# The Lovesac Company (LOVE) Q2 2026 Financial Results Summary
The Lovesac Company (Nasdaq: LOVE) released its financial results for the second quarter of fiscal 2026 on September 11, 2025, reporting a mix of performance indicators reflecting both growth and challenges within the company.
### Key Financial Metrics for Q2 FY26 (13 weeks ending August 3, 2025)
– **Net Sales**: Increased by **2.5%** to **$160.5 million** from **$156.6 million** in Q2 FY25.
– **Showroom Sales**: Increased by **10.4%** to **$109.1 million** compared to **$98.8 million** in the prior year.
– **Internet Sales**: Decreased by **4.1%** to **$42.5 million**, down from **$44.3 million**.
– **Other Sales**: Decreased by **33.6%** to **$9.0 million** from **$13.5 million**.
– **Gross Profit**: Decreased by **1.9%** to **$90.6 million**, down from **$92.4 million**.
– **Gross Margin**: Decreased by **260 basis points** to **56.4%** from **59.0%** of net sales.
– **Operating Expenses**: Decreased by **1.3%** to **$99.4 million** from **$100.7 million**.
– **SG&A Expenses**: Decreased by **2.1%** to **$72.1 million** from **$73.7 million**.
– **SG&A as a % of Net Sales**: Improved to **44.9%** from **47.0%**.
– **Advertising and Marketing**: Slightly increased by **0.7%** to **$23.5 million** from **$23.3 million**.
– **Operating Loss**: Increased to **$8.8 million** compared to **$8.4 million** in the same quarter last year.
– **Operating Margin**: Shifted to **(5.5%)** compared to **(5.3%)**.
– **Net Loss**: Increased by **13.5%** to **$6.7 million** from **$5.9 million**.
– **Net Loss per Share**: Increased to **$(0.45)** from **$(0.38)**.
– **Adjusted EBITDA**: Decreased by **44.1%** to **$0.8 million** from **$1.5 million** in Q2 FY25.
– **Net Cash Provided by Operating Activities**: Increased significantly by **96.7%** to **$12.2 million** from **$6.2 million** in the prior year.
### Year-to-date Financial Performance (26 weeks ending August 3, 2025)
– **Net Sales**: Increased **3.3%** to **$298.9 million** from **$289.2 million** in FY25.
– **Gross Profit**: Raised by **0.3%** to **$165.0 million**, slightly up from **$164.4 million**.
– **Gross Margin**: Decreased by **160 basis points** to **55.2%** compared to the previous year’s **56.8%**.
– **SG&A Expense**: Reduced by **2.0%** to **$139.2 million** from **$142.1 million**.
– **Operating Loss**: Reduced to **$23.8 million** from **$26.2 million**.
– **Operating Margin**: Improved to **(8.0%)** from **(9.1%)**.
– **Net Loss**: Decreased by **7.1%** to **$17.5 million** from **$18.8 million**.
– **Net Loss per Share**: Changed slightly to **$(1.19)** from **$(1.21)**.
### Other Financial Highlights
– **Cash and Cash Equivalents**: Dropped to **$34.2 million** from **$72.1 million** as of August 4, 2024.
– **Merchandise Inventory**: Significant increase to **$124.0 million** from **$88.3 million**.
– **Ending Showroom Count**: Steadily increased to **270** locations.
### Share Repurchase and Dividend Declared
– The Lovesac Company repurchased **$6 million** of common stock during the quarter.
– There was **no declaration** of a quarterly dividend.
### Outlook
For the fiscal year 2026, Lovesac expects:
– **Net Sales**: Between **$710 million to $740 million**.
– **Adjusted EBITDA**: Estimated between **$42 million to $55 million**.
– **Net Income**: Projected between **$8 million to $17 million**.
– **Diluted Income per Share**: Expected to range from **$0.52 to $1.05**.
For the third quarter of fiscal 2026, guidance includes:
– **Net Sales**: Estimated in the range of **$151 million to $161 million**.
– **Adjusted EBITDA Loss**: Expected between **$1 million to $7 million**.
– **Net Loss**: Projected between **$8 million to $12 million**.
– **Basic Loss per Share**: Expected to range from **$0.51 to $0.83**.
