# EDGAR Filing Document

**Accession Number:** 0001701758
**File Stem:** 0001628280-26-042366
**Filing Date:** 2026-6
**Character Count:** 139106
**Document Hash:** 97363e6243bea1ce462c3695287d4c06
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001628280-26-042366.hdr.sgml**: 20260611

**ACCESSION NUMBER**: 0001628280-26-042366

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 61

**CONFORMED PERIOD OF REPORT**: 20260503

**FILED AS OF DATE**: 20260611

**DATE AS OF CHANGE**: 20260611

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Lovesac Co
- **CENTRAL INDEX KEY:** 0001701758
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-FURNITURE STORES [5712]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 320514958
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0204

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-38555
- **FILM NUMBER:** 261081426

**BUSINESS ADDRESS:**
- **STREET 1:** 421 ATLANTIC STREET, SUITE 200
- **CITY:** STAMFORD
- **STATE:** CT
- **BUSINESS PHONE:** 203-817-2279

**MAIL ADDRESS:**
- **STREET 1:** 421 ATLANTIC STREET, SUITE 200
- **CITY:** STAMFORD
- **STATE:** CT

?xml version='1.0' encoding='ASCII'? love-20260503

**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

**FORM 10-Q**

☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the quarterly period ended May 3, 2026**

**or**

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

**For the transition period from&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;to &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**

---

| |
|:---|
| **Commission File Number: 001-38555** |
| **THE LOVESAC COMPANY**<br>**(Exact name of registrant as specified in its charter)** |

---

---

| | |
|:---|:---|
| **Delaware** | **32-0514958** |
| (State or other jurisdiction of<br>incorporation or organization) | (I.R.S. Employer<br>Identification No.) |

---

---

| | |
|:---|:---|
| **421 Atlantic Street**<br> **Stamford, Connecticut** | **06901** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(888) 636-1223**

**Not applicable**

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **Title of each class** | **Trading Symbol(s)** | **Name of each exchange on which registered** |
| Common Stock, $0.00001 par value per share | LOVE | The Nasdaq Stock Market LLC |

---

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files) ☒ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

---

| | | | |
|:---|:---|:---|:---|
| Large accelerated filer | ☐ | Accelerated filer | ☒ |
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ |
| | | Emerging growth company | ☐ |

---

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the Registrant is a shell company (as defined by Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of June 8, 2026, there were 14,638,418 shares of common stock, $0.00001 par value per share, outstanding.

------

**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**TABLE OF CONTENTS**

---

| | | |
|:---|:---|:---|
| | | **Page** |
| **<u>[PART I. FINANCIAL INFORMATION](#ie1586f1f7f4e4da795fab7ee5f619dcb_13)</u>** | **<u>[PART I. FINANCIAL INFORMATION](#ie1586f1f7f4e4da795fab7ee5f619dcb_13)</u>** | [1](#ie1586f1f7f4e4da795fab7ee5f619dcb_13) |
| <u>[Item 1.](#ie1586f1f7f4e4da795fab7ee5f619dcb_16)</u> | <u>[Financial Statements](#ie1586f1f7f4e4da795fab7ee5f619dcb_16)</u> | [1](#ie1586f1f7f4e4da795fab7ee5f619dcb_16) |
| | <u>[Condensed Balance Sheets as of May 3, 2026 and February 1, 2026 (unaudited)](#ie1586f1f7f4e4da795fab7ee5f619dcb_19)</u>  | [1](#ie1586f1f7f4e4da795fab7ee5f619dcb_19) |
| | <u>[Condensed Statements of Operations for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)](#ie1586f1f7f4e4da795fab7ee5f619dcb_22)</u> | [2](#ie1586f1f7f4e4da795fab7ee5f619dcb_22) |
| | <u>[Condensed Statements of Changes in Stockholders' Equity for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)](#ie1586f1f7f4e4da795fab7ee5f619dcb_25)</u> | [3](#ie1586f1f7f4e4da795fab7ee5f619dcb_25) |
| | <u>[Condensed Statements of Cash Flows for the thirteen weeks ended May 3, 2026 and May 4, 2025 (unaudited)](#ie1586f1f7f4e4da795fab7ee5f619dcb_28)</u> | [4](#ie1586f1f7f4e4da795fab7ee5f619dcb_28) |
| | <u>[Notes to Financial Statements (unaudited)](#ie1586f1f7f4e4da795fab7ee5f619dcb_31)</u> | [5](#ie1586f1f7f4e4da795fab7ee5f619dcb_31) |
| <u>[Item 2.](#ie1586f1f7f4e4da795fab7ee5f619dcb_70)</u> | <u>[Management's Discussion and Analysis of Financial Condition and Results of Operations](#ie1586f1f7f4e4da795fab7ee5f619dcb_70)</u> | [13](#ie1586f1f7f4e4da795fab7ee5f619dcb_70) |
| <u>[Item 3.](#ie1586f1f7f4e4da795fab7ee5f619dcb_124)</u> | <u>[Quantitative and Qualitative Disclosures about Market Risk](#ie1586f1f7f4e4da795fab7ee5f619dcb_124)</u> | [22](#ie1586f1f7f4e4da795fab7ee5f619dcb_124) |
| <u>[Item 4.](#ie1586f1f7f4e4da795fab7ee5f619dcb_127)</u> | <u>[Controls and Procedures](#ie1586f1f7f4e4da795fab7ee5f619dcb_127)</u> | [23](#ie1586f1f7f4e4da795fab7ee5f619dcb_127) |
| **<u>[Part II. OTHER INFORMATION](#ie1586f1f7f4e4da795fab7ee5f619dcb_130)</u>** | **<u>[Part II. OTHER INFORMATION](#ie1586f1f7f4e4da795fab7ee5f619dcb_130)</u>** | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_130) |
| <u>[Item 1.](#ie1586f1f7f4e4da795fab7ee5f619dcb_133)</u> | <u>[Legal Proceedings](#ie1586f1f7f4e4da795fab7ee5f619dcb_133)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_133) |
| <u>[Item 1A.](#ie1586f1f7f4e4da795fab7ee5f619dcb_136)</u> | <u>[Risk Factors](#ie1586f1f7f4e4da795fab7ee5f619dcb_136)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_136) |
| <u>[Item 2.](#ie1586f1f7f4e4da795fab7ee5f619dcb_139)</u> | <u>[Unregistered Sales of Equity Securities and Use of Proceeds](#ie1586f1f7f4e4da795fab7ee5f619dcb_139)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_139) |
| <u>[Item 3.](#ie1586f1f7f4e4da795fab7ee5f619dcb_142)</u> | <u>[Defaults Upon Senior Securities](#ie1586f1f7f4e4da795fab7ee5f619dcb_142)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_142) |
| <u>[Item 4.](#ie1586f1f7f4e4da795fab7ee5f619dcb_127)</u> | <u>[Mine Safety Disclosures](#ie1586f1f7f4e4da795fab7ee5f619dcb_145)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_145) |
| <u>[Item 5.](#ie1586f1f7f4e4da795fab7ee5f619dcb_148)</u> | <u>[Other Information](#ie1586f1f7f4e4da795fab7ee5f619dcb_148)</u> | [24](#ie1586f1f7f4e4da795fab7ee5f619dcb_145) |
| <u>[Item 6.](#ie1586f1f7f4e4da795fab7ee5f619dcb_154)</u> | <u>[Exhibits](#ie1586f1f7f4e4da795fab7ee5f619dcb_154)</u> | [25](#ie1586f1f7f4e4da795fab7ee5f619dcb_154) |

---

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**TRADEMARKS**

*The Lovesac Company owns or has rights to use multiple trademarks that it uses in conjunction with the operation of its business. The trademarks of The Lovesac Company, which are registered in U.S. Patent and Trademark Office, are the registered word trademarks of LOVESAC, DESIGNED FOR LIFE FURNITURE CO., DESIGNED FOR LIFE, DFL, ALWAYS FITS, FOREVER NEW, TOTAL COMFORT, THE WORLD'S MOST ADAPTABLE COUCH, SACTIONALS, LOVESOFT, SIDE, STEALTHTECH, DON'T JUST HEAR IT, FEEL IT, SACTIONALS POWER HUB, THE WORLD'S MOST VERSATILE TABLE, ANYTABLE, THE WORLD'S MOST COMFORTABLE SEAT, SACS, SAC, SUPERSAC, MOVIESAC, PILLOWSAC, CITYSAC, GAMERSAC, SQUATTOMAN, DURAFOAM, FOOTSAC, ROOM FOR TWO, REWRITING THE RULES OF COMFORT, and various registered design trademarks and registered trade dress. Solely for convenience, the Company only uses the™ or® symbols the first time any trademark or trade name is mentioned. Such references are not intended to indicate in any way that the Company will not assert, to the fullest extent permitted under applicable law, its rights to its trademarks and trade names. Each trademark or trade name of any other company appearing in this Quarterly Report on Form 10-Q is, to the Company's knowledge, owned by such other company.*

**FORWARD-LOOKING STATEMENTS**

*This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other legal authority, which statements may involve substantial risk and uncertainties. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results, financial position and liquidity, our business strategy and plans, market growth and trends, and our objectives for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions.*

*You should not place undue reliance on forward looking statements. We cannot assure you that the events and circumstances reflected in the forward-looking statements will be achieved or occur at all or on a specified timeframe. The cautionary statements set forth in this Quarterly Report on Form 10-Q, including in Part I – Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere, identify important factors which you should consider in evaluating our forward-looking statements. These factors include, among other things: business disruptions or other consequences of economic instability, recession, political instability, civil unrest, armed hostilities and global conflict, natural and man-made disasters, pandemics or other public health crises, or other catastrophic events; the impact of changes or declines in consumer spending and increases in interest rates and inflation on our business, sales, results of operations and financial condition; the costs of defending against class-action, derivative and other litigation or other legal or governmental proceedings, and any resulting liability that might arise from it; our ability to manage and sustain our growth and profitability effectively, including in our ecommerce business, forecast our operating results, and manage inventory levels; our cash flows, changes in the market price of our common stock, global economic and market conditions and other considerations that could impact the specific timing, price and size of repurchases under our stock repurchase program or our ability to fund any stock repurchases; our ability to improve our products and develop and launch new products; our ability to successfully open and operate new showrooms; our ability to advance, implement or achieve the goals set forth in our ESG Report; our ability to realize the expected benefits of investments in our supply chain and infrastructure, as well as our efforts to onshore manufacturing for a portion of our Sactionals production or other products; disruption in our supply chain and dependence on foreign manufacturing and imports for our products; execution of our share repurchase program and its expected benefits for enhancing long-term shareholder value; our ability to acquire new customers and engage existing customers; reputational risk associated with increased use of social media; our ability to attract, develop and retain highly skilled associates and employees; cybersecurity and vulnerability to electronic break-ins and other similar disruptions or other system interruptions or failures in our technology infrastructure needed to service our customers, process transactions and fulfill orders; unauthorized disclosure of sensitive or confidential information through breach of our computer system; the ability of third-party providers to continue uninterrupted service; the impact of changes in diplomatic and trade relations, as well as tariffs, and the countermeasures and tariff mitigation initiatives, as well as our ability to collect on our claims for refunds of tariffs previously paid and any other costs or liabilities we might incur as a result of those efforts; the regulatory environment in which we operate; our ability to maintain, grow and enforce our brand and intellectual property rights and avoid infringement or violation of the* 

ii

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

*intellectual property rights of others; any inability to implement and maintain effective internal controls over financial reporting; and our ability to compete and succeed in a highly competitive and evolving industry.* 

*We caution you that the foregoing list may not contain all of the factors that may impact the forward-looking statements made in this Quarterly Report on Form 10-Q.*

*You should not rely upon forward-looking statements as predictions of future events. We have based the forward-looking statements contained in this Quarterly Report on Form 10-Q primarily on our current expectations and projections about future events and trends that we believe may affect our business, financial condition, results of operations, and prospects. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties, and other factors described in the sections entitled "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and in this Quarterly Report on Form 10-Q. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this Quarterly Report on Form 10-Q. We cannot assure you that the results, events, and circumstances reflected in the forward-looking statements will be achieved or occur at all or on a specified timeline, and actual results, events, or circumstances could differ materially from those described in the forward-looking statements.*

