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Nov 02, 2025
Lovesac Q3 2026 Earnings Report
Lovesac reported a slight increase in net sales for Q3 FY26, driven by new showroom additions, despite a decrease in omni-channel comparable net sales and a significant net loss.
Key Takeaways
The Lovesac Company experienced a modest 0.2% increase in net sales to $150.2 million in the third quarter of fiscal 2026 compared to the prior year, primarily due to the addition of 17 new showrooms. However, the company reported a substantial net loss of $10.6 million, a significant increase from $4.9 million in the prior year, and a negative adjusted EBITDA of $6.0 million.
Net sales increased by 0.2% to $150.2 million in Q3 FY26, primarily driven by the net addition of 17 new showrooms.
The company reported a net loss of $10.6 million, or $(0.72) per common share, a significant increase from a net loss of $4.9 million in the prior year.
Gross profit decreased by 3.9% to $84.2 million, with gross margin declining by 240 basis points to 56.1% due to higher transportation and tariff costs.
Operating loss widened to $15.8 million in Q3 FY26 from $7.7 million in the prior year, reflecting increased SG&A and advertising expenses.
Revenue by Segment
Forward Guidance
For the fourth quarter of fiscal 2026, Lovesac anticipates net sales between $236 million and $256 million, adjusted EBITDA between $51 million and $56 million, and diluted income per common share between $1.88 and $2.22.
Positive Outlook
- Expected net sales for Q4 FY26 are projected to be between $236 million and $256 million.
- Adjusted EBITDA for Q4 FY26 is anticipated to be in the range of $51 million to $56 million.
- Diluted income per common share for Q4 FY26 is expected to be between $1.88 and $2.22.
- Full year fiscal 2026 net sales are projected to be between $685 million and $705 million.
- Full year fiscal 2026 net income is expected to be between $2 million and $8 million.
Challenges Ahead
- The company did not explicitly state any negative forward guidance points, but the Q3 performance indicates ongoing challenges.
- The Q3 net loss and negative adjusted EBITDA suggest a need for significant improvement to meet full-year profitability guidance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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