How did Torrid Holdings' revenue and expenses trend in Q4 2025?

**Torrid Holdings' revenue exceeded expectations in Q4 2025, while expenses were strategically managed.**

1. **Revenue Performance**:
- Torrid reported a revenue of $275.6 million for Q4 2025, slightly higher than the anticipated $262.85 million.
- This revenue trend represents a 4.5% year-over-year increase, indicating a positive market response and effective sales momentum.
2. **Cost Management**:
- The company's cost of sales amounted to $690.3 million, accounting for 63% of the total revenue, which is a significant component of the cost structure.
- General & Administrative costs were the largest operating expense, totaling $302.0 million, representing 76% of the total expenses.
3. **Strategic Expense Focus**:
- Torrid's focus on expense optimization is evident, as reflected in the decrease of net sales from $293.5 million in the same quarter last year to $275.6 million.
- Despite the decline in net sales, the company's adjusted EBITDA showed a slight improvement, rising to $16.7 million from $16.4 million, suggesting effective cost management and operational efficiency.
4. **Financial Positioning**:
- Torrid's financial position improved significantly, with a substantial increase in cash, totaling $48.5 million, and total liquidity amounting to $158 million.
- The company's operating cash flow doubled to $77.4 million compared to the previous year, highlighting effective financial management and strategic focus on strengthening the balance sheet.

In conclusion, Torrid Holdings demonstrated resilience in Q4 2025, managing expenses effectively while achieving revenue growth through strategic initiatives such as product diversification and brand enhancement.