*The forward-looking statements made in this Quarterly Report on Form 10-Q relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this Quarterly Report on Form 10-Q to reflect events or circumstances after the date of this Quarterly Report on Form 10-Q or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions, or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures, or investments we may make.* 

iii

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**PART I. FINANCIAL INFORMATION**

**Item 1. Financial Statements.**

**THE LOVESAC COMPANY**

**CONDENSED BALANCE SHEETS**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| (amounts in thousands, except share and per share amounts) | **May 3,<br>2026** | **February 1,<br>2026** |
| **Assets** |  |  |
| **Current Assets** |  |  |
| Cash and cash equivalents | $56998 | $101853 |
| Trade accounts receivable, net | 13158 | 11733 |
| Merchandise inventories, net | 109267 | 106317 |
| Prepaid expenses | 13390 | 10473 |
| Other current assets | 6178 | 6260 |
| **Total Current Assets** | 198991 | 236636 |
| Property and equipment, net | 86760 | 86400 |
| Operating lease right-of-use assets | 161310 | 163322 |
| Goodwill | 144 | 144 |
| Intangible assets, net | 2641 | 2373 |
| Deferred tax asset | 19039 | 13387 |
| Other assets | 32088 | 32420 |
| **Total Assets** | $500973 | $534682 |
| **Liabilities and Stockholders' Equity** |  |  |
| **Current Liabilities** |  |  |
| Accounts payable | $43837 | $43736 |
| Accrued expenses | 31601 | 38788 |
| Payroll payable | 10023 | 21936 |
| Customer deposits | 14324 | 11544 |
| Current operating lease liabilities | 24271 | 24111 |
| Sales taxes payable | 4317 | 6996 |
| **Total Current Liabilities** | 128373 | 147111 |
| Operating lease liabilities, long-term | 166602 | 168400 |
| Income tax payable, long-term | 464 | 464 |
| Line of credit |  |  |
| **Total Liabilities** | 295439 | 315975 |
| **Commitments and Contingencies (see Note 6)** |  |  |
| **Stockholders' Equity** |  |  |
| Preferred Stock $0.00001 par value, 10,000,000 shares authorized, no shares issued or outstanding as of May 3, 2026 and February 1, 2026. |  |  |
| Common Stock $0.00001 par value, 40,000,000 shares authorized, 14,638,550 shares issued and outstanding as of May 3, 2026 and 14,617,238 shares issued and outstanding as of February 1, 2026. |  |  |
| Additional paid-in capital | 195123 | 194843 |
| Accumulated earnings | 10411 | 23864 |
| **Stockholders' Equity** | 205534 | 218707 |
| **Total Liabilities and Stockholders' Equity** | $500973 | $534682 |

---

The accompanying notes are an integral part of these condensed financial statements.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**THE LOVESAC COMPANY**

**CONDENSED STATEMENTS OF OPERATIONS**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands, except per share data and share amounts) | **May 3,<br>2026** | **May 4,<br>2025** |
| Net sales | $138196 | $138373 |
| Cost of merchandise sold | 66222 | 64003 |
| Gross profit | 71974 | 74370 |
| Operating expenses: |  |  |
| &nbsp;&nbsp;Selling, general and administrative expenses | 68568 | 67117 |
| &nbsp;&nbsp;Advertising and marketing | 16599 | 18594 |
| &nbsp;&nbsp;Depreciation and amortization | 4181 | 3613 |
| Total operating expenses | 89348 | 89324 |
| Operating loss | (17374) | (14954) |
| Interest and other income, net | 666 | 325 |
| Net loss before taxes | (16708) | (14629) |
| Income tax benefit | 5615 | 3789 |
| Net loss | $(11093) | $(10840) |
| Net loss per common share: |  |  |
| &nbsp;&nbsp;Basic | $(0.76) | $(0.73) |
| &nbsp;&nbsp;Diluted | $(0.76) | $(0.73) |
| Weighted average shares outstanding: |  |  |
| &nbsp;&nbsp;Basic | 14668023 | 14792080 |
| &nbsp;&nbsp;Diluted | 14668023 | 14792080 |

---

The accompanying notes are an integral part of these condensed financial statements.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**THE LOVESAC COMPANY**

**CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY** 

**(unaudited)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** | **Thirteen weeks ended** | **Thirteen weeks ended** | **Thirteen weeks ended** |
| | **Common** | **Common** | | | |
| | **Shares** | **Amount** |<br>**Additional Paid-in Capital** |<br>**Accumulated Earnings** |<br>**Total Shareholders' Equity** |
| **Balance - February 1, 2026** | 14617238 | $— | $194843 | $23864 | $218707 |
| Net loss |  |  |  | (11093) | (11093) |
| Equity-based compensation |  |  | 2100 |  | 2100 |
| Vested restricted stock units | 162794 |  |  |  |  |
| Repurchases of common stock | (141482) |  |  | (2360) | (2360) |
| Taxes paid for net share settlement of equity awards |  |  | (1820) |  | (1820) |
| **Balance - May 3, 2026** | 14638550 | $— | $195123 | $10411 | $205534 |
| **Balance - February 2, 2025** | 14786934 | $— | $190510 | $25845 | $216355 |
| Net loss |  |  |  | (10840) | (10840) |
| Equity-based compensation |  |  | 2501 |  | 2501 |
| Vested restricted stock units | 68641 |  |  |  |  |
| Repurchases of common stock | (306325) |  |  | (6058) | (6058) |
| Taxes paid for net share settlement of equity awards |  |  | (744) |  | (744) |
| **Balance - May 4, 2025** | 14549250 | $— | $192267 | $8947 | $201214 |

---

The accompanying notes are an integral part of these condensed financial statements.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**THE LOVESAC COMPANY**

**CONDENSED STATEMENT OF CASH FLOWS**

**(unaudited)**

---

| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| **Cash Flows from Operating Activities** |  |  |
| Net loss | $(11093) | $(10840) |
| Adjustments to reconcile net loss to cash used in operating activities: |  |  |
| &nbsp;&nbsp;Depreciation and amortization of property and equipment | 4081 | 3545 |
| &nbsp;&nbsp;Amortization of other intangible assets | 100 | 68 |
| &nbsp;&nbsp;Amortization of deferred financing fees | 15 | 19 |
| &nbsp;&nbsp;Net loss on disposal of property and equipment | 38 | 21 |
| &nbsp;&nbsp;Equity based compensation | 2100 | 2501 |
| &nbsp;&nbsp;Non-cash lease expense | 7205 | 6684 |
| &nbsp;&nbsp;Deferred income taxes | (5652) | (3637) |
| Change in operating assets and liabilities: |  |  |
| &nbsp;&nbsp;Trade accounts receivable | (1425) | 3759 |
| &nbsp;&nbsp;Merchandise inventories | (2950) | (593) |
| &nbsp;&nbsp;Prepaid expenses and other current assets | (2850) | 5137 |
| &nbsp;&nbsp;Other assets | 332 | 935 |
| &nbsp;&nbsp;Accounts payable | 738 | (27228) |
| &nbsp;&nbsp;Accrued expenses and other payables | (21944) | (15720) |
| &nbsp;&nbsp;Operating lease liabilities | (6831) | (6417) |
| &nbsp;&nbsp;Customer deposits | 2780 | 389 |
| **Net cash used in operating activities** | (35356) | (41377) |
| **Cash Flows from Investing Activities** |  |  |
| Purchase of property and equipment | (5030) | (8577) |
| Payments for patents and trademarks | (285) | (124) |
| **Net cash used in investing activities** | (5315) | (8701) |
| **Cash Flows from Financing Activities** |  |  |
| Taxes paid for net share settlement of equity awards | (1820) | (744) |
| Repurchases of common stock | (2364) | (6000) |
| Payment of deferred financing costs |  | (12) |
| **Net cash used in financing activities** | (4184) | (6756) |
| **Net change in cash and cash equivalents** | (44855) | (56834) |
| Cash and cash equivalents - Beginning | 101853 | 83734 |
| Cash and cash equivalents - Ending | $56998 | $26900 |
| **Supplemental Cash Flow Data:** |  |  |
| Cash paid for taxes | $20 | $— |
| Cash paid for interest | $30 | $40 |
| Non-cash investing and financing activities: |  |  |
| &nbsp;&nbsp;Asset acquisitions not yet paid for at period end | $1282 | $519 |
| &nbsp;&nbsp;Leasehold improvements acquired through lease incentive | $— | $1824 |
| &nbsp;&nbsp;Excise tax on share repurchases, accrued but not paid | $— | $58 |

---

The accompanying notes are an integral part of these condensed financial statements.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**THE LOVESAC COMPANY**

**CONDENSED NOTES TO FINANCIAL STATEMENTS**

**Note 1. Basis of Presentation and Summary of Significant Accounting Policies**

The balance sheet of The Lovesac Company (the "Company", "we", "us" or "our") as of February 1, 2026, which has been derived from our audited financial statements as of and for the 52-week year ended February 1, 2026, and the accompanying interim unaudited condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission (the "SEC") for interim financial reporting. Certain information and note disclosures normally included in annual financial statements, prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), have been condensed or omitted pursuant to those rules and regulations. The financial information presented herein, which is not necessarily indicative of results to be expected for the full current fiscal year, reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the interim unaudited condensed financial statements. Such adjustments are of a normal, recurring nature. These condensed financial statements should be read in conjunction with the Company's financial statements filed in its Annual Report on Form 10-K for the fiscal year ended February 1, 2026.

Due to the seasonality of the Company's business, with the majority of our activity occurring in the fourth quarter of each fiscal year, the results of operations for the thirteen weeks ended May 3, 2026 and May 4, 2025 are not necessarily indicative of results to be expected for the full fiscal year.

***Nature of Operations***

We are a technology driven company that designs, manufactures and sells unique, high quality furniture derived through our proprietary Designed for Life® approach which results in products that are built to last a lifetime and designed to evolve as our customers' lives do. We market and sell our products through an omni-channel platform that includes direct-to-consumer touch points in the form of our own showrooms and online directly at www.lovesac.com. As of May 3, 2026, the Company operated 281 showrooms located throughout the United States. The Company was formed as a Delaware corporation on January 3, 2017, in connection with a corporate reorganization with SAC Acquisition LLC, a Delaware limited liability company, the predecessor entity to the Company.

***Use of Estimates***

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosure of contingent assets and liabilities. The Company evaluates its estimates and judgments on an ongoing basis based on historical experience, expectations of future events and various other factors we believe to be reasonable under the circumstances and revise them when necessary in the period the change is determined. Actual results may differ from the original or revised estimates.

***Recent Accounting Pronouncements***

*Recent Accounting Pronouncements Adopted*

Credit Losses. In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets. This ASU provides a practical expedient that allows entities to assume that current conditions do not change for the remaining life of the asset when developing reasonable and supportable forecasts for expected credit losses. The Company adopted this ASU effective February 2, 2026, and elected to apply the practical expedient. Due to the nature of the Company's trade receivable balance, the adoption of this ASU did not have a material impact on its condensed financial statements.

*Recent Accounting Pronouncements Not Yet Adopted*

Intangibles-Goodwill and Internal-Use Software. In September 2025, the FASB issued ASU 2025-06 Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which updates the cost capitalization threshold for internal-use software developments costs by removing all references to software project development stages and providing new guidance on how to evaluate whether the probable-to-complete recognition threshold has been met. This ASU is effective for annual periods beginning after December 15, 2027, with early adoption permitted. The Company is currently evaluating this ASU to determine the impact of adoption on its Condensed Financial Statements and related disclosures.

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Disaggregation of income statement expenses. In November 2024, the FASB issued ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40), which requires additional disclosure of certain costs and expenses within the notes to the financial statements. This accounting standards update will be effective for us for fiscal year 2028 and interim periods beginning in the first quarter of fiscal 2029, with early adoption permitted. The Company expects this ASU to only impact its disclosures with no impacts to its results of operations, cash flows or financial condition.

The Company has reviewed all other recently issued accounting pronouncements and concluded that such pronouncements are either not applicable to the Company or no material impact is expected in the consolidated financial statements as a result of future adoption.

***Research and Development Expenses***

Research and development costs are charged to expense in the period incurred. Research and development expenses were $2.1 million and $2.2 million during the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

**Note 2. Revenue Recognition** 

The Company's revenue consists substantially of product net sales. The Company reports product net sales net of discounts and recognizes them at the point in time when control transfers to the customer, which generally occurs upon our delivery to a third-party carrier.

