HOUR · Hour Loop, Inc.

Hour Loop's first quarter 2026 results reflect continued revenue growth and profitability despite a challenging economic environment. Net revenue increased 16% year-over-year to $29.9 million, driven by expanded inventory availability and stronger sales execution. Gross margin contracted to 53.5% from 54.7% in the prior year, primarily due to higher inbound costs and storage fees resulting from a proactive inventory purchasing strategy following the discontinuation of the platform's labeling service. Management noted that this approach, while increasing inventory levels, supports product availability and stable sales performance. Operating expenses as a percentage of revenue improved to 49.7% from 51.2%, reflecting greater operating leverage and efficiency gains. Net income rose to $0.82 million from $0.65 million, with diluted EPS unchanged at $0.02. Cash used in operations was $2.2 million, compared to near zero in the prior year, driven by inventory investment and payments to related parties. The company reaffirmed its full-year 2026 guidance, expecting net revenue in the range of $143 million to $163 million (flat to 15% growth) and net income between $0.75 million and $1.5 million. CEO Sam Lai emphasized the company's focus on operational efficiency, inventory positioning, and long-term value creation.