The Lovesac Company (LOVE) Q3 2026 Financial Results Summary
QuoteReporter
•5 min read
The Lovesac Company (LOVE) Q3 2026 Financial Results Summary
Release Date: December 11, 2025
The Lovesac Company (Nasdaq: LOVE) announced its financial results for the third quarter of fiscal 2026, which ended on November 2, 2025, showing various metrics indicating marginal growth and losses in specific areas despite challenges in the broader market.
Key Financial Highlights
Q3 FY26 Results
- Net Sales: Increased by 0.2% to $150.2 million compared to $149.9 million in Q3 FY25.
- Gross Profit: Decreased by 3.9% to $84.2 million from $87.6 million in the same quarter last year.
- Gross Margin: Decreased by 240 basis points to 56.1% from 58.5% year over year.
- Total Operating Expenses: Increased by 4.9% to $100.0 million compared to $95.4 million in Q3 FY25.
- SG&A Expenses: Increased by 4.5% to $75.0 million from $71.7 million in the same quarter last year.
- As a percentage of net sales: rose to 49.9% from 47.9%.
- Advertising and Marketing Expenses: Increased by 5.7% to $21.1 million from $19.9 million in the same period last year.
- Operating Loss: Increased to $15.8 million from $7.7 million, leading to an operating margin of (10.5%) compared to (5.1%) in Q3 FY25.
- Net Loss: Increased significantly to $10.6 million; loss per share decreased to $(0.72) from $(0.32) in the same quarter last year.
- Adjusted EBITDA: A loss of $(6.0 million) compared to a profit of $2.7 million last year.
Year-to-Date Results
- Net Sales: Increased by 2.3% to $449.1 million from $439.1 million in the prior year.
- Gross Profit: Decreased by 1.1% to $249.2 million from $252.1 million.
- Gross Margin: Declined by 190 basis points to 55.5% from 57.4% year-over-year.
- Total Operating Expenses: Increased by 1.0% to $288.8 million from $286.0 million.
- SG&A Expenses: Increased slightly by 0.2% to $214.2 million compared to $213.8 million in the previous period.
- Net Loss: Expanded to $28.0 million; loss per share was $(1.91) compared to $(1.53) last year.
Other Financial Highlights
- Cash and Cash Equivalents: Decreased to $23.7 million from $61.7 million as of November 3, 2024.
- Total Merchandise Inventory: Increased by $16.3 million to $129.7 million driven by higher freight capitalization.
- Number of Showrooms: Increased to 275 from 258 on the same date last year.
Dividends and Share Repurchase
- The Lovesac Company declared no quarterly dividend.
- The company repurchased shares totaling $6.0 million during the year, compared to $3.4 million in the prior year.
Summary of Changes (VS Q3 FY25)
- Net Sales Growth: 0.2% increase.
- Gross Margin: Decreased by 240 bps.
- SG&A as % of Sales: Increased by 200 bps.
- Net Loss: Significant increase in loss of 114.0%.
- Adjusted EBITDA: Decrease of 322.9%.
Outlook
- For the full year of fiscal 2026, the company projects net sales between $685 million to $705 million.
- Expected Adjusted EBITDA in the range of $37 million to $43 million.
- Projected net income is expected to range from $2 million to $8 million with diluted income per share between $0.15 to $0.49.
In conclusion, while Lovesac demonstrated slight growth in net sales and an increase in showroom counts, challenges remain evident, particularly in gross profit and net losses, as the company shifts focus to marketing strategies to capture market share during the fiscal fourth quarter.
Here are the extracted tables from the press release:
CONDENSED STATEMENTS OF OPERATIONS
(amounts in thousands)
| November 2, 2025 | November 3, 2024 | November 2, 2025 | November 3, 2024 | |
|---|---|---|---|---|
| Net sales | $150,166 | $149,905 | $449,069 | $439,138 |
| Cost of merchandise sold | $65,929 | $62,266 | $199,854 | $187,085 |
| Gross profit | $84,237 | $87,639 | $249,215 | $252,053 |
| Operating expenses: | ||||
| Selling, general and administrative expenses | $74,964 | $71,749 | $214,195 | $213,826 |
| Advertising and marketing | $21,075 | $19,947 | $63,150 | $61,253 |
| Depreciation and amortization | $4,002 | $3,666 | $11,451 | $10,924 |
| Total operating expenses | $100,041 | $95,362 | $288,796 | $286,003 |
| Operating loss | -$15,804 | -$7,723 | -$39,581 | -$33,950 |
| Interest and other income, net | $206 | $701 | $631 | $2,139 |
| Net loss before taxes | -$15,598 | -$7,022 | -$38,950 | -$31,811 |
| Income tax benefit | $5,047 | $2,092 | $10,909 | $8,060 |
| Net loss | -$10,551 | -$4,930 | -$28,041 | -$23,751 |
| Net loss per common share: | ||||
| Basic | -$0.72 | -$0.32 | -$1.91 | -$1.53 |
| Diluted | -$0.72 | -$0.32 | -$1.91 | -$1.53 |
| Weighted average shares outstanding: | ||||
| Basic | 14,655,495 | 15,574,293 | 14,692,182 | 15,567,442 |
| Diluted | 14,655,495 | 15,574,293 | 14,692,182 | 15,567,442 |
CONDENSED BALANCE SHEETS
(amounts in thousands, except share and per share amounts)
| Assets | November 2, 2025 | February 2, 2025 |
|---|---|---|
| Current Assets | ||
| Cash and cash equivalents | $23,722 | $83,734 |
| Trade accounts receivable, net | $16,960 | $16,781 |
| Merchandise inventories, net | $129,681 | $124,333 |
| Prepaid expenses | $13,098 | $14,807 |
| Other current assets | $2,525 | $6,942 |
| Total Current Assets | $185,986 | $246,597 |
| Property and equipment, net | $86,726 | $77,990 |
| Operating lease right-of-use assets | $163,081 | $157,750 |
| Goodwill | $144 | $144 |
| Intangible assets, net | $2,104 | $1,586 |
| Deferred tax asset | $26,368 | $15,277 |
| Other assets | $31,105 | $32,906 |
| Total Assets | $495,514 | $532,250 |
| Liabilities and Stockholders’ Equity | ||
| Current Liabilities | ||
| Accounts payable | $45,548 | $51,814 |
| Accrued expenses | $41,402 | $51,986 |
| Payroll payable | $14,009 | $9,501 |
| Customer deposits | $8,727 | $11,250 |
| Current operating lease liabilities | $22,730 | $22,662 |
| Sales taxes payable | $4,582 | $7,897 |
| Total Current Liabilities | $136,998 | $155,110 |
| Operating lease liabilities, long-term | $168,785 | $160,361 |
| Income tax payable, long-term | $424 | $424 |
| Line of credit | $— | $— |
| Total Liabilities | $306,207 | $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 November 2, 2025 and February 2, 2025. | $— | $— |
| Common Stock $0.00001 par value, 40,000,000 shares authorized, 14,615,785 shares issued and outstanding as of November 2, 2025 and 14,786,934 shares issued and outstanding as of February 2, 2025. | $— | $— |
| Additional paid-in capital | $197,549 | $190,510 |
| Accumulated (deficit) earnings | -$8,242 | $25,845 |
| Stockholders’ Equity | $189,307 | $216,355 |
| Total Liabilities and Stockholders’ Equity | $495,514 | $532,250 |