Lulu's Fashion Lounge (LVLU) - 2026 Q3 - Quarterly Results

Financial Performance - Net revenue for Q3 2025 was $73.6 million, a 9% decrease compared to $80.5 million in Q3 2024, driven by a 14% decrease in total orders placed[8] - Gross profit increased by 2% to $31.4 million, with gross margin improving by 450 basis points to 42.6% compared to the same period last year[8] - Net loss improved to $2.3 million in Q3 2025, compared to a net loss of $6.9 million in Q3 2024[8] - Adjusted EBITDA was $0.4 million, a significant improvement from a loss of $3.6 million in the same period last year[8] - Year-to-date free cash flow reached $3.5 million, up from $2.7 million in the same period last year[8] - Adjusted EBITDA for the thirteen weeks ended September 28, 2025, was $364,000, a significant improvement from a loss of $3,572,000 in the same period in 2024[29] - Adjusted EBITDA Margin for the thirteen weeks ended September 28, 2025, was 0.5%, an improvement from -4.4% in the same period in 2024[31] - Free Cash Flow for the thirteen weeks ended September 28, 2025, was $(2,394,000), compared to $(6,296,000) for the same period in 2024[32] Customer Metrics - Active customers decreased by 11% to 2.4 million from 2.7 million in the same period last year[8] - Active Customers decreased to 2,380 for the thirty-nine weeks ended September 28, 2025, down from 2,670 in the same period in 2024[29] - Average Order Value (AOV) increased to $141 for the thirteen weeks ended September 28, 2025, compared to $131 for the same period in 2024[29] Strategic Focus - The company expects significant year-over-year improvement in Adjusted EBITDA for Q4 2025[8] - The company is focused on optimizing its casual wear and footwear categories, aiming for cost efficiency and strengthening its market position[4] - The company continues to focus on strategic priorities and long-term growth opportunities, as indicated in the forward-looking statements[17] Financial Structure - A new credit agreement has been established, contributing to a leaner cost structure and an improving balance sheet[4] - The company reaffirms its full-year 2025 capital expenditures estimate of approximately $2.5 million[8] - Net Debt as of September 28, 2025, was $(7,256,000), a decrease from $(8,630,000) as of December 29, 2024[30] Performance Metrics - Gross Margin for the thirteen weeks ended September 28, 2025, was 42.6%, compared to 38.1% for the same period in 2024[29] - Total Orders Placed is a key performance metric directly related to customer attraction and retention, although specific numbers were not provided in the content[26] - The company utilizes non-GAAP financial measures to evaluate operating performance and liquidity, which may differ from other companies' measures[18]