SINGAPORE, Nov. 17, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd (Nasdaq: HTLM) (“HomesToLife” or the “Company”), a Singapore-based home furniture company with sales across Asia-Pacific, Europe and North America, today announced its unaudited financial results for the nine months ended September 30, 2025 (“9M 2025”) and the third quarter of 2025 (“Q3 2025”). “Our consistent performance demonstrates the resilience of our diversified export model and disciplined cost control,” said Ms. Phua Mei Ming, Chief Execut ...

Financial Statements and Reporting - The unaudited condensed consolidated financial statements are prepared in accordance with U.S. GAAP and include necessary adjustments for fair presentation[19]. - The Company recognizes revenue from contracts with customers in accordance with ASC Topic 606, reflecting the transfer of goods or services[33]. - Revenue from retail sales is recognized at the point when control of products is transferred to customers, typically upon shipment[40]. - The Company’s export sales revenue is recognized when performance obligations are satisfied, generally upon delivery of goods[44]. - The Company evaluates the terms of agreements to determine whether it acts as a principal or agent in revenue recognition, generally acting as a principal[47]. - The Company adopted the FASB ASU 2016-02 "Leases (Topic 842)" standard, requiring recognition of lease assets and liabilities on the balance sheet for leases over twelve months[54]. - The Company is evaluating the impact of ASU No. 2024-03, which requires enhanced disclosures about costs and expenses in the income statement, effective for annual reporting periods beginning after December 15, 2026[73]. Revenue and Growth - For the six months ended June 30, 2024, total net revenue was $156,312,109, which is projected to increase to $180,774,803 for the same period in 2025, representing a growth of approximately 15.7%[50]. - Export sales accounted for $148,257,093 in revenue for the first half of 2024, expected to rise to $168,009,212 in 2025, indicating a growth of about 13.3%[50]. - Retail sales increased from $2,003,351 in the first half of 2024 to $3,382,273 in 2025, reflecting a significant growth of approximately 68.5%[50]. - Leather trading revenue is projected to grow from $6,051,665 in 2024 to $9,383,318 in 2025, marking an increase of about 55.5%[50]. - For the six months ended June 30, 2025, total net revenues increased to $180,774,803, with retail sales at $3,382,273 and export sales at $168,009,212[84]. - The company reported a segment income of $10,024,075 for the six months ended June 30, 2025, compared to $5,365,616 for the same period in 2024[84]. - The Asia Pacific region generated total revenues of $48,682,985 for the six months ended June 30, 2025, up from $42,860,427 in 2024[84]. Expenses and Profitability - The gross profit for the same period was $41,935,957, resulting in a gross margin of approximately 26.8%[82]. - The gross profit for the six months ended June 30, 2025, was $49,832,545, reflecting a gross margin of approximately 27.6%[84]. - Operating profit for the retail segment was a loss of $752,627, while the export sales segment achieved an operating profit of $8,419,544[83]. - The operating profit for the export sales segment in 2025 was $10,748,250, while the retail segment reported an operating loss of $1,330,878[84]. - Warranty expense for the six months ended June 30, 2024, was $2,769,218, which increased to $4,004,614 in 2025, showing a rise of approximately 44.5%[58]. Assets and Liabilities - As of June 30, 2025, total identifiable long-lived assets amounted to $11,756,316, with property, plant, and equipment netting $4,499,588[86]. - Accounts receivable increased from $66,928,602 as of December 31, 2024, to $71,669,261 as of June 30, 2025, representing a growth of approximately 7.5%[87]. - Total inventories increased from $8,032,089 to $10,613,295, reflecting a significant growth of 32.2%[89]. - Property, plant, and equipment net value increased from $3,734,157 to $4,499,588, a rise of 20.5%[90]. - Short-term borrowings surged from $15,255,874 to $23,382,206, marking a substantial increase of 53.3%[91]. Taxation - The effective income tax rate for both periods presented is 17%, with income before income taxes increasing from $7,003,351 in 2024 to $12,353,347 in 2025, representing a growth of 76.5%[16]. - Current income tax expense for the six months ended June 30, 2025, is $2,465,661, an increase from $1,665,092 in 2024, reflecting a growth of 47.9%[12]. - The income tax expense for the six months ended June 30, 2025, is $2,329,272, up from $1,637,735 in 2024, marking an increase of 42.4%[16]. - The company did not incur any interest and penalties related to potential underpaid income tax expenses for the six months ended June 30, 2024, and 2025[117]. - The company has no significant unrecognized uncertain tax positions as of June 30, 2025[117]. Related Party Transactions - Related party accounts receivable decreased from $928,951 as of December 31, 2024, to $353,886 as of June 30, 2025[120]. - Amounts due from related parties increased significantly from $2,807,854 as of December 31, 2024, to $4,967,733 as of June 30, 2025, indicating a growth of 76.8%[120]. - Accounts payable to related parties decreased from $72,724,799 as of December 31, 2024, to $55,254,469 as of June 30, 2025, a reduction of 24.1%[120]. - The total amount due from related parties was $95,644,019, with a net balance of $4,967,733 after adjustments[124]. - Accounts payable to related parties totaled $130,351,249 as of June 30, 2025, with a net balance of $(55,254,469) after netting off arrangements[124]. Risks and Contingencies - The Company has significant exposure to foreign exchange fluctuations, with more than half of its revenues generated outside Singapore[138]. - The management currently has a foreign currency hedging policy and monitors foreign exchange exposure for potential hedging actions[135]. - The Company is exposed to interest rate risk primarily related to fixed-rate trading financing and has not used derivative instruments to mitigate this risk[136]. - The Company is subject to global economic and political risks, including market volatility and changes in government policies, which can negatively impact net revenues and cash flows[138]. - As of June 30, 2025, the Company did not have any significant commitments and contingencies that could materially affect its financial condition[139]. Shareholder Information - Net income attributable to shareholders increased from $5,365,616 to $10,024,075, representing an impressive growth of 86.5%[112]. - Basic and diluted net income per share improved from $0.06 to $0.11, reflecting a 83.3% increase[112]. - On August 22, 2025, the Company increased its authorized shares from 100,000,000 to 500,000,000 shares[141]. - The company issued 75,000,000 ordinary shares to acquire HTL Marketing, which closed on May 19, 2025[109].

