Hour Loop (NASDAQ: HOUR) lifts Q1 revenue 16% and reaffirms 2026 guidance
Rhea-AI Filing Summary
Hour Loop, Inc. reported first quarter 2026 net revenues of $29.9 million, up 16% from $25.8 million a year earlier, driven mainly by expanded inventory that improved product availability and sales execution. Net income rose to $0.82 million, or $0.02 per diluted share, compared to $0.65 million, also $0.02 per diluted share, in the prior-year period.
Gross profit margin slipped to 53.5% from 54.7% as higher inbound costs and storage fees from larger inventory weighed on results, while operating expenses grew 12% and fell to 49.7% of revenue, reflecting better operating leverage. Operating activities used $2.2 million of cash, contributing to a decline in cash and cash equivalents to $0.99 million as of March 31, 2026, from $3.79 million at year-end 2025, alongside higher inventory of $21.1 million. The company reaffirmed its 2026 outlook for net revenue of $143.0–$163.0 million and net income of $0.75–$1.5 million.
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Insights
Hour Loop posts double‑digit Q1 growth but leans on cash to build inventory.
Hour Loop delivered Q1 2026 revenue of $29.9M, up 16% year over year, with net income improving to $0.82M. Gross margin eased to 53.5% from 54.7%, mainly due to higher storage and inbound costs tied to a larger inventory base.
Operating expenses increased 12% and fell to 49.7% of revenue, indicating better operating leverage. However, operating activities used $2.2M of cash, and cash and equivalents declined to $0.99M while inventory rose to $21.1M. This shows a deliberate shift of cash into inventory.
The company reaffirmed full‑year 2026 guidance for net revenue of $143M–$163M and net income of $0.75M–$1.5M, suggesting Q1 profitability is broadly aligned with its annual plan. Subsequent quarters’ filings will clarify whether higher inventory converts efficiently into sales and cash generation.
8-K Event Classification
Key Figures
Key Terms
gross profit financial
operating expenses financial
operating lease right-of-use lease assets financial
stock-based compensation financial
deferred tax assets financial
forward-looking statements regulatory
Earnings Snapshot
Reaffirmed 2026 net revenue guidance of $143.0–$163.0 million and net income guidance of $0.75–$1.5 million.
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Item 2.02. Results of Operations and Financial Condition.
On May 12, 2026, Hour Loop, Inc. (the “Company”) issued a press release announcing its financial and operational results for the quarter ended March 31, 2026, and reaffirming net revenue and net income guidance for the year ending December 31, 2026. A copy of this press release is attached hereto as Exhibit 99.1 and incorporated herein by reference. The information contained in the website is not a part of this current report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information included in this Item 2.02, including Exhibit 99.1, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall such information be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
| Exhibit No. | Description | |
| 99.1 | Press release issued by the registrant on May 12, 2026. | |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| HOUR LOOP, INC. | ||
| Dated: May 12, 2026 | By: | /s/ Sam Lai |
| Name: | Sam Lai | |
| Title: | Chief Executive Officer and Interim Chief Financial Officer | |
Exhibit 99.1
Hour Loop Reports First Quarter of 2026 Results
Continued Profitability Despite a Challenging Economic Environment
Redmond,
WA, May 12, 2026 – Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop” or the “Company”), a leading online
retailer, announces its financial and operational results for the quarter ended March 31, 2026.
Financial Highlights for First Quarter of 2026:
| ● | Net revenues increased 16% to $29.9 million, compared to $25.8 million in the year-ago period; |
| ● | Net income increased to $0.82 million, compared to $0.65 million in the year-ago period; and |
| ● | Cash used in operating activities was $2.2 million, compared to cash used in operating activities of $0.0 million in the year-ago period. |
Management Commentary
“We
are pleased to share our first quarter 2026 financial results as we kicked off the year with strong momentum,” said Sam Lai, CEO
and interim CFO of Hour Loop. “Revenue grew 16% year-over-year, supported by solid demand, stronger execution and the continued
strength of our operating strategy.”
“Gross
margin was modestly lower compared to the year-ago period, primarily due to higher inbound costs and storage fees, as we took a more
proactive approach to inventory purchasing following the discontinuation of the platform’s labeling service. While this approach
resulted in higher inventory levels, we believe maintaining a stronger inventory position is important to supporting product availability
and more stable sales performance over time.”
