Gross Margin ResilienceA roughly 26% gross margin indicates the core product economics retain healthy markup over direct costs. That durability gives the company room to fund SG&A and restructuring, and supports margin recovery if topline stabilizes, making profitability achievable without immediate price changes.

Positive TTM EBITDAPositive trailing-twelve-month EBITDA implies core operations still generate operating cash before non-cash items and financing costs. This operational cash generation provides a foundation to restructure SG&A, fund working capital modestly, and support recovery efforts without immediate external capital.

Proven Prior ProfitabilityA multi-year record of strong profitability through 2021–2023 demonstrates the business model can work at scale. That historical track record suggests management and product-market fit existed, indicating the firm has operational playbooks and market positioning to restore margins if revenue trends reverse.

Bears Say

Very High LeverageDebt-to-equity of ~6.1x and elevated absolute debt materially reduce financial flexibility and increase default and refinancing risk. High leverage amplifies earnings volatility, constrains investment, and makes the company vulnerable to even modest cash-flow shocks over the next several months.

Negative Operating And Free Cash FlowNegative operating and free cash flow indicate the business is consuming cash from operations and investments. This cash burn limits the firm's ability to service debt, invest in growth, or absorb shocks without external financing, creating a structural liquidity constraint on recovery plans.

Declining Revenue And Negative Net MarginA steep revenue decline and a negative net margin reflect weakening demand or lost volume that undermines operating leverage. With slightly negative EBIT, fixed costs bite more deeply, making earnings recovery dependent on durable revenue stabilization rather than short-term cost cuts alone.

LUVU FAQ

What was Luvu Brands Inc’s price range in the past 12 months?

Luvu Brands Inc lowest stock price was $0.02 and its highest was $0.07 in the past 12 months.

What is Luvu Brands Inc’s market cap?

Luvu Brands Inc’s market cap is $2.08M.

When is Luvu Brands Inc’s upcoming earnings report date?

Luvu Brands Inc’s upcoming earnings report date is May 18, 2026 which is in 75 days.

How were Luvu Brands Inc’s earnings last quarter?

Luvu Brands Inc released its earnings results on Feb 17, 2026. The company reported -$0.01 earnings per share for the quarter, missing the consensus estimate of N/A by -$0.01.

Is Luvu Brands Inc overvalued?

According to Wall Street analysts Luvu Brands Inc’s price is currently Overvalued. Get more investment ideas with TipRanks Premium

Does Luvu Brands Inc pay dividends?

Luvu Brands Inc does not currently pay dividends.

What is Luvu Brands Inc’s EPS estimate?

Luvu Brands Inc’s EPS estimate for its next earnings report is not yet available.

How many shares outstanding does Luvu Brands Inc have?

Luvu Brands Inc has 76,834,060 shares outstanding.

What happened to Luvu Brands Inc’s price movement after its last earnings report?

Luvu Brands Inc reported an EPS of -$0.01 in its last earnings report, missing expectations of N/A. Following the earnings report the stock price went down -9.091%.

Which hedge fund is a major shareholder of Luvu Brands Inc?

Currently, no hedge funds are holding shares in LUVU

What is the TipRanks Smart Score and how is it calculated?

Smart Score combines eight research factors - such as analyst recommendations, hedge fund trends, and technical indicators - to measure a stock’s outlook. These signals are unified into a single score that reflects bullish or bearish momentum. See detailed methodology

Company Description

Luvu Brands Inc

Luvu Brands, Inc. designs, manufactures, and markets various wellness, lifestyle, and casual seating products worldwide. The company offers Liberator, a brand category of products for enhancing sexual performance; and bed therapy products, assistive in relieving medical conditions associated with acid reflux, surgery recovery, and chronic pain under the Avana brand. It also provides daybeds, sofas, and beanbags made from virgin and re-purposed polyurethane foam under the Jaxx brand; and medical isolation gowns and face masks. In addition, the company is involved in the purchase and resale of products to retailers, e-commerce sites, and single retail stores, as well as provision of contract manufacturing and fulfillment services. It markets its products through various websites comprising liberator.com, jaxxliving.com, and avanacomfort.com, as well as through distributors, retailers, and e-tailers across various channels of adult, mass market, drug, and specialty accounts. The company was formerly known as Liberator, Inc. and changed its name to Luvu Brands, Inc. in November 2015. Luvu Brands, Inc. was incorporated in 1999 and is headquartered in Atlanta, Georgia.