MySize (NASDAQ: MYSZ) grows Q2 revenue 53% while losses and cash needs rise
Rhea-AI Filing Summary
MySize, Inc. reported strong top-line growth but weaker profitability for the quarter and six months ended June 30, 2026. Second-quarter revenue rose 53% year-over-year to $3.07 million, and first-half revenue grew 57% to $5.46 million, driven by expansion in fashion e-commerce, the Percentil resale platform and contributions from Ten Peacks.
Despite this growth, profitability deteriorated. Quarterly gross profit was $973,000 and gross margin fell to 31.7% from 56.0%, reflecting a revenue mix shift toward lower-margin commerce activities. Operating loss widened to $1.72 million and net loss to $1.75 million for the quarter; first-half net loss was $3.13 million. Operating expenses increased across R&D, sales and marketing, and G&A as the platform scaled.
The SaaS Solutions segment remained highly profitable, generating 86% gross margin on $211,000 of revenue, and net cash used in operating activities for the first half improved to $1.97 million from $2.31 million. As of June 30, 2026, MySize held $453,000 in cash and cash equivalents and $258,000 in restricted cash, and disclosed that it expects continued losses and negative operating cash flows and will require additional capital to support its operations and growth strategy.
Positive
- Revenue growth accelerated: Q2 2026 revenue increased 53% year-over-year to $3.07 million, and first-half revenue rose 57% to $5.46 million, reflecting expansion in e-commerce, resale and acquired businesses.
- High-margin SaaS segment: SaaS Solutions generated revenue of $211,000 with cost of revenues of $30,000, producing an approximately 86% gross margin during the quarter.
- Improved operating cash burn: Net cash used in operating activities for the first half of 2026 decreased to $1.97 million from $2.31 million in the prior-year period, aided by working-capital management.
Negative
- Sharp gross margin compression: Quarterly gross margin declined to 31.7% from 56.0% a year earlier, as a larger share of revenue came from lower-margin commerce activities.
- Losses widened significantly: Q2 2026 operating loss increased to $1.72 million from $586,000, and net loss rose to $1.75 million from $450,000; first-half net loss reached $3.13 million.
- Limited cash and need for capital: Cash and cash equivalents were $453,000 with $258,000 in restricted cash, and the company disclosed it expects continued losses and negative operating cash flows and will require additional capital.
- Higher operating expenses: Research and development, sales and marketing, and general and administrative expenses all increased year-over-year, contributing to a larger operating loss despite higher revenue.
Filing Explained
This Form 8-K reports MySize’s second-quarter results under Item 2.02; the attached release is furnished for this disclosure but expressly is not deemed filed for Section 18 liability or incorporated into other filings.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q2 2026 Revenue: $3.07 million
First-Half 2026 Revenue: $5.46 million
Q2 2026 Gross Margin: 31.7%
+5 more
8 metrics
Q2 2026 Revenue
$3.07 million
Revenue for the three months ended June 30, 2026; 53% higher than Q2 2025
First-Half 2026 Revenue
$5.46 million
Revenue for the six months ended June 30, 2026; 57% higher year-over-year
Q2 2026 Gross Margin
31.7%
Consolidated gross margin in Q2 2026 vs 56.0% in Q2 2025
Q2 2026 Net Loss
$1.75 million
Net loss for the three months ended June 30, 2026 vs $450,000 in 2025
SaaS Solutions Gross Margin
86%
Q2 2026 SaaS Solutions segment gross margin on $211,000 revenue and $30,000 cost
Net Cash Used in Operating Activities
$1.97 million
Net cash used in operating activities for the first half of 2026 vs $2.31 million in 2025
Cash and Cash Equivalents
$453,000
Cash and cash equivalents as of June 30, 2026; additional $258,000 in restricted cash
Percentil Q2 2026 Revenue
$413,000
Resale segment revenue in Q2 2026 vs $168,000 in Q2 2025
Key Terms
contribution margin, operating leverage, working-capital management, restricted cash, +2 more
6 terms
contribution margin financial
"focused on contribution margin improvement, operating leverage and cash efficiency"
Contribution margin is the amount of money left from a product’s sale after paying the costs that rise with each unit sold (like materials or hourly labor); it can be shown per unit or as a percentage of the sale price. Investors care because it shows how much each sale contributes to covering fixed expenses and generating profit — think of each sale as a slice of pie where the contribution margin is the slice available to pay the rent and add to earnings.
