Quarterly ResultMay 13, 2026, 04:08 PM
Lulus Q1 Net Loss Improves $3.9M; Gross Margin +480 bps
AI Summary
Lulus reported first quarter 2026 financial results, showing significant improvements in profitability metrics despite a decrease in net revenue. The company's net loss improved by $3.9 million, and gross margin expanded by 480 basis points year-over-year, supported by strategic actions to reposition its assortment and optimize costs. Lulus also reduced its total debt by $1.1 million and net debt by $5.8 million during the quarter, and reaffirmed its financial outlook for the full fiscal year 2026, expecting positive Adjusted EBITDA.
Key Highlights
- Net loss improved by $3.9 million to $4.1 million in Q1 2026 from $8.0 million in Q1 2025.
- Gross Margin increased 480 basis points to 45.1% in Q1 2026 compared to 40.3% in Q1 2025.
- Adjusted EBITDA improved to $(1.5) million in Q1 2026 from $(4.7) million in Q1 2025.
- Net revenue decreased 10% to $57.5 million in Q1 2026, driven by a 15% decrease in Total Orders Placed.
- Active Customers decreased 11% to 2.3 million compared to 2.6 million in the prior year.
- Inventory balance decreased 17% to $33.1 million compared to $39.7 million in the same period last year.
- Total debt decreased by $1.1 million and Net Debt decreased by $5.8 million during Q1 2026.
- Reaffirmed full-year fiscal 2026 outlook for positive Adjusted EBITDA and improved net revenue growth trend.