0001493152-26-023066
SEC filingRevenue surged 62% to $2.4M from Orgad/Rottrade sales growth and Percentil consolidation, doubling gross profit to $940K at 39% margin, but innovation investments and higher costs widened net loss to -$1.5M and accelerated cash burn to -$2.1M amid ongoing going concern risks.
Revenue increased 61.9% to $2.4 million in Q1 FY2026 from $1.5 million in the prior year, primarily due to higher amounts sold in Orgad and Rotrade. This topline momentum also reflects the inclusion of Percentil’s sales in the consolidated results, advancing My Size's integrated portfolio addressing size/fit accuracy, excess inventory, circular economy, and international distribution. As a fashion technology company, this execution on e-commerce channels like Amazon drove the surge, though associated platform fees contributed to elevated costs of revenues at $1.5 million versus $1.1 million last year.
Gross profit more than doubled, up 123.8% to $940 thousand from $420 thousand, yielding a 39.3% gross margin. The resilience stems from revenue scale outpacing cost pressures, enabling better absorption of production and fulfillment expenses tied to Orgad, Rotrade, and Percentil volumes. This positions the company to leverage its tech-enabled solutions amid retail challenges, though sustained margin health depends on sales trajectory and fee dynamics.
Operating income deteriorated 32.6% to -$1.4 million from -$1.1 million, with operating margin at -58.7%, as the company invested heavily in innovation through increased salaries from headcount growth and subcontractor expenses. Net loss widened 39.2% to -$1.5 million, mainly attributable to these operating cost increases, though diluted EPS improved 39.2% to -$0.31 from -$0.51 due to loss dynamics relative to share count. These investments align with strategic priorities in fashion tech but underscore the trade-off of near-term profitability for long-term differentiation.
Management anticipates ongoing losses and negative operating cash flows for the foreseeable future, while monitoring macroeconomic and geopolitical risks' impacts on the business. The model offers resilience through diversified fashion tech exposure, but substantial future financing costs loom, including for investment banking, legal, and compliance fees. Investors should note the going concern uncertainty requiring capital infusion to support growth trajectory.