Core Viewpoint - HomesToLife Ltd reported a significant financial performance improvement in the first half of 2025, with a net income increase of 87% to $10.0 million, driven by strong export sales and favorable foreign exchange gains [2][11]. Financial Performance - The company achieved net revenue of $180.8 million in 1H 2025, a 16% increase from $156.3 million in 1H 2024, primarily due to export sales across Asia-Pacific, Europe, and North America [4][11]. - Gross profit rose 19% to $49.8 million, with a stable gross margin of 27.6% compared to 26.8% in the previous year [7][11]. - Operating expenses increased by 18% year-over-year to $40.8 million, influenced by a 19% rise in selling expenses [8][11]. Revenue Breakdown - Export sales accounted for 93% of total revenue in 1H 2025, with notable growth in Europe and North America, both up by 16% [4][6]. - Newly acquired retail operations in Korea contributed $1.5 million in revenue during the period [5]. Cash Flow and Financial Position - The company maintained a healthy financial position with $20.0 million in cash and bank balances as of June 30, 2025, and borrowings of $23.3 million [11]. - Net cash used in operating activities was $11.2 million, largely due to working capital movements [12]. Future Outlook - HomesToLife anticipates total revenue for FY2025 to range between $340 million and $375 million, reflecting expectations of a stronger second half compared to the first half [14][15]. - The company plans to maintain a robust liquidity position to support strategic growth initiatives while meeting operational and financing obligations [15].

Financial Performance - HomesToLife Ltd reported a net revenue of $5.2 million in Q1 2025, a 405% increase from $1.0 million in Q1 2024, driven by $4.4 million from HTL Far East[2][8] - The net income for Q1 2025 was $125,000, or $0.01 per share, compared to a net loss of $74,000, or $(0.01) per share in Q1 2024, marking a 269% improvement[3][8] - Cash flow from operating activities turned positive at $1.4 million in Q1 2025, compared to a net outflow of $1.5 million in the same period last year[8][19] - For the full year 2025, total revenue is projected to be between $260 million and $290 million, with HTL Marketing expected to contribute between $250 million and $280 million[10][11] Operating Expenses - Operating expenses increased by $394,000, including $336,000 in Nasdaq listing-related costs, leading to total operating expenses of $1.2 million in Q1 2025[4][8] Gross Margin - The overall gross margin decreased to 26% in Q1 2025 from 68% in Q1 2024, primarily due to a lower gross margin of 17% from HTL Far East[3][8] - HomesToLife Ltd's Singapore retail business saw a 19% decline in revenue year-over-year to $840,000, but improved its gross margin to 73% from 68%[2][8] Cash Position - As of March 31, 2025, cash and cash equivalents increased to $3.9 million, up from $3.4 million at December 31, 2024[9][16] Shareholder Information - The weighted average number of shares increased to 14.69 million in Q1 2025 from 13.25 million in Q1 2024, impacting per-share calculations[6][8] Business Expansion - The company is expanding its global footprint with the acquisition of HTL Marketing Pte Ltd, enhancing its B2B capabilities[5][8]

