Lulu's Q4 Shows Margin Rebound, Third Straight Positive Adjusted EBITDA

Stronger margins from pricing, product mix, lower shipping costs show the turnaround gaining traction.

Overview

Lulu's reported a diluted loss per share of $0.14 for Q4, beating expectations for a $1.35 loss.
Gross margin reached 44.3% in the quarter, up 6.4 percentage points year over year and the best fourth-quarter level since 2021.
Adjusted EBITDA came in at $2.6 million, marking a third consecutive positive quarter as cost cuts and simpler operations took hold.
Net revenue totaled $63.0 million for Q4, down 5% year over year, and $282.3 million for 2025, down 11% from 2024.
Management expects adjusted EBITDA to be negative in Q1 2026 but to turn positive for the full year, as assortment resets and broader wholesale placements at Nordstrom, Amazon, and other partners build momentum.