly address the technical challenges brands will face under the new regulatory framework. This positions the platform as a potential turnkey solution for brands needing to implement take-back programs and lifecycle management systems.

The company correctly identifies that this regulatory shift isn't merely a compliance burden but a fundamental restructuring of the fashion industry's operating model in Europe. By framing Percentil as "infrastructure" rather than just another resale platform, management demonstrates a sophisticated understanding of how regulation is reshaping market dynamics.

The integration of Percentil with MySize's existing sizing technology creates interesting synergies for accurate product matching and returns reduction in the circular economy—both critical factors for profitability in resale operations. If executed effectively, this integrated approach could deliver technological differentiation from competitors in the increasingly crowded resale space.

New acquisition taps into EU's regulatory push for sustainable apparel
Company investing in market capture as EU legislation reshapes apparel industry

AIRPORT CITY, Israel , Aug. 15, 2025 /PRNewswire/ -- With the acquisition and launch of Percentil, MySize has strengthened its position in Europe's rapidly evolving circular fashion economy — a market transformation driven by new EU legislation mandating durability, repairability, recyclability, and traceability in apparel.

"We are focused on building long-term value while delivering operational progress each quarter," said Ronen Luzon, Founder and CEO of MySize. "The EU is rewriting fashion's rulebook. Percentil is designed to help brands comply with these new standards and unlock new opportunities for growth."

Q2 and H1  2025 Highlights

• Revenue: $2.0 million in the three months ended June 30, 2025, up 2% year-over-year (YoY), primarily due to the addition of Percentil; $3.5 million in the six months ended June 30, 2025, down 30% YoY, attributable to a decrease in Orgad sales due to market changes.
• Gross Profit: $1.1 million in the three months ended June 30, 2025, up 14% YoY; $1.5 million in the six months ended June 30, 2025, down 30% YoY
• Operating Loss: $586,000 in the three months ended June 30, 2025, a 49% improvement from the corresponding period in 2024; $1.6 million in the six months ended June 30, 2025, a 25% improvement from the corresponding period in 2024
• Cash Position: $4.28 million as of June 30, 2025, with $2.90 million in inventory.
• Percentil Contribution: $180,000 in revenue since May acquisition, with integration milestones ahead of schedule.
• Orgad Optimization: Transition to Fulfillment by Amazon (FBA) lowered logistics costs and improved delivery efficiency.

Why Percentil Changes the Game

Percentil operates in Spain and across Europe, directly in the path of the EU's Circular Economy Action Plan and Extended Producer Responsibility (EPR) for textiles. As legislation forces brands to manage the entire lifecycle of their products — including take-back, recycling, and repair — Percentil provides a ready-made platform for compliance and growth.

This is not an optional trend. It is a structural shift in the fashion industry, backed by regulation and consumer demand for sustainability. Percentil's capabilities in AI-powered product matching, garment grading, and logistics integration position it as the go-to solution for brands navigating this change.

CEO Commentary

"Some companies see regulation as a hurdle. We see it as the competitive advantage," Luzon added. "In five years, we believe European fashion resale will not be a niche — it will be the infrastructure of the industry. We intend Percentil to be at the center of that infrastructure, enabling brands to comply, delight customers, and operate profitably in a circular economy."

Strategic Highlights

• Three Complementary Segments – SaaS sizing solutions (MySizeID, Naiz Fit), fashion & equipment e-commerce (Orgad), and apparel resale (Percentil).
• Regulatory Tailwind Alignment – Designed to meet EPR, eco-design, and Digital Product Passport requirements as they roll out across Europe.
• Technology Differentiation – FirstLook Smart Mirror and Smart Catalog enhance both resale and retail experiences.

Looking Ahead

MySize is investing in long-term market capture in the European resale space, leveraging its triple-revenue model to create operational synergies and recurring cash flow. The company expects Percentil's contribution to accelerate in the second half of 2025, driven by brand partnerships and regulatory compliance demand.

About MySize, Inc.

MySize, Inc. (Nasdaq: MYSZ), an AI-powered fashion technology company operating across sizing solutions, e-commerce, and circular fashion platforms. Its portfolio includes Orgad, a fashion and equipment e-commerce business, and Percentil, a European resale platform operating at the forefront of the continent's circular fashion legislation. MySize's solutions empower retailers to increase conversion rates, boost average order value, and reduce returns, contributing to more sustainable commerce. The company's innovations include the FirstLook Smart Mirror and Smart Catalog for in-store and online personalization. Learn more at www.mysizeid.com.

We routinely post information that may be important to investors in the Investor Relations section of our website. Follow us on Facebook, LinkedIn, Instagram, and X (formerly known as Twitter).

For more information, visit www.mysizeid.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including statements related to  strategic and business plans, technology, relationships, objectives and expectations for its business, growth. These statements are identified by the use of the words "could," "believe," "anticipate," "intend," "estimate," "expect," "may," "continue," "predict," "potential," "project" and similar expressions that are intended to identify forward-looking statements. All forward-looking statements speak only as of the date of this press release. You should not place undue reliance on these forward-looking statements. Although we believe that our plans, objectives, expectations and intentions reflected in or suggested by the forward-looking statements are reasonable, we can give no assurance that these plans, objectives, expectations or intentions will be achieved. Forward-looking statements involve significant risks and uncertainties (some of which are beyond our control) and assumptions that could cause actual results to differ materially from historical experience and present expectations or projections. Actual results may differ materially from those in the forward-looking statements and the trading price for our common stock may fluctuate significantly. Forward-looking statements also are affected by the risk factors described in the Company's filings with the U.S. Securities and Exchange Commission. Except as required by law, we undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.

Investor Contact
Oren Elmaliah, CFO
ir@mysizeid.com

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SOURCE My Size Inc.

FAQ

What were MySize (MYSZ) Q2 2025 financial results?

MySize reported Q2 2025 revenue of $2.0 million (up 2% YoY), gross profit of $1.1 million (up 14% YoY), and reduced operating loss to $586,000 (49% improvement YoY).

How much revenue did Percentil contribute to MySize since acquisition?

Percentil contributed $180,000 in revenue since its acquisition in May 2025, with integration milestones reported ahead of schedule.

What is MySize's current cash position in 2025?

As of June 30, 2025, MySize maintained a cash position of $4.28 million, with $2.90 million in inventory.

How is MySize positioned in the European circular fashion economy?

MySize is strategically positioned through Percentil to help brands comply with new EU legislation mandating durability, repairability, recyclability, and traceability in apparel.

What are MySize's three main business segments in 2025?

MySize operates through three segments: SaaS sizing solutions (MySizeID, Naiz Fit), fashion & equipment e-commerce (Orgad), and apparel resale (Percentil).