Hour Loop Inc (HOUR) AI Stock Analysis

• Market Cap: $67.19M
• Dividend Yield: N/A
• Average Volume (3M): 82.48K
• Price to Earnings (P/E): 80.6
• Beta (1Y): 0.99
• Revenue Growth: -1.76%
• EPS Growth: -53.07%
• Country: US
• Employees: 151
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.01
• Shares Outstanding: 35,176,320
• 10 Day Avg. Volume: 36,877
• 30 Day Avg. Volume: 82,478
• PEG Ratio: -0.95
• Price to Book (P/B): 15.31
• Price to Sales (P/S): 0.57
• P/FCF Ratio: 285.12
• Enterprise Value/Market Cap: 1.00
• Enterprise Value/Revenue: 0.48
• Enterprise Value/Gross Profit: 0.94
• Enterprise Value/Ebitda: 44.35
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $2.00 ▲(8.70% Upside)
• Action: Reiterated Date: 02/03/26
• Date: Action: Reiterated 02/03/26

The score is primarily supported by a stable balance sheet (low leverage and healthy ROE) and strong gross margin, but is held back by weak cash flow trends, very thin net profitability, bearish technical signals (price below key moving averages with negative MACD), and a high P/E with no dividend yield provided.

Positive Factors

High gross margins

Sustained gross margins above 50% indicate durable product-level pricing power and cost control. This margin buffer supports reinvestment in marketing, logistics, and product assortment, helping preserve profitability through input cost volatility and supporting long-term unit economics.

Low financial leverage with solid ROE

Very low debt-to-equity reduces solvency risk and preserves financial flexibility to fund growth or weather downturns. Combined with a mid-teens ROE, this suggests efficient capital use and capacity to invest in expansion without materially increasing leverage over the medium term.

Direct-to-consumer e-commerce model

A DTC e-commerce model provides long-term advantages: control of customer data, higher gross margins vs. wholesale, and direct feedback loops for assortment optimization. These structural traits support scalable unit economics and repeat purchase economics over multiple years.

Negative Factors

Weak operating cash generation

Very weak conversion of earnings to cash and sharply negative FCF growth constrain the company’s ability to self-fund inventory, marketing, and capex. Over months this raises reliance on external financing and limits strategic optionality, increasing resilience risk during stress periods.

Very thin net profitability

A sub-1% net margin means minimal buffer for rising operating costs or competitive price pressure. Even with strong gross margins, elevated SG&A or fulfillment costs can quickly erase profits, limiting retained earnings for reinvestment and making long-term profit sustainability fragile.

Concentrated insider control and large executive bonuses

Extremely concentrated voting control and sizeable discretionary bonuses create governance and minority-shareholder risk. This concentration can impair oversight of capital allocation, increase potential for related-party decisions, and reduce accountability over long-term strategic choices.

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 walmart.com. Hour Loop, Inc. was founded in 2013 and is headquartered in Redmond, Washington.

How the Company Makes Money

Hour Loop Inc generates revenue primarily through online sales of its diverse product offerings. The company employs a direct-to-consumer model, allowing it to sell products directly to customers via its e-commerce website. Key revenue streams include sales from home goods, electronics, and lifestyle products, with a focus on both volume and margin improvement. Additionally, Hour Loop may engage in strategic partnerships with suppliers and manufacturers to optimize inventory costs and expand its product selection, further enhancing its competitiveness in the market.

Hour Loop Inc Financial Statement Overview

Summary

Income statement shows modest TTM revenue growth (1.7%) and strong gross margin (>50%), but profitability is thin (net margin 0.59%) with modest EBIT/EBITDA margins. Balance sheet is a strength with low leverage (debt-to-equity 0.10) and solid ROE (12.94%). Cash flow is a key weakness, highlighted by sharply negative free cash flow growth (-159.85%) and a very low operating cash flow to net income ratio (0.05).