Shipping and handling charges billed to customers are included in revenue. The Company recognizes shipping and handling expense as fulfillment activities (rather than a promised good or service) when the activities are performed. Accordingly, the Company records the expenses for shipping and handling activities at the same time the Company recognizes revenue. Shipping and handling costs incurred are included in cost of merchandise sold and include inbound freight and tariff costs relative to inventory sold, warehousing, and last mile shipping to our customers. Shipping and handling costs were $34.0 million and $27.2 million during the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

Estimated refunds for returns and allowances are recorded using our historical return patterns, adjusting for any changes in returns policies. The Company records estimated refunds for net sales returns on a monthly basis as a reduction to net sales and cost of sales on the condensed statement of operations and an increase in inventory and customer returns liability on the condensed balance sheet. As of May 3, 2026 and February 1, 2026, there was a returns allowance recorded on the condensed balance sheet in the amount of $5.2 million and $8.5 million, respectively, which was included in accrued expenses, and sales returns of $1.2 million and $1.9 million, respectively, included in merchandise inventories.

In some cases, deposits are received before the Company transfers control, resulting in contract liabilities. These contract liabilities are reported as customer deposits on the Company's condensed balance sheet. As of May 3, 2026 and February 1, 2026, the Company recorded customer deposit liabilities in the amount of $14.3 million and $11.5 million respectively. During the thirteen weeks ended May 3, 2026 and May 4, 2025, the Company recognized $11.5 million and $11.3 million, respectively, related to customer deposits from fiscal 2026 and 2025, respectively.

The Company offers its products through an inventory lean omni-channel platform that provides a seamless and meaningful experience to its customers in showrooms and through the internet. The Other channel predominantly represents net sales through the use of online and in store pop-up-shops, shop-in-shops, barter inventory transactions and the Loved by Lovesac program. In-store pop-up-shops and shop-in-shops are staffed with associates trained to demonstrate and sell our product. The following represents net sales disaggregated by channel:

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| Showrooms | $97052 | $96470 |
| Internet | 35682 | 33328 |
| Other | 5462 | 8575 |
| Total net sales | $138196 | $138373 |

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The Company has no foreign operations and had no sales to foreign countries for the thirteen weeks ended May 3, 2026. The Company's net sales to foreign countries was less than 0.01% of total net sales for the thirteen weeks ended May 4, 2025. The Company had no customers that comprise more than 10% of total net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025.

See Note 9. Segment Information for sales disaggregated by product.

***Barter Arrangements***

The Company has a bartering arrangement with a third-party vendor. The Company has the option to repurpose returned open-box inventory in exchange for media credits, which are being used to support our advertising initiatives to create brand awareness and drive net sales growth. Barter transactions with commercial substance are recorded at a transaction price based on the estimated fair value of the non-cash consideration of the media credits to be received, and the revenue is recognized when control of inventory is transferred, which is when the inventory is picked up in our warehouse. Fair value is estimated using various considerations, including the cost of similar media advertising if transacted directly, the expected sales price of product given up in exchange for the media credits, and the expected usage of media credits prior to expiration based on forecasted media spend subject to media credits under the barter arrangement. The Company recognizes an asset for media credits which is subsequently evaluated for impairment at each reporting period for any changes in circumstances. As the barter credits are expected to be utilized at various dates through their expiration dates, the Company classifies the amount expected to be utilized in the next fiscal year as current, which is included in Prepaid expenses, with the remaining balance included as part of Other assets on the balance sheet.

The Company did not recognize any barter sales in exchange for media credits during the thirteen weeks ended May 3, 2026 or May 4, 2025. As of May 3, 2026 and February 1, 2026, the Company had $2.5 million and $2.2 million, respectively, of unused media credits expected to be utilized in the next fiscal year classified as current, and the remaining balance of $29.7 million and $30.4 million, respectively, classified as non-current. The credits expire from January 2034 through October 2034 and the Company expects to utilize all credits prior to expiration. The Company did not recognize any impairment during the thirteen weeks ended May 3, 2026 or May 4, 2025. The difference between the opening and closing balances of the Company's prepaid barter credit primarily results from the utilization of media credits.

**Note 3. Income Taxes**

For the thirteen weeks ended May 3, 2026 and May 4, 2025, the Company recorded an income tax benefit of $5.6 million and $3.8 million, respectively, which reflects an effective tax rate of 33.6% and 25.9%, respectively. The effective tax rate for the thirteen weeks ended May 3, 2026 and May 4, 2025 varies from the 21% federal statutory tax rate primarily due to income state taxes and covered employees compensation limitation under Section 162m.

The Company does not anticipate any material adjustments relating to unrecognized tax benefits within the next twelve months; however, the ultimate outcome of tax matters is uncertain and unforeseen results can occur. The Company had no material interest or penalties during the thirteen weeks ended May 3, 2026 and May 4, 2025, and does not anticipate any such items during the next twelve months. The Company's policy is to record interest and penalties directly related to uncertain tax positions as income tax expense in the condensed statements of operations.

On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law. The OBBBA includes various changes to U.S. federal income tax law, including extensions of several expiring provisions from the Tax Cuts and Jobs Act of 2017. The OBBBA has multiple effective dates, with certain provisions effective in 2025. The OBBBA did not have a material impact on the Company's effective tax rate for the thirteen weeks ended May 3, 2026.

**Note 4. Basic and Diluted Net Income (Loss) Per Common Share**

Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of common shares outstanding during the period. Diluted net income per common share is computed by dividing net income by the weighted average number of common shares outstanding plus dilutive potential common shares, including unvested restricted stock units, stock options, and warrants. Diluted net income per common share includes, in periods in which they are dilutive, the effect of those potentially dilutive securities under the treasury stock method, where the average market price of the common stock exceeds the exercise prices for the respective periods. In periods of loss, there are no potentially dilutive common shares to add to the weighted average number of common shares outstanding.

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands, except per share data and share amounts) | **May 3,<br>2026** | **May 4,<br>2025** |
| Net loss | $(11093) | $(10840) |
| Weighted-average number of common shares outstanding, basic | 14668023 | 14792080 |
| Effect of dilutive securities<sup>(1)(2)</sup> |  |  |
| Weighted-average number of common shares outstanding, diluted | 14668023 | 14792080 |
| Basic net loss per share | $(0.76) | $(0.73) |
| Diluted net loss per share | $(0.76) | $(0.73) |

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<sup>(1)</sup> The effect of dilutive securities includes unvested restricted stock units and stock options. For the thirteen weeks ended May 3, 2026, there were no anti-dilutive unvested restricted stock units. For the thirteen weeks ended May 4, 2025, unvested restricted stock units of 1,710,191 were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive. For the thirteen weeks ended May 3, 2026 and May 4, 2025, the effects of 385,285 and 495,366 stock options outstanding, respectively, were excluded from the computation of diluted net loss per share because their effect would have been anti-dilutive.

<sup>(2)</sup> The Company prospectively corrected the diluted earnings per share calculation. The impact to previous years was not material.

**Note 5. Leases** 

Components of lease expense were as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
| | **May 3,<br>2026** | **May 4,<br>2025** |
| Operating lease expense | $9955 | $9302 |
| Variable and short term lease expense | 867 | 973 |
| Total lease expense | $10822 | $10275 |

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Variable lease expense includes percentage rent, maintenance, real estate taxes, insurance and other variable charges included in the lease as well as rental expenses related to short term leases.

During the thirteen weeks ended May 3, 2026 and May 4, 2025, we did not recognize any impairment charges associated with showroom-level right-of-use assets.

Supplemental information related to our operating leases is as follows (in thousands):

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| **Operating cash flow information:** |  |  |
| &nbsp;&nbsp;Amounts paid on operating lease liabilities | $9901 | $9411 |
| **Non-cash activities:** |  |  |
| &nbsp;&nbsp;Right-of-use assets obtained in exchange for lease obligations | $4911 | $12232 |
| **Weighted average remaining lease term - operating leases** | 6.8 years | 7.2 years |
| **Weighted average discount rate - operating leases** | 5.63% | 5.38% |

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**Note 6. Commitments and Contingencies**

***Legal Proceedings***

We are subject to legal proceedings and claims that arise in the ordinary course of business, as well as certain other non-ordinary course proceedings, claims and investigations, as described below. We make a provision for a loss contingency when it is both probable that a material liability has been incurred and the amount of the loss can be reasonably estimated. If only a range of estimated losses can be determined, we accrue an amount within the range that, in our judgment, reflects the most likely outcome; if none of the estimates within that range is a better estimate than any other amount, we accrue the low end of the range. For proceedings in which an unfavorable outcome is reasonably possible but not probable and an estimate of the loss or range of losses arising from the proceeding can be made, we disclose such an estimate, if material. If such a loss or range of losses is not reasonably estimable, we disclose that fact. We review any such loss contingency provisions at least quarterly and adjust them to reflect the impacts of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular case. We recognize insurance recoveries, if any, when they are probable of receipt. All associated costs due to third-party service providers and consultants, including legal fees, are expensed as incurred. Legal proceedings are inherently unpredictable. It is possible that our consolidated financial position, results of operations or cash flows could be materially negatively affected in any particular period by an unfavorable resolution of one or more of such legal proceedings.

On March 21, 2024, a putative class action complaint related to the Company's pricing was filed against the Company. The lawsuit, captioned *Nguyen v. The Lovesac Company*, was filed in the Superior Court of California, County of Sacramento, and was removed to the United States District Court for the Eastern District of California. The complaint generally alleges that the Company falsely advertised discounts on certain products. The plaintiff seeks, among other things, an unspecified amount of monetary damages, including treble damages, punitive damages, injunctive relief related to the Company's sales practices, and attorneys' fees, expert fees, and other expenses. On June 24, 2024, the Company filed a motion to dismiss. On July 15, 2024, the plaintiff filed an amended complaint. On August 12, 2024, the Company filed a motion to dismiss the plaintiff's amended complaint. On November 26, 2024, the court entered an order to stay all proceedings in the case in light of a mediation of the dispute scheduled for January 23, 2025. The parties were unable to come to an agreement at the January 23, 2025 mediation. On February 7, 2025, the court unstayed the proceedings in the case for the purpose of ruling on the Company's pending motion to dismiss. On March 28, 2025, the court granted the Company's motion to dismiss with leave to amend, but dismissed the plaintiff's request for equitable relief, including injunctive relief, without leave to amend. On April 18, 2025, the plaintiff filed a second amended complaint. On June 2, 2025, the Company filed a motion to dismiss the plaintiff's second amended complaint. The Company's motion to dismiss the plaintiff's second amended complaint is pending a decision by the Court. At this time, we are unable to reasonably estimate the possible loss or range of loss from this proceeding.

***Tariff Matters***

On February 20, 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") were unlawful. On April 20, 2026, U.S. Customs and Border Protection ("CBP") launched the Consolidated Administration and Processing of Entries ("CAPE") process to permit importers to seek refunds of previously paid IEEPA tariffs. The Company submitted refund claims in April 2026 and will record these refunds as the amounts are collected. The timing of any refunds and the total amount ultimately received remains uncertain and may differ materially from the amounts claimed.

The Company has elected to apply the gain contingency model in accordance with ASC 450-30, Gain Contingencies, to account for potential recoveries of previously paid IEEPA tariffs. The Company determined this model is appropriate given the uncertainty surrounding the timing and ultimate receipt of any refunds. Under this model, a gain contingency is not recognized in the financial statements until the gain is realized or realizable. Any recovery, when recognized, would be reflected as a reduction of inventory to the extent the related goods remain on hand, or as a reduction of cost of merchandise sold for amounts related to merchandise already sold. The allocation between inventory and cost of merchandise sold will be determined based on the inventory status of the related goods at the time of recognition.

As of May 3, 2026, the Company had not received any refund payments. Accordingly, no gain has been recognized in the condensed consolidated financial statements for the period ending May 3, 2026.

Subsequent to May 3, 2026, the Company received refunds for IEEPA tariffs previously paid totaling approximately $3.6 million through June 10, 2026, including an immaterial amount of interest. Consistent with ASC 450-30, these amounts were not recognized in the condensed consolidated financial statements for the period ending May 3, 2026.

