Luvu Brands reported QQ4 2024 results that show a modest revenue decline versus the prior year quarter, accompanied by margin stabilization and a small positive EBITDA, but a continued net loss. Revenue for QQ4 2024 was $5.74 million, down 6.24% YoY and 3.11% QoQ. Gross profit rose 24.8% year-over-year to $1.49 million, with a gross margin of 25.9%, signaling improvement in product mix or pricing discipline, yet the company still operates with a net loss of $0.208 million in the quarter. EBITDA remained positive at $0.117 million, suggesting operating leverage exists at low volumes, but the company’s bottom line is weighed down by interest and tax effects, as well as relatively high working capital and capital-light investment activity that did not translate into meaningful earnings power in this quarter.
From a cash flow perspective, the company generated $0.142 million in operating cash flow and $0.123 million in free cash flow, with cash and equivalents ending at $1.029 million. The balance sheet shows modest liquidity (current ratio ~1.32) but a sizable leverage footprint (total debt of $4.173 million and net debt around $3.145 million) given a market cap that remains micro-cap in scale. Management commentary is not included in the provided data, limiting qualitative insight into strategic trajectory; however, the period reflects stabilization in gross margins and a reversion toward positive cash flow metrics even as net income remains negative.
Looking ahead, management has not issued explicit forward guidance in the data provided. Investors should monitor topline resilience through e-commerce and direct-to-consumer channels, gross margin progression, and the pace of debt reduction versus cash flow generation. In the near term, the stock remains a high-risk, low-visibility, small-cap opportunity with potential for upside if revenue growth can be sustained and cost structure can be further optimized.