“We
also remained disciplined in managing operating expenses, which increased only 12% year-over-year. This reflects our continued focus
on operational efficiency and our ability to support business growth while maintaining cost control. While this strategy also resulted
in a significant increase in inventory levels, we believe the enhanced inventory position supports improved product availability and
more stable sales performance going forward.”
“We would like to thank our team members around the world for their continued dedication and contributions, as well as our shareholders for their continued trust and support. We remain focused on reinforcing the foundation we have built, while positioning the Company for future opportunities. We believe that everything we are doing today—strengthening our operations, improving efficiency, expanding opportunities and maintaining financial discipline—represents a critical building block for sustainable growth and long-term value creation.”
First Quarter of 2026 Financial Results
Net revenues in the first quarter of 2026 were $29.9 million, compared to $25.8 million in the same period last year. The increase was primarily driven by expanded inventory availability, which supported improved product availability and sales execution.
Gross profit as a percentage of net revenues decreased to 53.5%, compared to 54.7% in the same period last year. The decrease was mainly driven by higher storage fees and inbound costs resulting from increased purchasing activity and a larger inventory base.
Operating expenses as a percentage of net revenues in the first quarter of 2026 decreased to 49.7%, compared to 51.2% in the same period last year. The decrease was mainly attributable to greater operating leverage and continued efficiency improvements.
Net income in the first quarter of 2026 was $0.82 million, or $0.02 per diluted share, compared to net income of $0.65 million, or $0.02 per diluted share, in the same period last year. The increase was driven by increased costs and decreased expenses because of the reasons mentioned above.
As of March 31, 2026, the Company had $0.9 million in cash and cash equivalents, compared to $3.8 million as of December 31, 2025. This decrease was driven by payments to related parties and additional investment in inventory.
Full Year 2026 Financial Outlook
Hour Loop reaffirms its guidance for the full year, anticipating 2026 net revenue to be in the range of $143.0 million to $163.0 million, representing flat to 15% year-over-year growth. The Company continues to expect 2026 net income to be in the range of $0.75 million to $1.5 million.
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 March 31, 2026 and December 31, 2025
(Unaudited)
| March 31, 2026 | December 31, 2025 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash | $ | 992,886 | $ | 3,792,033 | ||||
| Accounts receivable, net | 865,136 | 235,959 | ||||||
| Inventory, net | 21,087,764 | 18,298,935 | ||||||
| Prepaid expenses and other current assets | 815,044 | 619,261 | ||||||
| Total current assets | 23,760,830 | 22,946,188 | ||||||
| Property and equipment, net | 87,666 | 95,917 | ||||||
| Deferred tax assets | 398,429 | 609,964 | ||||||
| Operating lease right-of-use lease assets | 145,424 | 169,368 | ||||||
| Total non-current assets | 631,519 | 875,249 | ||||||
| TOTAL ASSETS | $ | 24,392,349 | $ | 23,821,437 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 9,784,011 | $ | 6,200,526 | ||||
| Credit cards payable | 3,068,467 | 3,707,976 | ||||||
| Short-term loan | 626,076 | 637,348 | ||||||
| Operating lease liabilities-current | 90,728 | 92,362 | ||||||
| Income taxes payable | 105,962 | 51,147 | ||||||
| Accrued expenses and other current liabilities | 764,060 | 2,226,387 | ||||||
| Due to related parties | 2,060,418 | 3,810,418 | ||||||
| Total current liabilities | 16,499,722 | 16,726,164 | ||||||
| Non-current liabilities | ||||||||
| Operating lease liabilities-non-current | 60,081 | 83,271 | ||||||
| Deferred tax liabilities | 17,822 | 18,143 | ||||||
| Total non-current liabilities | 77,903 | 101,414 | ||||||
| Total liabilities | 16,577,625 | 16,827,578 | ||||||
| Commitments and contingencies | - | |||||||
