The Lovesac Company (NASDAQ:LOVE) reported its financial results for the third quarter of fiscal year 2026, ending November 2, 2025.
Net sales for the quarter totaled $150.2 million, reflecting a modest 0.2% year-over-year increase.
The growth was driven by the net addition of 17 showrooms, although omni-channel comparable sales decreased by 1.2%.
The company’s gross margin declined by 240 basis points to 56.1%, primarily due to higher inbound transportation and tariff costs.
As a result, Lovesac reported a wider net loss of $10.6 million, or $(0.72) per share, for Q3 FY26.
Adjusted EBITDA for the quarter was $(6) million.
Cash on hand at the end of the quarter stood at $23.7 million, down from $61.7 million a year earlier, while inventory rose to $129.7 million.
For the full fiscal year 2026, Lovesac updated its guidance, projecting net sales between $685 million and $705 million, adjusted EBITDA in the range of $37 million to $43 million, and net income between $2 million and $8 million.
For Q4 FY26, the company expects net sales to range from $236 million to $256 million, adjusted EBITDA between $51 million and $56 million, and net income between $30 million and $36 million.