"Strong export sales and favourable foreign exchange gains underpinned a 87% increase in net income to $10.0 million," said Ms. Phua Mei Ming, Chief Executive Officer of HomesToLife. "Our capital-efficient model delivered a strong 61%1 return on equity in 1H 2025, underscoring the benefits of consolidating all trading and marketing under one group and positioning us for sustained growth in our core B2B furniture business across key international markets."
"While we are mindful of recent U.S. policy remarks regarding furniture imports, our direct sales exposure to the U.S. remains modest at 7.7% of 1H 2025 revenue, and we are confident that our diversified export base across Europe and Asia-Pacific will continue to drive long-term growth," Ms. Phua Mei Ming added.
Selected Financial Highlights, 1H2024 vs 1H2025
1H 2024
% OF REV.
1H 2025
% of REV.
Y/Y
US$'000
US$'000
CHANGE
Net revenue
156,312
180,775
16
%
Retail
2,003
1
%
3,382
2
%
69
%
Export
148,257
95
%
168,009
93
%
13
%
Leather Trading
6,052
4
%
9,384
5
%
55
%
By geographical
156,312
180,775
16
%
Asia Pacific
42,860
27
%
48,683
27
%
14
%
Europe
94,433
61
%
109,989
61
%
16
%
2North America
19,019
12
%
22,103
12
%
16
%
Gross profit
41,936
26.8
%
49,832
27.6
%
19
%
Retail
1,227
61
%
1,981
59
%
61
%
Export
40,437
27
%
47,483
28
%
17
%
Leather Trading
272
5
%
368
4
%
35
%
Operating expenses
34,515
22.1
%
40,784
22.6
%
18
%
Income from operations
7,421
4.7
%
9,048
5.0
%
22
%
Net income
5,366
3.4
%
10,024
5.5
%
87
%
Net income per share
0.06
0.11
The Company reported net revenue of $180.8 million in 1H 2025, a 16% increase from revenue of $156.3 million in the same period last year, driven by export sales across Asia-Pacific, Europe and North America.
Newly acquired retail operations in Korea, which began in November 2024, contributed $1.5 million in revenue during the period. Singapore and Korea retail stores continue to serve as brand showrooms and design testbeds, providing consumer insights to support HomesToLife's B2B and B2C product roadmap.
Export sales continued to be the cornerstone of performance, supported by strong demand in Europe (+16%) and North America (+16%), and steady growth in Asia-Pacific (+3%). The leather trading division also posted a 55% revenue increase as it plays a critical supporting role in ensuring raw material availability and pricing stability for the HomesToLife's business.
Gross profit rose 19% to $49.8 million, compared to $41.9 million in 1H 2024 pro forma results in line with the higher revenue. Gross margin remained stable at 27.6% in 1H 2025 compared to 26.8% in 1H 2024.
1H 2024
% OF REV.
1H 2025
% of REV.
Y/Y
US$'000
US$'000
CHANGE
USD'000
Operating expenses
Selling expenses
(26,226
)
(16.8
%)
(31,092
)
(17.2
%)
19
%
(4,866
)
Administrative expenses
(7,978
)
(5.1
%)
(9,026
)
(5.0
%)
13
%
(1,048
)
Listing status maintenance expenses
-
0.0
%
(666
)
(0.4
%)
NA
(666
)
IPO audit fees
(311
)
(0.2
%)
-
0.0
%
NA
311
Total Operating Expenses
(34,515
)
(40,784
)
18
%
(6,269
)
In 1H 2025, total operating expenses rose 18 % year-over-year to $40.8 million, driven by a 19% increase in selling expenses to $31.0 million. The $4.9 million increase in selling and distribution costs reflects several factors. A key contributor was the disruption in the Suez Canal, which pushed freight rates up 39 % and added US$2.4 million in ocean-shipping costs; these were partially offset by price increases passed on to customers. Additional pressures came from a $1.2 million increase in warranty provisions, a $0.4 million rise in commission expenses, and $0.8 million in start-up costs related to the acquisition of retail operations in South Korea.
General and administrative expenses rose 13% to $9.0 million, which included $0.1 million from the new Korea operations and wage adjustments across HomesToLife and its subsidiaries. HomesToLife also incurred $0.6 million in listing-maintenance expenses in 1H 2025, following its successful Nasdaq listing on October 1, 2024.
These expenses were partially offset by foreign exchange gains of $4.3 million, up from $0.5 million in the same period last year. The increase was mainly driven by favourable movements in accounts receivable denominated in GBP and EUR, which appreciated against the USD between December 31, 2024 and June 30, 2025, as well as accounts payable denominated in CNH, which depreciated against the USD over the period from January 1 to June 30, 2025.
Net income for the period rose 87% to $10.0 million, compared to a pro forma net profit of $5.4 million in 1H 2024, translating to earnings per share of $0.11, up from $0.06 per share.
As of June 30, 2025, the Company remained in a healthy financial position, with $20.0 million in cash and bank balances. Borrowings stood at $23.3 million, primarily due to short-term trade financing facilities to support higher working capital needs from export volume growth.
