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May 04
Lovesac Q1 2026 Earnings Report
Lovesac posted a modest revenue increase and narrowed its net loss compared to the previous year, despite ongoing macroeconomic headwinds.
Key Takeaways
Lovesac delivered 4.3% revenue growth in Q1 FY26, driven by new showroom openings and the launch of EverCouch. While gross margin slipped, the company reduced its net loss and operating expenses.
Revenue grew to $138.4M, supported by showroom expansion.
Net loss improved to $10.8M from $13.0M a year ago.
Gross margin declined slightly due to promotional discounting.
The new EverCouch platform launched, expanding addressable market.
Lovesac
Lovesac
Lovesac Revenue by Segment
Revenue by Segment
Showrooms Revenue
CapyFin.comInternet Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For FY26, Lovesac expects net sales between $700M–$750M and net income between $13M–$22M. Q2 is projected to show a net loss and negative adjusted EBITDA.
Positive Outlook
- FY26 revenue expected to reach up to $750M
- Full-year net income guidance up to $22M
- Strong launch of EverCouch platform
- Availability on credit lines remains healthy
- Inventory build positions company for future demand
Challenges Ahead
- Q2 expected net loss of $8M–$12M
- Q2 adjusted EBITDA loss projected between $2M–$7M
- Gross margin declined due to increased discounting
- Cash burn increased with $41.4M used in operations
- Macroeconomic uncertainty remains a headwind
Revenue & Expenses
Visualization of income flow from segment revenue to net income