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**Note 7. Financing Arrangements**

***Revolving Line of Credit***

We are party to a credit agreement providing for an asset-based revolving credit facility with the lenders party thereto, and Wells Fargo Bank, National Association ("Wells"), as administrative agent, that matures July 29, 2029. The maximum revolver commitment is $40.0 million, subject to borrowing base and availability restrictions, and also includes an uncommitted accordion feature that allows the Company, subject to certain customary conditions, to increase the size of the revolving credit facility by $10.0 million. Our credit agreement includes a $1.0 million sublimit for the issuance of letters of credit and a $4.0 million sublimit for swing line loans.

As of May 3, 2026 and February 1, 2026, the Company's borrowing availability under the line of credit with Wells was $34.9 million and $36.0 million, respectively, and there were no borrowings outstanding on this line of credit.

**Note 8. Stockholders' Equity**

***Equity Incentive Plan***

The Company adopted the Second Amended and Restated 2017 Equity Incentive Plan (the "2017 Equity Plan") which provides for awards in the form of stock options, stock appreciation rights, restricted stock awards, restricted stock units, performance shares, performance based restricted stock units, cash-based awards and other stock-based awards. All awards shall be granted within 10 years from June 2, 2022, the effective date of the 2017 Equity Plan. In fiscal 2025, the 2017 Equity Plan was amended to increase the shares of our common stock authorized and reserved for issuance by 1,100,000 shares, which increased the number of shares of common stock reserved for issuance under the 2017 Equity Plan to 3,979,889 shares of common stock.

*Performance Based Restricted Stock Units*

Performance based restricted stock units ("PSU awards") granted under the 2017 Equity Plan are generally subject to both a service-based vesting condition and a performance-based vesting condition. PSU awards generally vest over a one to three year period on the anniversaries of the grant date, contingent upon the achievement of specified performance targets established at the beginning of the performance period and continued service through the applicable vesting date. The stock-based compensation expense relating to PSU awards is recognized over the requisite service period when it is probable that the performance condition will be satisfied.

In March 2023, Shawn Nelson, our Chief Executive Officer, received a one-time performance and retention long-term incentive grant of 235,000 PSU awards (the "PSU Grant") pursuant to the 2017 Equity Plan and Mr. Nelson's Restricted Stock Units Agreement and Grant Notice (the "PSU Agreement"). The PSU Grant vests on the later to occur of (i) the fifth anniversary of the date of grant so long as, (x) on or prior to such date (subject to certain limited extensions), the Company has achieved a specified level of performance with respect to share price and net sales, and (y) Mr. Nelson remains in continuous service with the Company as Chief Executive Officer through such date; or (ii) if the specified level of performance with respect to net sales is not achieved on or prior to the fifth anniversary of the date of grant, but the other conditions in subclause (i) are achieved, the first date that such specified level of performance with respect to net sales is achieved, so long as it is achieved on or prior to the seventh anniversary of the date of grant and so long as Mr. Nelson remains in continuous service with the Company through such date. Except in the event of termination of employment as defined in the 2017 Equity Plan, the PSU Grant will be settled in shares of common stock of the Company on the first anniversary of the applicable vesting date. The PSU Grant was valued using a Monte Carlo simulation model to account for the path dependent market conditions that stipulate when and whether or not the PSU awards shall vest. The expense will be recognized on a straight-line basis over the explicit service period.

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The following table summarizes the Company's PSU awards activity during the thirteen weeks ended May 3, 2026:

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| | | |
|:---|:---|:---|
| | **Number of shares** | **Weighted average grant date fair value** |
| Unvested at February 1, 2026 | 1046994 | $22.05 |
| Granted | 263891 | 17.67 |
| Forfeited | (72948) | 23.09 |
| Vested | (123443) | 21.04 |
| Unvested at May 3, 2026 | 1114494 | $21.06 |

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During the thirteen weeks ended May 4, 2025, 330,314 PSU awards were granted with a weighted-average grant date fair value of $19.87. During the thirteen weeks ended May 3, 2026 and May 4, 2025, the total fair value of PSU awards vested was $2.6 million and $0.3 million, respectively.

*Time-Based Restricted Stock Units* 

Time-based restricted stock units ("RSU awards") granted under the 2017 Equity Plan are generally subject to only a service-based vesting condition. RSU awards vest equally over three years on the anniversary date of the grant date if employed at the time of vesting. The valuation of these RSU awards is based solely on the fair value of the Company's stock on the date of grant.

The following table summarizes the Company's RSU awards activity during the thirteen weeks ended May 3, 2026:

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| | | |
|:---|:---|:---|
| | **Number of shares** | **Weighted average grant date fair value** |
| Unvested at February 1, 2026 | 504488 | $20.37 |
| Granted | 254475 | 16.65 |
| Forfeited | (10846) | 19.92 |
| Vested | (148916) | 20.89 |
| Unvested at May 3, 2026 | 599201 | $18.67 |

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During the thirteen weeks ended May 4, 2025, 319,429 RSU awards were granted with a weighted-average grant date fair value of $19.49. During the thirteen weeks ended May 3, 2026 and May 4, 2025, the total fair value of RSU awards vested was $3.1 million and $2.4 million, respectively.

*<u>Stock Options</u>*

In June 2019, the Company granted 495,366 non-statutory stock options to certain officers of the Company with an exercise price of $38.10 per share. The market condition was met on June 5, 2021, which was the date on which the average closing price of the Company's common stock had been at least $75 for 40 consecutive trading days. The options vested and became exercisable on June 5, 2022 as the officers were still employed on that date. All expenses associated with the stock options were recognized in prior years.

There were no stock options issued, exercised, canceled, or forfeited for the thirteen weeks ended May 3, 2026 and May 4, 2025. As of May 3, 2026, 385,285 stock options remain outstanding with a weighted average exercise price of $38.10, a weighted average remaining contractual life of 3.1 years, and no intrinsic value. As of May 4, 2025, 495,366 stock options remain outstanding with a weighted average exercise price of $38.10, a weighted average remaining contractual life of 4.1 years and no intrinsic value.

For the thirteen weeks ended May 3, 2026 and May 4, 2025, the Company recognized equity-based compensation expense of $2.1 million and $2.5 million, respectively. The income tax benefit for the vesting of our equity-based compensation awards was immaterial for the thirteen weeks ended May 3, 2026. For the thirteen weeks ended May 4, 2025, the income tax benefit for the vesting of our equity-based compensation awards was $0.4 million. The total unrecognized equity-based

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compensation cost related to unvested RSU and PSU awards was approximately $19.1 million as of May 3, 2026 and will be recognized in operations over a weighted average period of 2.5 years.

*<u>Share Repurchase Program</u>*

On June 11, 2024, our Board of Directors approved a $40.0 million share repurchase program. Repurchases may be made through open market purchases, privately negotiated transactions, and accelerated share repurchases. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. The exact number of shares to be repurchased by the Company, if any, is not guaranteed. Depending on market conditions and other factors, these repurchases may be commenced or suspended at any time or periodically without prior notice.

On March 26, 2026, our Board of Directors authorized the repurchase of an additional $40.0 million of our outstanding common stock under the share repurchase program.

During the thirteen weeks ended May 3, 2026 and May 4, 2025, we repurchased and subsequently retired 141,482 and 306,325 shares of common stock, costing $2.4 million and $6.0 million, respectively, including broker commissions and fees. The Inflation Reduction Act imposed a nondeductible 1% excise tax on the net value of stock repurchases. During the thirteen weeks ended May 3, 2026 and May 4, 2025, the excise tax on net share repurchases was not material.

As of May 3, 2026, approximately $51.7 million remained available for future purchases under the share repurchase program.

**Note 9. Segment Information**

Segments are reflective of how the chief operating decision maker ("CODM") reviews operating results for the purpose of allocating resources and assessing performance. The CODM group of the Company is comprised of the Chief Executive Officer and the President.

The Company markets and sells its products through an omni-channel platform that provides a seamless and meaningful experience to its customers across multiple channels. The Company has one operating segment which aligns with the way our CODM group evaluates performance and allocates resources within the Company. As the Company's products and sales channels are complementary and analyzed in the same manner, the Company operates its business as one operating segment and therefore it has one reportable segment.

The CODM group regularly receives financial information presented on an entity-wide basis. The CODM group uses net sales and net income (loss) as reported on the condensed statements of operations to allocate resources, assess performance of our business, and evaluate earnings generated in deciding where to reinvest profits into its single reportable segment. Net sales and net income (loss) are used to monitor budget versus actual results. The significant expenses considered by the CODM group in evaluating the performance of our business are consistent with the financial information included on the Company's condensed statements of operations. There are no additional expense categories and amounts that meet the definition of significant expense items that are regularly provided to the CODM group and included in net income (loss). The CODM group may also evaluate financial performance based on net income (loss) adjusted for certain items that are unusual and non-recurring. While management uses these additional adjusted metrics in assessing and allocating resources to our business, management recognizes that US GAAP principles are the basis of our performance.

The Company's net sales by product which are considered one reportable segment are as follows:

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| Sactionals | $125562 | $127321 |
| Sacs | 7303 | 9427 |
| Other<sup>(1)</sup> | 5331 | 1625 |
| Total net sales | $138196 | $138373 |

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<sup>(1)</sup> Includes our product platform Snugg.

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Interest income, net is as follows:

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| Interest income, net<sup>(1)</sup> | $666 | $327 |

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<sup>(1)</sup> Interest income, net is included in Interest and other income, net on the statements of operations.

As the Company discloses a single reportable segment, total net sales is reported in the condensed statements of operations, segment assets are reported in the condensed balance sheets, and capital expenditures are reported in the condensed statements of cash flows. The Company has material long-lived assets, as stated on the condensed balance sheet, with immaterial long-lived assets located in foreign countries. The accounting policies of the reported segment are the same as those described in Note 1 to our financial statements included in our Annual Report on Form 10-K.

Refer to Note 2. Revenue Recognition for additional information on our sales channels, geographic areas, and major customers.

**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.**

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our Annual Report on Form 10-K for the fiscal year ended February 1, 2026. As discussed in the section titled "Forward-Looking Statements," the following discussion and analysis contains forward-looking statements that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those identified in the Forward-Looking Statements section herein and those discussed in the section titled "Risk Factors" under Part I, Item 1A in our Annual Report on Form 10-K.

We operate on a 52 or 53-week fiscal year that ends on the Sunday closest to February 1. Each fiscal year generally is comprised of four 13-week fiscal quarters, although in the years with 53 weeks, the fourth quarter represents a 14-week period. The fiscal year ended January 31, 2027 will consist of 52 weeks.

**Overview**

We are a technology driven company that designs, manufactures and sells unique, high quality furniture derived through our proprietary Designed for Life® approach which results in products that are built to last a lifetime and designed to evolve as our customers' lives do. Our current product offering is comprised of modular couches called Sactionals®, premium foam beanbag chairs called Sacs®, the immersive surround sound home theater system called StealthTech®, the PillowSac® Chair, the Sactionals Reclining Seat, a recently launched platform of premium seating called Snugg™, and various accessories. Innovation is at the center of our design philosophy with all of our core products protected by a robust portfolio of utility and design patents. We market and sell our products through an omni-channel platform that includes direct-to-consumer touch points in the form of our own showrooms and online directly at www.lovesac.com. We believe that our ecommerce centric approach, coupled with our ability to deliver our large upholstered products through express couriers, is unique to the furniture industry.

**Macroeconomic Factors** 

There are a number of macroeconomic factors and uncertainties that in recent years have negatively affected the overall business environment and our business, including fluctuations in inflation, elevated interest rates, housing market conditions, consumer debt and available credit, increased tariff and trade restrictions, global conflicts and uncertainties in the global financial markets. These factors have had and continue to have a negative impact on us and the markets in which we operate, including the potential for an economic recession, a continued downturn in the housing market, and a reduction in consumer discretionary spending. We believe that these macroeconomic factors have contributed to the slowdown in demand that we have experienced in our business which may continue in future periods.

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*Tariff Refunds*

In April , 2026, we filed for refunds of previously paid tariffs assessed under the International Emergency Economic Powers Act. As of May 3, 2026, due to the uncertainty surrounding the ultimate receipt and amount of these refunds, we have not recorded a receivable or any related reduction to cost of merchandise sold or inventories in our condensed financial statements for the first quarter of fiscal 2027. Any benefit from these refunds will be recognized in the period the refunds are received. See Note 6. Commitments and Contingencies in the notes to the condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for more information.

