Luvu Brands Inc.
02/17/2026 | Press release | Distributed by Public on 02/17/2026 15:23
Luvu Brands Reports Q2 FY26 Earnings: Net Revenue of $6.9 million (Form 8-K)
Luvu Brands Reports Q2 FY26 Earnings: Net Revenue of $6.9 million
ATLANTA, GA, February 17, 2026 - Luvu Brands, Inc. (OTCQB: LUVU), a vertically integrated designer, manufacturer, and marketer of consumer lifestyle brands, today reported financial and operational results for the second quarter of fiscal 2026, ended December 31, 2025.
Financial Highlights
Three Months Ended December 31, 2025:
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Quarterly revenue decline of 4.2% to $6.88 million versus $7.19 million in Q2 FY2025, reflecting challenging consumer spending environment and retail market headwinds from low priced overseas competitors. | |
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Gross profit margin compression to 26.1% from 27.6% year-over-year, with gross profit declining to $1.80 million from $1.98 million due to decline in revenue and increased costs related to import tariffs impacting cost of goods sold. | |
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Operating income positive at $184,000 despite revenue headwinds, demonstrating operational resilience and cost management discipline. | |
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Net loss of $765,000 compared to net income of $192,000 in prior year quarter, primarily attributable to significant deferred tax provision of $813,000 related to future tax benefits | |
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Adjusted EBITDA* of $145,000 versus $399,000 in Q2 FY2025, reflecting margin pressure but maintaining positive cash generation capabilities. |
Six Months Ended December 31, 2025:
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Year-to-date revenue decline of 1.7% to $12.72 million compared to $12.94 million in the same period fiscal 2025, reflecting consumer discretionary spending weakness. | |
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Six-month net loss of $897,000 versus net loss of $18,000 in prior year period, primarily driven by deferred tax provision and increased interest expense. | |
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Adjusted EBITDA of $227,000 for the six-month period compared to $395,000 in fiscal 2025, demonstrating continued positive cash generation despite challenging market conditions |
Q2 FY26 Operational Performance and Market Conditions
During the second quarter of fiscal 2026, Luvu Brands navigated challenging macroeconomic headwinds including consumer discretionary spending weakness, cost pressures, and tariff impacts. Despite revenue decline and margin compression, the Company demonstrated operational discipline by maintaining positive operating income of $184,000 and generating positive operating cash flow.
Liquidity Position Strengthened. Cash and cash equivalents increased 47.8% to $1.09 million from $735,000 at June 30, 2025, reflecting disciplined working capital management and positive cash generation capabilities during challenging market conditions.
Total assets expanded to $11.14 million from $8.76 million, primarily driven by new operating lease assets for the current manufacturing facility. Christopher Knauf, the CFO of the Company, said "The extension of our manufacturing facility lease demonstrates our commitment to making products in the USA. We are confident that current manufacturing capacity will allow us to grow considerably with minimal capital investments."
Luvu Brands continues to navigate challenging macroeconomic conditions including consumer discretionary spending weakness, retail market headwinds, and persistent inflationary cost pressures across raw materials and logistics. The Atlanta-based consumer lifestyle brands company has maintained focus on operational efficiency, cost management discipline, and strategic initiatives to drive sustainable long-term growth and market share expansion.
Management remains committed to optimizing product mix, expanding omnichannel distribution networks, and improving gross profit margins through strategic pricing and operational efficiency initiatives. Louis Friedman, CEO and founder, commented "While we navigated challenging macroeconomic headwinds, we are committed to improving efficiencies, diversifying our product portfolio, and bringing new innovations to the market. We're executing decisive cost management and revenue diversification strategies to strengthen our competitive position in the evolving consumer products marketplace."
Strategic Growth Initiatives and Market Positioning
Looking ahead to the remainder of fiscal 2026 and beyond, Luvu Brands will continue prioritizing strategic investments focused on operational efficiency, developing high-margin products, omnichannel distribution growth, and strengthen customer loyalty. These strategic efforts are designed to improve gross profit margins, enhance EBITDA performance, and position the Company for sustainable long-term growth as macroeconomic conditions stabilize and consumer discretionary spending recovers.
Additional Information
Visit www.luvubrands.com for updates on events, press releases, and product launches. For investor inquiries, please contact Christopher Knauf at [email protected].
Company Contact:
Luvu Brands, Inc.
Christopher Knauf
Chief Financial Officer
770-246-6426
Luvu Brands Inc. published this content on February 17, 2026, and is solely responsible for the information contained herein. Distributed via EDGAR on February 17, 2026 at 21:23 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]