Key Financial Highlights
Q1 2025
Q1 2026
Change
US$'000
US$'000
(%)
Net revenue
79,486
92,530
16
%
Export
74,488
87,132
17
%
Retail
1,442
2,484
72
%
Leather
3,556
2,914
(18
)%
By geographical
79,486
92,530
16
%
Asia Pacific
23,030
22,666
(2
)%
Europe
45,790
57,731
26
%
North America
10,666
12,133
14
%
Gross profit
20,056
26,859
34
%
Gross margin (%)
25.2
%
29.0
%
3.8 pp
Operating expenses
17,938
22,009
23
%
Selling expenses
13,190
17,376
32
%
General and Administrative
4,412
4,356
(1
)%
Listing expenses
336
277
(18
)%
Income from operations
2,117
4,850
129
%
Net income
2,381
3,243
36
%
Earnings per share (Basic and diluted)
0.027
0.036
36
%
Financial results for the quarter ended March 31, 2025 ("Q1 2025") and Q1 2026, unless otherwise stated, reflect the inclusion of HTL Marketing Pte. Ltd. ("HTL Marketing") because of the acquisition of 100% of equity interests in HTL Marketing completed on May 19, 2025.
Q1 2026 Performance
The Company reported net revenue of $92.5 million in Q1 2026, a 16% increase from $79.5 million in Q1 2025. Growth was primarily driven by a $12.6 million increase in export sales. By region, the net revenue from Europe and North America increased by 26% and 14% respectively, partially offset by a slight decline of 2% in Asia Pacific. Retail sales contributed the increase of $1.0 million in Q1 2026, attributable to the expansion of the retail stores and retail sales growth in Korea.
Gross profit rose 34% to $26.9 million, with gross margin expanding 3.8 percentage points to 29.0%, supported by a more favourable sales mix. Operating expenses increased by $4.1 million mainly due to higher selling expenses in line with increased sales volume, as well as rising shipping and trucking costs.
Income from operations increased by 129% from $2.1 million in Q1 2025 to $4.9 million in Q1 2026. The Company recorded a foreign exchange loss of $1.0 million in Q1 2026, compared to a gain of $1.2 million in Q1 2025, primarily due the strengthening of the Chinese Renminbi against the US Dollar.
Net income rose 36% from Q1 2025 to $3.2 million in Q1 2026, with earnings per share at $0.036 in Q1 2026.
Financial Position
Cash flow from operating activities improved to an inflow of $2.0 million in Q1 2026, compared to an outflow of $1.1 million in the same period last year. Net cash used in investing and financing activities amounted to $0.01 million and $2.4 million, respectively.
As of March 31, 2026, the Company maintained a strong liquidity position, with cash and cash equivalents of $26.6 million and total short-term borrowings of $3.7 million.
Outlook
HomesToLife expects to remain well supported by its strong balance sheet and plans to continue to exercise disciplined capital allocation to ensure it is well positioned to capture future growth opportunities.
The Company projects FY2026 revenue to be in the range of $400 million to $420 million, underpinned by sustained strength in the export market, barring unforeseen circumstances.
The Company intends to continue to monitor geopolitical developments in the Middle East. While there has been no material impact on the Company's financial performance, the Company expects to remain attentive to potential secondary effects, including volatility in global energy prices, supply chain disruptions, and fluctuations in raw material costs and currency markets. The Company's guidance reflects current market conditions, and the Company plans to provide updates as appropriate should conditions evolve.
"Our strong performance despite ongoing geopolitical developments reflects the resilience of our business and the benefits of our geographically diversified operations," said Ms. Phua Mei Ming, Chief Executive Officer of HomesToLife. "We will remain vigilant in observing ongoing developments and respond with agility, while continuing to pursue new growth opportunities and deepen presence in our key markets."
About HomesToLife Ltd (NASDAQ:HTLM)
HomesToLife Ltd is a global furniture company with three core divisions: (i) consumer retail division with direct operations in Singapore and Korea, (ii) export division for supplying furniture to retail partners worldwide, and (iii) leather trading division.
Leveraging more than 50 years of heritage built by its founders, HTLM combines retail, distribution and sourcing, supported by a diversified manufacturing network across China, Vietnam and India.
In May 2025, HTLM strengthened its design, product development and merchandising function through the acquisition of HTL Marketing.
HTLM is fast expanding across Europe, Asia-Pacific, and North America, leveraging long-standing supplier partnerships and a global presence to deliver scale, efficiency, and resilience.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company's current expectations and projections about future events that the Company believes may affect financial condition, results of operations, business strategy and financial needs of the Company and its subsidiaries. Forward-looking statements can be identified by the words such as "approximates," "believes," "hopes," "expects," "anticipates," "estimates," "projects," "intends," "plans," "will," "would," "should," "could," "may" or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the SEC.
Contacts
HomesToLife Ltd Contact:
6 Raffles Boulevard, #02-01/02Marina Square, Singapore 039594Email: [email protected]
Investor Relations Inquiries:
Edelman SmithfieldJass LimEnya Rodrigues[email protected]
HOMESTOLIFE LTD AND SUBSIDIARIES
UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS
(Currency expressed in United States Dollars ("US$"), except for number of shares)
As of
December 31, 2025
March 31, 2026
ASSETS
Current assets:
Cash and cash equivalents
$
27,276,091
$
26,630,923
Accounts receivables, net (including receivable from related parties of $5,763,509 and nil as of December 31, 2025 and March 31, 2026, respectively)
76,010,709
65,017,746
Inventories, net
9,599,490
10,860,302
Amounts due from related parties
7,026,092
3,324,798
Deposit, prepayments and other receivables
5,853,470
9,432,921
Total current assets
125,765,852
115,266,690
Non-current assets:
Property, plant and equipment, net
4,354,206
4,161,787
Right-of-use assets, net
7,363,312
7,173,460
Investments in equity securities
-
1,000,000
Other non-current assets
1,000,000
-
Deferred tax asset, net
673,416
683,542
Total non-current assets
13,390,934
13,018,789
TOTAL ASSETS
$
139,156,786
$
128,285,479
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable
$
4,475,242
$
3,811,953
Accounts payable, related parties
74,890,989
65,541,579
Customer deposits
1,195,989
1,397,090
Accrued liabilities and other payables
6,065,126
8,325,239
Short-term borrowings
10,389,094
3,666,845
Lease liabilities, current
1,924,657
2,180,557
Warranty liabilities
2,188,814
2,046,420
Derivatives financial instruments
74,765
44,250
Income tax payable
4,156,085
4,967,603
Total current liabilities
105,360,761
91,981,536
Long-term liabilities:
Provision for reinstatement cost
382,112
376,996
Lease liabilities
5,572,603
5,124,982
Total long-term liabilities
5,954,715
5,501,978
TOTAL LIABILITIES
111,315,476
97,483,514
Commitments and contingencies
-
-
Shareholders' equity:
Ordinary share, $0.0001 par value, 500,000,000 shares authorized,89,687,500 and 89,687,500 shares issued and outstanding as of December 31, 2025 and March 31, 2026
8,969
8,969
Additional paid-in capital
37,179,424
37,179,424
Accumulated other comprehensive loss
(12,111,193
)
(12,393,912
)
Retained earnings
2,764,110
6,007,484
Total shareholders' equity