**Product Overview**

Our products serve as a set of building blocks that can be rearranged, restyled and re-upholstered for any new setting or occasion, mitigating constant changes in fashion and style. They are built to last and evolve throughout a customer's life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Sactionals**. Our Sactional product line currently represents a majority of our net sales. We believe our Sactionals platform is unlike competing products in its adaptability yet is comparable aesthetically to similarly priced premium couches and sectionals. Our Sactional products include a number of patented features relating to their geometry and modularity, coupling mechanisms and other features. Utilizing primarily two, standardized pieces, "seats" and "sides," and approximately 200 high quality, tight-fitting cover options that are removable, washable, and changeable, customers can create numerous permutations of a sectional couch with minimal effort. Customization is further enhanced with our specialty-shaped modular offerings, such as our wedge seat, angled sides and roll or swept arms. In September 2024, we launched the AnyTable®, a versatile table that seamlessly enhances any Sactionals living space, and in November 2024, we launched the Sactionals Reclining Seat, an innovation that integrates advanced reclining technology and delivers unparalleled comfort and flexibility while maintaining the sleek, sophisticated aesthetic of our Sactionals. Our custom features and accessories can be added easily and quickly to a Sactional to meet endless design, style, storage and utility preferences, reflecting our Designed for Life philosophy. Sactionals are built to meet the highest durability and structural standards applicable to fixed couches. Sactionals are comprised of standardized units and we guarantee their compatibility over time, which we believe is a major pillar of their value proposition to the consumer. Our Sactionals represented 90.9% and 92.0% of our net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

Our Sactionals StealthTech Sound + Charge product line complements our Sactionals as a unique innovation that features immersive surround sound by Harman Kardon and convenient wireless charging, all seamlessly embedded and hidden inside the adaptable Sactionals platform. The system includes two Sound + Charge Sides each with embedded front- and rear-firing Harman Kardon speakers, a Subwoofer that easily integrates into a Sactionals Seat Frame and a Center Channel, all working in unison to deliver captivating surround sound that is completely hidden from view. We also offer Satellite Subwoofers as an add-on to the Sound + Charge System, enhancing the existing StealthTech setup with improved bass and overall entertainment experience. In November 2024, we launched the StealthTech Charge Side, integrating wireless device charging into our Sactionals Sides without the need for our sound system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Sacs**. We believe that our Sacs product line is a category leader in oversized beanbags. The Sacs product line offers 5 different sizes ranging from 32 pounds to 95 pounds with capacity to seat 3+ people on the larger model Sacs. Filled with Durafoam, a proprietary blend of shredded foam, Sacs provide serene comfort and guaranteed durability. Their removable covers are machine washable and may be easily replaced with a wide selection of cover offerings. In May 2024, we launched the PillowSac Chair, an accessory that elevates the style and comfort of our existing PillowSac. In October 2025, the Company launched the PillowSac Chair Jr. which delivers the same comfort and premium materials as the PillowSac Chair, scaled for smaller spaces. Our Sacs represented 5.3% and 6.8% of our net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Other.** Our Other product line enhances the versatility of our Sacs and Sactionals, catering to the evolving demands and preferences of our customers. Our current offerings include Sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables, ottomans in various styles and finishes, and the unique Sactionals Power Hub. These products provide our customers with the flexibility to personalize their furnishings with both decorative and practical add-ons, ensuring they can adapt to meet changing style preferences.

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In May 2025, the Company launched Snugg (previously referred to as EverCouch™), a new platform of premium seating. Snugg combines the familiar shape of a sofa, loveseat, or chair with durable quality and flexible design. Similar to Lovesac's Sactionals seating solution, Snugg includes washable fabrics, changeable covers, adaptable arm styles, and customizable fill. Snugg can be moved as a single unit like a traditional couch, or disassembled and reassembled for easier transport, providing comfortable seating and a versatile fit for a range of spaces.

**Sales Channels**

We offer our products through an omni-channel platform that provides a seamless and meaningful experience to our customers online and in-store. Our distribution strategy allows us to reach customers through three distinct, brand-enhancing channels.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Showrooms**. We market and sell our products through 281 showroom locations strategically situated at top tier malls, lifestyle centers, and street locations in 45 states in the U.S. We carefully select what we believe are the best small-footprint showroom locations in high-end malls and lifestyle centers for our showrooms. Compared to traditional retailers, our showrooms require significantly less square footage because of our need to have only a few in-showroom sample configurations for display and our ability to stock our inventory for immediate sale. The architecture and layout of these showrooms are designed to communicate our brand personality and key product features. Our goal is to educate first-time customers, creating an environment where people can touch, feel, read, and understand the technology behind our products. Our showroom concept emphasizes our unique product platform and utilizes technology in more experiential ways to increase traffic and net sales. Net sales generated by this channel accounted for 70.2% and 69.7% of total net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**• Ecommerce**. Through our ecommerce channel, we believe we are able to significantly enhance the consumer shopping experience for home furnishings, driving deeper brand engagement and loyalty, while also realizing more favorable margins than our showroom locations. We believe our robust technological capabilities position us well to benefit from the growing consumer preference to transact at home and via mobile devices. Our net sales generated by this channel accounted for 25.8% and 24.1% of total net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Other touchpoints**. We augment our showrooms with other touchpoint strategies including online and in store pop-up-shops, shop-in-shops, barter inventory transactions, and the Loved by Lovesac program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**◦ In store and online pop-up-shops**. We utilize in store pop-up-shops to increase the number of locations where customers can experience and purchase our products, a low cost alternative to drive brand awareness, in store net sales, and ecommerce net sales. These in store pop-up-shops are typically 10-day shows and are staffed similarly to our showrooms with associates trained to demonstrate and sell our products and promote our brand. For the thirteen weeks ended May 3, 2026 and May 4, 2025, we operated 159 and 171 in store pop-up-shops, respectively, and 9 and 2 online pop-up-shops on Costco.com, respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Shop-in-shops**. Prior to discontinuing this touchpoint at the end of fiscal 2026, shop-in-shops were designed to be in permanent locations carrying the same digital technology of our showrooms and were also staffed with associates trained to demonstrate and sell our products. In June 2025, the Company discontinued its partnership with Best Buy, resulting in the closure of all remaining shop-in-shop locations as of the end of fiscal 2026. Prior to the discontinuation of the partnership, we operated 49 Best Buy shop-in-shops as of May 4, 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Barter inventory transactions**. Our barter inventory transactions with a third party vendor are part of our Circular Operations ("CO"), Designed for Life, and Environmental, Social and Governance ("ESG") initiatives. CO is a way of doing business that is meant to reduce our footprint, while dramatically extending the life of products through more looped, localized, long-term, and sustainable practices, policies, and programs. Our barter inventory arrangement permits us from time to time to repurpose returned open-box inventory in exchange for media credits, which are being used to support our advertising initiatives to create brand awareness and drive net sales growth. See Note 2. Revenue Recognition— Barter Arrangements in the notes to the condensed financial statements included in Part I,

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Item 1 of this Quarterly Report on Form 10-Q, for more information about our unused media credits as of May 3, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ **Loved by Lovesac.** In June 2025, we launched the Loved by Lovesac program which enables customers to purchase quality-assured, revitalized open-box products through our dedicated resale platform at www.lovedbylovesac.com. All items are inspected and verified for resale prior to listing. We believe this initiative aligns with our Designed for Life philosophy and supports our commitment to sustainability by extending the lifecycle of our products and reducing environmental impact. The Company has initiated a limited launch of Loved by Lovesac, which as of May 3, 2026, is currently available in 30 select states nationwide.

Other net sales, which includes pop-up-shop sales, shop-in-shop sales, barter inventory transactions, and the Loved by Lovesac program, accounted for 4.0% and 6.2% of our total net sales for the thirteen weeks ended May 3, 2026 and May 4, 2025, respectively.

**How We Assess the Performance of Our Business**

We consider a variety of financial and operating measures, including the following, to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions.

***Net Sales***

Net sales reflect our sale of merchandise plus shipping and handling revenue less returns and discounts. Net sales made at Company operated showrooms, including shop-in-shops and pop-up-shops, and via the web are recognized, typically at the point of transference of title when the goods are shipped.

***Omni-channel Comparable Net Sales***

Omni-channel comparable net sales is a measure that highlights the performance of our existing locations and websites by measuring the change in net sales for a period over the comparable prior-period of equivalent length. Comparable net sales includes sales at all retail locations and online, open greater than 12 months (including remodels and relocations) and excludes closed showrooms. Comparable net sales is intended only as supplemental information and is not a substitute for net sales presented in accordance with US GAAP.

***New Customer***

We define a customer as new when the customer has completed a transaction at Lovesac either at a showroom or internet channel only for the first time.

***Cost of Merchandise Sold***

Cost of merchandise sold includes the direct cost of sold merchandise; inventory shrinkage; inventory adjustments due to obsolescence, including excess and slow-moving inventory and lower of cost or net realizable value reserves; inbound freight; freight costs to ship merchandise to our showrooms, and warehousing and all logistics costs associated with shipping product to our customers.

The primary drivers of our cost of merchandise sold are raw materials costs, labor costs in the countries where we source our merchandise, and logistics costs. We expect gross profit to increase to the extent that we successfully grow our net sales and continue to realize scale economics with our manufacturing partners. We review our inventory levels on an ongoing basis in order to identify slow-moving merchandise and use product markdowns to efficiently sell these products. The timing and level of markdowns are driven primarily by customer acceptance of our merchandise.

We are pursuing initiatives to increase domestic manufacturing of Sactionals (or certain products) as part of our broader supply chain strategy. These efforts are intended to enhance supply chain reliability, mitigate tariff and logistics risks, and improve operational efficiency through automation and reduced transportation distances. Implementation is expected to occur in phases and requires upfront investment and operational execution. The ultimate impact on our cost structure and

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operating results will depend on a number of factors, and there can be no assurance that anticipated benefits will be realized.

***Gross Profit***

Gross profit is equal to our net sales less cost of merchandise sold. Gross profit as a percentage of our net sales is referred to as gross margin. Certain competitors and other retailers may report gross profit differently than we do, by excluding from gross profit some or all of the costs related to their distribution network and instead including them in selling, general and administrative expenses. As a result, the reporting of our gross profit and profit margin may not be comparable to other companies.

***Selling, General and Administrative Expenses***

Selling, general and administrative expenses include all operating costs, other than advertising and marketing expense and depreciation and amortization, not included in cost of merchandise sold. These expenses include all payroll and payroll-related expenses; showroom expenses, including occupancy costs related to showroom operations, such as rent and common area maintenance; occupancy and expenses related to many of our operations at our headquarters, including utilities, equity based compensation, financing related expense; public company expenses; customer financing fees; and credit card transaction fees. Selling, general and administrative expenses as a percentage of net sales is usually higher in lower volume quarters and lower in higher volume quarters because a significant portion of the costs are relatively fixed.

Historically, our revenue growth has been accompanied by higher selling, general and administrative expenses, primarily related to payroll and rent. We expect these expenses to increase as we continue to grow our business. As net sales volumes expand, we anticipate leveraging selling, general and administrative expenses as a percentage of net sales. To support our growth, we continue to invest in infrastructure, including research and development for existing and future products and foundational technology initiatives. These investments may reduce the degree of expense leverage during the investment period. We expect to realize greater leverage following these investments, with the most significant impact expected in the fourth quarter.

***Advertising and Marketing Expense***

Advertising and marketing expense include digital, social, and traditional advertising and marketing initiatives, that cover all of our business channels. Advertising and marketing expenses are projected to rise as the Company drives net sales growth, supported by ongoing investments in these areas and careful monitoring to ensure efficient resource allocation.

