The Lovesac 2026 Q2 Earnings Wider Losses Despite Modest Revenue Growth

The Lovesac reported its fiscal 2026 Q2 earnings on September 11, 2025. The results missed profitability expectations amid a challenging market environment. While the company delivered modest year-over-year revenue growth, it posted a wider net loss and adjusted for macroeconomic headwinds. Management provided revenue guidance in line with expectations but signaled ongoing adjusted EBITDA losses in the near term.

Revenue
The Lovesac reported total revenue of $160.53 million for Q2 2026, reflecting a 2.5% increase compared to $156.59 million in the same period a year earlier. This growth was driven by the “Designed for Life” product platforms and continued investment in customer acquisition. However, the company did not provide segment-specific revenue figures for the quarter.

Earnings/Net Income
The company’s losses widened in Q2 2026, with a net loss of $6.65 million, or $0.45 per share, compared to a loss of $5.86 million, or $0.38 per share, in Q2 2025. This represents a 18.4% increase in per-share losses and a 13.5% rise in total net loss, highlighting the pressure from industry headwinds and cost challenges. The earnings performance suggests continued operational difficulties.

Price Action
The stock of The Lovesac has seen mixed price movement following the earnings report. It edged down by 0.17% during the latest trading day, fell 11.69% during the most recent full trading week, and declined 0.45% month-to-date. These movements indicate investor caution in the near term.

Post-Earnings Price Action Review
Despite the earnings miss, CEO Shawn Nelson emphasized a forward-looking strategy centered on brand evolution and new product innovation, such as the rebranded Snugg line. Nelson noted the company’s ability to navigate a tough market, including tariffs and competitive discounting, while pursuing long-term growth. The company is focusing on efficient customer acquisition, cost mitigation, and product development to strengthen its market position and build long-term value.

CEO Commentary
In the earnings call, CEO Shawn Nelson acknowledged the macroeconomic pressures but expressed cautious optimism about Lovesac’s strategic direction. He highlighted the company’s growth in “Designed for Life” product lines and efforts to expand into new channels. The tone remained confident, with Nelson emphasizing operational improvements and brand evolution as key drivers of future performance.

Guidance
The Lovesac provided full-year 2026 guidance for net sales of $710–740 million, representing 4–9% year-over-year growth. The company expects adjusted EBITDA of $42–55 million and gross margins in the 57–58% range. For Q3, it anticipates revenue of $151–161 million and an adjusted EBITDA loss of $1–7 million. The company expects Q4 gross margin improvements to support a return to high-50s to near-60% levels over time.

Additional News
On August 29, 2025, Seeking Alpha’s latest stock news page for The Lovesac Company (LOVE) was temporarily inaccessible to users. This incident may have impacted access to real-time updates and investor sentiment analysis in the week preceding the earnings release. No significant corporate updates, such as mergers, acquisitions, executive changes, or shareholder returns, were publicly reported within three weeks of the earnings announcement. Investors were left without additional context on potential catalysts or risks during this period.