Q2 2026 LightInTheBox Holding Co Ltd Earnings Call

August 26, 2026

Operator: Hello, ladies and gentlemen. Thank you for standing by for LightInTheBox's Q2 2026 Earnings Conference Call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Wang. Please go ahead, Serena.

Operator: Hello, ladies and gentlemen. Thank you for standing by for LightInTheBox's second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Wang. Please go ahead, Serena.

Speaker #1: After management's prepared remarks, there will be a question-and-answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Huang.

Speaker #1: Please go ahead, Serena.

Speaker #2: Thank you, operator. Hello, everyone, and welcome to LightInTheBox's second quarter 2026 earnings conference call. The company's earnings results were released via newswire services earlier today and are available on the company's IR website at ir.litb.com.

Serena Huang: Thank you, operator. Hello everyone, and welcome to LightInTheBox second quarter 2026 earnings conference call. The company's earnings results were released via Newswire Services earlier today, and they are available on the company's IR website at ir.lightinthebox.com. On the call from LightInTheBox today are Mr. Jian He, CEO, and Mrs. Wenyu Liu, CFO. Mr. He will provide an overview of the company's Q2 highlights, followed by Mrs. Liu, who will go over its financial results.

Serena Wang: Thank you, operator. Hello everyone, and welcome to LightInTheBox second quarter 2026 earnings conference call. The company's earnings results were released via Newswire Services earlier today, and they are available on the company's IR website at ir.lightinthebox.com. On the call from LightInTheBox today are Mr. Jian He, CEO, and Mrs. Wenyu Liu, CFO. Mr. He will provide an overview of the company's Q2 highlights, followed by Mrs. Liu, who will go over its financial results. Following our prepared remarks, we will open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations.

Speaker #2: On the call from LightInTheBox today are Mr. Jianhe, CEO, and Mrs. Wendy Liu, CFO. Mr. He will provide an overview of the company's Q2 highlights.

Speaker #2: Followed by Mrs. Liu, who will go over its financial results. Following our prepared remarks, we will open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor Provisions of the U.S. Private Securities Litigation Reform Act of 1995.

Serena Huang: Following our prepared remarks, we will open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the Safe Harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations.

Speaker #2: These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations. To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the SEC.

Serena Wang: To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that LightInTheBox earnings press release and this conference call includes discussions of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures.

Serena Huang: To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20-F filed with the SEC. The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that LightInTheBox earnings press release and this conference call includes discussions of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures.

Speaker #2: The company does not assume any obligation to update any forward-looking statements, except as required under applicable law. Please also note that LightInTheBox’s earnings press release and this conference call include discussions of unaudited GAAP financial measures, as well as unaudited non-GAAP financial measures.

Speaker #2: Please refer to the company's earnings press release, which contains a reconciliation of the non-GAAP measures to the GAAP measures. Now, I'd like to turn the call over to LightInTheBox CEO, Mr. He.

Serena Wang: Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. Now I'd like to turn the call over to LightInTheBox CEO, Mr. He. Please go ahead.

Serena Huang: Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. Now I'd like to turn the call over to LightInTheBox CEO, Mr. He. Please go ahead.

Speaker #2: Please go ahead.

Speaker #3: Good morning and good evening, everyone. Thank you for joining LightInTheBox’s second quarter 2026 earnings call. We are pleased to report exciting results for the first half and the second quarter of 2026.

Jian He: Good morning and good evening, everyone. Thank you for joining LightInTheBox Q2 2026 earnings call. We are pleased to report excellent results for the H1 and the Q2 of 2026. Our H1 results provide a clear view of the progress we are working. Revenue increased 3% year-over-year to $108.8 million. Net income grew by approximately 28% to $2.7 million. Adjusted EBITDA also improved to $3.3 million. In the Q2, revenue declined moderately as we phased out long-tail products. Despite a challenging external environment, gross margin remained resiliently at 66%. Through disciplined expense management, we remained profitable, delivering net income of $1.6 million and adjusted EBITDA of $1.9 million. Over the past several years, we have steadily reshaped LightInTheBox and laid the foundation for sustainable, profitable growth.

Speaker #3: Our first half results provide a clear view of the progress we are making. Revenue increased 3% year over year to $108.8 million. Net income grew by approximately 28% to $2.7 million.

Speaker #3: Adjusted EBITDA also improved to $3.3 million. In the second quarter, revenue declined modestly as we phased out long-tail products. Despite a challenging external environment, gross margin remained resilient at 66% through disciplined expense management.

