HomesToLife profit jumps 36% on robust export demand, margin expansion

HomesToLife (NASDAQ:HTLM) reported a 36% increase in first-quarter net profit, driven by accelerating export demand and expanding gross margins that counterbalanced an uptick in operating costs and foreign currency headwinds.

Net income for the Singapore-based home furniture manufacturer rose to $3.2 million for the three months ended March 31, 2026, up from $2.4 million in the same period last year.

Net revenue expanded 16% to $92.5 million, boosted heavily by a $12.6 million surge in international export sales, primarily across European and North American markets.

The top-line momentum helped lift the company's gross profit margin to 29%.

This margin expansion was further bolstered by an improving product mix and strengthening retail performance in South Korea, helping insulate the company's bottom line from a slight 2% softening in broader Asia-Pacific regional revenues.

However, the quarter saw rising overhead, with total operating expenses climbing 23% to $22 million, led by a substantial 32% increase in localized selling costs.

HomesToLife also registered a $1 million foreign exchange loss during the quarter, reversing a currency gain recorded in the prior year's period.

Despite these pressures, robust operational execution and targeted retail expansions allowed the company's income from operations to more than double to $4.9 million.