HomesToLife (HTLM) Q2 2025 earnings summary

Executive summary

• Net income surged 87% year-over-year to $10.0 million in 1H 2025, driven by strong export growth and favorable foreign exchange gains.

• Net revenue increased 16% to $180.8 million, with export sales as the primary growth engine across Asia-Pacific, Europe, and North America.

• Retail expansion in Korea contributed $1.5 million in new revenue, supporting brand and product development.

Financial highlights

• Gross profit rose 19% to $49.8 million, with gross margin stable at 27.6%.

• Operating income increased 22% to $9.0 million, while operating expenses grew 18% due to higher freight, warranty, and start-up costs.

• Earnings per share climbed to $0.11 from $0.06 year-over-year.

• Cash and bank balances stood at $20.0 million as of June 30, 2025; borrowings were $23.3 million, mainly for trade financing.

Outlook and guidance

• FY2025 revenue is projected between $340 million and $375 million, with a stronger second half anticipated.

• Guidance reflects both continued export momentum and potential U.S. policy headwinds on furniture imports.

• Management expects working capital efficiency to normalize in 2H 2025.