LightInTheBox (LITB) Q4 2025 earnings summary

Executive summary

• Achieved a significant turnaround in 2025 with record full-year net income of $8.3 million, reversing a $2.5 million loss in 2024 and marking seven consecutive profitable quarters.

• Fourth quarter net income reached $3.3 million, the highest since 2022, with quarterly revenue growth resuming after three quarters of decline.

• Regained positive year-over-year revenue growth in Q4, up 9%, despite a challenging e-commerce environment.

• Transformation into a global consumer lifestyle company, focusing on emotional resonance, differentiated products, and brand expansion, drove profitability.

Financial highlights

• Q4 2025 revenue was $63 million, up 9% year-over-year; full-year revenue was $224.3 million, down 12% year-over-year due to a strategic focus on profitability.

• Q4 gross margin improved to 62.5% from 58.7% year-over-year; full-year gross margin rose to 65% from 60.1%, the highest since 2013.

• Q4 net income was $3.3 million (vs. $0.5 million in Q4 2024); full-year net income was $8.3 million (vs. $2.5 million loss in 2024).

• Q4 Adjusted EBITDA was $3.7 million (vs. $1.0 million prior year); full-year Adjusted EBITDA was $9.9 million (vs. $0.1 million loss in 2024).

• Positive operating cash flow of $6.2 million for the year; cash and cash equivalents increased to $23.6 million as of December 31, 2025.

Outlook and guidance

• Management expects continued revenue and profit growth in 2026, supported by ongoing transformation and brand expansion.

• AI-driven operational efficiency and workforce optimization (58% reduction since 2023) are expected to further enhance performance.

• Official guidance for 2026 will be provided after Q1.