Lendway 2026 Q1 Earnings Record-Wide Losses Amid Revenue Decline

Lendway’s fiscal 2026 Q1 results fell short of expectations, marked by a 22.3% revenue decline and a 141.7% wider net loss. The company raised guidance for future quarters, citing strategic investments in bulb inventory and operational readiness for peak season demand.

Revenue

Lendway’s total revenue for 2026 Q1 fell to $5.15 million, a 22.3% decrease from $6.63 million in the prior-year period. The decline was driven by strategic decisions to accelerate tulip growing for spring demand, reducing inventory available for sale. Supermarket sales accounted for the bulk of revenue at $4.87 million, with wholesalers contributing $259,000 and other segments adding $20,000.

Earnings/Net Income

Net losses widened significantly, with a per-share loss of $1.61 in 2026 Q1, a 151.6% increase from $0.64 in 2025 Q1. The company’s net loss reached $3.37 million, a 141.7% rise from $1.39 million. The EPS loss reflects deteriorating profitability due to higher bulb costs, tariffs, and operational inefficiencies. This outcome indicates a negative trend in earnings performance.

Price Action

Lendway’s stock price has shown consistent weakness post-earnings, with an 8.43% decline in the latest week and a 24.15% drop month-to-date. The strategy of purchasing shares on earnings report dates and holding for 30 days underperformed the market by 30.5% over three years, underscoring poor investor sentiment.

CEO Commentary

Co-CEOs Mark Jundt and Dan Philp emphasized confidence in long-term growth, citing strategic investments in bulb procurement and operational readiness for the peak season. Despite near-term challenges like elevated costs and seasonality, leadership expressed optimism about gross margin expansion and revenue recovery in fiscal 2026.

Guidance

The company anticipates revenue growth in the remaining 2026 quarters, supported by increased bulb inventory and improved gross margins as more bulbs are cultivated into stems. Management also reaffirmed confidence in liquidity adequacy for the next 12 months.

Additional News

Recent developments include the appointment of Mark Jundt and Dan Philp as co-CEOs in July 2024, following Randy Uglem’s resignation, and the acquisition of Bloomia in February 2024, which expanded Lendway’s tulip production capabilities. In August 2025, the company reported Q2 2025 net revenue of $23.2 million and a net income of $1.0 million, signaling a turnaround after earlier losses. Additionally, Lendway secured increased tulip bulb supply despite market scarcity, supporting its strategic growth plans.