Hour Loop shares jump 22.33% intraday after Q3 results show 7.6% revenue growth and $0.53M net income despite tariff challenges.

Hour Loop surged 22.33% intraday following its third-quarter 2025 earnings report, which showed $33.4M in revenue (+7.6% year-over-year) and $0.53M net income despite a 51.4% gross margin decline and $28.9M inventory buildup. The company attributed the profit gain to reduced operating expenses (49.2% of revenue) and strategic cost optimizations amid tariff pressures. CEO Sam Lai highlighted operational resilience and inventory prepositioning for the holiday season, though low cash reserves ($0.8M) and no 2025 guidance due to economic uncertainty raised liquidity concerns. The market appeared to focus on the firm’s ability to maintain profitability through efficiency gains, outweighing short-term risks, as evidenced by the sharp intraday price reaction.