Jian He: Despite a challenging external environment, gross margin remained resiliently at 66%. Through disciplined expense management, we remained profitable, delivering net income of $1.6 million and adjusted EBITDA of $1.9 million. Over the past several years, we have steadily reshaped LightInTheBox and laid the foundation for sustainable, profitable growth.

Speaker #3: We remained profitable, delivering net income of $1.6 million and adjusted EBITDA of $1.9 million. Over the past several years, we have steadily reshaped LightInTheBox and laid the foundation for sustainable, profitable growth.

Speaker #3: From 2023 to 2024, we invested in our property repair brands and strengthened our in-house product development and production capabilities. This investment gave us greater control over product differentiation, quality, and speed to market.

Jian He: From 2023 to 2024, we invested in our proprietary apparel brands and strengthening our in-house product development and production capabilities. These investments gave us greater control over product differentiation, quality, and speed to market. In 2025, we made meaningful progress in evolving the LightInTheBox online platform into a consumer lifestyle company. By developing a deeper understanding of consumer preference and sentiment, we delivered differentiated products that forced engagement and built stronger emotional connection with consumers. This year, we are seeing another important shift. AI is rapidly becoming embedded in how people work, communicate, create, and make decisions. We believe we are transformed, not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives.

Speaker #3: In 2025, we made meaningful progress in evolving the LightInTheBox online platform into a consumer lifestyle company by developing a deeper understanding of consumer preferences and sentiment.

Jian He: By developing a deeper understanding of consumer preference and sentiment, we delivered differentiated products that forced engagement and built stronger emotional connection with consumers. This year, we are seeing another important shift. AI is rapidly becoming embedded in how people work, communicate, create, and make decisions. We believe we are transformed, not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives.

Speaker #3: We delivered a differentiated product that forced engagement and built a stronger emotional connection with consumers. This year, we are seeing another important shift: AI is rapidly becoming embedded in how people work, communicate, create, and make decisions.

Speaker #3: We believe we are transforming not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives.

Speaker #3: As technology becomes more deeply integrated into everyday life, we believe the desire for emotional connection, self-expression, and individually a better quality of life and memorable experiences will become even more important.

Jian He: As technology becomes more deeply integrated into everyday life, we believe the desire for emotional connection, self-expression, individuality, a better quality of life, and memorable experiences will become even more important. As a lifestyle company, we are well-positioned to address these evolving needs. Our transformation from the AI goes beyond adopting new technology tools. It requires a deeper understanding of consumer intent. Our AI strategy will focus on using technologies to anticipate evolving consumer needs and connect them more effectively with product discovery, personalization, and creation. At the same time, we will continue to evolve our product strategy around enduring human aspiration for self-expression, emotional value, and memorable experience. With that, I will now hand the call over to Wendy to go through our financial results.

Speaker #3: As a lifestyle company, we are well-positioned to adjust to these evolving needs. Our transformation in the AI era goes beyond adopting new technology tools; it requires a deeper understanding of consumer intent.

Speaker #3: Our AI strategy will focus on using technologies to anticipate evolving consumer needs and connect them more effectively. With product discovery, personalization, and cohesion, at the same time, we will continue to evolve our product strategy around the enduring human aspiration for self-expression, emotional value, and memorable experience.

Jian He: Our AI strategy will focus on using technologies to anticipate evolving consumer needs and connect them more effectively with product discovery, personalization, and creation. At the same time, we will continue to evolve our product strategy around enduring human aspiration for self-expression, emotional value, and memorable experience. With that, I will now hand the call over to Wendy to go through our financial results.

Speaker #3: With that, I will now hand the call over to Wendy to go through our financial results.

Speaker #4: Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that, unless otherwise stated, all figures are presented in U.S. dollars.

Wenyu Liu: Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that unless otherwise stated, all figures are presented in USD. In Q2, our total revenues were $57 million, a modest 4% decrease year-over-year, as we deliberately phased out long-tail products. This quarter was affected by a challenging external environment. Geopolitical disruptions increased pressure on cross-border logistics and related costs, while the weaker US dollar created additional foreign exchange headwinds for our global operations. Despite these factors, gross margin remained very stable at 66.1%, compared with 65.9% a year ago, reflecting our continued efforts on higher-margin lifestyle products. Total operating expenses in Q2 decreased by 4% year-over-year to $35 million, of which fulfillment expenses decreased by 3% to $4 million.

Speaker #4: In the second quarter, our total revenues were $57 million, a modest 4% decrease year over year, as we deliberately phased out long-tail products. This quarter was affected by a challenging external environment—geopolitical disruptions increased pressure on cross-border logistics and related costs, while the weaker US dollar created additional foreign exchange headwinds for our global operations.