Core Viewpoint - HomesToLife Ltd reported significant growth in Q1 2025, with a 405% increase in net revenue compared to the same period last year, driven by the successful launch of its Asia sales subsidiary, HTL Far East [2][4]. Financial Performance - The company achieved net revenue of $5.2 million in Q1 2025, up from $1.0 million in Q1 2024, with HTL Far East contributing $4.4 million to this growth [2]. - Net income for Q1 2025 was $125,000, a turnaround from a net loss of $74,000 in Q1 2024, resulting in earnings of $0.01 per share compared to a loss of $(0.01) per share in the previous year [3]. - The overall gross margin decreased to 26% in Q1 2025 from 68% in Q1 2024, primarily due to the lower gross margin of 17% from HTL Far East [3]. Operating Expenses - Operating expenses rose by $394,000, influenced by $336,000 in costs related to the Nasdaq listing, which were not present in Q1 2024 [4]. Strategic Developments - The acquisition of HTL Marketing in May 2025 positions the company to expand its global footprint beyond Asia [5]. - The company aims to evolve into a multi-market B2B furniture leader with a strong upstream export and sourcing platform [5]. Outlook - For 2025, HTL Far East is expected to maintain strong revenue momentum, with projected total revenue for the year between $260 million and $290 million [7]. - HTL Marketing is anticipated to contribute between $250 million and $280 million in revenue for the full year [7]. Liquidity Position - As of March 31, 2025, the company maintained a net cash position with no bank borrowings, and cash and cash equivalents increased to $3.9 million from $3.4 million at the end of 2024 [6].

Core Viewpoint - HomesToLife Ltd has successfully acquired 100% equity interests in HTL Marketing Pte Ltd, enhancing its position in the global furniture market and aiming for substantial growth in revenue and profitability [1][2]. Company Overview - HomesToLife Ltd is a holding company for HomesToLife Pte. Ltd., a leading home furniture retailer in Singapore, and HTL Far East Pte. Ltd., which focuses on sourcing and distributing premium furniture across the Asia-Pacific region [2]. - HTL Marketing Pte Ltd specializes in B2B procurement and supply of premium upholstered sofas and leather materials, with sales across Asia-Pacific, Europe, and North America [1][2]. Acquisition Details - The acquisition of HTL Marketing was announced on May 5, 2025, and is expected to provide HomesToLife with extensive global market opportunities [1][2]. - The CEO of HomesToLife expressed optimism about the integration of HTL Marketing's operations and the potential for accelerated growth for the company [2].

Core Viewpoint - HomesToLife Ltd has entered into a definitive sale and purchase agreement to acquire 100% equity interests in HTL Marketing Pte Ltd, aiming to enhance its market presence and profitability through this strategic acquisition [1][5][9] Acquisition Details - The acquisition involves HomesToLife issuing 75,000,000 ordinary shares to New Century, which will be subject to a two-year lock-up [2] - The acquisition is expected to close in the second quarter of 2025, pending customary closing conditions [9] Financial Performance of HTL Marketing - In fiscal year 2024, HTL Marketing achieved sales of US$330 million, with Europe, Asia-Pacific, U.S., and Canada contributing 59%, 28%, 8%, and 5% respectively [3] - HTL Marketing recorded a profit after tax of US$11 million and positive cash flow from operating activities of US$19 million [4] Expected Impact on HomesToLife - The acquisition is projected to significantly increase HomesToLife's revenue from US$4 million in 2024 to between US$250 million and US$280 million in 2025 [5] - For 2026, HTL Marketing is expected to contribute revenue between US$350 million and US$400 million, with a profit after tax ranging from US$15 million to US$20 million [6] Strategic Importance - The acquisition is viewed as a milestone for HomesToLife, enhancing its capabilities to capitalize on growth opportunities and mitigate risks from trade disruptions [7] - The integration of HTL Marketing's operations is anticipated to drive further growth and value creation for HomesToLife's shareholders [7] Related Party Transaction - HTL Marketing is wholly owned by New Century, which is also wholly owned by the co-founders of both HTL Marketing and HomesToLife, indicating a related party transaction [4][8]

