HOUR

Shares of Hour Loop, Inc. HOUR have declined 1.8% since the company reported its earnings for the quarter ended June 30, 2026 compared with a 0.2% change in the S&P 500 Index over the same period. Over the past month, the stock has moved down 0.5%, while the S&P 500 has advanced 4.1%. Hour Loop reported second-quarter 2026 earnings per share of 3 cents, which declined from 4 cents in the prior-year quarter. Net revenues of $33.9 million denoted a 25% rise from $27.1 million in the year-ago quarter. Despite the top-line growth, net income decreased 10.6% to $1.1 million from $1.2 million. Gross profit increased 15.9% to $18 million from $15.5 million, but income from operations fell 20.8% to $1.3 million from $1.6 million as higher costs offset revenue growth. Hour Loop, Inc. price-consensus-eps-surprise-chart | Hour Loop, Inc. Quote Gross margin contracted to 52.9% of net revenues from 57.2% a year earlier. Operating expenses represented 49.2% of revenues, improving from 51.2% in the prior-year quarter. Selling and marketing expenses increased to $14.5 million from $11.7 million, while general and administrative expenses were nearly unchanged at approximately $2.2 million. Total operating expenses rose 20.2% to $16.7 million from $13.9 million. Liquidity weakened during the first half of the year. Cash and cash equivalents stood at $1 million as of June 30, 2026, down from $3.8 million as of Dec. 31, 2025, reflecting payments to related parties and additional inventory investment. Inventory increased to $20.9 million from $18.3 million over that period. For the six months ended June 30, cash used in operating activities increased to $3.6 million from $0.9 million a year earlier. CEO and Interim CFO Sam Lai characterized the quarter as demonstrating strong business momentum, pointing to the 25% year-over-year revenue increase despite margin pressure. Management also emphasized its push toward greater automation. Hour Loop said its proprietary artificial intelligence system already powers more than 100 AI agents across the organization, with operations being redesigned around autonomous execution, faster decision-making and greater scale. Management described 2026 as the beginning of the company's “AI-first era.” Revenue growth was primarily driven by expanded inventory availability, which improved product availability and sales execution. The lower gross margin reflected a shift in sales strategy. In the year-ago period, Hour Loop had intentionally maintained higher margins amid tariff concerns by preserving lower-cost inventory and gradually adjusting retail prices. The operating expense ratio improved due to greater operating leverage and continued efficiency gains, partly mitigating the pressure from the gross-margin contraction. The balance sheet also reflected Hour Loop's inventory strategy. Inventory increased by about $2.6 million from year-end, while accounts receivable rose to $2.7 million from $0.2 million. During the first six months of 2026, inventory changes consumed $2.9 million of operating cash, while the increase in accounts receivable consumed approximately $2.5 million. Hour Loop reaffirmed its full-year 2026 outlook. The company continues to expect net revenues of $143 million to $163 million, representing flat to 15% year-over-year growth. Management also maintained its forecast for full-year net income of $0.75 million to $1.5 million. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hour Loop, Inc. (HOUR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Continued Profitability Despite a Challenging Economic Environment Redmond, WA, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop” or the “Company”), a leading online retailer, announces its financial and operational results for the quarter ended June 30, 2026 Financial Highlights for Second Quarter of 2026: Net revenues increased 25% to $33.9 million, compared to $27.1 million in the year-ago period; Net income decreased to $1.1 million, compared to $1.2 million in the year-ago period; and Cash used in operating activities was $3.6 million, compared to cash used in operating activities of $0.9 million in the year-ago period. Management Commentary“This was a remarkable quarter for Hour Loop. Revenue grew 25% year over year, reflecting strong business momentum and giving us greater confidence in the opportunities ahead,” said Sam Lai, Chief Executive Officer and Interim Chief Financial Officer. “We delivered this growth while navigating margin pressure and continuing to improve how we operate. We are excited about what we have accomplished—and even more excited about what comes next.” “Our vision is to automate every part of the business. Humans are optional. We believe AI will fundamentally reshape how companies operate, and Hour Loop intends to lead in this new era. Our proprietary AI system already powers more than one hundred AI agents across the organization, and