This article first appeared on GuruFocus .
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Revenue (Q2):$57 million, a 4% decrease year-over-year due to the deliberate phase-out of long-tail products.
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Revenue (H1):$108.8 million, a 3% increase year-over-year.
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Gross Margin (Q2):66.1%, stable compared with 65.9% in the prior-year quarter.
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Net Income (Q2):$1.6 million, compared with $2 million in the same quarter last year.
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Net Income (H1):$2.7 million, up approximately 28% year-over-year.
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Adjusted EBITDA (Q2):$1.9 million.
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Adjusted EBITDA (H1):$3.3 million.
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Total Operating Expenses (Q2):$35 million, a 4% decrease year-over-year; as a percentage of revenue, decreased from 63% to 62%.
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Fulfillment Expenses (Q2):Decreased 3% to $4 million.
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Selling and Marketing Expenses (Q2):Decreased 4% to $27 million.
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G&A Expenses (Q2):Decreased 5% to $5 million.
Release Date: August 26, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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First-half 2026 revenue increased 3% year-over-year to $108.8 million, with net income growing approximately 28% to $2.7 million.
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Gross margin remained resilient at 66.1% in Q2 2026, up slightly from 65.9% a year ago, reflecting a focus on higher-margin lifestyle products.
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Disciplined expense management led to a 4% year-over-year decrease in total operating expenses, with selling and marketing expenses down 4% and G&A expenses down 5%.
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The company's brand matrix strategy (Ador, Msglamor, Skol) is showing good progress in top-line, bottom-line, and repeat purchase rates, with plans to add new brands.
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Adjusted EBITDA improved to $3.3 million in the first half of 2026, and the company remained profitable in Q2 with net income of $1.6 million.
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The company is leveraging AI to enhance product discovery, personalization, and curation, positioning itself for evolving consumer needs.
Negative Points
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Q2 2026 total revenues decreased 4% year-over-year to $57 million, impacted by the deliberate phase-out of long-tail products.
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The external environment was challenging, with geopolitical disruptions increasing pressure on cross-border logistics and related costs.
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A weaker US dollar created additional foreign exchange headwinds for global operations.
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Net income in Q2 2026 declined to $1.6 million from $2 million in the same quarter last year.
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The company did not provide specific details on insider ownership or public float, which may leave investors with limited transparency.
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The phase-out of long-tail products contributed to a marginal revenue decline, indicating a potential short-term trade-off for strategic focus.
Q & A Highlights
Q: Could you provide an update on how many shares are in the public float, and how much do insiders own of the company? A: Wenyu Liu (CFO) declined to provide specific figures on the call, directing investors to the company's IR website for details on insider share percentage.
Q: Can you provide details on the company's brand matrix strategy, specifically regarding the three brands (Ador, Msglamor, and Skol) and any plans for adding new brands? A: Wenyu Liu (CFO) stated that the three brands are showing good progress in both top-line revenue and bottom-line profitability, with increasing repeat purchase rates. The company is also preparing additional brands to enhance its brand matrix, though no specific timeline or names were disclosed.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
