Lulus Fashion Lounge Holdings Inc Q2 2025 Earnings: Revenue Misses Estimate, EPS Matches, Adjusted EBITDA Positive

Lulus Fashion Lounge Holdings Inc reported Q2 2025 earnings with a net revenue of $81.5 million, slightly below estimates, and a net loss of $3.0 million, a significant improvement from last year. The company achieved positive Adjusted EBITDA and expects positive EBITDA in Q3 2025. Despite challenges, Lulus is actively negotiating a new asset-based revolving credit facility and repositioning its casual wear and footwear categories to align with event attire strengths.

Lulu’s Fashion Lounge Holdings Inc (LVLU) has released its second-quarter 2025 financial results, reporting a net revenue of $81.5 million, slightly below estimates. The company experienced a net loss of $3.0 million, marking a significant improvement from the same period last year. Despite the challenges, Lulu’s achieved positive Adjusted EBITDA and expects positive EBITDA in the third quarter of 2025.

Crystal Landsem, CEO and Interim CFO, commented on the company's performance: “In the second quarter, we saw meaningful sequential improvement in our quarterly year-over-year net revenue comparison, and we continued to see positive sales momentum in occasion dresses, led by our bridesmaid category. This performance was offset by continued softness in casual wear and footwear, which we are actively repositioning to better align with our strengths in event attire.”

The company's gross profit decreased by 12% to $36.9 million, and the gross margin decreased by 20 basis points to 45.3%. The net loss of $3.0 million was a substantial improvement compared to the net loss of $10.8 million in the same period last year. Adjusted EBITDA* was $0.5 million, up from ($0.2) million in the same period last year.

Lulu’s reported a net cash used in operating activities of $1.4 million, compared to net cash provided by operating activities of $3.7 million in the same period last year. Free Cash Flow* was ($1.9) million, down from $3.0 million in the same period last year. Total debt decreased by $4.3 million to $5.8 million, and net debt* increased by $2.7 million to $4.2 million.

The company is actively negotiating a new asset-based revolving credit facility and expects positive Adjusted EBITDA in the third quarter 2025. Lulu’s expects its full year 2025 capital expenditures to be approximately $2.5 million, which represents the low end of its previously estimated range of between $2.5 million and $3.0 million.

Lulu’s Fashion Lounge Holdings Inc's Q2 2025 earnings report highlights the company's progress in cost efficiency and strategic initiatives, positioning it well for the remainder of the year. However, the volatile nature of current consumer demand and macroeconomic uncertainties remain significant challenges.

References:
[1] https://investors.lulus.com/news-releases/news-release-details/lulus-reports-second-quarter-2025-results