we are redesigning our operations around autonomous execution, faster decisions and greater scale. We believe 2026 will be remembered as the beginning of Hour Loop’s AI-first era.” “We are deeply grateful to our employees for their ambition and execution, and to our shareholders for their continued confidence. We believe the next several years can be transformative for Hour Loop, and we have never been more optimistic about the opportunity ahead.” Second Quarter of 2026 Financial ResultsNet revenues in the Second Quarter of 2026 were $33.9 million, compared to $27.1 million in the same period last year. The increase was primarily driven by expanded inventory availability, which supported improved product availability and sales execution. Gross profit as a percentage of net revenues decreased to 52.9%, compared to 57.2% in the same period last year. The decrease was primarily reflecting a shift in sales strategy. In the same period last year, the Company intentionally maintained a higher gross margin in response to tariff concerns by preserving lower-cost inventory and gradually adjusting retail prices to help customers adapt to higher price levels. Operating expenses as a percentage of net revenues in the Second Quarter of 2026 decreased to 49.2%, compared to 51.2% in the same period last year. The decrease was mainly attributable to greater operating leverage and continued efficiency improvements. Net income in the Second Quarter of 2026 was $1.1 million, or $0.03 per diluted share, compared to net income of $1.2 million, or $0.04 per diluted share, in the same period last year. The decrease was driven by increased costs and decreased expenses because of the reasons mentioned above. As of June 30, 2026, the Company had $1.0 million in cash and cash equivalents, compared to $3.8 million as of December 31, 2025. This decrease was driven by payments to related parties and additional investment in inventory. Full Year 2026 Financial Outlook Hour Loop reaffirms its guidance for the full year, anticipating 2026 net revenue to be in the range of $143.0 million to $163.0 million, representing flat to 15% year-over-year growth. The Company continues to expect 2026 net income to be in the range of $0.75 million to $1.5 million. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and SHEIN. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995, including with respect to Hour Loop’s business strategy, product development and industry trends. All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. The contents of any website referenced in this press release are not incorporated by reference herein. Investor ContactFinance Department, Hour Loop, [email protected] Item 1. Financial Statements. HOUR LOOP, INC.CONSOLIDATED BALANCE SHEETS(In U.S. Dollars, except for share and per share data)As of June 30, 2026 and December 31, 2025(Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.HOUR LOOP, INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(In U.S. Dollars, except for share and per share data)For the Three and Six Months Ended June 30, 2026 and 2025(Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.HOUR LOOP, INC.CONSOLIDATED STATEMENTS OF CASH FLOWS(In U.S. Dollars)For the Six Months Ended June 30, 2026 and 2025(Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

Shares of Hour Loop, Inc. HOUR have declined 13.4% since the company reported results for the quarter ended March 31, 2026, underperforming the S&P 500 index, which was nearly flat, with 0.1% growth over the same period. Over the past month, the stock has fallen 11.2% compared with a 5% gain for the broader market. Hour Loop reported first-quarter 2026 earnings per share of 2 cents, which remained flat year over year. Net revenues of $29.9 million indicated a 16% rise from $25.8 million in the year-ago quarter, driven primarily by expanded inventory availability that supported stronger product availability and sales execution. Net income increased to $0.8 million from $0.7 million a year ago. Gross profit rose to $16 million from $14.1 million in the prior-year period. Operating income climbed to $1.1 million from $0.9 million in the comparable quarter last year. Hour Loop, Inc. price-consensus-eps-surprise-chart | Hour Loop, Inc. Quote Gross profit margin declined to 53.5% from 54.7% in the prior-year quarter as higher inbound shipping costs and storage fees weighed on profitability. Management attributed these higher costs to increased purchasing activity and a larger inventory base following the discontinuation of the platform’s labeling service. Despite margin pressure, Hour Loop improved expense efficiency. Operating expenses as a percentage of revenues declined to 49.7% from 51.2% a year ago, reflecting greater operating leverage and ongoing efficiency initiatives. Total operating expenses increased 12.5% year over year to $14.9 million, below the pace of revenue