love-20260503

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended May 3, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to


Commission File Number: 001-38555

THE LOVESAC COMPANY (Exact name of registrant as specified in its charter)


Delaware						32-0514958
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


421 Atlantic Street
Stamford, Connecticut						06901
(Address of principal executive offices)						(Zip Code)

Registrant’s telephone number, including area code: (888) 636-1223

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, $0.00001 par value per share

LOVE

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 8, 2026, there were 14,638,418 shares of common stock, $0.00001 par value per share, outstanding.


		Page
PART I. FINANCIAL INFORMATION		1

Item 1.	Financial Statements	1

	Condensed Balance Sheets as of May 3, 2026 and February 1, 2026 (unaudited)	1

	Condensed Statements of Operations for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)	2

	Condensed Statements of Changes in Stockholders’ Equity for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)	3

	Condensed Statements of Cash Flows for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)	4

	Notes to Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	13

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	22

Item 4.	Controls and Procedures	23

Part II. OTHER INFORMATION		24

Item 1.	Legal Proceedings	24

Item 1A.	Risk Factors	24

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	24

Item 3.	Defaults Upon Senior Securities	24

Item 4.	Mine Safety Disclosures	24

Item 5.	Other Information	24

Item 6.	Exhibits	25


(amounts in thousands, except share and per share amounts)	May 3, 2026		February 1, 2026
Assets
Current Assets
Cash and cash equivalents	$	56,998	$	101,853
Trade accounts receivable, net	13,158		11,733
Merchandise inventories, net	109,267		106,317
Prepaid expenses	13,390		10,473
Other current assets	6,178		6,260
Total Current Assets	198,991		236,636
Property and equipment, net	86,760		86,400
Operating lease right-of-use assets	161,310		163,322
Goodwill	144		144
Intangible assets, net	2,641		2,373
Deferred tax asset	19,039		13,387
Other assets	32,088		32,420
Total Assets	$	500,973	$	534,682
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable	$	43,837	$	43,736
Accrued expenses	31,601		38,788
Payroll payable	10,023		21,936
Customer deposits	14,324		11,544
Current operating lease liabilities	24,271		24,111
Sales taxes payable	4,317		6,996
Total Current Liabilities	128,373		147,111
Operating lease liabilities, long-term	166,602		168,400
Income tax payable, long-term	464		464
Line of credit	—		—
Total Liabilities	295,439		315,975
Commitments and Contingencies (see Note 6)
Stockholders’ Equity
Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of May 3, 2026 and February 1, 2026.	—		—
Common Stock $0.00001 par value, 40,000,000 shares authorized, 14,638,550 shares issued and outstanding as of May 3, 2026 and 14,617,238 shares issued and outstanding as of February 1, 2026.	—		—
Additional paid-in capital	195,123		194,843
Accumulated earnings	10,411		23,864
Stockholders' Equity	205,534		218,707
Total Liabilities and Stockholders' Equity	$	500,973	$	534,682


	Thirteen weeks ended
(amounts in thousands, except per share data and share amounts)	May 3, 2026		May 4, 2025
Net sales	$	138,196	$	138,373
Cost of merchandise sold	66,222		64,003
Gross profit	71,974		74,370
Operating expenses:
Selling, general and administrative expenses	68,568		67,117
Advertising and marketing	16,599		18,594
Depreciation and amortization	4,181		3,613
Total operating expenses	89,348		89,324
Operating loss	(17,374)		(14,954)
Interest and other income, net	666		325
Net loss before taxes	(16,708)		(14,629)
Income tax benefit	5,615		3,789
Net loss	$	(11,093)	$	(10,840)

Net loss per common share:
Basic	$	(0.76)	$	(0.73)
Diluted	$	(0.76)	$	(0.73)

Weighted average shares outstanding:
Basic	14,668,023		14,792,080
Diluted	14,668,023		14,792,080


	Thirteen weeks ended
	Common
	Shares	Amount		Additional Paid-in Capital		Accumulated Earnings		Total Shareholders' Equity
Balance - February 1, 2026	14,617,238	$	—	$	194,843	$	23,864	$	218,707
Net loss	—	—		—		(11,093)		(11,093)
Equity-based compensation	—	—		2,100		—		2,100
Vested restricted stock units	162,794	—		—		—		—
Repurchases of common stock	(141,482)	—		—		(2,360)		(2,360)
Taxes paid for net share settlement of equity awards	—	—		(1,820)		—		(1,820)
Balance - May 3, 2026	14,638,550	$	—	$	195,123	$	10,411	$	205,534