Wenyu Liu: Geopolitical disruptions increased pressure on cross-border logistics and related costs, while the weaker US dollar created additional foreign exchange headwinds for our global operations. Despite these factors, gross margin remained very stable at 66.1%, compared with 65.9% a year ago, reflecting our continued efforts on higher-margin lifestyle products. Total operating expenses in Q2 decreased by 4% year-over-year to $35 million, of which fulfillment expenses decreased by 3% to $4 million.

Speaker #4: Despite these factors, gross margin remained very stable at 66.1%, compared with 65.9% a year ago, reflecting our continued efforts on higher-margin lifestyle products.

Speaker #4: Total operating expenses in the second quarter decreased by 4% year over year to $35 million, of which fulfillment expenses decreased by 3% to $4 million.

Speaker #4: Selling and marketing expenses decreased by 4% to $27 million, and G&A expenses decreased by 5% to $5 million. Total operating expenses as a percentage of revenue decreased from 63% to 62%.

Wenyu Liu: Selling and marketing expenses decreased by 4% to $27 million, and G&A expenses decreased by 5% to $5 million. Total operating expenses as a percentage of revenue decreased from 63% to 62%. Our net income in Q2 reached $1.6 million, compared to $2 million in the same quarter last year. This concludes my remarks. We are now open to your questions. Operator, please continue.

Speaker #4: Our net income in the second quarter reached $1.6 million, compared to $2 million in the same quarter last year. This concludes my remarks. We are now open to your questions.

Speaker #4: Operator, please continue.

Speaker #2: Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2.

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Thank you. Your question comes from Cyril DuKing, a private investor. Please go ahead.

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Thank you.

Speaker #2: Your question comes from Cyril Duking, a private investor. Please go ahead.

Speaker #3: Hi, team. Thanks for taking my call. I have a question relating to two topics, and those topics are insider ownership and your brand matrix strategy.

Cyril DuKing: Hi, team. Thanks for taking my call. I have questions relating the two topics, and the two topics are insider ownership and your brand matrix strategy. I will start with the first topic. I would appreciate it if you could provide an update on how many shares are in the public float and how much do insiders own of the company.

Speaker #3: And I'll start with the first topic. I would appreciate it if you could provide an update on how many shares are in the public float and how much insiders own of the company.

Speaker #4: Hi, thank you for your question. Regarding the insiders' share percentage, you may refer to our IR website for more details.

Wenyu Liu: I thank you for your question. Related to insider share percentage, you may refer to our IR website for more details.

Speaker #3: Okay.

Cyril DuKing: Okay.

Speaker #2: Thank you.

Operator: Thank you.

Speaker #4: Sorry. There's another question.

Wenyu Liu: Oh, there's another question.

Speaker #2: Thank you.

Operator: Thank you. There are no

Speaker #4: There's another question from you guys, I think.

Wenyu Liu: There's another question from Cyril.

Speaker #3: Yes, I'll go ahead and ask. My second question was concerning the brand matrix strategy. At an investor conference earlier this year, the company stated that its three brands are ADOR, Miss Glamour, and Ace Golf.

Cyril DuKing: Yes, I'll go ahead ask. My second question was concerning the brand matrix strategy. At an investor conference earlier this year, the company stated that its three brands are ADOR, Miss Glamour, and A. Skull. I was wondering if you could provide any details about any of the brands. Also you mentioned potentially adding maybe one to two brands a year if you find the right market. I would appreciate any thoughts about plans for new brands in this year or the next. Thank you.

Speaker #3: And I was wondering if you could provide any details about any of the brands, and also, you mentioned potentially adding maybe one to two brands a year if you find the right market. I would just appreciate any thoughts about plans for new brands in this year or the next.

Speaker #3: Thank you.

Wenyu Liu: Oh, thank you for your question. For these three brands, we do see good progress in terms of top line as well as bottom line, and we do see repeated purchase rates are increasing. So these three brands are progressing really good. At the same time, we are preparing other brands as well to enhance the brand matrix.

Speaker #4: Oh, thank you for your question. For these three brands, we do see good progress in terms of top line as well as bottom line.

Speaker #4: And we do see the repeat purchase rate increasing. So these three brands are progressing really well. At the same time, we are preparing other brands as well.

Speaker #4: To enhance the brand matrix.

Speaker #3: Thank you.

Cyril DuKing: Thank you.

Speaker #2: Thank you. There are no further phone questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.

Operator: Thank you. There are no further phone questions at this time, and that does conclude our conference for today. Thank you for participating. You may now disconnect.