Revenue growth has decelerated to 3.03% year-over-year, while gross margins remain highly volatile, fluctuating between 45.7% and 58.6% over the last ten quarters.
| Sales/Revenue | 146.53M | 142.44M | 138.25M | 132.12M | 95.93M | 62.79M | 38.66M | 26.56M |
| Revenue Growth % | 5.11% | 3.03% | 4.64% | 37.73% | 52.77% | 62.44% | 45.51% | - |
| Cost of Goods Sold | 70.06M | 67.81M | 66.24M | 65.61M | 46.94M | 27.98M | 16.49M | 14.14M |
| COGS % of Revenue | - | 47.6% | 47.91% | 49.66% | 48.93% | 44.57% | 42.65% | 53.21% |
| Gross Profit | 76.47M | 74.63M | 72.01M | 66.52M | 48.99M | 34.81M | 22.17M | 12.43M |
| Gross Margin % | 52.19% | 52.4% | 52.09% | 50.34% | 51.07% | 55.43% | 57.35% | 46.79% |
| Gross Profit Growth % | - | 3.64% | 8.26% | 35.78% | 40.73% | 57.01% | 78.36% | - |
| Operating Expenses | 73.79M | 72.17M | 71.28M | 69.52M | 50.91M | 29.33M | 18.33M | 12.82M |
| OpEx % of Revenue | - | 50.67% | 51.56% | 52.62% | 53.07% | 46.72% | 47.42% | 48.26% |
| Selling, General & Admin | 73.79M | 72.17M | 71.28M | 69.52M | 50.91M | 29.25M | 18.24M | 12.63M |
| SG&A % of Revenue | - | 50.67% | 51.56% | 52.62% | 53.07% | 46.58% | 47.18% | 47.53% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 84.91K | 92.58K | 194.55K |
| Operating Income | 2.68M | 2.46M | 730.94K | -3M | -1.92M | 5.47M | 3.84M | -391.74K |
| Operating Margin % | 1.83% | 1.73% | 0.53% | -2.27% | -2% | 8.72% | 9.94% | -1.47% |
| Operating Income Growth % | - | 236.68% | 124.34% | -56.48% | -135.06% | 42.53% | 1080.38% | - |
| EBITDA | 2.84M | 2.66M | 850K | -2.87M | -1.84M | 5.47M | 3.87M | -372.79K |
| EBITDA Margin % | 1.94% | 1.86% | 0.61% | -2.17% | -1.92% | 8.72% | 10.01% | -1.4% |
| EBITDA Growth % | 552.59% | 212.5% | 129.66% | -55.71% | -133.61% | 41.51% | 1137.76% | - |
| D&A (Non-Cash Add-back) | 159.12K | 195.35K | 119.06K | 138K | 79.08K | 448 | 0 | 0 |
| EBIT | 2.7M | 2.46M | 1.21M | -2.91M | -1.8M | 5.55M | 3.87M | -372.79K |
| Net Interest Income | -171.16K | -184.27K | -249.59K | -248.78K | -144.48K | -56.51K | -43.27K | -51.79K |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 171.16K | 184.27K | 249.59K | 248.78K | 144.48K | 56.51K | 43.27K | 51.79K |
| Other Income/Expense | -87.4K | -63.34K | 228.62K | -157.03K | -20.43K | 18.83K | -15.18K | -32.84K |
| Pretax Income | 2.59M | 2.4M | 959.56K | -3.16M | -1.94M | 5.49M | 3.83M | -424.58K |
| Pretax Margin % | 1.77% | 1.68% | 0.69% | -2.39% | -2.02% | 8.75% | 9.9% | -1.6% |
| Income Tax | 720.98K | 692.74K | 302.11K | -730.76K | -462.16K | 709.21K | 0 | 0 |
| Effective Tax Rate % | 27.79% | 28.89% | 31.48% | 23.12% | 23.83% | 12.91% | 0% | 0% |
| Net Income | 1.87M | 1.7M | 657.45K | -2.43M | -1.48M | 4.78M | 3.83M | -424.58K |
| Net Margin % | 1.28% | 1.2% | 0.48% | -1.84% | -1.54% | 7.62% | 9.9% | -1.6% |
| Net Income Growth % | 661.25% | 159.31% | 127.06% | -64.43% | -130.89% | 25.05% | 1000.98% | - |
| Net Income (Continuing) | 1.87M | 1.7M | 657.45K | -2.43M | -1.48M | 4.78M | 3.83M | -424.58K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.05 | 0.05 | 0.02 | -0.07 | -0.04 | 0.14 | 0.11 | -0.01 |
| EPS Growth % | 612.86% | 159.36% | 126.98% | -64.22% | -130.14% | 27.27% | 902.92% | - |
| EPS (Basic) | - | 0.05 | 0.02 | -0.07 | -0.04 | 0.14 | 0.11 | -0.01 |
| Diluted Shares Outstanding | 35.18M | 35.16M | 35.12M | 35.07M | 35.05M | 33.3M | 33.3M | 34.81M |
