Hour Loop, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $25.8 million, a 4.68% increase from $24.7 million in the same period last year. The company achieved a net income of $654,517, down from $1.1 million in the prior year, reflecting a decrease in profitability. The gross profit for the quarter was $14.1 million, compared to $14.5 million in the previous year, indicating a slight decline in gross margin. Operating expenses rose to $13.2 million, up 2.4% from $12.9 million, primarily due to increased selling and marketing costs.
In terms of operational metrics, Hour Loop reported approximately 1.23 million orders in the first quarter of 2025, a 9.49% increase from 1.12 million orders in the same quarter of 2024. This growth in order volume was attributed to rising customer demand, although competitive pricing pressures and discounts impacted overall revenue growth. The company’s inventory as of March 31, 2025, stood at $15.9 million, an increase from $14.6 million at the end of 2024, reflecting ongoing efforts to manage stock levels amid fluctuating market conditions.
The company has also made strategic adjustments in response to recent tariff increases affecting imports from China. Effective April 2025, Hour Loop expanded its inventory holding policy to maintain a coverage of 3 to 6 months, up from 1.5 to 2 months, to mitigate supply chain disruptions. Additionally, the company temporarily suspended containerized exports from China and implemented price increases on select finished goods to stabilize margins.
As of March 31, 2025, Hour Loop had total assets of $19.1 million, down from $20 million at the end of 2024. The company’s cash position decreased to $1.3 million from $2.9 million, primarily due to cash used in operating activities. The company reported total liabilities of $13.3 million, with accounts payable increasing significantly to $6.9 million from $4.2 million. Looking ahead, Hour Loop aims to continue expanding its product offerings and vendor relationships while navigating the challenges posed by market conditions and competitive pressures.