Luvu Brands (LUVU) Q4 2026 earnings summary

Executive summary

• FY26 net sales rose 5.8% to $27.36M, led by 8% Wholesale growth and 2% Direct-to-Consumer growth.

• Gross margin expanded 200 bps to 31.5%; gross profit increased 12.8% to $8.61M.

• Operating income was $876K versus a $69K loss; Adjusted EBITDA rose 218% to $1.26M.

• Net loss narrowed to $246K from $448K, including a $675K non-cash tax provision related to the facility lease renewal.

• Operating cash flow turned positive at $773K versus $410K used in FY25.

Financial highlights

• Wholesale sales were $19.06M (+8%); Direct-to-Consumer sales were $8.30M (+2%).

• Diluted net loss per share was $0.00 versus $0.01 in FY25.

• Total assets rose 30% to $11.4M; equity declined 9% to $2.2M and liabilities increased 45% following the lease renewal.

• Cash and cash equivalents increased 63.2% to $1.20M.

Outlook and guidance

• Management plans disciplined cost controls, margin expansion, scalable growth, stronger liquidity, working-capital optimization and operational efficiency improvements.

• Priorities include wholesale dropship and international growth while offsetting rising fuel-related costs.