growth. Selling and marketing expenses rose to $12.6 million from $11.2 million, while general and administrative expenses increased to $2.3 million from $2 million. The company’s inventory position expanded significantly during the quarter. Inventory stood at $21.1 million as of March 31, 2026, compared with $18.3 million at the end of 2025. Accounts payable also increased to $9.8 million from $6.2 million at year-end, reflecting higher purchasing activity. CEO and interim CFO Sam Lai said the company entered 2026 with “strong momentum,” highlighting revenue growth supported by “solid demand, stronger execution and the continued strength of our operating strategy.” Management emphasized that maintaining higher inventory levels was a deliberate strategy aimed at improving product availability and stabilizing sales performance over time. Lai also noted that the company remained disciplined on costs despite the challenging economic backdrop. According to management, expense growth remained below revenue growth due to operational efficiencies and tighter cost control measures. The company believes these initiatives, combined with inventory investments and operational improvements, position it for sustainable long-term growth. Cash used in operating activities totaled $2.2 million in the first quarter. Hour Loop ended the quarter with cash and cash equivalents of $0.9 million, down from $3.8 million at Dec. 31, 2025. The decrease was mainly attributed to payments to related parties and increased inventory investments. Total current assets rose modestly to $23.8 million from $23 million at the end of 2025. Hour Loop reaffirmed its full-year 2026 guidance. The company continues to expect net revenues in the range of $143 million to $163 million, representing flat to 15% year-over-year growth. Management also maintained its forecast for net income between $0.8 million and $1.5 million for the year. Management reiterated its long-term strategy of expanding the number of vendors, business managers and stock-keeping units across its e-commerce operations. The company currently manages more than 100,000 SKUs and continues to generate the vast majority of its sales through Amazon’s marketplace platform. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hour Loop, Inc. (HOUR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Continued Profitability Despite a Challenging Economic Environment Redmond, WA, May 12, 2026 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop” or the “Company”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2026. Financial Highlights for First Quarter of 2026: Net revenues increased 16% to $29.9 million, compared to $25.8 million in the year-ago period; Net income increased to $0.82 million, compared to $0.65 million in the year-ago period; and Cash used in operating activities was $2.2 million, compared to cash used in operating activities of $0.0 million in the year-ago period. Management Commentary “We are pleased to share our first quarter 2026 financial results as we kicked off the year with strong momentum,” said Sam Lai, CEO and interim CFO of Hour Loop. “Revenue grew 16% year-over-year, supported by solid demand, stronger execution and the continued strength of our operating strategy.” “Gross margin was modestly lower compared to the year-ago period, primarily due to higher inbound costs and storage fees, as we took a more proactive approach to inventory purchasing following the discontinuation of the platform’s labeling service. While this approach resulted in higher inventory levels, we believe maintaining a stronger inventory position is important to supporting product availability and more stable sales performance over time.” “We also remained disciplined in managing operating expenses, which increased only 12% year-over-year. This reflects our continued focus on operational efficiency and our ability to support business growth while maintaining cost control. While this strategy also resulted in a significant increase in inventory levels, we believe the enhanced inventory position supports improved product availability and more stable sales performance going forward.” “We would like to thank our team members around the world for their continued dedication and contributions, as well as our shareholders for their continued trust and support. We remain focused on reinforcing the foundation we have built, while positioning the Company for future opportunities. We believe that everything we are doing today—strengthening our operations, improving efficiency, expanding opportunities and maintaining financial discipline—represents a critical building block for sustainable growth and long-term value creation.” First Quarter of 2026 Financial Results Net revenues in the first quarter of 2026 were $29.9 million, compared to $25.8 million in the same period last year. The increase was primarily driven by expanded inventory