Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2025.

Financial Highlights for First Quarter of 2025:
Net revenues increased 4.7% to $25.8 million, compared to $24.7 million in the year-ago period;Net income decreased to $0.7 million, compared to $1.1 million for the three months ended March 31, 2024; andCash used in operating activities was $0.02 million, compared with cash provided by operating activities $0.5 million for the three months ended March 31, 2025 and 2024, respectively.

Management Commentary

“We are pleased to report our results for the first quarter of 2025. During the first quarter of 2025, we continued to deliver good revenue growth, despite a more cautious consumer outlook due to rising tariffs and fees charged by the marketplace,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for the first quarter was 4.7%, compared with for the year-ago period.” “However, our gross margin for the first quarter of 2025, compared with the year-ago period, was negatively affected by a challenging e-commerce environment and intense competition across the industry. Our operating expenses also increased mainly because we amended our profit-sharing frequency to quarterly for the purpose of talent retention. Overall, we believe we’ve built a solid foundation to continue generating steady growth while maintaining profitability.”

“Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2025. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.”

First Quarter of 2025 Financial ResultsNet revenues in the first quarter of 2025 were $25.8 million, compared to $24.7 million in the year-ago period. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown and intense competition.Gross profit percentage for the first quarter of 2025 decreased 3.9% to 54.7%, compared to 58.6% of net revenues in the comparable period a year ago. The decrease was a function of increased market competition, and higher inbound costs.Operating expenses as a percentage of net revenues decreased 1.1% to 51.2%, compared to 52.3% of net revenues in the year-ago period. The decrease reflected better management of platform fees.Net income in the first quarter of 2025 was $0.7 million, or $0.02 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in the comparable year-ago period. The decrease was driven by increased costs and expenses as a result of the reasons mentioned above.As of March 31, 2025, the Company had $1.3 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. This decrease was driven by the loan repayment and growth of inventory.Inventories as of March 31, 2025, were $15.9 million, compared to $14.6 million as of December 31, 2024. The Company intentionally invested heavily in inventories for strategic reasons in the first quarter of 2025.

Full Year 2025 Financial Outlook

For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions.About Hour Loop, Inc.

Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs.

Hour Loop Reports First Quarter of 2025 Results

Hour Loop, Inc. (NASDAQ: HOUR), an online retailer, released its first-quarter 2025 financial results, showing a 4.7% increase in net revenue to $25.8 million, but a decline in net income to $0.7 million. The company attributed the revenue growth to operational maturity despite a cautious consumer outlook. Cash used in operations decreased, and the company invested heavily in inventory for strategic reasons. Management highlighted challenges from increased competition and e-commerce traffic slowdowns.