love-20251102

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended November 2, 2025

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to


Commission File Number: 001-38555

THE LOVESAC COMPANY (Exact name of registrant as specified in its charter)


Delaware						32-0514958
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


421 Atlantic Street
Stamford, Connecticut						06901
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (888) 636-1223

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.00001 par value per share

LOVE

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of December 8, 2025, there were 14,617,106 shares of common stock, $0.00001 par value per share, outstanding.


		Page
PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Condensed Balance Sheets as of November 2, 2025 and February 2, 2025 (unaudited)	1

	Condensed Statements of Operations for the thirteen and thirty-nine weeks ended November 2, 2025 and November 3, 2024 (unaudited)	2

	Condensed Statements of Changes in Stockholders’ Equity for the thirteen and thirty-nine weeks ended November 2, 2025 and November 3, 2024 (unaudited)	3

	Condensed Statements of Cash Flows for the thirty-nine weeks ended November 2, 2025 and November 3, 2024 (unaudited)	4

	Notes to Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25

Item 4.	Controls and Procedures	26

Part II. OTHER INFORMATION		27

Item 1.	Legal Proceedings	27

Item 1A.	Risk Factors	27

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	27

Item 3.	Defaults Upon Senior Securities	27

Item 4.	Mine Safety Disclosures	27

Item 5.	Other Information	27

Item 6.	Exhibits	28


(amounts in thousands, except share and per share amounts)	November 2, 2025		February 2, 2025
Assets
Current Assets
Cash and cash equivalents	$	23,722	$	83,734
Trade accounts receivable, net	16,960		16,781
Merchandise inventories, net	129,681		124,333
Prepaid expenses	13,098		14,807
Other current assets	2,525		6,942
Total Current Assets	185,986		246,597
Property and equipment, net	86,726		77,990
Operating lease right-of-use assets	163,081		157,750
Goodwill	144		144
Intangible assets, net	2,104		1,586
Deferred tax asset	26,368		15,277
Other assets	31,105		32,906
Total Assets	$	495,514	$	532,250
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	45,548	$	51,814
Accrued expenses	41,402		51,986
Payroll payable	14,009		9,501
Customer deposits	8,727		11,250
Current operating lease liabilities	22,730		22,662
Sales taxes payable	4,582		7,897
Total Current Liabilities	136,998		155,110
Operating lease liabilities, long-term	168,785		160,361
Income tax payable, long-term	424		424
Line of credit	—		—
Total Liabilities	306,207		315,895
Commitments and Contingencies (see Note 6)
Stockholders’ Equity
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of November 2, 2025 and February 2, 2025.	—		—
Common Stock $0.00001 par value, 40,000,000 shares authorized, 14,615,785 shares issued and outstanding as of November 2, 2025 and 14,786,934 shares issued and outstanding as of February 2, 2025.	—		—
Additional paid-in capital	197,549		190,510
Accumulated (deficit) earnings	(8,242)		25,845
Stockholders' Equity	189,307		216,355
Total Liabilities and Stockholders' Equity	$	495,514	$	532,250


	Thirteen weeks ended				Thirty-nine weeks ended
(amounts in thousands, except per share data and share amounts)	November 2, 2025		November 3, 2024		November 2, 2025		November 3, 2024
Net sales	$	150,166	$	149,905	$	449,069	$	439,138
Cost of merchandise sold	65,929		62,266		199,854		187,085
Gross profit	84,237		87,639		249,215		252,053
Operating expenses:
Selling, general and administrative expenses	74,964		71,749		214,195		213,826
Advertising and marketing	21,075		19,947		63,150		61,253
Depreciation and amortization	4,002		3,666		11,451		10,924
Total operating expenses	100,041		95,362		288,796		286,003
Operating loss	(15,804)		(7,723)		(39,581)		(33,950)
Interest and other income, net	206		701		631		2,139
Net loss before taxes	(15,598)		(7,022)		(38,950)		(31,811)
Income tax benefit	5,047		2,092		10,909		8,060
Net loss	$	(10,551)	$	(4,930)	$	(28,041)	$	(23,751)

Net loss per common share:
Basic	$	(0.72)	$	(0.32)	$	(1.91)	$	(1.53)
Diluted	$	(0.72)	$	(0.32)	$	(1.91)	$	(1.53)

Weighted average shares outstanding:
Basic	14,655,495		15,574,293		14,692,182		15,567,442
Diluted	14,655,495		15,574,293		14,692,182		15,567,442