availability, which supported improved product availability and sales execution. Gross profit as a percentage of net revenues decreased to 53.5%, compared to 54.7% in the same period last year. The decrease was mainly driven by higher storage fees and inbound costs resulting from increased purchasing activity and a larger inventory base. Operating expenses as a percentage of net revenues in the first quarter of 2026 decreased to 49.7%, compared to 51.2% in the same period last year. The decrease was mainly attributable to greater operating leverage and continued efficiency improvements. Net income in the first quarter of 2026 was $0.82 million, or $0.02 per diluted share, compared to net income of $0.65 million, or $0.02 per diluted share, in the same period last year. The increase was driven by increased costs and decreased expenses because of the reasons mentioned above. As of March 31, 2026, the Company had $0.9 million in cash and cash equivalents, compared to $3.8 million as of December 31, 2025. This decrease was driven by payments to related parties and additional investment in inventory. Full Year 2026 Financial Outlook Hour Loop reaffirms its guidance for the full year, anticipating 2026 net revenue to be in the range of $143.0 million to $163.0 million, representing flat to 15% year-over-year growth. The Company continues to expect 2026 net income to be in the range of $0.75 million to $1.5 million. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of March 31, 2026 and December 31, 2025 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. Dollars, except for share and per share data) For the Three Months Ended March 31, 2026 and 2025 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Three Months Ended March 31, 2026 and 2025 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

Shares of Hour Loop, Inc. HOUR have declined 9.5% since the company reported its earnings for the year ended Dec. 31, 2025, underperforming the S&P 500 index’s 3.6% decline over the same period. Over the past month, the stock has declined 11.4% compared with the 7.6% drop for the broader market, indicating relatively weaker investor sentiment toward the company following its latest results. Hour Loop reported earnings per share of 5 cents in 2025, which improved from 2 cents in 2024. The increase in profitability was supported by higher gross margins and improved operational efficiency. Net revenues of $142.4 million represented a 3% increase from $138.3 million in 2024. Net income rose significantly to $1.7 million, up from $0.7 million in the prior year. Operating income more than tripled to $2.5 million from $0.7 million a year earlier. Hour Loop, Inc. price-consensus-eps-surprise-chart | Hour Loop, Inc. Quote Gross profit margin improved modestly to 52.4% in 2025 from 52.1% in 2024, driven by better product costs, enhanced inventory quality, and pricing optimization. Operating expenses as a percentage of revenue declined to 50.7% from 51.6%, highlighting efficiency gains in the company’s cost structure. Cash flow generation strengthened notably, with cash provided by operating activities rising to $2.6 million from $0.3 million in the previous year. The company ended 2025 with $3.8 million in cash and cash equivalents, compared with $2.1 million at the end of 2024, supported by improved operating profitability and a reduction in accounts receivable. Inventory levels increased to $18.3 million from $14.6 million, reflecting the company’s strategy to expand inventory to support growth. Meanwhile, accounts receivable declined sharply, indicating improved collection efficiency. Management highlighted 2025 as a challenging year for the retail sector, citing tariff-related cost pressures and broader macroeconomic uncertainty. Despite these headwinds, the company emphasized its ability to adapt through adjustments in inventory management and sales strategies. CEO Sam Lai noted that growth was driven by expansion across multiple sales channels, including Walmart, eBay, Amazon Canada and Amazon Mexico, which broadened customer reach. He also pointed to improvements in the company’s automated pricing system and operational processes as key contributors to margin expansion and profitability gains. Several operational and external factors shaped the year’s results. Revenue growth was partly supported by a deliberate procurement strategy to increase inventory levels, enabling the company to meet demand more effectively. Margin improvement stemmed from better product sourcing, pricing optimization and enhanced inventory efficiency. At the same time, external pressures such as reciprocal tariffs increased procurement costs and added operational complexity. The company also faced ongoing macroeconomic uncertainty, which management indicated could continue to influence performance. Operational efficiency improvements played a significant role in boosting profitability, as