Hour Loop shares surge 10.17% premarket after Q3 revenue rises 7.6% to $33.4M and net income improves amid operational efficiencies and tariff adjustments.

Hour Loop (NASDAQ: HOUR) surged 10.17% in premarket trading following the release of its Q3 2025 earnings report, which highlighted 7.6% revenue growth to $33.4 million and a modest net income increase to $0.53 million. Despite a 3.4% decline in gross margin due to tariff-related cost pressures, the company cited improved operational efficiency, with operating expenses dropping 3.3% to 49.2% of revenue. CEO Sam Lai emphasized strategic adaptations to U.S. reciprocal tariffs, including inventory front-loading and logistical flexibility, while affirming the durability of Hour Loop’s operating model. The report also noted a $28.9 million inventory build for the holiday season and a $0.8 million cash balance, though the firm withheld full-year guidance due to economic uncertainty. The premarket rally reflects investor confidence in Hour Loop’s ability to navigate tariffs and maintain profitability through structural cost optimization, despite near-term liquidity concerns.