LightInTheBox (NYSE:LITB) reported what management described as “excellent results” for the fourth quarter and full year 2025, highlighting a return to year-over-year revenue growth in the December quarter and a full-year swing to profitability as the company continued its shift toward a “global consumer lifestyle company.”
Management highlights strategy shift toward “consumer lifestyle” positioning
Chief Executive Officer Jian He said 2025 marked a key milestone in LightInTheBox’s ongoing transformation, with the company delivering “consecutive profitable quarters,” a record quarterly profit in the fourth quarter, and a full-year turnaround. He said the company’s online platform has increasingly focused on festivals, holidays, and special occasions with “highly customized” products designed to address consumer sentiment and lifestyle preferences rather than purely functional needs, which he said supports premium pricing.
Branded apparel contribution and margin expansion
He said the branded apparel business grew more than 143% in 2025 and accounted for 17% of total revenue, up from 6% in 2024. He also pointed to a full-year gross margin of 65% in 2025, which he said was the highest since the company became public in 2013, along with positive operating cash flow of $6.2 million.
The CEO added that the company has “fully embraced AI” to identify real-time marketing trends and improve operating efficiency across product design, photographic style, marketing channels, and customer service. He said end-to-end AI automation contributed to a workforce optimization of 58% since 2023, which he said helped improve profit margins and financial results.
Fourth-quarter results: revenue growth returns, profits reach record levels
Chief Financial Officer Suhai Ji said fourth-quarter revenue was $63 million, up 9% year-over-year, marking a return to top-line growth after year-over-year declines in prior quarters. Gross profit rose 16% year-over-year to $39 million, and gross margin improved to 63% from 59% a year earlier. Ji attributed the margin improvement largely to higher-margin proprietary product lines and “bespoke offerings like print-on-demand apparel.”
Operating expenses increased 8% year-over-year to $36 million. Ji said fulfillment expenses rose 7% to $4 million, reflecting revenue growth, while selling and marketing expenses increased 15% to $26 million. General and administrative expenses declined 15% to $5 million. Operating expenses as a percentage of revenue were “roughly unchanged” at 57%, Ji said.
Net income for the quarter was $3.3 million, up from $0.5 million in the prior-year quarter, which Ji described as a record quarterly profit since 2022.
Full-year 2025: revenue declines, but profitability turns positive
For full-year 2025, Ji said revenue decreased 12% year-over-year to $224 million, which he attributed mainly to the company’s pivot toward profitability. He said revenue declines moderated significantly from the first quarter through the third quarter, and that the company returned to positive year-over-year growth in the fourth quarter.
Full-year gross profit was $146 million, down 5% year-over-year, but gross margin increased to 65% from 60% in 2024, which Ji also said was the highest level since the company’s 2013 public listing. He credited the improvement primarily to the introduction of higher-margin proprietary product lines.
Total operating expenses fell 11% year-over-year to $138 million. Ji said:
- Fulfillment expenses decreased 12% to $17 million.
- Selling and marketing expenses decreased 8% to $103 million.
- General and administrative expenses decreased 24% to $20 million.
Operating expenses as a percentage of revenue were “roughly unchanged” at 61%, Ji said. The company reported net income of $8.3 million for 2025, compared with a loss of $2.5 million in 2024. Ji also said LightInTheBox generated $6.2 million in operating cash flow for the year, noting that additional cash flow details would be available in its Form 20-F, which he said would be filed the following week.
2026 outlook, shareholder base, and share count details
During the Q&A session, management was asked whether 2026 would be a growth year. He said the company remained confident it would deliver another year of growth “not only on profit, but also on revenues,” though he noted the company had not yet issued official guidance. He said guidance would likely be provided around the first quarter.
Asked about the shareholder base, management said insiders and directors hold roughly 70% of shares, leaving approximately 30% in the public float. Management also said the total share base is roughly 18 million ADS, and that each ADS represents about 12 common shares.
About LightInTheBox (NYSE:LITB)
LightInTheBox Co, Ltd. is a China-based global online retailer specializing in direct-to-consumer e-commerce. Headquartered in Beijing, the company operates two primary platforms—LightInTheBox and MiniInTheBox—that cater to customers around the world. Through these websites and mobile applications, it offers a broad range of merchandise, from fashion apparel and accessories to home and garden products, electronics, and wedding essentials.
Since its founding in 2007, LightInTheBox has focused on providing affordable, trend-driven items sourced from a network of suppliers in Asia.