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**Results of Operations**

The following tables summarize key components of our results of operations for the thirteen weeks ended May 3, 2026 and May 4, 2025:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** | **Thirteen weeks ended** | **Thirteen weeks ended** |
| | **May 3,<br>2026** | **May 4,<br>2025** | **May 3,<br>2026** | **May 4,<br>2025** |
|  | *(in thousands)* | *(in thousands)* | *(Percentage of net sales)* | *(Percentage of net sales)* |
| Net sales |  |  |  |  |
| &nbsp;&nbsp;Showrooms | $97052 | $96470 | 70.2% | 69.7% |
| &nbsp;&nbsp;Internet | 35682 | 33328 | 25.8% | 24.1% |
| &nbsp;&nbsp;Other | 5462 | 8575 | 4.0% | 6.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total net sales | 138196 | 138373 | 100.0% | 100.0% |
| Cost of merchandise sold | 66222 | 64003 | 47.9% | 46.3% |
| Gross profit | 71974 | 74370 | 52.1% | 53.7% |
| Operating expenses: |  |  |  |  |
| &nbsp;&nbsp;Selling, general and administrative expenses | 68568 | 67117 | 49.6% | 48.5% |
| &nbsp;&nbsp;Advertising and marketing | 16599 | 18594 | 12.0% | 13.4% |
| &nbsp;&nbsp;Depreciation and amortization | 4181 | 3613 | 3.0% | 2.6% |
| Total operating expenses | 89348 | 89324 | 64.6% | 64.5% |
| Operating loss | (17374) | (14954) | (12.5)% | (10.8)% |
| Interest and other income, net | 666 | 325 | 0.5% | 0.2% |
| Net loss before taxes | (16708) | (14629) | (12.0)% | (10.6)% |
| Income tax benefit | 5615 | 3789 | 4.1% | 2.7% |
| Net loss | $(11093) | $(10840) | (7.9)% | (7.9)% |

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***Other Operational Data***

Our recent showroom growth is summarized in the following table:

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
|<br>**Showroom Count:** | **May 3,<br>2026** | **May 4,<br>2025** |
| Showrooms open at beginning of period | 278 | 257 |
| Showrooms opened | 6 | 11 |
| Showrooms closed | (3) | (1) |
| Showrooms open at end of period<sup>(1)</sup> | 281 | 267 |
| Showroom remodels |  | 1 |

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<sup>(1)</sup> During the second quarter of fiscal 2026, the Company made the decision to repurpose its 2 mobile concierges, and subsequently closed its last remaining kiosk in the fourth quarter of fiscal 2026. Showrooms open as of May 4, 2025 included 1 kiosk and 2 mobile concierges.

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**Thirteen weeks ended May 3, 2026 compared to the thirteen weeks ended May 4, 2025**

***Net sales***

Net sales decreased $0.2 million, or 0.1%, in the thirteen weeks ended May 3, 2026 compared to the prior year period driven by the closure of the Company's Best Buy shop-in-shop locations and a 1.0% decrease in omni-channel comparable net sales, partially offset by new showroom openings. In the thirteen weeks ended May 3, 2026, the number of repeat and new customers decreased by 1.2% and 2.5%, respectively. In the comparable prior year period, the number of repeat and new customers increased by 23.0% and 1.2%, respectively.

Showroom net sales increased $0.6 million, or 0.6%, in the thirteen weeks ended May 3, 2026 compared to the prior year period.

Internet net sales (sales made directly to customers through our ecommerce channel) increased $2.4 million, or 7.1%, in the thirteen weeks ended May 3, 2026 compared to the prior year period.

Other net sales, which include pop-up-shop sales, shop-in-shop sales, and the Loved by Lovesac program, decreased $3.1 million, or 36.3%, in the thirteen weeks ended May 3, 2026 compared to the prior year period. The decrease was primarily attributable to the closure of the Company's Best Buy shop-in-shop locations as a result of the discontinuation of its partnership with Best Buy.

***Gross profit***

Gross profit decreased $2.4 million, or 3.2% in the thirteen weeks ended May 3, 2026 compared to the prior year period. Gross margin decreased 160 basis points to 52.1% of net sales in the thirteen weeks ended May 3, 2026 from 53.7% of net sales in the prior year period primarily driven by increases of 380 basis points in inbound transportation and tariff costs and 110 basis points in outbound transportation and warehousing costs, partially offset by an increase of 330 basis points in product margin driven by price increases and cost reduction initiatives, partially offset by higher promotional discounting.

***Selling, general and administrative (SG&A) expenses***

SG&A expenses increased $1.5 million, or 2.2%, in the thirteen weeks ended May 3, 2026 compared to the prior year period. The increase was primarily related to increases of $1.0 million in payroll associated with higher incentive compensation and $0.5 million in other overhead expenses. As a percentage of net sales, SG&A was 49.6% for the thirteen weeks ended May 3, 2026 compared to 48.5% in the prior year period.

***Advertising and marketing expenses***

Advertising and marketing expenses decreased $2.0 million, or 10.7%, in the thirteen weeks ended May 3, 2026 compared to the prior year period, primarily due to the strategic timing of marketing investments and continued emphasis on efficiency. Advertising and marketing expenses were 12.0% of net sales in the thirteen weeks ended May 3, 2026 compared to 13.4% of net sales in the prior year period.

***Depreciation and amortization expenses&nbsp;&nbsp;&nbsp;&nbsp;***

Depreciation and amortization expenses increased $0.6 million, or 15.7%, in the thirteen weeks ended May 3, 2026 compared to the prior year period primarily driven by capital investments for new showrooms.

***Interest and other income, net***

Interest and other income, net was $0.7 million for the thirteen weeks ended May 3, 2026 compared to $0.3 million in the prior year period. The increase in interest income was primarily the result of higher cash deposits in the Company's interest-bearing bank accounts.

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***Income tax benefit***

Income tax benefit was $5.6 million for the thirteen weeks ended May 3, 2026, compared to $3.8 million in the prior year period. The change in benefit was primarily driven by a higher net loss before taxes and an increase in the effective tax rate.

**Liquidity and Capital Resources**

***General***

Our business relies on cash flows from operations, our revolving line of credit (see "Revolving Line of Credit" below) and securities issuances as our primary sources of liquidity. At May 3, 2026, we had $57.0 million in cash and cash equivalents. Our primary cash needs are for marketing and advertising, inventory, payroll, showroom rent, capital expenditures associated with opening new showrooms and updating existing showrooms, as well as infrastructure and information technology. We periodically use cash to repurchase shares of our common stock under our share repurchase program. The most significant components of our working capital are cash and cash equivalents, merchandise inventory, prepaid expenses, accounts payable, accrued expenses, customer deposits, and other current liabilities. We believe that cash expected to be generated from operations, the availability under our revolving line of credit and our existing cash balances are sufficient to meet working capital requirements and anticipated capital expenditures for at least the next 12 months. Our long-term cash needs will depend on, among other things, our profitability and our ability to manage working capital requirements, and if needed, our ability to identify and secure other potential sources to fund future working capital needs and meet capital expenditure requirements.

***Capital Expenditures***

Historically, we have invested significant capital expenditures in opening new showrooms and updating existing showrooms. These capital expenditures have increased in the past and may continue to increase in future periods as we open additional showrooms. Capital expenditures are anticipated to support our showroom growth, including capital outlays for leasehold improvements, fixtures and equipment, and the construction of new showrooms. Capital expenditures also include patents and trademarks used in the normal course of our business. Cash paid for capital expenditures was $5.3 million in the thirteen weeks ended May 3, 2026.

**Cash Flow Analysis**

A summary of operating, investing, and financing activities during the periods indicated are shown in the following table:

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| | | |
|:---|:---|:---|
| | **Thirteen weeks ended** | **Thirteen weeks ended** |
| **Condensed Statement of Cash flow Data:**<br>(amounts in thousands) | **May 3,<br>2026** | **May 4,<br>2025** |
| Net cash used in operating activities | $(35356) | $(41377) |
| Net cash used in investing activities | (5315) | (8701) |
| Net cash used in financing activities | (4184) | (6756) |
| Net change in cash and cash equivalents | (44855) | (56834) |
| Cash and cash equivalents at the end of the period | 56998 | 26900 |

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**Net cash used in operating activities**

Cash from operating activities consists primarily of net income adjusted for certain non-cash items, including depreciation and amortization, equity-based compensation, non-cash lease expense, and deferred income taxes and the effect of changes in working capital and other activities.

Net cash used in operating activities was $35.4 million in the thirteen weeks ended May 3, 2026, compared to $41.4 million in the prior year period. The decrease was primarily attributable to working capital fluctuations, driven by timing of payments to vendors.

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**Net cash used in investing activities**

Investing activities consist primarily of investments related to capital expenditures for new showroom openings and the acquisition of intangible assets.

For the thirteen weeks ended May 3, 2026, net cash used in investing activities was $5.3 million, primarily driven by continued investments in new showrooms. For the thirteen weeks ended May 4, 2025, net cash used in investing activities was $8.7 million, primarily driven by one-time capital expenditures related to our new corporate office and the continued investments in new showrooms.

**Net cash used in financing activities**

Financing activities consist primarily of repurchases of our common stock, taxes paid for the net settlement of equity awards and payment of deferred financing costs.

For the thirteen weeks ended May 3, 2026 and May 4, 2025, net cash used in financing activities was $4.2 million and $6.8 million, respectively, mainly due to the repurchase of our common stock and taxes paid for the net share settlement of equity awards.

**Revolving Line of Credit**

We are party to a credit agreement providing for an asset-based revolving credit facility with the lenders party thereto, and Wells Fargo Bank, National Association ("Wells"), as administrative agent, that matures July 29, 2029. The maximum revolver commitment is $40.0 million, subject to borrowing base and availability restrictions, and also includes an uncommitted accordion feature that allows the Company, subject to certain customary conditions, to increase the size of the revolving credit facility by $10.0 million. Our credit agreement includes a $1.0 million sublimit for the issuance of letters of credit and a $4.0 million sublimit for swing line loans.

For additional information regarding our line of credit with Wells, see Note 7. Financing Arrangements. As of May 3, 2026 and February 1, 2026, the Company's borrowing availability under the line of credit was $34.9 million and $36.0 million, respectively, and there were no outstanding borrowings under our credit facility.

**Share Repurchase**

On June 11, 2024, our board of directors authorized a share repurchase program for up to $40.0 million of shares of our common stock. On March 26, 2026, our Board of Directors authorized the repurchase of an additional $40.0 million of our outstanding common stock under the share repurchase program. Repurchases may be made through open market purchases, privately negotiated transactions, and accelerated share repurchases. The timing, volume and nature of share repurchases, if any, will be at our sole discretion and will be dependent on market conditions, liquidity, applicable securities laws, and other factors. We may suspend or discontinue the share repurchase program at any time. We plan on funding any repurchases in the future with our current cash and cash equivalents and future cash flows.

During the thirteen weeks ended May 3, 2026 and May 4, 2025, we repurchased and subsequently retired 141,482 and 306,325 shares of common stock, costing $2.4 million and $6.0 million, respectively, including broker commissions and fees.

As of May 3, 2026, approximately $51.7 million remained available for future purchase under our share repurchase program. For additional information, see Note 8. Stockholders' Equity in the notes to the condensed financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.

**Off Balance Sheet Arrangements**

We have no material off balance sheet arrangements as of May 3, 2026, except for employment agreements entered in the ordinary course of business.

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**Critical Accounting Policies and Estimates**

The discussion and analysis of financial condition and results of operations is based upon our condensed financial statements, which have been prepared in conformity with US GAAP. Certain accounting policies and estimates are particularly important to the understanding of our financial position and results of operations and require the application of significant judgment by our management or can be materially affected by changes from period to period in economic factors or conditions that are outside of our control. As a result, they are subject to an inherent degree of uncertainty. In applying these policies, management uses their judgment to determine the appropriate assumptions to be used in the determination of certain estimates. Those estimates are based on our historical operations, our future business plans and projected financial results, the terms of existing contracts, observance of trends in the industry, information provided by our customers and information available from other outside sources, as appropriate. Refer to Note 1 of our financial statements included on Form 10-K for the fiscal year ended February 1, 2026 for a complete description of our significant accounting policies. There have been no material changes to the significant accounting policies during the thirteen weeks ended May 3, 2026.

**Recent Accounting Pronouncements**

Refer to Note 1. Basis of Presentation and Summary of Significant Accounting Policies, contained in the Condensed Notes to Financial Statements in Item 1 of Part 1 of this Quarterly Report on Form 10-Q for a full description of the recent accounting pronouncements and our expectation of their impact, if any, on our results of operations and financial condition.

**Item 3. Quantitative and Qualitative Disclosures about Market Risk**

In the normal course of business, we are exposed to a variety of market risks, including fluctuations in interest rates and inflation that could affect our financial position and results of operations.

**Interest Rate Risk**

Cash and cash equivalents and short-term investments were held primarily in cash deposits, certificates of deposit, money market funds, and investment grade corporate debt. The fair value of our cash, cash equivalents and short-term investments will fluctuate with movements of interest rates, increasing in periods of declining rates of interest and declining in periods of increasing rates of interest.