Balance - February 2, 2025	14,786,934	$	—	$	190,510	$	25,845	$	216,355
Net loss	—	—		—		(10,840)		(10,840)
Equity-based compensation	—	—		2,501		—		2,501
Vested restricted stock units	68,641	—		—		—		—
Repurchases of common stock	(306,325)	—		—		(6,058)		(6,058)
Taxes paid for net share settlement of equity awards	—	—		(744)		—		(744)
Balance - May 4, 2025	14,549,250	$	—	$	192,267	$	8,947	$	201,214


	Thirteen weeks ended
(amounts in thousands)	May 3, 2026		May 4, 2025
Cash Flows from Operating Activities
Net loss	$	(11,093)	$	(10,840)
Adjustments to reconcile net loss to cash used in operating activities:
Depreciation and amortization of property and equipment	4,081		3,545
Amortization of other intangible assets	100		68
Amortization of deferred financing fees	15		19
Net loss on disposal of property and equipment	38		21


Equity based compensation	2,100		2,501
Non-cash lease expense	7,205		6,684
Deferred income taxes	(5,652)		(3,637)
Change in operating assets and liabilities:
Trade accounts receivable	(1,425)		3,759
Merchandise inventories	(2,950)		(593)
Prepaid expenses and other current assets	(2,850)		5,137
Other assets	332		935
Accounts payable	738		(27,228)
Accrued expenses and other payables	(21,944)		(15,720)
Operating lease liabilities	(6,831)		(6,417)
Customer deposits	2,780		389

Net cash used in operating activities	(35,356)		(41,377)
Cash Flows from Investing Activities
Purchase of property and equipment	(5,030)		(8,577)
Payments for patents and trademarks	(285)		(124)
Net cash used in investing activities	(5,315)		(8,701)
Cash Flows from Financing Activities
Taxes paid for net share settlement of equity awards	(1,820)		(744)
Repurchases of common stock	(2,364)		(6,000)


Payment of deferred financing costs	—		(12)

Net cash used in financing activities	(4,184)		(6,756)
Net change in cash and cash equivalents	(44,855)		(56,834)
Cash and cash equivalents - Beginning	101,853		83,734
Cash and cash equivalents - Ending	$	56,998	$	26,900
Supplemental Cash Flow Data:
Cash paid for taxes	$	20	$	—
Cash paid for interest	$	30	$	40
Non-cash investing and financing activities:
Asset acquisitions not yet paid for at period end	$	1,282	$	519
Leasehold improvements acquired through lease incentive	$	—	$	1,824
Excise tax on share repurchases, accrued but not paid	$	—	$	58


	Number of shares	Weighted average grant date fair value
Unvested at February 1, 2026	1,046,994	$	22.05
Granted	263,891	17.67
Forfeited	(72,948)	23.09
Vested	(123,443)	21.04
Unvested at May 3, 2026	1,114,494	$	21.06


	Thirteen weeks ended
Showroom Count:	May 3, 2026	May 4, 2025
Showrooms open at beginning of period	278	257
Showrooms opened	6	11
Showrooms closed	(3)	(1)
Showrooms open at end of period(1)	281	267
Showroom remodels	—	1


Condensed Statement of Cash flow Data:
	Thirteen weeks ended
(amounts in thousands)	May 3, 2026		May 4, 2025
Net cash used in operating activities	$	(35,356)	$	(41,377)
Net cash used in investing activities	(5,315)		(8,701)
Net cash used in financing activities	(4,184)		(6,756)
Net change in cash and cash equivalents	(44,855)		(56,834)
Cash and cash equivalents at the end of the period	56,998		26,900


	Total Number of Shares Purchased	Average Price Paid Per Share (1)		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Program (2)
					(in thousands)
February 2, 2026 to March 1, 2026	—	$	—	—	$	14,090
March 2, 2026 to April 5, 2026	—	$	—	—	$	54,090
April 6, 2026 to May 3, 2026	141,482	$	16.69	141,482	$	51,729
Total	141,482			141,482


	The Lovesac Company

	By:	/s/ Shawn Nelson
		Shawn Nelson
Date: June 11, 2026		Chief Executive Officer
		(Principal Executive Officer)

	By:	/s/ Keith Siegner
		Keith Siegner
Date: June 11, 2026		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

SEC Form 10-Q filed by The Lovesac Company