	Thirteen weeks ended
	Common
	Shares	Amount		Additional Paid-in Capital		Accumulated Earnings (Deficit)		Total Shareholders' Equity
Balance - August 3, 2025	14,599,825	$	—	$	195,154	$	2,307	$	197,461
Net loss	—	—		—		(10,551)		(10,551)
Equity-based compensation	—	—		2,434		—		2,434
Vested restricted stock units	15,960	—		—		—		—
Repurchases of common stock	—	—		—		2		2
Taxes paid for net share settlement of equity awards	—	—		(39)		—		(39)
Balance - November 2, 2025	14,615,785	—		197,549		(8,242)		$	189,307

Balance - August 4, 2024	15,558,682	$	—	$	186,562	$	15,580	$	202,142
Net loss	—	—		—		(4,930)		(4,930)
Equity-based compensation	—	—		2,783		—		2,783
Vested restricted stock units	3,525	—		—		—		—
Repurchases of common stock	(131,424)	—		—		(3,449)		(3,449)
Taxes paid for net share settlement of equity awards	—	—		(50)		—		(50)
Balance - November 3, 2024	15,430,783	$	—	$	189,295	$	7,201	$	196,496


	Thirty-nine weeks ended
(amounts in thousands)	November 2, 2025		November 3, 2024
Cash Flows from Operating Activities
Net loss	$	(28,041)	$	(23,751)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization of property and equipment	11,223		10,610
Amortization of other intangible assets	228		314
Amortization of deferred financing fees	55		112
Net loss on disposal of property and equipment	279		74

Impairment of long-lived assets	1,541		—
Equity based compensation	8,201		6,687
Non-cash lease expense	20,212		18,741
Deferred income taxes	(11,091)		(8,316)
Change in operating assets and liabilities:
Trade accounts receivable	(179)		(2,652)
Merchandise inventories	(5,348)		(15,005)
Prepaid expenses and other current assets	6,083		(2,983)
Other assets	1,801		(5,389)
Accounts payable	(7,695)		19,332
Accrued expenses and other payables	(9,964)		2,688
Operating lease liabilities	(18,875)		(13,888)
Customer deposits	(2,523)		8,380

Net cash used in operating activities	(34,093)		(5,046)
Cash Flows from Investing Activities
Purchase of property and equipment	(18,211)		(15,739)
Payments for patents and trademarks	(534)		(339)
Net cash used in investing activities	(18,745)		(16,078)
Cash Flows from Financing Activities
Taxes paid for net share settlement of equity awards	(1,162)		(487)
Repurchases of common stock	(6,000)		(3,431)


Payment of deferred financing costs	(12)		(303)

Net cash used in financing activities	(7,174)		(4,221)
Net change in cash and cash equivalents	(60,012)		(25,345)
Cash and cash equivalents - Beginning	83,734		87,036
Cash and cash equivalents - Ending	$	23,722	$	61,691
Supplemental Cash Flow Data:
Cash paid for taxes	$	9,152	$	8,383
Cash paid for interest	$	91	$	92
Non-cash investing and financing activities:
Asset acquisitions not yet paid for at period end	$	1,956	$	1,344
Leasehold improvements acquired through lease incentive	$	1,824	$	—
Excise tax on share repurchases, accrued but not paid	$	46	$	18


	Number of shares	Weighted average grant date fair value
Unvested at February 2, 2025	960,055	$	23.94
Granted	330,314	19.87
Forfeited	(217,387)	27.06
Vested	(30,980)	21.56
Unvested at November 2, 2025	1,042,002	$	22.07


	Number of shares	Weighted average grant date fair value
Unvested at February 4, 2024	812,822	$	31.01
Granted	605,263	21.27
Forfeited	(446,118)	33.19

Unvested at November 3, 2024	971,967	$	23.94


	Number of shares	Weighted average grant date fair value
Unvested at Unvested at February 2, 2025	328,947	$	24.96
Granted	375,757	19.47
Forfeited	(42,764)	20.82
Vested	(162,079)	26.20
Unvested at Unvested at November 2, 2025	499,861	$	20.79


	Number of shares	Weighted average grant date fair value
Unvested at Unvested at February 4, 2024	219,586	$	32.91
Granted	241,571	21.93
Forfeited	(18,465)	26.99
Vested	(102,786)	33.08
Unvested at Unvested at November 3, 2024	339,906	$	25.38

SEC Form 10-Q filed by The Lovesac Company