Second Consecutive Quarter of Positive Adjusted EBITDA in Q3'25; Increase of $3.9M, Compared to Q3'24
Gross Profit Increased 2% in Q3'25 compared to Q3'24
CHICO, Calif., Nov. 12, 2025 (GLOBE NEWSWIRE) -- Lulu's Fashion Lounge Holdings, Inc. ("Lulus" or the "Company") (NASDAQ:LVLU) today reported financial results for the third quarter ended September 28, 2025.
Crystal Landsem, CEO of Lulus, said:
"We believe our third quarter results reflect the meaningful progress we're making in strengthening and optimizing core areas of the business through disciplined execution of our strategic priorities. We delivered another quarter of notable sequential improvement in year-over-year net revenue comparisons, supported by continued positive demand trends in our special occasion and bridesmaid categories. First time reorders saw strong results, and our refined reorder pipeline continues to demonstrate positive traction. In addition, gross margin and product margin both increased over 400 basis points over the prior year period, highlighting the impact of our optimization efforts and demand for our higher-margin event-focused assortment. Furthermore, we delivered our second consecutive quarter of positive Adjusted EBITDA, in line with our expectations.
We remain focused on actively repositioning our casual wear and footwear categories, and continue to prioritize assortment optimization, sku reduction, cost efficiency, and strengthening our presence as a key destination for event dressing and attainable luxury. With a new credit agreement in place, a leaner cost structure and an improving balance sheet, we believe we are well positioned to execute against our strategic priorities to drive sustainable long term growth and shareholder value."
Third Quarter 2025 Highlights:
Gross profit increased 2% to $31.4 million and Gross Margin increased 450 basis points to 42.6%, in each case compared to the same period last year.
Net revenue of $73.6 million, a 9% decrease compared to the same period last year, driven by a 14% decrease in Total Orders Placed partly offset by a 8% increase in Average Order Value ("AOV") from $131 to $141, compared to the same period last year.
Active Customers of 2.4 million, an 11% decrease compared to 2.7 million in the same period last year.
Net loss of $2.3 million, compared to net loss of $6.9 million in the same period last year.
Adjusted EBITDA* of $0.4 million, compared to ($3.6) million in the same period last year.
Net cash used in operating activities of $1.8 million, compared to net cash used in operating activities of $5.5 million in the same period last year.
Year to date Free Cash Flow* of $3.5 million, compared to $2.7 million in the same period last year.
Note: "*" represents a non-GAAP financial measure. See "Use of Non-GAAP Financial Measures and Other Operating Metrics" section below for definitions of these metrics.
Fourth Quarter and Full Year 2025 Financial Outlook:
Similar to third quarter 2025, we expect significant year over year improvement in Adjusted EBITDA in the fourth quarter 2025.
We reaffirm our prior full year 2025 capital expenditures estimate of approximately $2.5 million.
Forecasting future results or trends is inherently difficult for any business, and actual results or trends may differ materially from those forecasted. Lulus' outlook is based on current indications for its business. Lulus' outlook factors in our current best estimates for anticipated headwinds, including those related to the level of tariffs, consumer demand, spending and returns by our customers, macroeconomic uncertainties, inflation, supply chain pressures, shipping costs, and the intended impact of cost-reduction measures. Given the volatile nature of current consumer demand and potential for further impacts to consumer behavior due to macroeconomic factors, including continued inflation, higher interest rates, the federal government shutdown, student loan repayment resumption, global political changes, including as a result of tariffs or bans, existing and future laws, regulations, and directives (including executive orders), as well as other world events, wars, and domestic and international conflicts that affect overall consumer confidence and the predictability of consumer purchasing behavior, Lulus' financial outlook is subject to change.
LULU'S FASHION LOUNGE HOLDINGS, INC.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ANDCOMPREHENSIVE LOSS(Unaudited)(In thousands, except share and per share data)
Thirteen Weeks Ended
Thirty-Nine Weeks Ended
September 28,
September 29,
September 28,
September 29,
2025
2024
2025
2024
Net revenue
$
73,591
$
80,515
$
219,266
$
249,740
Cost of revenue
42,231
49,866
125,133
144,562
Gross profit
31,360
30,649
94,133
105,178
Selling and marketing expenses
16,935
17,624
54,843
60,231
General and administrative expenses
16,350
19,869
51,956
62,416
Loss from operations
(1,925
)
(6,844
)
(12,666
)
(17,469
)
Interest expense
(544
)
(305
)
(1,977
)
(958
)
Other income, net
205
281
1,374
779
Loss before provision for income taxes
(2,264
)
(6,868
)
(13,269
)
(17,648
)
Income tax provision
(53
)
(11
)
(41
)
(5,763
)
Net loss and comprehensive loss
(2,317
)
(6,879
)
(13,310
)
(23,411
)
Basic loss per share(1)
$
(0.84
)
$
(2.47
)
$
(4.79
)
$
(8.49
)
Diluted loss per share(1)
$
(0.84
)
$
(2.47
)
$
(4.79
)
$
(8.49
)
Basic weighted-average shares outstanding(1)
2,756,533
2,780,141
2,777,464
2,757,261
Diluted weighted-average shares outstanding(1)
2,756,533
2,780,141
2,777,464
2,757,261
(1) Amounts have been adjusted to reflect the 1-for-15 reverse stock split that became effective as of the opening of business on July 7, 2025. Refer to Note 2, "Significant Accounting Policies", in the Notes to the Condensed Consolidated Financial Statements included in the Quarterly Report on Form 10-Q for the period ended September 28, 2025, for more information.
LULU'S FASHION LOUNGE HOLDINGS, INC.CONDENSED CONSOLIDATED BALANCE SHEETS(Unaudited)(In thousands, except share and per share data)
September 28,
December 29,
2025
2024
Assets
Current assets:
Cash and cash equivalents
$
1,942
$
4,460
Accounts receivable
4,739
2,158
Inventory, net
38,422
34,036
Assets for recovery
5,225
2,383
Income tax refund receivable, net
1,178
4,177
Prepaids and other current assets
4,251
4,287
Total current assets
55,757
51,501
Property and equipment, net
2,649
3,642
Goodwill
7,056
7,056
Tradename
18,509
18,509
Intangible assets, net
2,728
2,762
Lease right-of-use assets
15,999
24,030
Other noncurrent assets
644
698