Interest on the revolving line of credit incurred pursuant to the credit agreements described herein would accrue at a floating rate based on a formula tied to certain market rates at the time of occurrence; however, we do not expect that any changes in prevailing interest rates will have a material impact on our results of operations.

**Inflation**

In the first quarter of fiscal 2027 we continued to see normalization of inflationary pressures in the supply chain. We continue to monitor the impact of inflation in order to minimize its effects through pricing strategies, productivity improvements and cost reductions. If our costs were to be subject to more significant inflationary pressures, we may not be able to fully offset such higher costs through price increases or other cost efficiency measures. Our inability or failure to do so could harm our business, financial condition and results of operations.

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**Item 4. Controls and Procedures.**

**Evaluation of Disclosure Controls and Procedures**

Our management, under the supervision and with the participation of our Chief Executive Officer (principal executive officer) and Chief Financial Officer (principal financial officer), evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of May 3, 2026, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

**Changes in Internal Control Over Financial Reporting**

There were no changes in our internal control over financial reporting that occurred during the quarter ended May 3, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**PART II. OTHER INFORMATION**

**Item 1. Legal Proceedings**

For information regarding our legal proceedings, see Note 6. Commitments and Contingencies, included in Part I, Item 1, Unaudited Condensed Financial Statements, of this Quarterly Report on Form 10-Q, which is incorporated into this item by reference.

**Item 1A. Risk Factors**

There have been no material changes to the risk factors disclosed under Part I, Item 1A "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended February 1, 2026.

**Item 2. Unregistered Sales of Equity Securities and Use of Proceeds**

***Issuer Purchases of Equity Securities***

The following table summarizes the share repurchase activity for the thirteen weeks ended May 3, 2026:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | Total Number of Shares<br>Purchased | Average Price Paid Per Share <sup>(1)</sup> | Total Number of Shares<br>Purchased as Part of<br>Publicly Announced<br>Program | Approximate Dollar Value of<br>Shares That May Yet Be<br>Purchased Under the<br>Program <sup>(2)</sup> |
| | | | | (in thousands) |
| February 2, 2026 to March 1, 2026 |  | $— |  | $14090 |
| March 2, 2026 to April 5, 2026 |  | $— |  | $54090 |
| April 6, 2026 to May 3, 2026 | 141482 | $16.69 | 141482 | $51729 |
| Total | 141482 |  | 141482 |  |

---

<sup>(1)</sup> Average price paid per share excludes broker commission fees and the 1% excise tax incurred under the Inflation Reduction Act of 2022.

<sup>(2)</sup> On June 11, 2024, our board of directors authorized the repurchase of up to $40.0 million in shares of our outstanding common stock, and there is no expiration date. This authorization was subsequently increased by an additional $40.0 million on March 26, 2026. For additional information, refer to Note 8. Stockholders' Equity in the notes to the condensed financial statements included in Part I, Item 1, of this Quarterly Report on Form 10-Q.

**Item 3. Defaults upon Senior Securities**

Not applicable.

**Item 4. Mine Safety Disclosures**

Not applicable.

**Item 5. Other Information.**

***Director and Officer Trading Arrangements***

No directors or officers of the Company (as defined in Section 16 of the Securities Exchange Act of 1934, as amended) adopted, modified or terminated a Rule 10b5-1 trading arrangement or a non- Rule 10b5-1 trading arrangement (each as defined in Item 408 (a) and (c) of Regulation S-K) during the thirteen weeks ended May 3, 2026.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**Item 6. Exhibits**

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Exhibit <br>Number** | **Description of Exhibit** | **Filed / Incorporated <br> by Reference<br> from Form \*\*** | **Incorporated by <br>Reference from<br> Exhibit Number** | **Dated Filed** |
| 3.1 | <u>[Amended and Restated Certificate of Incorporat](https://www.sec.gov/Archives/edgar/data/1701758/000121390021031240/ea142262ex3-1_thelovesac.htm)[ion](https://www.sec.gov/Archives/edgar/data/1701758/000121390021031240/ea142262ex3-1_thelovesac.htm)</u> | 8-K | 3.1 | 6/7/2021 |
| 3.2 | <u>[A](https://www.sec.gov/Archives/edgar/data/1701758/000162828023040449/ex32amendedandrestatedby.htm)[mended and Restated Bylaws](https://www.sec.gov/Archives/edgar/data/1701758/000162828023040449/ex32amendedandrestatedby.htm)</u> | 8-K | 3.2 | 12/1/2023 |
| 19.1 | <u>[T](insidertradingpolicyamen.htm)[he Lovesac Compa](insidertradingpolicyamen.htm)[ny Insider Trader Policy, as amended April 15, 2026](insidertradingpolicyamen.htm)</u> | Filed herewith. |  |  |
| 31.1 | <u>[Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended](q1fy27ex-311.htm)</u> | Filed herewith. |  |  |
| 31.2 | <u>[Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, as amended](q1fy27ex-312.htm)</u> | Filed herewith. |  |  |
| 32.1\* | <u>[Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended](q1fy27ex-321.htm)</u> | Filed herewith. |  |  |
| 32.2\* | <u>[Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, as amended](q1fy27ex-322.htm)</u> | Filed herewith. |  |  |
| 101.INS | XBRL Instance Document |  |  |  |
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document |  |  |  |
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document |  |  |  |
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document |  |  |  |
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document |  |  |  |
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document |  |  |  |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |  |  |  |

---

\*This certification is deemed not filed for purposes of section 18 of the Exchange Act, or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended or the Exchange Act.

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**<u>[**Table of Contents**](#ie1586f1f7f4e4da795fab7ee5f619dcb_7)</u>**

**<u>SIGNATURES</u>**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **The Lovesac Company** | **The Lovesac Company** |
| | By: | /s/ Shawn Nelson |
| | | Shawn Nelson |
| Date: June 11, 2026 |  | Chief Executive Officer |
|  |  | (Principal Executive Officer) |
|  | By: | /s/ Keith Siegner |
|  |  | Keith Siegner |
| Date: June 11, 2026 |  | Executive Vice President and <br> Chief Financial Officer |
|  |  | (Principal Financial Officer and<br> Principal Accounting Officer) |

---

## Exhibit 19.1

![](insidertradingpolicyamen001.jpg)

THE LOVESAC COMPANY INSIDER TRADING POLICY (As amended April 15, 2026) This Insider Trading Policy describes the standards of The Lovesac Company and its subsidiaries, if any (the "Company"), on trading, and causing the trading of, the Company's securities or securities of certain other publicly traded companies while in possession of confidential information. This Policy is divided into two parts: the first part prohibits trading in certain circumstances and applies to all of the Company's directors, officers, employees and other agents and members of the forgoing persons' respective immediate family members and households, and the second part imposes special additional trading restrictions and applies to all (i) directors of the Company, (ii) executive officers of the Company and (iii) the employees or roles listed on Appendix A (collectively, "Covered Persons"). One of the principal purposes of the federal securities laws is to prohibit so-called "insider trading." Simply stated, insider trading occurs when a person uses material nonpublic information obtained through involvement with the Company to make decisions to purchase, sell, give away or otherwise trade the Company's securities or to provide that information to others outside the Company. The prohibitions against insider trading apply to trades, tips and recommendations by virtually any person, including all persons associated with the Company, if the information involved is "material" and "nonpublic." These terms are defined in this Policy under Part I, Section 3 below. The prohibitions would apply to any director, officer or employee who buys or sells Company stock on the basis of material nonpublic information that he or she obtained about the Company, its customers, suppliers, or other companies with which the Company has contractual relationships or may be negotiating transactions. PART I 1. Applicability This Policy applies to all trading or other transactions in the Company's securities, including common stock, options and any other securities that the Company may issue, such as preferred stock, notes, bonds and convertible securities, as well as to derivative securities relating to any of the Company's securities, whether or not issued by the Company. This Policy applies to all directors, officers, employees and other agents of the Company and their respective immediate family members, members of their households, dependents and any other individuals or entities whose transactions in securities they influence, direct or control (collectively "you" or "your"). You are responsible for making sure that these individuals and entities comply with this Policy. 2. General Policy: No Trading or Causing Trading While in Possession of Material Nonpublic Information (a) You may not purchase or sell, or offer to purchase or sell, any Company security, whether or not issued by the Company, while in possession of material nonpublic information about the Company. (The terms "material" and "nonpublic" are defined in Part I, Section 3(a) and Exhibit 19.1

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![](insidertradingpolicyamen002.jpg)

2 (b) below). (b) If you know of any material nonpublic information about the Company, you may not communicate that information to ("tip") any other person, including family members and friends, or otherwise disclose such information without the Company's authorization. (c) You may not purchase or sell any security of any other company, whether or not issued by the Company, while in possession of material nonpublic information about that company that was obtained in the course of your involvement with the Company. If you know of any such material nonpublic information, you may not communicate that information to, or tip, any other person, including family members and friends, or otherwise disclose such information without the Company's authorization. (d) For compliance purposes, you should never trade, tip or recommend securities (or otherwise cause the purchase or sale of securities) while in possession of information that you have reason to believe is material and nonpublic unless you first consult with, and obtain the advance approval of, the Compliance Officer (which is defined in Part I, Section 3(c) below). (e) Covered Persons must "pre-clear" all trading in securities of the Company in accordance with the procedures set forth in Part II, Section 4 below. 3. Definitions (a) Material. Insider trading restrictions come into play only if the information you possess is "material." Materiality, however, involves a relatively low threshold. Information is generally regarded as "material" if it has market significance, that is, if its public dissemination is likely to affect the market price of securities, or if it otherwise is information that a reasonable investor would want to know before making an investment decision. Material information can be positive or negative and can relate to virtually any aspect of a company's business or to any type of security, debt or equity. Some common examples of information that may be material include:  Financial results and financial condition;  significant changes in the Company's prospects;  significant write-downs in assets or increases in reserves;  developments regarding significant litigation or government agency investigations;  changes in liquidity;  changes in earnings estimates or unusual gains or losses in major operations;  major changes in management;  changes in dividends;  extraordinary borrowings;  award or loss of a significant contract;  changes in debt ratings;

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![](insidertradingpolicyamen003.jpg)

3  proposals, plans or agreements, even if preliminary in nature, involving mergers, acquisitions, divestitures, recapitalizations, strategic alliances, licensing arrangements, or purchases or sales of substantial assets;  offerings of Company securities;  pending statistical reports (such as, consumer price index, money supply and retail figures, or interest rate developments); and  information relating to significant cybersecurity risks or incidents. The above list is not exhaustive, and many other types of information may be considered "material" depending on the circumstances. Material information is not limited to historical facts but may also include projections and forecasts. With respect to a future event, such as a merger, acquisition or introduction of a new product, the point at which negotiations or product development are determined to be material is determined by balancing the probability that the event will occur against the magnitude of the effect the event would have on a Company's operations or stock price should it occur. Thus, information concerning an event that would have a large effect on stock price, such as a merger, may be material even if the possibility that the event will occur is relatively small. When in doubt about whether particular nonpublic information is material, you should presume it is material. If you are unsure whether information is material, you should consult the Compliance Officers before making any decision to disclose such information or to trade in or recommend securities to which that information relates. (b) Nonpublic. Insider trading prohibitions come into play only when you possess information that is material and "nonpublic." The fact that information has been disclosed to a few members of the public does not make it public for insider trading purposes. To be "public" the information must have been widely disseminated in a manner designed to reach investors generally, and the investors must be given the opportunity to absorb the information. Even after public disclosure of information about the Company, you must wait until the close of business on the second trading day after the information was publicly disclosed before you can treat the information as public. Nonpublic information may include: (i) information available to a select group of analysts or brokers or institutional investors; (ii) undisclosed facts that are the subject of rumors, even if the rumors are widely circulated; and (iii) information that has been entrusted to the Company on a confidential basis until a public announcement of the information has been made and enough time has elapsed for the market to respond to a public announcement of the information (normally two (2) trading days). As with questions of materiality, if you are not sure whether information is considered public, you should either consult with the Compliance Officers or assume that the information is nonpublic and treat it as confidential. (c) Compliance Officers. The Company has appointed the Chief Financial Officer and General Counsel as the Compliance Officers for this Policy. The duties of the Compliance Officers include, but are not limited to, the following:

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![](insidertradingpolicyamen004.jpg)

