HomesToLife Ltd (Nasdaq: HTLM) reported fiscal‑year 2025 results that surpassed analyst expectations, with revenue rising 13% to $377.9 million and net income jumping 97% to $16.6 million. Gross profit climbed 27% to $105.3 million, lifting the gross margin to 27.9% from 26.8% in FY2024. The company’s return on average common shareholders’ equity reached 86%, underscoring disciplined cost management.
Export sales accounted for $349.6 million of revenue, up 12% year‑over‑year. Growth was driven by a 15% increase in Europe and a 19% rise in North America, while retail revenue doubled to $9.1 million thanks to an expanded footprint in Korea. These segment gains offset higher selling costs and freight rates, which rose 52% in FY2025.
Operating expenses increased 17% to $86.0 million, largely due to an $11.6 million rise in selling costs. General and administrative expenses grew 6% to $18.3 million, reflecting staff and expansion costs. Foreign‑exchange gains of $3.5 million, up from $2.2 million in FY2024, helped offset the higher input costs and contributed to the margin expansion.
For FY2026, HomesToLife guided revenue of $400–$420 million, citing continued momentum in export markets and a robust retail expansion in Korea. The company’s cash position stood at $27.3 million with total borrowings of $10.4 million, providing liquidity for further growth. The acquisition of HTL Marketing Pte. Ltd. in May 2025 has been integrated, strengthening design, product development, and merchandising capabilities, while a $1.0 million investment in Zeica Labs accelerates smart‑home innovation.
Ms. Phua Mei Ming, Chief Executive Officer, said, "We are pleased to deliver strong operational and financial results for the full year, underpinned by our diversified export model and disciplined capital management." She added, "As we move forward, we will continue to execute our expansion strategy, deepen our presence in key markets, and ensure that HomesToLife remains well positioned to capture new growth opportunities." The company acknowledges ongoing geopolitical risks that could impact global trade flows, but its diversified market presence and strategic investments position it to navigate headwinds while capitalizing on tailwinds such as favorable foreign‑exchange movements and growing demand for smart‑home products.
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