Core Viewpoint - HomesToLife Ltd reported strong financial performance for the nine months ended September 30, 2025, with significant increases in revenue, gross profit, and net income, demonstrating resilience through a diversified export model and disciplined cost control [2][3][6]. Financial Highlights - Net Revenue: Increased by 15% to $275.1 million in 9M 2025 from $238.9 million in 9M 2024, driven by a 20% increase in Europe and an 11% increase in North America [3][6]. - Gross Profit: Rose by 25% to $76.1 million, with gross margin improving to 27.7% from 25.5% [3][6]. - Net Income: Increased by 71% to $13.2 million, translating to earnings per share of $0.15, up from $0.09 [6][8]. Operating Expenses - Total Operating Expenses: Increased by 18% to $62.1 million, primarily due to a 19% rise in selling expenses to $47.3 million, influenced by higher freight costs and start-up costs related to the South Korea retail acquisition [4][5]. - General and Administrative Expenses: Increased by 11% to $13.8 million, mainly due to higher staff costs and expenses related to the Nasdaq listing [5]. Q3 2025 Performance - Revenue: Reported at $94.3 million, a 14% increase from $82.6 million in Q3 2024, with European export sales rising by 29% [7][8]. - Gross Profit: Increased by 39% to $26.3 million, with gross margin improving to 27.9% from 22.9% [8]. - Net Income: Rose by 36% to $3.1 million, with earnings per share remaining at $0.03 [8]. Financial Position - Cash and Bank Balances: As of September 30, 2025, the company had $21.8 million in cash, with total borrowings at $10.1 million, indicating a net cash position of approximately $11.7 million [9][10]. - Operating Cash Flow: Generated $4.0 million in 9M 2025, reflecting higher profit and disciplined working capital management [10]. Outlook - Revenue Guidance for FY2025: The company maintains its revenue guidance between $360 million to $375 million, emphasizing a robust liquidity position to support strategic growth initiatives [11].
HomesToLife Reports 71% Increase in Net Profit to US$13.1 Million for 9M 2025