Income Statement

Hour Loop Inc has shown a positive revenue growth trend, especially in the TTM period with a 1.7% increase. The gross profit margin remains strong at over 50%, indicating effective cost management. However, the net profit margin is quite low at 0.59%, suggesting limited profitability. EBIT and EBITDA margins are also modest, reflecting operational challenges.

Balance Sheet

The company has improved its financial stability with a low debt-to-equity ratio of 0.10 in the TTM period, indicating prudent leverage management. Return on equity is healthy at 12.94%, showcasing effective use of equity. The equity ratio stands at 24.25%, suggesting a balanced asset structure.

Cash Flow

Cash flow performance is mixed, with a significant decline in free cash flow growth at -159.85% in the TTM period. The operating cash flow to net income ratio is low at 0.05, indicating potential cash flow challenges. However, the free cash flow to net income ratio is strong at 95.27%, reflecting efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Mar 2023	Dec 2021	Dec 2020
Income Statement
Total Revenue	140.79M	138.25M	132.12M	95.93M	62.79M	38.66M
Gross Profit	71.71M	72.01M	66.52M	48.99M	34.81M	22.17M
EBITDA	1.51M	1.33M	-2.77M	-1.72M	5.55M	3.87M
Net Income	834.95K	657.45K	-2.43M	-1.48M	4.78M	3.83M
Balance Sheet
Total Assets	31.62M	19.97M	19.55M	25.73M	18.82M	9.85M
Cash, Cash Equivalents and Short-Term Investments	796.31K	2.12M	2.48M	4.56M	10.59M	4.97M
Total Debt	772.90K	725.51K	4.91M	5.43M	5.21M	84.54K
Total Liabilities	23.95M	14.81M	15.10M	18.90M	16.16M	5.67M
Stockholders Equity	7.67M	5.16M	4.45M	6.83M	2.65M	4.17M
Cash Flow
Free Cash Flow	1.44M	277.14K	-2.08M	-11.94M	7.75M	3.82M
Operating Cash Flow	1.49M	313.14K	-2.06M	-11.60M	7.76M	3.82M
Investing Cash Flow	-49.93K	-36.00K	-14.82K	-339.52K	-16.11K	0.00
Financing Cash Flow	-1.88M	-671.00K	0.00	5.92M	-2.13M	299.26K

Hour Loop Inc Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.84
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HOUR, the sentiment is Neutral. The current price of 1.84 is below the 20-day moving average (MA) of 1.85, below the 50-day MA of 1.87, and below the 200-day MA of 1.94, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 54.56 is Neutral, neither overbought nor oversold. The STOCH value of 44.85 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for HOUR.

Hour Loop Inc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HOUR	54 Neutral	$67.19M	80.59	11.63%	―	-1.76%	-53.07%
LITB	54 Neutral	$51.31M	9.42	―	―	-34.42%	―
PRTS	51 Neutral	$47.55M	-0.70	-67.30%	―	-8.35%	-74.31%
SPWH	44 Neutral	$44.25M	-1.18	-16.36%	―	-1.05%	-10.28%
OCG	44 Neutral	$1.21M	-0.01	-8.68%	―	-74.20%	64.28%
QVCGA	41 Neutral	$28.96M	>-0.01	―	―	-7.21%	-1200.27%

Hour Loop Inc Corporate Events

Hour Loop Approves Large Executive Cash Bonuses, Highlights Control

On January 28, 2026, Hour Loop Inc.’s Audit Committee and Board of Directors approved substantial cash bonuses for top executives Sam Lai, the chairman, chief executive and interim chief financial officer, and Maggie Yu, senior vice president and board member, reflecting the concentrated control of the company by the couple, who together hold about 94.84% of the voting power in its common stock. The decision authorized a $500,000 bonus for Lai and a $450,000 bonus for Yu, with payment to be made before March 31, 2026 on a date to be selected by Lai based on the company’s cash flow, underscoring both the executives’ influence over compensation decisions and the potential governance considerations for minority shareholders.

The most recent analyst rating on (HOUR) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Hour Loop Inc stock, see the HOUR Stock Forecast page.