evidenced by the decline in operating expense ratios and the substantial increase in operating income. For 2026, Hour Loop expects net revenue to range between $143 million and $163 million, implying flat to 15% year-over-year growth. The company forecasts net income between $0.8 million and $1.5 million, suggesting potential variability in profitability amid ongoing cost pressures and external uncertainties. Management acknowledged continued challenges, including tariff-related issues, the discontinuation of Amazon’s labeling service, and broader macroeconomic risks, but expressed confidence in the company’s ability to execute its strategy and sustain long-term growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hour Loop, Inc. (HOUR): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Continued Profitability Despite a Challenging Economic Environment Redmond, WA, March 24, 2026 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the year ended December 31, 2025. Financial Highlights for 2025: Net revenues increased 3% to $142.4 million, compared to $138.3 million in the year-ago period; Net income increased to $1.7 million, compared to $0.7 million in the year-ago period; and Cash provided by operating activities was $2.6 million, compared to cash provided by operating activities of $0.3 million in the year-ago period. Management Commentary “We are pleased to share our full year 2025 financial results. Fiscal year 2025 was a challenging year for the retail industry, as reciprocal tariffs increased procurement costs and added complexity to operations. Despite these pressures, we adapted quickly, adjusted our inventory management and sales strategies, and delivered strong financial performance in 2025,” said Sam Lai, CEO and interim CFO of Hour Loop. “Sales growth for the year was primarily driven by the continued expansion of our multi-channel business, including Walmart, eBay, Amazon Canada, and Amazon Mexico, which enabled us to capture demand and expand our customer reach. Gross margin improved from the prior year despite procurement cost pressure, reflecting effective sales strategy adjustments and continued enhancements to our automated pricing system. Operating income increased by more than double from the prior year, driven by higher gross margin and continued improvements in operating efficiency. Through disciplined execution, process optimization, and cost management, we strengthened the scalability of our operating model. Looking ahead to 2026, while tariff-related challenges, the discontinuation of Amazon’s labeling service and macroeconomic uncertainties remain, we believe our 2025 performance demonstrates our ability to adapt and execute under challenging conditions. We remain committed to disciplined growth, operational excellence, and long-term value creation for our shareholders.” Full Year 2025 Financial Results Net revenues in 2025 were $142.4 million, compared to $138.3 million in 2024. The increase was primarily driven by our procurement strategy to increase our inventory level. Gross profit as a percentage of net revenues increased 0.3% to 52.4%, compared to 52.1% in 2024. The increase was a function of improved product costs, enhanced inventory quality and efficiency, and an optimized pricing system made on margin increase. Operating expenses as a percentage of net revenues in 2025 decreased by 0.9%, to 50.7%, compared to 51.6% of net revenues in 2024. The decrease was mainly caused by the improvement of our operational efficiency. Net income in 2025 was $1.7 million, or $0.05 per diluted share, compared to net income of $0.7 million, or $0.02 per diluted share, in 2024. The increase was driven by decreased costs and expenses because of the reasons mentioned above. As of December 31, 2025, the Company had $3.8 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. The increase was primarily attributable to operating profit and a reduction in accounts receivable. Full Year 2026 Financial Outlook For the full year 2026, Hour Loop is providing guidance for net revenue to be in the range of $143 million to $163 million, representing flat to 15% year-over-year growth. The Company expects 2026 net income to be in the range of $0.75 million to $1.5 million. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including with respect to Hour Loop’s business strategy, product demand, future results, and industry and macroeconomic trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] Item 1. Financial Statements. HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of December 31, 2025 and 2024 The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. Dollars, except for share and per share data) For the Years Ended December 31, 2025 and 2024 The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Years Ended December 31, 2025 and 2024 The accompanying notes are an integral part of these consolidated financial statements.