Financial Data and Key Metrics Changes - For the fiscal year ended 12/31/2024, the company reported net revenue of $4.17 million, an 18% decrease from $5.07 million in the previous fiscal year [5] - The overall gross profit margin for fiscal 2024 was 65.8%, down from 71.7% in fiscal 2023, primarily due to a shift in sales mix and lower pricing strategies [6][7] - The company experienced a net loss of $1.67 million or $0.11 per share for fiscal 2024, compared to a net income of $0.24 million or $0.02 per share in fiscal 2023 [9] Business Line Data and Key Metrics Changes - The decline in net revenue was mainly attributed to decreased sales of leather and fabric upholstered home furniture products [5] - The new subsidiary, HDL Far East, contributed minor revenue in 2024 but generated over $4 million in the first quarter of 2025, with expectations of $12 to $14 million in revenue for the year [5] Market Data and Key Metrics Changes - The company faced industry-specific challenges, including shifts in consumer spending habits, inflation impacts on discretionary purchases, and intensified market competition affecting its Singapore retail sector [6] Company Strategy and Development Direction - The company is undergoing a restructuring initiative to improve financial performance, which includes closing underperforming stores and revamping merchandise offerings [9] - The launch of the HDL Far East subsidiary aims to expand the furniture business into the Asia Pacific region [4] Management Comments on Operating Environment and Future Outlook - Management acknowledged the impact of global economic factors on financial performance in 2024 but expressed optimism about future growth through the new subsidiary [4][5] - The company expects total revenue for 2025 to be between $16 million and $18 million [5] Other Important Information - Total operating expenses increased by $1.11 million or 32% in fiscal 2024, primarily due to listing expenses and increased general and administrative costs [8] - Cash and cash equivalents at 12/31/2024 were $3.44 million, up from $1.37 million at 12/31/2023 [9] Q&A Session Summary - There were no questions from participants during the Q&A session [11]

