The Lovesac Company (LOVE) AI Stock Analysis

• Market Cap: $203.76M
• Dividend Yield: N/A
• Average Volume (3M): 588.66K
• Price to Earnings (P/E): 67.1
• Beta (1Y): 1.98
• Revenue Growth: 0.13%
• EPS Growth: -14.51%
• Country: US
• Employees: 920
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Furnishings, Fixtures & Appliances
• EPS (TTM): -0.72
• Shares Outstanding: 14,617,106
• 10 Day Avg. Volume: 731,473
• 30 Day Avg. Volume: 588,661
• PEG Ratio: -0.66
• Price to Book (P/B): 1.83
• Price to Sales (P/S): 0.58
• P/FCF Ratio: 22.69
• Enterprise Value/Market Cap: 2.10
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 1.07
• Enterprise Value/Ebitda: 13.80
• 1Y Price Target: $23.17
• Price Target Upside: 66.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: $13.00 ▼(-6.74% Downside)

The Lovesac Company's overall stock score reflects solid financial performance and strategic initiatives. However, technical indicators suggest bearish momentum, and high valuation metrics pose risks. The earnings call provided mixed signals with strategic positives but highlighted financial challenges.

Positive Factors

Product Innovation

Successful product launches like the Snug platform enhance Lovesac's market position by catering to consumer preferences, driving sales growth.

Domestic Manufacturing Expansion

Domestic manufacturing can improve margins and supply chain resilience, supporting long-term profitability and product innovation.

Innovative Marketing Strategy

Enhanced marketing strategies can boost customer engagement and brand visibility, leading to sustained revenue growth.

Negative Factors

Revenue Guidance Miss

Missing revenue guidance reflects challenges in demand forecasting and market conditions, potentially impacting investor confidence.

Decreased Gross Margin

A declining gross margin indicates rising costs and pricing pressures, which can affect long-term profitability if not managed.

Increased Operating Loss

Rising operating losses suggest higher expenses and inefficiencies, which could strain financial resources and hinder growth initiatives.

The Lovesac Company Business Overview & Revenue Model

Company Description

The Lovesac Company (LOVE) specializes in innovative furniture designed for modern living, primarily focusing on modular sofas and bean bag chairs. The company operates in the home furnishings sector, offering a range of customizable and high-quality products that cater to the evolving needs of consumers. Lovesac's core offerings include its signature Sactionals, which can be reconfigured and accessorized, as well as Sac, its oversized bean bag chairs. The company emphasizes sustainability and durability in its designs, appealing to environmentally conscious consumers.

How the Company Makes Money

Lovesac generates revenue through direct sales of its furniture products, primarily through its online platform and a growing network of retail showrooms. The company’s key revenue streams include the sale of Sactionals, Sac products, and various accessories such as covers and cushions. Lovesac also benefits from a strong focus on customer experience, which drives repeat purchases and referrals. Additionally, the company has established partnerships with various retailers and online platforms, enhancing its distribution reach. Seasonal promotions and marketing campaigns further contribute to sales growth, while the brand's emphasis on quality and innovation helps maintain a loyal customer base.

The Lovesac Company Financial Statement Overview

Summary

The company's financial performance is solid, with strong profitability and efficient cash flow management. However, increased leverage and recent revenue decline pose potential risks.

Income Statement

The company's income statement shows strong profitability with a consistent gross profit margin over the years. The net profit margin has improved significantly since 2020, indicating better cost management. However, revenue growth has been volatile, with a decline in the most recent year. The EBIT and EBITDA margins remain healthy, supporting overall profitability.

Balance Sheet

The balance sheet reflects moderate financial health. The debt-to-equity ratio has increased, suggesting higher leverage and potential risk. Return on equity is positive, indicating efficient use of shareholder funds. The equity ratio is stable, reflecting a solid financial foundation, although the increasing liabilities warrant close monitoring.

Cash Flow

Cash flow analysis reveals a strong free cash flow growth in recent years, recovering from previous negative figures. The operating cash flow to net income ratio is favorable, indicating effective cash generation from operations. However, the free cash flow to net income ratio shows some volatility, suggesting potential challenges in capital expenditure management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	690.30M	680.63M	700.26M	651.18M	498.24M	320.74M
Gross Profit	398.40M	397.83M	401.04M	343.65M	273.53M	174.77M
EBITDA	31.00M	28.36M	42.68M	47.81M	48.44M	21.49M
Net Income	12.89M	11.56M	23.86M	26.49M	47.49M	14.73M
Balance Sheet
Total Assets	493.71M	532.25M	482.18M	408.63M	369.08M	171.02M
Cash, Cash Equivalents and Short-Term Investments	34.19M	83.73M	87.04M	43.53M	92.39M	78.34M
Total Debt	193.47M	183.02M	175.50M	146.57M	108.51M	0.00
Total Liabilities	296.25M	315.89M	264.68M	215.53M	211.27M	63.07M
Stockholders Equity	197.46M	216.35M	217.50M	193.09M	157.81M	107.95M
Cash Flow
Free Cash Flow	-10.62M	17.46M	47.23M	-46.92M	17.53M	31.47M
Operating Cash Flow	10.60M	38.98M	76.44M	-21.38M	32.65M	40.52M
Investing Cash Flow	-21.21M	-21.52M	-29.21M	-25.55M	-15.12M	-9.05M
Financing Cash Flow	-27.32M	-20.76M	-3.73M	-1.94M	-3.48M	-1.67M

The Lovesac Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.94
• 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 LOVE, the sentiment is Positive. The current price of 13.94 is above the 20-day moving average (MA) of 13.47, above the 50-day MA of 13.79, and below the 200-day MA of 17.34, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.59 is Neutral, neither overbought nor oversold. The STOCH value of 73.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LOVE.

The Lovesac Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KEQU	70 Outperform	$111.45M	9.73	18.18%	―	43.02%	-37.24%
BSET	66 Neutral	$149.57M	19.28	4.70%	4.66%	-2.74%	―
ETD	66 Neutral	$610.20M	12.99	9.96%	7.55%	-4.61%	-25.66%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LOVE	57 Neutral	$203.76M	67.12	3.77%	―	0.13%	-14.51%
HOFT	53 Neutral	$113.17M	-3.78	-11.27%	8.73%	-12.09%	-204.66%
SNBR	42 Neutral	$192.80M	-2.47	―	―	-16.95%	-88.00%

The Lovesac Company Corporate Events

Lovesac Appoints Wan Ling Martello to Board

On November 20, 2025, The Lovesac Company announced the appointment of Wan Ling Martello to its Board of Directors. Ms. Martello brings a wealth of experience from her leadership roles at companies like Nestlé and Walmart, and her expertise in digital transformation and consumer engagement aligns with Lovesac’s mission as a technology-driven furniture company. Her appointment is expected to provide strategic insights as the company navigates its next phase of growth.