Luvu Brands Inc (LUVU)
OTHER OTC:LUVU
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Luvu Brands
(OTC:LUVU)
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Rating:44Neutral
Price Target:
$0.03
▲(13.33% Upside)
Action:Reiterated
Date:06/04/26
The score is primarily weighed down by weak financial performance (thin/negative profitability, high leverage, and negative free cash flow). Technical indicators are modestly supportive with neutral momentum, but valuation remains challenged due to losses (negative P/E).
Positive Factors
Strong Revenue Growth
Sustained TTM revenue acceleration (+287%) signals product demand expansion and distribution scale. Over a 2–6 month horizon, rising top-line driven by broader adoption and channel penetration improves the firm's ability to leverage fixed costs and negotiate better sourcing, supporting medium-term operational scaling.
Negative Factors
Elevated Leverage
Rising leverage to ~3.5x increases financial rigidity and refinancing risk; compressed equity (~$1.7M) magnifies volatility from earnings swings. If operating performance softens, high debt levels can force austerity or asset sales, constraining investment in growth and increasing default risk over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Revenue Growth
Sustained TTM revenue acceleration (+287%) signals product demand expansion and distribution scale. Over a 2–6 month horizon, rising top-line driven by broader adoption and channel penetration improves the firm's ability to leverage fixed costs and negotiate better sourcing, supporting medium-term operational scaling.
Read all positive factors
Luvu Brands (LUVU) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.55M
Dividend YieldN/A
Average Volume (3M)61.79K
Price to Earnings (P/E)―
Beta (1Y)0.12
Revenue Growth2.65%
EPS Growth-239.02%
CountryUS
Employees192
SectorConsumer Cyclical
Sector Strength84
IndustryFurnishings, Fixtures & Appliances
Share Statistics
EPS (TTM)>-0.01
Shares Outstanding76,834,060
10 Day Avg. Volume175,295
30 Day Avg. Volume61,791
Financial Highlights & Ratios
PEG Ratio-0.80
Price to Book (P/B)1.71
Price to Sales (P/S)0.17
P/FCF Ratio-9.15
Enterprise Value/Market Cap2.79
Enterprise Value/Revenue0.28
Enterprise Value/Gross Profit1.07
Enterprise Value/Ebitda10.84
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. designs, manufactures, and markets various wellness, lifestyle, and casual seating products worldwide. The company offers Liberator, a brand category of products for enhancing sexual performance; and bed therapy products, assisti...
How the Company Makes Money
Luvu Brands makes money primarily by selling branded home furnishings and related consumer products. Its core revenue stream is product sales (e.g., seating, cushions, and other furniture-style items, including massage chairs) delivered through mu...
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
38
Negative
Balance Sheet
30
Negative
Cash Flow
27
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Jun 2023 | Sep 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 25.18M | 24.69M | 24.57M | 29.22M | 26.34M | 23.11M |
| Gross Profit | 6.66M | 6.47M | 6.53M | 7.19M | 6.00M | 6.30M |
| EBITDA | 657.00K | 359.00K | 586.00K | 2.24M | 1.55M | 2.36M |
| Net Income | -1.06M | -448.00K | -399.00K | 1.20M | 604.00K | 2.56M |
Balance Sheet | ||||||
| Total Assets | 11.18M | 8.76M | 9.13M | 10.61M | 10.38M | 10.25M |
| Cash, Cash Equivalents and Short-Term Investments | 1.23M | 735.00K | 1.03M | 1.04M | 859.00K | 977.00K |
| Total Debt | 6.05M | 3.81M | 4.17M | 4.87M | 5.20M | 5.56M |
| Total Liabilities | 9.46M | 6.34M | 6.30M | 7.40M | 8.43M | 8.92M |
| Stockholders Equity | 1.72M | 2.42M | 2.83M | 3.21M | 1.95M | 1.32M |
Cash Flow | ||||||
| Free Cash Flow | -39.00K | -451.00K | 404.00K | 546.00K | 335.00K | 330.00K |
| Operating Cash Flow | 77.00K | -410.00K | 475.00K | 661.00K | 387.00K | 540.00K |
| Investing Cash Flow | -116.00K | -41.00K | -71.00K | -115.00K | -52.00K | -210.00K |
| Financing Cash Flow | 159.00K | 158.00K | -417.00K | -364.00K | -453.00K | -505.00K |
Luvu Brands Technical Analysis
Neutral
0.03
Price Trends
0.03
Positive
0.03
Positive
0.03
Negative
Market Momentum
<0.01
Negative
49.92
Neutral
71.96
Neutral
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 0.03 is above the 20-day moving average (MA) of 0.03, above the 50-day MA of 0.03, and below the 200-day MA of 0.03, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 49.92 is Neutral, neither overbought nor oversold. The STOCH value of 71.96 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $304.94M | 9.76 | 17.68% | 1.77% | 4.83% | 111.79% | |
69 Neutral | $525.98M | 13.08 | 8.46% | 7.86% | -4.79% | -30.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $29.42M | -3.19 | -23.80% | 12.12% | -4.02% | -478.28% | |
44 Neutral | $2.55M | -2.89 | -14.98% | ― | 2.65% | -239.02% | |
41 Neutral | $26.44M | -0.77 | -35.17% | ― | 0.94% | -107.21% |
* Consumer Cyclical Sector Average
LUVU
Luvu Brands
0.03
-0.02
-34.00%
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ETD
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NTZ
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2.40
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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.