Luvu Brands (LUVU) Q2 2025 earnings summary

Executive summary

• Net sales for the quarter ended December 31, 2024 increased 6% year-over-year to $7.2 million, with growth in e-commerce, Liberator, and Jaxx product lines offsetting declines in Avana and wholesale.

• Net income for the quarter rose to $193,000, a 566% increase from the prior year, reflecting higher sales and margin expansion.

• For the six months ended December 31, 2024, net sales were $12.94 million, nearly flat year-over-year, with net loss reduced to $17,000 from $97,000.

• Profitability improved due to cost controls, targeted marketing, and operational efficiencies.

Financial highlights

• Quarterly net sales: $7.2 million (+6% year-over-year); six-month net sales: $12.94 million (+0.2%).

• Quarterly gross margin: 28% (up from 27%); six-month gross margin: 27% (up from 26%).

• Quarterly net income: $193,000; six-month net loss: $17,000 (improved from $97,000 loss prior year).

• Adjusted EBITDA for the quarter: $402,000, up 47% year-over-year; six-month Adjusted EBITDA: $399,000, up 33%.

• Cash and cash equivalents at period end: $1.35 million, up from $1.21 million a year ago.

Outlook and guidance

• Management anticipates continued quarterly fluctuations due to seasonality, competition, and raw material costs.

• Strategic focus on enhancing e-commerce, accelerating product launches, and expanding distribution.

• Continued investment in high-return marketing channels and operational improvements.

• Operating expenses expected to remain relatively fixed, with spending adjustments based on sales forecasts.