Luvu Brands Revenue Rises 5.8% as Operating Income Turns Positive

Luvu Brands reported fiscal 2026 net sales of $27.36 million, up 5.8%, as wholesale sales grew 8% and direct-to-consumer sales rose 2%. Gross margin expanded 200 basis points to 31.5%, and operating income turned positive at $876,000, while adjusted EBITDA climbed 218% to $1.26 million. The company attributed the improvement to stronger sales, cost controls and its vertically integrated U.S. manufacturing model. Operating cash flow also swung to positive $773,000, but Luvu still recorded a $246,000 net loss, which it said was affected by a non-cash deferred tax provision.