| Basic Shares Outstanding | 35.18M | 35.16M | 35.12M | 35.07M | 35.05M | 33.3M | 33.3M | 34.81M |
| Dividend Payout Ratio | - | - | - | - | - | 44.57% | 0.02% | - |
Amazon platform dependency risk
As reported in recent financial filings, Hour Loop's revenue growth has decelerated to 3.03% year-over-year, suggesting that the company's reliance on third-party marketplace volume may be encountering a structural ceiling within its current SKU categories and competitive landscape on the Amazon platform.
The inconsistency in quarterly revenue growth, which swung from a 15.8% increase in 2026Q1 to a 3.4% decline in 2025Q2, indicates a lack of predictable organic expansion. Investors should monitor whether this volatility stems from marketplace algorithm changes or an inability to effectively scale its inventory procurement strategy.
Based on the company's reported figures, gross margins have fluctuated significantly between 45.7% and 58.6% over the last ten quarters, highlighting the inherent difficulty in maintaining pricing power when operating as a high-volume reseller within a third-party marketplace ecosystem.
The compression of gross margins during peak holiday quarters, such as the 45.7% observed in 2024Q4, suggests that the company may be forced to sacrifice pricing to move inventory or absorb higher fulfillment costs. This variability complicates the assessment of the company's long-term ability to extract value from its SKU catalog.
According to the income statement data, Hour Loop has struggled to achieve meaningful operating leverage, as evidenced by the recurring pattern of operating losses during high-revenue fourth quarters, which suggests that incremental sales volume is largely offset by proportional increases in fulfillment and advertising expenses.
The company's operating margin remains thin at 1.73%, indicating that the business model is highly sensitive to even minor fluctuations in operating expenses. The inability to scale operating income alongside revenue growth warrants further investigation into the efficiency of the company's automated inventory management systems.
Analysis of the provided financial statements reveals that Hour Loop's net margin of 1.20% leaves virtually no room for operational error, making the company exceptionally vulnerable to any upward shifts in Amazon's fee structures or unexpected increases in logistics and shipping costs.
Short-sellers would likely focus on the fact that the company's profitability is entirely dependent on maintaining a razor-thin spread between gross profit and marketplace take rates. Any sustained increase in advertising cost of sales or a decline in buy-box win rates could rapidly turn this marginally profitable enterprise into a loss-making entity.
Quick answers to the most common questions about buying HOUR stock.
For fiscal year 2025, Hour Loop, Inc. (HOUR) reported total revenue of $142.4M. This represents a 436.2% increase compared to $26.6M in 2019.
Hour Loop, Inc. (HOUR) is profitable, generating $1.7M in net income for the fiscal year ending 2025 with a net profit margin of 1.2%.
Hour Loop, Inc. (HOUR) reported an operating income of $2.5M, resulting in an operating profit margin of 1.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Hour Loop, Inc. (HOUR) generated $74.6M in gross profit for the year, representing a gross profit margin of 52.4%. This demonstrates the company's core pricing power and production efficiency.