Lulus Q4 Gross Margin Jumps 640 bps to 44.3%, Positive $2.6 M EBITDA
Lulus posted Q4 gross profit of $27.9 million, up 11%, and gross margin of 44.3% (+640 bps) while net revenue fell 5% to $63 million and Adjusted EBITDA reached $2.6 million. Management forecasts positive full-year 2026 EBITDA and expects Q1 net debt to fall to around $8 million.
1. Q4 2025 Financial Results
Lulus generated net revenue of $63.0 million in Q4 2025, down 5% year-over-year as total orders declined 11% while average order value rose 6% to $137. Gross profit climbed 11% to $27.9 million, boosting gross margin by 640 basis points to 44.3%, and Adjusted EBITDA turned positive $2.6 million.
2. FY 2025 Performance
For fiscal 2025, net revenue decreased 11% to $282.3 million driven by a 15% drop in total orders and a modest 2% rise in average order value to $140. Despite a 6% decline in gross profit to $122.1 million, gross margin expanded by 200 basis points to 43.2%, narrowing the Adjusted EBITDA loss to $1.2 million and reducing net loss to $13.7 million.
3. 2026 Financial Outlook
Management expects first-quarter 2026 revenue trends to be sequentially lower than Q4 2025 and Adjusted EBITDA to remain negative, but anticipates meaningful year-over-year improvement. The company forecasts positive full-year 2026 EBITDA, targets first-quarter net debt of $7.5–8.0 million, and aims to drive profitability through margin optimization, cost discipline, and inventory management.