The company continues to focus on strategic growth to solidify its brand presence in the home goods market.
Here are the extracted financial tables from the press release:
### CONDENSED STATEMENTS OF OPERATIONS
(amounts in thousands)
| Thirteen weeks ended | August 3, 2025 | August 4, 2024 | Twenty-six weeks ended | August 3, 2025 | August 4, 2024 |
|---|---|---|---|---|---|
| Net sales | $160,530 | $156,590 | $298,903 | $289,233 | |
| Cost of merchandise sold | $69,922 | $64,221 | $133,925 | $124,819 | |
| Gross profit | $90,608 | $92,369 | $164,978 | $164,414 | |
| Operating expenses: | |||||
| Selling, general and administrative | $72,114 | $73,674 | $139,231 | $142,077 | |
| expenses | |||||
| Advertising and marketing | $23,481 | $23,310 | $42,075 | $41,306 | |
| Depreciation and amortization | $3,836 | $3,756 | $7,449 | $7,258 | |
| Total operating expenses | $99,431 | $100,740 | $188,755 | $190,641 | |
| Operating loss | $-8,823 | $-8,371 | $-23,777 | $-26,227 | |
| Interest and other income, net | $100 | $694 | $425 | $1,438 | |
| Net loss before taxes | $-8,723 | $-7,677 | $-23,352 | $-24,789 | |
| Income tax benefit | $2,073 | $1,816 | $5,862 | $5,968 | |
| Net loss | $-6,650 | $-5,861 | $-17,490 | $-18,821 | |
| Net loss per common share: | |||||
| Basic | $-0.45 | $-0.38 | $-1.19 | $-1.21 | |
| Diluted | $-0.45 | $-0.38 | $-1.19 | $-1.21 | |
| Weighted average shares outstanding: | |||||
| Basic | 14,623,823 | 15,590,207 | 14,707,952 | 15,564,016 | |
| Diluted | 14,623,823 | 15,590,207 | 14,707,952 | 15,564,016 |
### CONDENSED BALANCE SHEETS
(amounts in thousands)
| August 3, 2025 | February 2, 2025 | |
|---|---|---|
| Assets | ||
| Current Assets | ||
| Cash and cash equivalents | $34,191 | $83,734 |
| Trade accounts receivable, net | $14,072 | $16,781 |
| Merchandise inventories, net | $123,983 | $124,333 |
| Prepaid expenses | $14,273 | $14,807 |
| Other current assets | $3,318 | $6,942 |
| Total Current Assets | $189,837 | $246,597 |
| Property and equipment, net | $84,441 | $77,990 |
| Operating lease right-of-use assets | $165,433 | $157,750 |
| Goodwill | $144 | $144 |
| Intangible assets, net | $1,862 | $1,586 |
| Deferred tax asset | $21,256 | $15,277 |
| Other assets | $30,736 | $32,906 |
| Total Assets | $493,709 | $532,250 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities | ||
| Accounts payable | $35,996 | $51,814 |
| Accrued expenses | $36,490 | $51,986 |
| Payroll payable | $11,438 | $9,501 |
| Customer deposits | $13,553 | $11,250 |
| Current operating lease liabilities | $22,785 | $22,662 |
| Sales taxes payable | $4,881 | $7,897 |
| Total Current Liabilities | $125,143 | $155,110 |
| Operating lease liabilities, long-term | $170,681 | $160,361 |
| Income tax payable, long-term | $424 | $424 |
| Line of credit | $— | $— |
| Total Liabilities | $296,248 | $315,895 |
| Commitments and Contingencies | ||
| Stockholders’ Equity | ||
| Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of August 3, 2025 and February 2, 2025 | $— | $— |
| Common Stock $0.00001 par value, 40,000,000 shares authorized, 14,599,825 shares issued and outstanding as of August 3, 2025 and 14,786,934 shares issued and outstanding as of February 2, 2025. | $— | $— |
| Additional paid-in capital | $195,154 | $190,510 |
| Accumulated earnings | $2,307 | $25,845 |
| Stockholders’ Equity | $197,461 | $216,355 |
| Total Liabilities and Stockholders’ Equity | $493,709 | $532,250 |
