Luvu Brands, Inc.

Luvu Brands, Inc. reported mixed financial results for the second quarter of fiscal year 2026, marked by positive operating income but a significant net loss driven by a substantial income tax provision. Net sales for the period ending December 31, 2025, totaled $6.9 million, generating a gross profit of $1.8 million, which represents a gross margin of approximately 26.1%. The company achieved operating income of $184K, demonstrating operational efficiency with total operating expenses controlled at $1.6 million. However, a provision for income taxes of $813K, likely related to deferred tax liabilities, resulted in a net loss of -$765K for the quarter. From a liquidity perspective, the company generated $365K in cash from operating activities and ended the period with $1.1 million in cash and cash equivalents. Total stockholders' equity stood at $1.5 million against total liabilities of $9.6 million. The company reported 76.8 million basic and diluted shares outstanding.

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