Profitability Continues Despite Challenges for the Overall Economy Redmond, WA, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended September 30, 2025. Financial Highlights for Third Quarter of 2025: Management Commentary “The U.S. reciprocal tariffs are too important to overlook, as they have a substantial impact on retail industries. We were forced to reshape our product portfolio, front-load our inventory and enhance logistical flexibility. Retailers have had to adapt quickly to rising costs and increased operational complexity,” said Sam Lai, CEO and interim CFO of Hour Loop. “Although we faced numerous challenges, our sales and net income in the third quarter represent our strongest results to date, accompanied by only a modest decline in gross margin due to tariff impact.” “The results demonstrate the durability of our operating model. Over time, the Company has made deliberate and strategic investments to drive operational excellence, optimize its structural cost base, and sustain long-term profitability. In the third quarter of 2025, these efforts drove lower operating expenses and higher net income despite elevated product costs. We believe these results are not temporary adjustments but reflect enduring structural improvements that position us to navigate market volatility and outperform across business cycles.” “Looking ahead, we believe we are well positioned to capitalize on future opportunities. Our strengthened operating model provides the agility to safeguard margins while pursuing disciplined, strategic growth as market conditions evolve.” “We extend our sincere appreciation to our shareholders for their continued confidence and support. To our global team, whose focus and execution have driven this performance — thank you. We are proud of what we have accomplished together and remain steadfast in our commitment to delivering sustainable, long-term value, even in a challenging and dynamic environment.” Third Quarter of 2025 Financial Results Net revenues in the third quarter of 2025 were $33.4 million, compared to $31.1 million in the year-ago period. The increase was mainly supported by our 3–6-month inventory purchase cycle starting from the previous quarter, which allowed us to build stock ahead and maintain higher availability. Gross profit percentage for the third quarter of 2025 decreased 3.4% to 51.4% of net revenues, compared to 54.8% of net revenues in the comparable period a year ago. The decrease was primarily driven by strategic price adjustments and tariff surcharge. Operating expenses as a percentage of net revenues decreased 3.3% to 49.2%, compared to 52.5% of net revenues in the year-ago period. The decrease was mainly caused by the improvement of our operational efficiency. Net income in the third quarter of 2025 was $0.53 million, or $0.01 per diluted share, compared to $0.47 million, or $0.01 per diluted share, in the comparable year-ago period. The increase was driven by increased costs and decreased expenses because of the reasons mentioned above. As of September 30, 2025, the Company had $0.8 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. This decrease was driven by the loan repayment and growth of inventories. Inventories as of September 30, 2025, were $28.9 million, compared to $14.6 million as of December 31, 2024. The increase was due to growth in inventory in view of the upcoming holiday season. Full Year 2025 Financial Outlook For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute “forward-looking statements,” including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] Item 1. Financial Statements. HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of September 30, 2025 and December 31, 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. Dollars, except for share and per share data) For the Three Months and Nine Months Ended September 30, 2025 and 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Nine Months Ended September 30, 2025 and 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

Profitability Continues Despite Challenges for the Overall Economy Redmond, WA, Aug. 12, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended June 30, 2025. Financial Highlights for Second Quarter of 2025: Net revenues decreased 3.4% to $27.1 million, compared to $28.1 million in the year-ago period; Net income increased to $1.2 million, compared to $0.6 million in the year-ago period; and Cash used in operating activities for the six months ended June 30, 2025, was $0.9 million, compared to cash provided by operating activities of $0.9 million in the year-ago period. Management Commentary “The second quarter of 2025 brought meaningful disruption to the retail sector as new U.S. trade actions targeting Chinese imports reshaped sourcing dynamics, pressured margins, and introduced heightened uncertainty across global supply chains. Retailers had to adapt quickly to rising costs and increased operational complexity.” said Sam Lai, CEO and interim CFO of Hour Loop. “Despite these headwinds, Hour Loop delivered a strong quarter. Net income was nearly double compared to the same period last year, even as revenue declined modestly — marking our best second quarter performance to date.” “This outcome was not accidental. Over the past several years, we’ve made focused investments to improve our operating efficiency, streamline our cost base, and build margin resilience. In the second quarter of 2025, we saw that effort materialize through expanded margins and reduced operating expenses. These improvements weren’t short-term fixes — they are structural gains that we believe position us to weather volatility and outperform through cycles.” “Looking forward, we