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Luvu Brands (LUVU) AI Stock Analysis
Luvu Brands
(Other OTC:LUVU)
LUVU scores low, driven primarily by a fragile financial profile: continued net losses, minimal operating margins, and a highly leveraged balance sheet where $5.8 million of debt dwarfs a steadily eroding $2.2 million equity base. Offsetting positives include a return to revenue growth, stable gross margins and a swing back to positive free cash flow. Technicals are the brightest element, with the stock holding above its 50-, 100- and 200-day moving averages, though momentum has cooled near term. Valuation provides little support given negative earnings and no dividend, leaving this a speculative, higher-risk micro-cap where sustained sales growth and margin improvement are essential.
Luvu Brands (LUVU) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $3.84M
- Dividend Yield
- ―
- Average Volume (3M)
- 50.10K
- Price to Earnings (P/E)
- -15.6
- Beta (1Y)
- -0.07
- Revenue Growth
- 10.82%
- EPS Growth
- 44.83%
- Country
- US
- Employees
- 189
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Furnishings, Fixtures & Appliances
Luvu Brands Business Overview & Revenue Model
Company Description
Luvu Brands, Inc. is a global enterprise that develops, produces, and sells a diverse range of items focused on well-being, everyday living, and relaxed seating. The company offers the Liberator line, which includes products designed to enhance sexua...
Luvu Brands Earnings Call Summary
The earnings call reflects a period of significant challenges for Luvu Brands, with notable declines in overall sales and key product lines such as Liberator. However, there are positive developments in the Jaxx and Avana brands, gross margin improvements, and strategic initiatives for future growth, including international expansion and new brand introductions. Despite the current difficulties, the company is focused on returning to growth through innovation and market expansion.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
During the Luvu Brands Q3 2024 earnings call, the company reported a 14% decrease in net sales to $5.9 million for the quarter, and an 18% decrease to $18.8 million for the nine months ending March 31, 2024. The Liberator brand saw a significant 23% decline in sales, while Jaxx products experienced a 16% increase, and Avana products rose by 5%. Gross profit for the quarter was $1.6 million, down 7% from the previous year, with a gross margin increase from 26% to 28%. Adjusted EBITDA for the nine months was $448,000, reflecting an 18% sales decline and increased marketing expenses. Inventory was reduced by 17%, and working capital slightly decreased to $1.7 million. The company outlined strategies for growth, including product innovation, increased marketing efforts, and international expansion, aiming to return to top-line growth in the coming year.
Luvu Brands Financial Statement Overview
Summary
Financials are weak overall. Revenue has recovered 8.7% to $27.4 million with gross margins holding in the mid-20% range, and free cash flow has swung back positive to $744 thousand after a cash-burning FY2025 — genuine signs of a turnaround. However, the company remains unprofitable with a TTM net loss of $244 thousand and razor-thin operating margins, and the balance sheet is the biggest concern: $5.8 million of debt against just $2.2 million of shrinking equity, leaving leverage elevated and financial flexibility minimal if demand softens.
Income Statement
37NegativeBalance Sheet
28NegativeCash Flow
48Neutral| Breakdown | TTM | Jun 2026 | Sep 2025 | Sep 2024 | Jun 2023 | Sep 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 27.36M | 27.36M | 24.69M | 24.57M | 29.22M | 26.34M |
| Gross Profit | 8.53M | 8.61M | 6.47M | 6.53M | 7.19M | 6.00M |
| EBITDA | 1.36M | 1.23M | 359.00K | 586.00K | 2.24M | 1.55M |
| Net Income | -244.00K | 1.10M | -448.00K | -399.00K | 1.20M | 604.00K |
Balance Sheet | ||||||
| Total Assets | 11.41M | 11.41M | 8.76M | 9.13M | 10.61M | 10.38M |
| Cash, Cash Equivalents and Short-Term Investments | 1.20M | 1.20M | 735.00K | 1.03M | 1.04M | 859.00K |
| Total Debt | 5.81M | 5.81M | 3.81M | 4.17M | 4.87M | 5.20M |
| Total Liabilities | 9.21M | 9.21M | 6.34M | 6.30M | 7.40M | 8.43M |
| Stockholders Equity | 2.20M | 2.20M | 2.42M | 2.83M | 3.21M | 1.95M |
Cash Flow | ||||||
| Free Cash Flow | 744.00K | 744.00K | -451.00K | 404.00K | 546.00K | 335.00K |
| Operating Cash Flow | 773.00K | 773.00K | -410.00K | 475.00K | 661.00K | 387.00K |
| Investing Cash Flow | -29.00K | -29.00K | -41.00K | -71.00K | -115.00K | -52.00K |
| Financing Cash Flow | -280.00K | -280.00K | 158.00K | -417.00K | -364.00K | -453.00K |
Luvu Brands Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUVU, the sentiment is Neutral. The current price of 0.05 is below the 20-day moving average (MA) of 0.06, above the 50-day MA of 0.04, and above the 200-day MA of 0.03, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 47.36 is Neutral, neither overbought nor oversold. The STOCH value of 29.82 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for LUVU.
Luvu Brands Peers Comparison
Overall Rating
CRWS71Outperform
BSET54Neutral
HOFT51Neutral
LCUT51Neutral- LUVU45Neutral
ATER33Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| CRWS | 71Outperform | $26.15M | 5.21 | 12.79% | 11.11% | -3.42% | ― |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| BSET | 54Neutral | $194.66M | 28.85 | 4.12% | 3.56% | 1.40% | -11.99% |
| HOFT | 51Neutral | $153.43M | -8.54 | -10.59% | 3.20% | -28.13% | -38.44% |
| LCUT | 51Neutral | $194.49M | 5.81 | 15.86% | 2.01% | -1.48% | ― |
| LUVU | 45Neutral | $4.00M | -15.63 | -12.58% | ― | 10.82% | 44.83% |
| ATER | 33Underperform | $196.72M | -0.38 | -112.36% | ― | -60.10% | -15.00% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| LUVU | Luvu Brands | 0.05 | 0.01 | 30.00% | |
| BSET | Bassett Furniture Industries, Incorporated | 22.50 | 8.47 | 60.42% | |
| CRWS | Crown Crafts | 2.43 | -0.18 | -7.04% | |
| HOFT | Hooker Furniture | 14.35 | 5.56 | 63.24% | |
| LCUT | Lifetime Brands | 8.46 | 5.52 | 187.46% | |
| ATER | Aterian, Inc. | 0.76 | -0.18 | -19.38% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 31, 2026