LightInTheBox Reports Third Quarter 2025 Financial Results

Core Insights - LightInTheBox Holding Co., Ltd. reported a record quarterly profit of $2.8 million for Q3 2025, a significant increase from $0.3 million in Q3 2024, marking the sixth consecutive profitable quarter for the company [1][4]. Financial Highlights for Q3 2025 - Total revenues were $55.5 million, reflecting a 3% decrease year-over-year, a notable improvement compared to a 34% decline in Q1 2025 and a 15% decline in Q2 2025 [5]. - Gross profit increased to $37.1 million from $34.8 million in the same quarter last year, with gross margin improving to 66.9% from 61.1% [5]. - Operating expenses remained stable at $34.5 million compared to $34.3 million in Q3 2024 [5]. - Fulfillment expenses decreased by 2% year-over-year to $4.1 million, while selling and marketing expenses increased by 7% to $26.1 million [5]. - General and administrative expenses decreased by 24% year-over-year to $4.5 million [5]. - Adjusted EBITDA for Q3 2025 was $3.3 million, compared to $0.8 million in Q3 2024 [5]. Financial Highlights for the First Nine Months of 2025 - Total revenues for the first nine months of 2025 were $161.4 million, an 18% decrease year-over-year, primarily due to a focus on margin preservation [5]. - Gross profit for the first nine months was $106.5 million, down from $119.6 million in the same period last year, but gross margin improved to 66.0% from 60.5% [5]. - Operating expenses decreased by 17% year-over-year to $101.9 million, with significant reductions in fulfillment and selling and marketing expenses [5]. - Net income for the first nine months reached $5.0 million, compared to a loss of $2.9 million in 2024, indicating a strong turnaround in profitability [5]. Strategic Focus and Future Outlook - The company is focusing on its direct-to-consumer (DTC) apparel brands, particularly through its proprietary brand Ador.com, which is aimed at delivering premium, affordable fashion [4][6]. - The strategy includes revitalizing legacy operations while scaling DTC brands for growth, which is expected to lead to overall revenue growth in 2026 [6]. - The company has also extended its share repurchase program, indicating confidence in its financial position and future prospects [7].