The Lovesac Company Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Basic and Diluted Net Income (Loss) Per Common Share

Basic and Diluted Net Income (Loss) Per Common Share

6 Months Ended

Aug. 02, 2026

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.


	Thirteen weeks ended				Twenty-six weeks ended
(amounts in thousands, except per share data and share amounts)	August 2, 2026		August 3, 2025		August 2, 2026		August 3, 2025
Net income (loss)	$	7,429	$	(6,650)	$	(3,664)	$	(17,490)

Weighted-average number of common shares outstanding, basic	14,652,167		14,623,823		14,660,096		14,707,952
Effect of dilutive securities(1)(2)	—		—		—		—
Weighted-average number of common shares outstanding, diluted	14,652,167		14,623,823		14,660,096		14,707,952

Basic net income (loss) per share	$	0.51	$	(0.45)	$	(0.25)	$	(1.19)
Diluted net income (loss) per share	$	0.51	$	(0.45)	$	(0.25)	$	(1.19)

(1) The effect of dilutive securities includes unvested restricted stock units and stock options.

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

For the thirteen weeks ended August 2, 2026, unvested restricted stock units of 1,559,583 and the effects of 385,285 stock options outstanding were excluded from the computation of diluted net income per share because their effects would have been anti-dilutive. For the twenty-six weeks ended August 2, 2026, unvested restricted stock units of 1,559,583 and the effects of 385,285 stock options outstanding were excluded from the computation of diluted net loss per share because their effects would have been anti-dilutive. For the thirteen and twenty-six weeks ended August 3, 2025, unvested restricted stock units of 1,646,041 and the effects of 495,366 stock options outstanding were excluded from the computation of diluted net loss per share because their effects would have been anti-dilutive.