Business Expansion and Market Strategy - The company operates six physical retail stores in Singapore and plans to expand into new markets, including Taiwan, Korea, Indonesia, and Malaysia within the next six months [44][48]. - Expansion into new geographic markets may involve significant upfront investments and face challenges such as local competition and regulatory compliance [46][49]. - The company targets the premium mass market and middle to upper-class consumers, relying heavily on consumer spending and housing market conditions [50]. - The company aims to enhance its "HomesToLife" brand through high-quality products and superior customer service, which may require substantial investments [40][41]. - HomesToLife Singapore intends to open additional retail stores in high-demand areas within Singapore to strengthen its market presence [200]. - The company has identified opportunities in the wholesale upholstered furniture market across various Asia-Pacific countries, including Japan, Korea, and Indonesia [195]. - HomesToLife Singapore's management team has over 40 years of experience in the furniture industry, providing a competitive edge in market understanding and supplier relationships [194]. - The company plans to explore mergers and acquisitions to deepen connections with local furniture suppliers in the Asia-Pacific region [201]. Financial Performance and Challenges - The company anticipates increased operating expenses due to growth efforts and public company status, which may lead to future net losses and challenges in achieving profitability [31]. - Revenue decreased from US$6.0 million in fiscal year ended December 31, 2022 to US$5.1 million in fiscal year ended December 31, 2023 due to the impact of COVID-19 [120]. - The ongoing COVID-19 pandemic has significantly disrupted global supply chains, affecting suppliers' ability to provide products in a timely manner, which may continue into 2025 [112]. - Economic conditions in Singapore have led to significant economic contraction and high unemployment rates during the years ended December 31, 2023 and 2022, although recovery appears to have begun in 2024 [121]. - The company incurs significant expenses due to public company obligations, which negatively impacts financial performance [135]. - The company may require additional debt financing to support business operations and future strategies [77]. - Rising interest rates could increase operational costs and limit financial flexibility, potentially affecting profitability [79]. Operational Risks and Management - The company faces risks related to managing growth effectively, including hiring and retaining qualified personnel [32][34]. - Increased competition from various retailers, including online marketplaces, poses a risk to the company's market position [54]. - Cybersecurity threats pose risks to the company's data and operations, necessitating robust cybersecurity measures [51]. - Cybersecurity incidents could lead to significant legal and financial exposure, adversely affecting the company's reputation and operations [53]. - The company is subject to risks related to product liability claims, which could harm its reputation and financial performance [68]. - Legal disputes and claims could divert resources and adversely affect the company's financial condition and operations [86]. - The company may face liabilities under anti-corruption laws, which could lead to significant legal and financial repercussions [99]. Supply Chain and Product Management - The company has experienced surges in orders during peak months, particularly in March, April, June, August, November, and December, which may strain operations [70]. - The company relies on third parties for payment processing, and any failure in compliance or data breaches could materially affect financial results [72]. - HomesToLife Singapore transitioned its major supply source from HTL Marketing to HTL Furniture (China) Co., LTD effective January 1, 2025, under a new supply agreement [62]. - The company relies on a limited number of key suppliers for leather and fabric upholstered furniture, making it vulnerable to negative publicity affecting these suppliers [113]. - Supply chain disruptions experienced during the COVID-19 pandemic may impact the ability to fulfill customer orders in a timely manner [104]. Customer Engagement and Sales Strategy - The company’s success depends on increasing net revenue per active customer and maintaining high levels of customer engagement [38]. - Customer acquisition costs are significant, with marketing expenses varying as the company tests new channels and refines strategies [35][36]. - HomesToLife Singapore offers free delivery for orders above SGD1,200, enhancing customer service for larger purchases [223]. - The average cycle time for custom furniture orders is approximately 8 to 12 weeks, which is faster than competitors, providing a competitive advantage [226]. - HomesToLife Singapore's sales staff follow up with potential customers after initial contact, emphasizing time-limited offers to close sales [222]. - Online sales contribute less than 1% of total sales for the fiscal years ended December 31, 2024, 2023, and 2022, indicating a strong preference for in-store purchases [206]. Regulatory and Compliance Issues - The management team has limited experience managing a public company listed in the U.S., which may impact compliance with regulatory obligations [85]. - The company is subject to evolving regulatory measures, which may increase compliance costs and divert management attention from revenue-generating activities [170]. - The company cannot assure compliance with Nasdaq's continued listing standards, which could lead to significant adverse consequences if delisted [172]. - Shareholders may face difficulties in enforcing judgments against the company or its directors due to the company's operations being primarily outside the United States [168]. - The company may be classified as a passive foreign investment company (PFIC) for U.S. federal income tax purposes, which could lead to adverse tax consequences for U.S. investors [161]. Market Conditions and Economic Factors - Inflationary pressures in Asia may lead to government actions that could significantly decrease profitability in the future [123]. - The company faces risks related to inflationary pressures on product procurement costs, wages, rental rates, and freight charges, which could adversely affect profit margins [107]. - Uncertain global economic conditions have resulted in lower net sales due to weakened demand and unfavorable changes in product price/mix [117]. - Any adverse changes in the Singapore market, such as economic recession or pandemic, could materially affect the company's business and financial condition [115]. - The company is exposed to foreign exchange fluctuations, particularly as purchases are settled in USD while sales are in Singapore dollars [89].

Core Viewpoint - HomesToLife Ltd reported a significant decline in financial performance for fiscal year 2024, with a net revenue decrease of 18% compared to the previous year, primarily due to industry-specific challenges and increased operating expenses [3][4][6]. Financial Performance Summary - For fiscal year 2024, HomesToLife had net revenue of $4,173,028, down from $5,072,320 in fiscal 2023 [3]. - The gross profit margin for fiscal 2024 was 65.8%, a decline from 71.7% in fiscal 2023, attributed to a shift in sales mix and competitive pricing strategies [5]. - Total operating expenses increased by $1,109,948, or 32%, primarily due to listing expenses and higher general and administrative costs [6]. - The company reported a loss from operations of $1,788,938 for fiscal 2024, compared to income from operations of $210,459 in fiscal 2023 [7]. - HomesToLife's net loss for fiscal 2024 was $1,666,195, or $(0.11) per share, compared to a net income of $237,499, or $0.02 per share, in fiscal 2023 [8][18]. Cash Flow and Liabilities - Cash and cash equivalents increased to $3,442,259 as of December 31, 2024, from $1,366,231 in 2023 [8]. - Net cash used in operating activities was $1,021,680 in fiscal 2024, contrasting with net cash provided by operating activities of $894,784 in fiscal 2023 [9]. - Total long-term liabilities rose to $2,274,936 as of December 31, 2024, compared to $2,224,047 in 2023 [9]. Strategic Initiatives - In response to fiscal 2024 losses, HomesToLife initiated a comprehensive restructuring plan on April 1, 2025, which includes closing underperforming stores and implementing strict expense controls [10]. Future Outlook - The company expects total revenue for 2025 to be between $16 million and $18 million, with its new subsidiary, HTL Far East, projected to contribute $12-14 million in revenue [2].