Luvu Brands Swings to Operating Profit, Triples Adjusted EBITDA to $1.3M
LUVU has more than doubled off its 52-week low of $0.015.
Summary
Luvu Brands reported fiscal 2026 results showing a clear operational turnaround. Net sales rose 5.8% to $27.36 million, gross margin expanded 200 basis points to 31.5%, and operating income swung to a positive $876,000 from a loss of $69,000. Adjusted EBITDA more than tripled to $1.26 million, and operating cash flow turned positive at $773,000. The company still posted a net loss of $246,000 due to a non-cash deferred tax provision of $675,000, but the underlying business is now generating cash. This follows the prior quarter's net income of $174,000, confirming the improving trend. The stock trades at a micro-cap valuation, so this fundamental improvement could attract attention. Watch for continued margin expansion and cash generation in upcoming quarters.
At the time of this announcement, LUVU was trading at $0.03 on OTC in the Manufacturing sector, with a market capitalization of approximately $2.6M. The 52-week trading range was $0.01 to $0.07. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: ACCESS Newswire.