1. Revenue Analysis:
- Total revenue for Q1 2026 is reported at $7,106,400, down 20.76% year-over-year (YoY) and 35.70% quarter-over-quarter (QoQ). The decline is primarily attributed to reduced demand in traditional retail channels and increased competition online.
2. Profitability Metrics:
- Net income stands at -$1,075,200, with an EPS of -$0.13. This marks a 33.41% increase in net loss compared to the same quarter last year but a marginal -28.66% decrease from the previous quarter, indicating a slight improvement in profitability.
- Gross profit is reported at $4,137,100, with a gross profit margin of 58.22%. This is lower than the previous year's margin, reflecting rising operational costs.
3. Operating Income:
- The company posted an operating loss of -$1,564,500, a deterioration from historical performance, reflective of ongoing investments in marketing and product development without immediate returns.
4. Cash Flow Position:
- Free cash flow is robust at $1,189,100, providing some liquidity reassurance, but the net cash provided by operating activities reveals concerns with operational efficiency, highlighting ongoing structural issues needing resolution.