Luvu Brands reported QQ1 2026 revenue of $5.84 million and gross profit of $1.66 million, yielding a gross margin of 28.35%. The quarter produced an operating loss of $0.015 million and an EBITDA of $0.20 million, with a net loss of $0.131 million and an earnings per share of -$0.0017. On a year-over-year basis, revenue was up 1.8% and gross profit rose 11.4%, but operating income deteriorated sharply (YoY operating income decline of about 225%). QoQ also showed a significant swing in profitability with operating income down about 1,400% and net income down about 49% from the prior quarter. The company maintains a modest cash generation profile, with $80k of operating cash flow and $80k of free cash flow in QQ1 2026, and $0.82 million in cash at period end. Balance sheet highlights include total assets of $8.82 million, total liabilities of $6.52 million, and a stockholders’ equity position of $2.30 million. Leverage remains elevated for a small cap, with total debt of $3.68 million and net debt of $2.86 million, and a current ratio around 1.20x. Management commentary (where available) suggests ongoing focus on core wellness/furnishings brands (Liberator, Avana, Jaxx) and multi-channel distribution, but no explicit quarterly forward guidance was published in the QQ1 2026 release. Investors should weigh a cautious stance given the margin compression, modest top-line growth, and balance sheet liquidity challenges against potential catalysts from product expansion, omni-channel growth, and licensing opportunities. This report consolidates the QQ1 2026 results, management discourse, industry context, and an investment view for LUVU.)