operating leverage financial
"increasing the proportion of higher-margin revenues, extracting greater operating leverage"
Operating leverage measures how much a company's profits are affected by changes in sales volume. When a business has high operating leverage, small increases in sales can lead to much larger increases in profit, much like a lever amplifies force. It matters to investors because it indicates how sensitive a company's earnings are to fluctuations in sales, affecting risk and potential returns.
working-capital management financial
"supported by working-capital management, including reductions in inventory"
Working-capital management is the process of controlling a company’s short-term assets and liabilities—like cash, inventory, accounts receivable, and accounts payable—to keep day-to-day operations running smoothly. It matters to investors because efficient management shows how well a business turns sales into cash and meets obligations without needing extra borrowing, similar to how managing household bills, pantry stock, and incoming paychecks keeps a household solvent and flexible.
restricted cash financial
"had $453,000 in cash and cash equivalents and $258,000 in restricted cash"
Cash that a company holds but cannot use for day-to-day operations because it is set aside for a specific purpose—such as meeting loan covenants, serving as collateral, funding an escrow, or complying with regulations. Like money in a locked savings account earmarked for a bill, restricted cash reduces the cash available to run the business and pay dividends or debts, so investors treat it differently when assessing a company’s true short-term financial strength.
recommerce technical
"Percentil — managed second-hand fashion and recommerce"
Recommerce is the business of buying, refurbishing, and reselling used goods—often electronics, clothing, or appliances—through online platforms or stores, similar to a modern, tech-driven thrift shop. It matters to investors because it creates new revenue streams from existing products, can lower acquisition costs and waste, and signals stronger customer retention and sustainability practices that can affect a company’s growth, margins, and long-term risk profile.
AI-powered size and fit technology technical
"Naiz Fit — AI-powered size and fit technology"
Earnings Snapshot
Q2 2026 Revenue: $3.07 million
Quarter and six months ended June 30, 2026
Q2 2026 Revenue
$3.07 million
53% increase year-over-year
First-Half 2026 Revenue
$5.46 million
57% increase year-over-year
Q2 2026 Gross Margin
31.7%
down from 56.0% in Q2 2025
Q2 2026 Net Loss
$1.75 million
wider than $450,000 in Q2 2025
First-Half 2026 Net Loss
$3.13 million
wider than $1.51 million in prior-year period
FAQ
How did MySize (MYSZ) perform financially in Q2 2026?
MySize reported Q2 2026 revenue of $3.07 million, up 53% from $2.01 million in Q2 2025. However, net loss widened to $1.75 million from $450,000 as gross margin declined and operating expenses increased.
What was MySize (MYSZ) revenue for the first half of 2026?
For the six months ended June 30, 2026, MySize generated revenue of $5.46 million, a 57% increase from $3.49 million in the prior-year period, driven by fashion e-commerce, the Percentil resale platform and contributions from Ten Peacks.
How did MySize (MYSZ) gross margin change in Q2 2026?
MySize’s gross margin fell to 31.7% in Q2 2026 from 56.0% a year earlier. Gross profit was $973,000 versus $1.12 million, reflecting a shift toward lower-margin commerce activities within its integrated fashion platform.
What is the financial performance of MySize’s SaaS segment in Q2 2026?
In Q2 2026, MySize’s SaaS Solutions segment generated $211,000 in revenue and $30,000 in cost of revenues, resulting in an approximately 86% gross margin. Management highlights this high-margin profile as important for improving overall revenue mix.
What is MySize’s (MYSZ) cash position and liquidity outlook as of June 30, 2026?
As of June 30, 2026, MySize held $453,000 in cash and cash equivalents and $258,000 in restricted cash. The company disclosed it expects continued losses and negative operating cash flows and will require additional capital to support its operations and growth strategy.
How is MySize (MYSZ) managing operating cash flow in 2026?
For the first half of 2026, net cash used in operating activities improved to $1.97 million from $2.31 million a year earlier. Management attributes this to working-capital measures, including reductions in inventory, accounts receivable and prepaid expenses.
Which segments drove MySize (MYSZ) revenue in Q2 2026?
In Q2 2026, fashion e-commerce generated $2.23 million in revenue, SaaS Solutions $211,000, resale (Percentil) $413,000, and other activities including Ten Peacks $213,000, illustrating the company’s diversified fashion technology platform.
AI-generated analysis. How Rhea-AI works. Not financial advice.