Net cash used in operating activities was $11.2 million in 1H 2025, largely due to working capital movements. This included a $17.3 million increase in payment to accounts payable, primarily related to growing export volumes. Inventories rose by $2.4 million, mainly from sales under DDU/CIF terms, which increased goods in transit by $2.2 million, and from the start-up of retail operations in Korea. Accounts receivable increased by $4.7 million, in line with the 16% revenue growth.
The Company continues to actively manage its export sales cash conversion cycle, which improved to 78 days from 83 days a year ago. Management expects working capital efficiency to normalize in the six months ending December 31, 2025, supported by stronger seasonal collections and tighter inventory management.
Outlook
The Company anticipates total revenue for FY2025 to range between $340 million and $375 million.
The upper end of this range reflects expectations of a seasonally stronger second half of 2025 compared to 1H 2025 as well as continued momentum in export markets. The lower end takes into account potential headwinds from recently announced U.S. policy statements concerning furniture imports.
The Company plans to continue to maintain a robust liquidity position, ensuring financial flexibility to support its strategic growth initiatives while meeting short-term operational and financing obligations.
About HomesToLife Ltd (NASDAQ:HTLM)
HomesToLife Ltd is a holding company with two core divisions in global furniture industry: a Consumer Retail Division with direct operations in Singapore and Korea, and a Wholesale & Trade Division supplying furniture and leather to retail partners worldwide.
Its integrated model combines retail, distribution, and sourcing, supported by a diversified manufacturing network across China, Italy, Vietnam and India.
HomesToLife has appointed its affiliated entity, the Design, Product Development & Marketing business unit (DPM), to spearhead research, sourcing, design, and value-engineering—ensuring every product is precisely aligned with customer needs and market strategy. With rapid expansion underway across Asia-Pacific, Europe and North America, HomesToLife and its subsidiaries leverage long-standing supplier partnerships and a global footprint to deliver scale, efficiency, and resilience.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect financial condition, results of operations, business strategy and financial needs of the Company and its subsidiaries. Forward-looking statements can be identified by the words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Contacts
HomesToLife Ltd Contact:
6 Raffles Boulevard, #02-01/02 Marina Square, Singapore 039594 Email:
Investor Relations Inquiries:
Edelman Smithfield Roger Ng, Senior Director Jass Lim, Associate Director
HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS(Currency expressed in United States Dollars ("US$"), except for number of shares)
UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
As of
December 31, 2024
June 30, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
24,860,621
$
20,071,387
Accounts receivables, net (including receivable from related parties of $928,951 and $353,886 as of December 31, 2024 and June 30, 2025, respectively)
66,928,602
71,669,261
Inventories, net
8,032,089
10,613,295
Amounts due from related parties
2,807,854
4,967,733
Deposit, prepayments and other receivables
5,145,372
7,189,424
Total current assets
107,774,538
114,511,100
Non-current assets:
Property, plant and equipment, net
3,734,157
4,499,588
Right-of-use assets, net
6,632,749
7,256,728
Deferred tax asset, net
636,581
786,384
Total non-current assets
11,003,487
12,542,700
TOTAL ASSETS
$
118,778,025
$
127,053,800
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
2,701,283
$
2,867,425
Accounts payable, related parties
72,724,799
55,254,469
Customer deposits
853,626
1,236,916
Accrued liabilities and other payables
4,428,806
6,541,572
Short-term borrowings
15,255,874
23,382,206
Amounts due to related parties
292,753
292,753
Lease liabilities
2,100,281
2,320,101
Warranty liabilities
2,095,842
3,129,470
Derivatives and hedging instruments
-
753,243
Income tax payable
2,467,506
3,546,279
Total current liabilities
102,920,770
99,324,434
Long-term liabilities:
Provision for reinstatement cost
262,479
339,756
Lease liabilities
4,883,321
5,285,905
Total long-term liabilities
5,145,800
5,625,661
TOTAL LIABILITIES
108,066,570
104,950,095
-
-
Commitments and contingencies
Shareholders' equity:
Ordinary share, $0.0001 par value, 100,000,000 shares authorized,89,687,500 and 89,687,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024*
8,969
8,969
Additional paid-in capital
37,179,424
37,179,424
Accumulated other comprehensive loss
(12,686,896)
(11,318,721)
Accumulated losses
(13,790,042)
(3,765,967)
Total shareholders' equity
10,711,455
22,103,705
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$
118,778,025
$
127,053,800
* The share amounts are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).
HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Currency expressed in United States Dollars ("US$"), except for number of shares)
Six months ended June 30,
2024
2025
Revenues, net
From third parties
$
150,461,612
$
170,117,861
From related parties
5,850,497
10,656,942
156,312,109
180,774,803
Cost of goods sold
(114,376,152
)
(130,942,258
)
Gross profit
41,935,957
49,832,545
Operating expenses:
Sales and distribution expenses
(26,226,218
)
(31,092,110
)
General and administrative expenses
(7,978,231
)
(9,025,931
)
Listing expenses
(310,502
)
(666,021
)
Total operating expenses
(34,514,951
)
(40,784,062
)
Income from operations
7,421,006
9,048,483
Other income (expense):
Interest expense
(387,263
)
(730,372
)