4 (i) assisting with implementation and enforcement of this Policy; (ii) circulating this Policy to all employees and ensuring that this Policy is amended as necessary to remain up-to-date with insider trading laws; (iii) pre-clearing all trading in securities of the Company by Covered Persons in accordance with the procedures set forth in Part II, Section 4 below; and (iv) providing approval of any Rule 10b5-1 plans under Part II, Section 1(c) below and any prohibited transactions under Part II, Section 5 below. (v) providing a reporting system with an effective whistleblower protection mechanism. 4. Exceptions The trading restrictions of this Policy do not apply to the following: (a) 401(k) Plan. Investing 401(k) plan contributions in a Company stock fund in accordance with the terms of the Company's 401(k) plan. However, any changes in your investment election regarding the Company's stock are subject to trading restrictions under this Policy. (b) Options. Exercising options to purchase Company shares granted under the Company's applicable equity incentive plan for cash or the delivery of previously owned Company shares. However, the sale of any shares issued on the exercise of Company-granted options and any cashless exercise of Company-granted options are subject to trading restrictions under this Policy. 5. Violations of Insider Trading Laws Penalties for trading on or communicating material nonpublic information can be severe, both for individuals involved in such unlawful conduct and their employers and supervisors, and may include jail terms, criminal fines, civil penalties and civil enforcement injunctions. Given the severity of the potential penalties, compliance with this Policy is absolutely mandatory. (a) Legal Penalties. A person who violates insider trading laws by engaging in transactions in a company's securities when he or she has material nonpublic information can be sentenced to a substantial jail term, subject to disgorgement of profits and required to pay a criminal penalty of several times the amount of profits gained or losses avoided. In addition, a person who tips others may also be liable for transactions by the tippees to whom he or she has disclosed material nonpublic information. Tippers can be subject to the same penalties and sanctions as the tippees, and the SEC has imposed large penalties even when the tipper did not profit from the transaction. The SEC can also seek substantial civil penalties from any person who, at the time of an insider trading violation, "directly or indirectly controlled the person who committed such violation," which would apply to the Company and/or management and supervisory personnel. These control persons may be held liable for up to the greater of $1.2 million or three times the amount of the profits gained or losses avoided plus, in the case of entities, a criminal penalty of up to $2.5 million. Even for violations that result in a small or no profit, the SEC can seek penalties from a company and/or its management and supervisory personnel as control persons.

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![](insidertradingpolicyamen005.jpg)

5 (b) Company-imposed Penalties. Employees who violate this Policy may be subject to disciplinary action by the Company, including dismissal for cause. Any exceptions to the Policy, if permitted, may only be granted by the Compliance Officers and must be provided before any activity contrary to the above requirements takes place. 6. Inquiries If you have any questions regarding any of the provisions of this Policy, please contact the Compliance Officers. PART II 1. Blackout Periods All Covered Persons are prohibited from trading in the Company's securities during blackout periods as defined below. (a) Quarterly Blackout Periods. Trading in the Company's securities is prohibited during the period beginning at the close of the market on two weeks before the end of each fiscal quarter and ending at the close of business on the trading day following the date the Company's financial results are publicly disclosed and Form 10-Q or Form 10-K is filed. For example, if the Company filed its Form 10-Q on Thursday, December 11, the trading window would open at the close of business on Friday, December 12. During these periods, you generally possess or are presumed to possess material nonpublic information about the Company's financial results. (b) Other Blackout Periods. From time to time, other types of material nonpublic information regarding the Company (such as negotiation of mergers, acquisitions or dispositions or new product developments) may be pending and not be publicly disclosed. While such material nonpublic information is pending, the Company may impose special blackout periods during which you are prohibited from trading in the Company's securities. If the Company imposes a special blackout period that affects you, you will be notified. (c) Exception. These trading restrictions do not apply to transactions under a pre- existing written plan, contract, instruction, or arrangement under Rule 10b5-1 under the Securities Exchange Act of 1934 (an "Approved 10b5-1 Plan") provided that such Approved 10b5-1 Plan complies with the requirements set forth in Part II, Section 3 below and in SEC Rule 10b5-1 as then in effect. 2. Trading Window You are permitted to trade in the Company's securities when no blackout period is in effect. Generally, this means that you can trade during the period beginning on the day that blackout period under Section 1(a) ends and ending on the day that the next blackout period under Section 1(a) begins. However, even during this trading window, if you are in possession of any material nonpublic information you should not trade in the Company's securities until the information has been made publicly available or is no longer material. In addition, the Company may close this

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![](insidertradingpolicyamen006.jpg)

6 trading window if a special blackout period under Part II, Section 1(b) above is imposed and will re-open the trading window once the special blackout period has ended. 3. Pre-Arranged Trading Plans SEC Rule 10b5-1(c) provides a defense from insider trading liability if trades occur pursuant to a pre-arranged "trading plan" that meets specified conditions. Under this rule, if you enter into and operated a binding contract, an instruction or a written plan in good faith that specifies the amount, price and date on which securities are to be purchased or sold, and if these arrangements are established in accordance with the terms of Rule 10b5-1 and at a time when you do not possess material, non-public information relevant to such trades, then the transactions under the trading plan will be exempt from the trading restrictions set forth in this Policy. Arrangements under Rule 10b5-1(c) may specify the amount, price and date through a formula or may specify trading parameters which another person has discretion to administer, but you must not exercise any subsequent discretion affecting the transactions, and if your broker or any other person exercises discretion in implementing trades, you must not influence his or her actions and he or she must not possess any relevant material, non- public information at the time of the trades. Covered Persons must represent in such trading plans that they are not aware of any material, non-public information about the Company and are entering such trading plan in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5. Trading plans can be established for a single trade or a series of trades, however no more than one single-trade trading plan may be entered into in any 12- month period. Covered Persons may only have one trading plan in place for purchases or sales during any one period, except in limited circumstances in accordance with SEC rules and after specific approval by the Compliance Officers. It is important that you properly document the details of a trading plan. In addition to the trading plan requirements described above, there are a number of additional procedural conditions to Rule 10b5-1(c) that must be satisfied before you can rely on a trading plan as an affirmative defense against an insider trading charge. These requirements include, among others: (a) that you act in good faith; (b) that you not modify your trading instructions while you possess relevant material, non-public information; and (c) that you not enter into or alter a corresponding or hedging transaction or position. Because Rule 10b5-1(c) is complex, you must be sure that you fully understand the applicable limitations and conditions under Rule 10b5-1 before you establish a trading plan. A Covered Person may only enter into or modify a trading plan if (a) it is precleared by the Compliance Officers; (b) at a time that the Covered Person is not in possession of material, non-public information; and (c) only during a trading window period outside of the blackout period that applies to the Covered Person. Consistent with the requirements of Rule 10b5-1, the Company requires a waiting period (a "cooling-off period") between the establishment of a trading plan and the commencement of trading under such trading plan. The cooling-off period must be, (a) for Section 16 reporting persons, at least the later of (i) 90 days, or (ii) two business days following the disclosure in a periodic report of the Company's financial results for the fiscal period in which the trading plan was adopted, subject to a maximum of 120 days and, (b) for all other Covered Persons, 30 days. Consistent with the requirements of Rule 10b5-1, the cooling-off periods are also required for modifications of a trading plan that changes the amount of shares subject to the trading plan,

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![](insidertradingpolicyamen007.jpg)

7 the transaction price or the timing of the transaction. For other types of trading plan modifications, the Company requires a cooling-off period of 30 days between the modification and commencement of trading under such plan. The Compliance Officers will review a proposed trading plan to determine if the plan is in compliance with this Policy. If the Compliance Officers deem appropriate, a review of any trading plan or modification may be considered by the Audit Committee prior to approval. Revocation of a trading plan should occur only in unusual circumstances. Effectiveness of any revocation or amendment of a trading plan will be subject to the prior review and approval of the Compliance Officers. Revocation is effected upon written notice to the broker and, once a trading plan has been revoked, the participant must wait at least 30 days before trading outside of a trading plan and comply with the applicable cooling-off period for establishing a new plan discussed in the preceding paragraph. Under certain circumstances, a trading plan must be revoked. This may include circumstances such as the announcement of a merger or the occurrence of an event that would cause the transaction either to violate the law or to have an adverse effect on the Company. The Compliance Officers and the administrator of the Company's stock plans are authorized to notify the broker in such circumstances, thereby insulating the insider in the event of revocation. All trading plans entered into or terminated by a Section 16 reporting person of the Company will be disclosed in the Company's next Form 10-Q or Form 10-K. 4. Pre-clearance of Securities Transactions (a) Because Covered Persons are likely to obtain material nonpublic information on a regular basis, the Company requires all such persons to refrain from trading, even during a trading window under Part II, Section 2 above, without first pre-clearing all transactions in the Company's securities. (b) Subject to the exemption in subsection (d) below, no Covered Person may, directly or indirectly, purchase or sell (or otherwise make any transfer or gift of) any Company security at any time without first obtaining prior approval from a Compliance Officer. The attached pre- clearance form shall be used for this purpose. These procedures also apply to transactions by such Covered Person's spouse, other persons living in such person's household and minor children and to transactions by individuals or entities over which such person exercises influence, directs or controls. (c) Unless revoked, a grant of permission will normally remain valid until the close of trading two business days following the day on which it was granted. If the transaction does not occur during the two-day period, pre-clearance of the transaction must be re-requested. (d) Pre-clearance is not required for purchases and sales of securities under an Approved 10b5-1 Plan. With respect to any purchase or sale under an Approved 10b5-1 Plan, the third-party effecting transactions on behalf of the Covered Person should be instructed to send duplicate confirmations of all such transactions to the Compliance Officers.

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![](insidertradingpolicyamen008.jpg)

8 5. Prohibited Transactions (a) Covered Persons are prohibited from trading in the Company's equity securities during a blackout period imposed under an "individual account" retirement or pension plan of the Company, during which at least 50% of the plan participants are unable to purchase, sell or otherwise acquire or transfer an interest in equity securities of the Company, due to a temporary suspension of trading by the Company or the plan fiduciary. (b) Covered Persons, including any such person's spouse, other persons living in such person's household and minor children and individuals or entities over which such person exercises influence, directs or control, are prohibited from engaging in the following transactions in the Company's securities: (i) Short-term trading. Covered Persons who purchase or sell Company securities may not transact in an opposite purchase or sale of any Company securities of the same class for at least six months after the purchase; (ii) Short sales. Covered Persons may not sell the Company's securities short; (iii) Options trading. Covered Persons may not buy or sell puts or calls or other derivative securities on the Company's securities; (iv) Trading on margin or pledging. Covered Persons may not hold Company securities in a margin account or pledge Company securities as collateral for a loan; and (v) Hedging. Covered Persons may not enter into hedging or monetization transactions or similar arrangements with respect to Company securities. 6. Acknowledgment and Certification Persons subject to this Policy are required to sign the attached acknowledgment and certification.

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## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Shawn Nelson, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Lovesac Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

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| | | |
|:---|:---|:---|
| Date: June 11, 2026 | Signed: | /s/ Shawn Nelson |
| | Name: | Shawn Nelson |
| | Title: | Chief Executive Officer<br>(Principal Executive Officer) |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO**

**EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a), AS ADOPTED PURSUANT TO**

**SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Keith Siegner, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of The Lovesac Company;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.

5. The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: June 11, 2026 | Signed: | /s/ Keith Siegner |
| | Name: | Keith Siegner |
| | Title: | Executive Vice President and <br>Chief Financial Officer <br>(Principal Financial Officer) |

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## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Shawn Nelson, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of The Lovesac Company for the thirteen weeks ended May 3, 2026, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Lovesac Company.

---

| | | |
|:---|:---|:---|
| Date: June 11, 2026 | Signed: | /s/ Shawn Nelson |
| | Name: | Shawn Nelson |
| | Title: | Chief Executive Officer<br>(Principal Executive Officer) |

---

## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER**

**PURSUANT TO**

**18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO**

**SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

I, Keith Siegner, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of The Lovesac Company for the thirteen weeks ended May 3, 2026, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of The Lovesac Company.

---

| | | |
|:---|:---|:---|
| Date: June 11, 2026 | Signed: | /s/ Keith Siegner |
| | Name: | Keith Siegner |
| | Title: | Executive Vice President and <br>Chief Financial Officer <br>(Principal Financial Officer) |

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