Hour Loop Inc (HOUR)
NASDAQ:HOUR
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Hour Loop Inc
(NASDAQ:HOUR)
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Rating:57Neutral
Price Target:
$2.00
▲(8.70% Upside)
Action:Reiterated
Date:05/19/26
The score is driven primarily by improving profitability and a currently stronger balance sheet, offset by the key risk of negative TTM operating/free cash flow and still-thin margins. Technical signals are mixed/neutral, valuation appears moderate at ~18.9x earnings without dividend support, and recent incentive-plan changes are modestly supportive but carry governance considerations.
Positive Factors
High Gross Margins
Sustained gross margins above 50% indicate strong product-level economics and pricing power on marketplaces. This margin buffer supports coverage of fulfillment and marketplace fees, enabling the company to sustain operations and invest in growth even if some cost pressures arise.
Negative Factors
Negative Operating Cash Flow
A recent reversal to negative operating and free cash flow weakens funding flexibility; persistent cash burn can force reliance on external financing or asset sales. Cash conversion risk undermines the durability of the earnings recovery if working-capital needs remain elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
High Gross Margins
Sustained gross margins above 50% indicate strong product-level economics and pricing power on marketplaces. This margin buffer supports coverage of fulfillment and marketplace fees, enabling the company to sustain operations and invest in growth even if some cost pressures arise.
Read all positive factors
Hour Loop Inc (HOUR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$67.22M
Dividend YieldN/A
Average Volume (3M)82.48K
Price to Earnings (P/E)35.9
Beta (1Y)1.31
Revenue Growth5.11%
EPS Growth661.43%
CountryUS
Employees151
SectorConsumer Cyclical
Sector Strength84
IndustrySpecialty Retail
Share Statistics
EPS (TTM)0.04
Shares Outstanding35,191,890
10 Day Avg. Volume36,877
30 Day Avg. Volume82,478
Financial Highlights & Ratios
PEG Ratio0.23
Price to Book (P/B)9.05
Price to Sales (P/S)0.44
P/FCF Ratio25.29
Enterprise Value/Market Cap1.00
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit0.88
Enterprise Value/Ebitda23.42
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Hour Loop Inc Business Overview & Revenue Model
Company Description
Hour Loop, Inc., an online retailer, engages in e-commerce retailing in the United States. The company sells home/garden décor, toys, kitchenware, apparel, and electronics products. It sells its products through hourloop.com, amazon.com, and walma...
How the Company Makes Money
Hour Loop primarily makes money by generating revenue from product sales through e-commerce channels. Its core revenue stream is the sale of consumer goods purchased from brands, manufacturers, distributors, or other suppliers and then resold to e...
Hour Loop Inc Financial Statement Overview
Summary
Income Statement
60
Neutral
Balance Sheet
72
Positive
Cash Flow
45
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Mar 2023 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 146.53M | 142.44M | 138.25M | 132.12M | 95.93M | 62.79M |
| Gross Profit | 76.47M | 74.63M | 72.01M | 66.52M | 48.99M | 34.81M |
| EBITDA | 2.86M | 2.66M | 1.33M | -2.77M | -1.72M | 5.55M |
| Net Income | 1.87M | 1.70M | 657.45K | -2.43M | -1.48M | 4.78M |
Balance Sheet | ||||||
| Total Assets | 24.39M | 23.82M | 19.97M | 19.55M | 25.73M | 18.82M |
| Cash, Cash Equivalents and Short-Term Investments | 992.89K | 3.79M | 2.12M | 2.48M | 4.56M | 10.59M |
| Total Debt | 776.88K | 812.98K | 725.51K | 4.91M | 5.43M | 5.21M |
| Total Liabilities | 16.58M | 16.83M | 14.81M | 15.10M | 18.90M | 16.16M |
| Stockholders Equity | 7.81M | 6.99M | 5.16M | 4.45M | 6.83M | 2.65M |
Cash Flow | ||||||
| Free Cash Flow | -495.75K | 2.50M | 277.14K | -2.08M | -11.94M | 7.75M |
| Operating Cash Flow | -412.69K | 2.58M | 313.14K | -2.06M | -11.60M | 7.76M |
| Investing Cash Flow | -80.04K | -75.10K | -36.00K | -14.82K | -339.52K | -16.11K |
| Financing Cash Flow | 216.44K | -839.00K | -671.00K | 0.00 | 5.92M | -2.13M |
Hour Loop Inc Technical Analysis
Negative
1.84
Price Trends
2.04
Negative
1.95
Negative
2.10
Negative
Market Momentum
-0.06
Positive
42.64
Neutral
13.74
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOUR, the sentiment is Negative. The current price of 1.84 is below the 20-day moving average (MA) of 2.16, below the 50-day MA of 2.04, and below the 200-day MA of 2.10, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 42.64 is Neutral, neither overbought nor oversold. The STOCH value of 13.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HOUR.
Hour Loop Inc Risk Analysis
Hour Loop Inc disclosed 49 risk factors in its most recent earnings report. Hour Loop Inc reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Hour Loop Inc Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $60.60M | 3.21 | -151.13% | ― | -0.60% | 548.86% | |
57 Neutral | $67.22M | 35.86 | 25.29% | ― | 5.11% | 661.43% | |
47 Neutral | $3.61M | -0.07 | -8.68% | ― | 203.34% | 37.54% | |
45 Neutral | $44.64M | -1.02 | -61.91% | ― | -6.64% | 29.96% | |
44 Neutral | $51.42M | -1.02 | -24.36% | ― | 0.96% | -48.94% |
* Consumer Cyclical Sector Average
HOUR
Hour Loop Inc
1.91
0.63
49.22%
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Hour Loop Inc Corporate Events
Executive/Board ChangesFinancial Disclosures
Hour Loop Updates Executive Bonuses Tied to Profit Goals
Positive
May 18, 2026
On May 15, 2026, Hour Loop, Inc. amended the executive employment agreements of Chairman and CEO Sam Lai and Senior Vice President and Director Sau Kuen (Maggie) Yu to revise their 2026 performance-based bonuses and add guaranteed payouts. Under t...
Business Operations and StrategyRegulatory Filings and Compliance
Hour Loop Updates Bylaws on Investor Litigation and Fees
Neutral
Mar 17, 2026
On March 16, 2026, Hour Loop, Inc.’s board of directors approved an amendment to the company’s bylaws clarifying that stockholders will not be liable for the company’s or other parties’ attorneys’ fees or expenses in ...
Business Operations and StrategyExecutive/Board Changes
Hour Loop Updates Executive Incentive Plans to Drive Growth
Positive
Feb 25, 2026
On February 24, 2026, Hour Loop, Inc. amended the executive employment terms of Chairman and CEO Sam Lai by tying his 2026 performance bonus to net profit growth, offering 50% of base salary if net profits reach at least $750,000 and 100% if they ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.