10-Q · May 13, 2026
Lulu's Fashion Lounge Holdings, Inc. reported Q1 2026 results with net revenue of $57.5 million, down 10% year-over-year, while gross margin improved to 45.1%. The company recorded a net loss of $4.1 million and slight…
Earnings analysis · 10-Q
LVLU earnings analysis
Filed August 12, 2026 · Our reading of the company's report
The latest report
Lulus delivered a mixed Q2: revenue of $67.8 million recovered 16.9% sequentially but declined 17.3% year over year, while gross margin expanded to 48.6% and diluted EPS improved to $(0.52). Free cash flow was modestly…
Read full summary
Lulus delivered a mixed Q2: revenue of $67.8 million recovered 16.9% sequentially but declined 17.3% year over year, while gross margin expanded to 48.6% and diluted EPS improved to $(0.52). Free cash flow was modestly positive at $0.1 million, and fiscal 2026 profitability and capital-spending expectations were reaffirmed. However, Nasdaq compliance remains a material risk and the new equity line of up to $4.5 million, plus a potential additional $5.5 million facility, creates meaningful dilution and financing risk.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.52
- Gross margin
- 48.6%
What stood out
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Sequential Revenue Recovery, YoY Decline
Q2 revenue was $67.8 million, up from $58.0 million in Q1 2026 but down from $82.0 million in Q2 2025, representing approximately 16.9% sequential growth and 17.3% year-over-year decline.
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Gross Margin Expanded to 48.6%
Gross margin increased to 48.6% from 45.1% in Q1 2026 and 45.3% in Q2 2025, an expansion of 350 basis points sequentially and 330 basis points year over year.
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Loss Narrowed and FCF Turned Positive
Diluted EPS improved to $(0.52) from $(1.44) in Q1 2026 and $(1.08) in Q2 2025. Free cash flow was positive at $0.1 million versus $7.0 million in Q1 2026 and negative $1.0 million in Q2 2025.
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Fiscal 2026 Outlook Reaffirmed
Fiscal 2026 Adjusted EBITDA guidance was reaffirmed, with management expecting a positive result versus $(1.2) million in fiscal 2025; expected capital expenditures are $2.0 million-$2.5 million.
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Controls Remained Effective
Management concluded that disclosure controls and procedures were effective as of June 28, 2026, and reported no changes in internal control that materially affected, or were reasonably likely to materially affect, those controls.
What to watch
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Nasdaq Listing Compliance Risk
The company received a Nasdaq deficiency letter on May 21, 2026 for not meeting the $2.5 million stockholders’ equity requirement. Although it regained compliance on August 5, 2026 by meeting the alternative market-value standard of at least $35 million for 10 consecutive business days, future noncompliance could result in delisting.
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Potential Equity Dilution
On August 11, 2026, the company entered an equity purchase agreement allowing sales of up to $4.5 million of common stock. It must issue the Investor a $200,000 commitment fee in shares, and future share sales could substantially dilute existing holders and pressure the stock price.
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Additional Financing Dependence
The equity agreement permits the company, after termination of the initial commitment, to enter a subsequent agreement for up to an additional $5.5 million. The company also faces an exchange cap limiting issuances to 19.99% of shares outstanding as of the agreement date unless Nasdaq stockholder approval is obtained.
Management's outlook
Fiscal 2026 outlook was reaffirmed. Management expects Adjusted EBITDA to turn positive versus $(1.2) million in fiscal 2025, expects the revenue growth trend to improve year over year versus an 11% decline in 2025, and expects capital expenditures of $2.0 million-$2.5 million. No numeric revenue or EPS guidance was provided in the supplied filing text.
Earlier filings 4
10-K · March 30, 2026
Lulus (LVLU) describes a data-driven, customer-first strategy centered on a “test, learn, and reorder” product model, a large Gen Z / Millennial community (2.3 million Active Customers) and growing wholesale…
10-Q · November 12, 2025
Lulus reported net revenue of $73,591,000 for the 13 weeks ended September 28, 2025, down from $80,515,000 in the prior-year quarter, while gross margin expanded to 42.6% and operating loss narrowed to -2.6% of sales.…
10-Q · August 13, 2025
Lulu’s (LVLU) reported Q2 net revenue of $81.52M, down $10.45M (11.4%) from $91.97M in Q2 2024, while diluted loss per share improved to $(1.08) from $(3.92). Gross margin was essentially stable at 45.3% (vs. 45.5%…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.