| Stockholders’ equity | ||||||||
| Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding as of March 31, 2026 and December 31, 2025 | - | - | ||||||
| Common stock: $0.0001 par value, 300,000,000 shares authorized, 35,183,890 and 35,176,320 shares issued and outstanding as of March 31, 2026 and December 31, 2025, respectively | 3,518 | 3,518 | ||||||
| Additional paid-in capital | 5,877,682 | 5,862,683 | ||||||
| Retained earnings | 1,933,156 | 1,109,674 | ||||||
| Accumulated other comprehensive income | 368 | 17,984 | ||||||
| Total stockholders’ equity | 7,814,724 | 6,993,859 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 24,392,349 | $ | 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 Months Ended March 31, 2026 and 2025
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Revenues, net | $ | 29,930,342 | $ | 25,837,090 | ||||
| Cost of revenues | (13,912,567 | ) | (11,691,792 | ) | ||||
| Gross profit | 16,017,775 | 14,145,298 | ||||||
| Operating expenses | ||||||||
| Selling and marketing | 12,598,641 | 11,246,997 | ||||||
| General and administrative | 2,277,006 | 1,977,436 | ||||||
| Total operating expenses | 14,875,647 | 13,224,433 | ||||||
| Income from operations | 1,142,128 | 920,865 | ||||||
| Other (expense) income | ||||||||
| Other (expense) income | (1,808 | ) | 301 | |||||
| Interest expense | (33,938 | ) | (47,055 | ) | ||||
| Other income | 26,758 | 61,825 | ||||||
| Total other (expense) income, net | (8,988 | ) | 15,071 | |||||
| Income before income taxes | 1,133,140 | 935,936 | ||||||
| Income tax expense | (309,658 | ) | (281,419 | ) | ||||
| Net income | 823,482 | 654,517 | ||||||
| Other comprehensive loss | ||||||||
| Foreign currency translation adjustments | (17,616 | ) | (13,536 | ) | ||||
| Total comprehensive income | $ | 805,866 | $ | 640,981 | ||||
| Basic and diluted earnings per common share | $ | 0.02 | $ | 0.02 | ||||
| Weighted-average number of common shares outstanding | 35,183,554 | 35,151,351 | ||||||
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 Three Months Ended March 31, 2026 and 2025
(Unaudited)
| Three Months Ended March 31, | ||||||||
| 2026 | 2025 | |||||||
| Cash flows from operating activities | ||||||||
| Net income | $ | 823,482 | $ | 654,517 | ||||
| Reconciliation of net income to net cash used in operating activities: | ||||||||
| Depreciation expenses | 12,245 | 14,126 | ||||||
| Amortization of operating lease right-of-use lease assets | 21,038 | 55,383 | ||||||
| Deferred tax assets | 211,535 | 238,899 | ||||||
| Stock-based compensation | 14,999 | 15,000 | ||||||
| Inventory allowance | 409,455 | 497,347 | ||||||
| Unrealized foreign exchange gain | (35,568 | ) | (24,826 | ) | ||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (629,177 | ) | 1,256,305 | |||||
| Inventory | (3,198,284 | ) | (1,746,197 | ) | ||||
| Prepaid expenses and other current assets | (195,783 | ) | (286,791 | ) | ||||
| Accounts payable | 3,583,485 | 2,683,231 | ||||||
| Credit cards payable | (639,509 | ) | (985,515 | ) | ||||
| Accrued expenses and other current liabilities | (2,612,327 | ) | (2,338,386 | ) | ||||
| Operating lease liabilities | (21,809 | ) | (56,984 | ) | ||||
| Income taxes payable | 54,815 | - | ||||||
| Net cash used in operating activities | (2,201,403 | ) | (23,891 | ) | ||||
| Cash flows from investing activities: | ||||||||
| Purchases of property and equipment | (5,662 | ) | (720 | ) | ||||
| Net cash used in investing activities | (5,662 | ) | (720 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Payments to related parties | (600,000 | ) | (839,000 | ) | ||||
| Net cash used in financing activities | (600,000 | ) | (839,000 | ) | ||||
| Effect of changes in foreign currency exchange rates | 7,918 | 4,152 | ||||||
| Net change in cash | (2,799,147 | ) | (859,459 | ) | ||||
| Cash at beginning of period | 3,792,033 | 2,119,581 | ||||||
| Cash at end of period | $ | 992,886 | $ | 1,260,122 | ||||
| Supplemental disclosures of cash flow information: | ||||||||
| Cash paid for interest | $ | 5,302 | $ | 4,986 | ||||
| Cash paid for income tax | $ | 2,630 | $ | 6,230 | ||||
The accompanying footnotes are an integral part of these unaudited consolidated financial statements.