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Luvu Brands
(OTC:LUVU)
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Rating:45Neutral
Price Target:
$0.03
▲(3.33% Upside)
Action:Upgraded
Date:09/30/26
The score is held down primarily by weak financial quality—unstable profitability, compressed margins, and high leverage versus equity—despite modest revenue growth. Positive TTM operating and free cash flow provide some near-term support, while technicals are broadly neutral and valuation is constrained by negative earnings and no stated dividend yield.
Positive Factors
Revenue Growth
Revenue growth indicates continued demand and market activity despite the company’s profitability challenges. A larger revenue base can improve operating leverage over time, support reinvestment, and provide a foundation for recovering margins if cost control and pricing conditions improve.
Negative Factors
Margin Compression
Falling gross margins and a return to net losses weaken the economics of each revenue dollar and reduce the company’s ability to absorb cost or demand pressure. Persistent margin erosion could prevent revenue growth from translating into stronger earnings and cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Revenue growth indicates continued demand and market activity despite the company’s profitability challenges. A larger revenue base can improve operating leverage over time, support reinvestment, and provide a foundation for recovering margins if cost control and pricing conditions improve.
Read all positive factors
Luvu Brands (LUVU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.69M
Dividend YieldN/A
Average Volume (3M)12.78K
Price to Earnings (P/E)―
Beta (1Y)0.03
Revenue Growth10.82%
EPS Growth44.83%
CountryUS
Employees189
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding76,834,060
10 Day Avg. Volume25,222
30 Day Avg. Volume12,777
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)1.40
Price to Sales (P/S)0.11
P/FCF Ratio4.13
Enterprise Value/Market Cap2.86
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit0.90
Enterprise Value/Ebitda5.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 se...
Luvu Brands Earnings Call Summary
Earnings Call Date:May 16, 2024
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 18, 2026
Earnings Call Sentiment Neutral
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.Positive Updates
Jaxx Brand Growth
Jaxx product sales increased by 16% to $1.4 million in Q3 compared to $1.2 million in the same quarter of the prior year, showing steady progress with new e-commerce partners and categories.
Negative Updates
Overall Sales Decline
Net sales in Q3 decreased by 14% to $5.9 million compared to $6.9 million in the same quarter of the prior year, with a 18% decline for the 9 months ending March 31, 2024.
Read all updates
Q3-2024 Updates
Positive
Negative
Jaxx Brand Growth
Jaxx product sales increased by 16% to $1.4 million in Q3 compared to $1.2 million in the same quarter of the prior year, showing steady progress with new e-commerce partners and categories.
Read all positive 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
Income Statement
46
Neutral
Balance Sheet
34
Negative
Cash Flow
52
Neutral
| Breakdown | Jun 2026 | Sep 2025 | Sep 2024 | Jun 2023 | Sep 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.36M | 24.69M | 24.57M | 29.22M | 26.34M |
| Gross Profit | 8.61M | 6.47M | 6.53M | 7.19M | 6.00M |
| EBITDA | 1.23M | 359.00K | 586.00K | 2.24M | 1.55M |
| Net Income | 1.10M | -448.00K | -399.00K | 1.20M | 604.00K |
Balance Sheet | |||||
| Total Assets | 11.41M | 8.76M | 9.13M | 10.61M | 10.38M |
| Cash, Cash Equivalents and Short-Term Investments | 1.20M | 735.00K | 1.03M | 1.04M | 859.00K |
| Total Debt | 5.81M | 3.81M | 4.17M | 4.87M | 5.20M |
| Total Liabilities | 9.21M | 6.34M | 6.30M | 7.40M | 8.43M |
| Stockholders Equity | 2.20M | 2.42M | 2.83M | 3.21M | 1.95M |
Cash Flow | |||||
| Free Cash Flow | 744.00K | -451.00K | 404.00K | 546.00K | 335.00K |
| Operating Cash Flow | 773.00K | -410.00K | 475.00K | 661.00K | 387.00K |
| Investing Cash Flow | -29.00K | -41.00K | -71.00K | -115.00K | -52.00K |
| Financing Cash Flow | -280.00K | 158.00K | -417.00K | -364.00K | -453.00K |
Luvu Brands Technical Analysis
Positive
0.03
Price Trends
0.03
Positive
0.03
Positive
0.03
Positive
Market Momentum
<0.01
Negative
60.99
Neutral
35.19
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For LUVU, the sentiment is Positive. The current price of 0.03 is below the 20-day moving average (MA) of 0.03, below the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 60.99 is Neutral, neither overbought nor oversold. The STOCH value of 35.19 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for LUVU.
Luvu Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $26.69M | 5.32 | 12.79% | 10.89% | -3.42% | ― | |
62 Neutral | $209.66M | 6.27 | 15.86% | 1.86% | -1.48% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $140.82M | -7.84 | -10.59% | 3.49% | -28.13% | -38.44% | |
53 Neutral | $179.26M | 26.56 | 4.12% | 3.86% | 1.40% | -11.99% | |
47 Neutral | $170.11M | -0.33 | -112.36% | ― | -60.10% | -15.00% | |
45 Neutral | $2.69M | -10.94 | -12.58% | ― | 10.82% | 44.83% |
* Consumer Cyclical Sector Average
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Luvu Brands
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-7.89%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.