The Lovesac Company (LOVE) investor relations material

Executive summary

• Q4 FY26 net sales rose 2.7% year-over-year to $248.0 million; FY26 net sales up 2.4% to $697.1 million.

• Strategic initiatives included new product launches, on-shoring of Sactionals, and expansion into new rooms.

• Achieved full-year profitability, positive free cash flow, and ended FY26 with a record cash balance and no debt.

Financial highlights

• Q4 FY26 gross profit decreased 1.2% year-over-year to $144.0 million; gross margin fell 230 bps to 58.1%.

• FY26 gross profit decreased 1.2% to $393.2 million; gross margin down 210 bps to 56.4%.

• Q4 FY26 net income was $32.1 million ($2.19 per diluted share), down 9.1% year-over-year.

• FY26 net income was $4.1 million ($0.28 per diluted share), down 64.8% year-over-year.

• Adjusted EBITDA for FY26 was $36.1 million, down 24.5% year-over-year.

• Cash and cash equivalents at year-end were $101.9 million, up from $83.7 million last year.

Outlook and guidance

• FY27 net sales expected between $700 million and $750 million.

• FY27 adjusted EBITDA projected at $33 million to $44 million.

• FY27 net income guidance: $5 million to $14 million; diluted EPS $0.34 to $0.95.

• Q1 FY27 net sales expected between $133 million and $139 million; net loss of $14 million to $18 million.