believe we are well-positioned for the second half of the year. Our strengthened operating model gives us the flexibility to defend margins or pursue growth offensively as conditions evolve.” “To our shareholders — thank you for your continued trust. To our team around the world — your focus and execution made this performance possible. We’re proud of what we’ve accomplished together, and we remain committed to building long-term value, even in uncertain times.” Second Quarter of 2025 Financial Results Net revenues in the second quarter of 2025 were $27.1 million, compared to $28.1 million in the year-ago period. The decrease was mainly impacted by higher sales prices. Gross profit percentage for the second quarter of 2025 increased 1.5% to 57.2% of net revenues, compared to 55.7% of net revenues in the comparable period a year ago. The increase was primarily driven by strategic price adjustments. Operating expenses as a percentage of net revenues decreased 1.1% to 51.2%, compared to 52.3% of net revenues in the year-ago period. The decrease was mainly caused by the significant reimbursement for the claims of last year. Net income in the second quarter of 2025 was $1.2 million, or $0.04 per diluted share, compared to $0.6 million, or $0.02 per diluted share, in the comparable year-ago period. The increase was driven by decreased costs and expenses as a result of the reasons mentioned above. As of June 30, 2025, the Company had $0.3 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. This decrease was driven by the loan repayment and growth of inventories. Inventories as of June 30, 2025, were $20.9 million, compared to $14.6 million as of December 31, 2024. The Company intentionally ramped up inventory investment during the second quarter of 2025. Full Year 2025 Financial Outlook For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of June 30, 2025 and December 31, 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. Dollars, except for share and per share data) For the Three Months and Six Months Ended June 30, 2025 and 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Six Months Ended June 30, 2025 and 2024 (Unaudited) The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

Profitability Continues Despite Challenges for the Overall Economy Redmond, WA, May 12, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the quarter ended March 31, 2025. Financial Highlights for First Quarter of 2025: Net revenues increased 4.7% to $25.8 million, compared to $24.7 million in the year-ago period; Net revenues increased 4.7% to $25.8 million, compared to $24.7 million in the year-ago period; Net income decreased to $0.7 million, compared to $1.1 million for the three months ended March 31, 2024; and Net income decreased to $0.7 million, compared to $1.1 million for the three months ended March 31, 2024; and Cash used in operating activities was $0.02 million, compared with cash provided by operating activities $0.5 million for the three months ended March 31, 2025 and 2024, respectively. Cash used in operating activities was $0.02 million, compared with cash provided by operating activities $0.5 million for the three months ended March 31, 2025 and 2024, respectively. Management Commentary “We are pleased to report our results for the first quarter of 2025. During the first quarter of 2025, we continued to deliver good revenue growth, despite a more cautious consumer outlook due to rising tariffs and fees charged by the marketplace,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for the first quarter was 4.7%, compared with for the year-ago period.” “However, our gross margin for the first quarter of 2025, compared with the year-ago period, was negatively affected by a challenging e-commerce environment and intense competition across the industry. Our operating expenses also increased mainly because we amended our profit-sharing frequency to quarterly for the purpose of talent retention. Overall, we believe we’ve built a solid foundation to continue generating steady growth while maintaining profitability.” “Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see strong demand for our products so far in 2025. We are confident in our ability to continue delivering values to our vendors, customers, and shareholders.” First Quarter of 2025 Financial Results Net revenues in the first quarter of 2025 were $25.8 million, compared to $24.7 million in the year-ago period. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown and intense competition. Gross profit percentage for the first quarter of 2025 decreased 3.9% to 54.7%, compared to 58.6% of net revenues in the comparable period a year ago. The decrease was a function of increased market competition, and higher inbound costs. Operating expenses as a percentage of net revenues decreased 1.1% to 51.2%, compared to 52.3% of net revenues in the year-ago period. The decrease reflected better management of platform fees. Net income in the first quarter of 2025 was $0.7 million, or $0.02 per diluted share, compared to $1.1 million, or $0.03 per diluted share, in the comparable year-ago period. The decrease was driven by increased costs and expenses as a result of the reasons mentioned above. As of March 31, 2025, the Company had $1.3 million in cash and cash equivalents, compared to $2.1 million as of December 31, 2024. This decrease was driven by the loan repayment and growth of inventory. Inventories as of March 31, 2025, were $15.9 million, compared to $14.6 million as of December 31, 2024. The Company intentionally invested heavily in inventories for strategic reasons in the first quarter of 2025. Full Year 2025 Financial Outlook For the full year 2025, Hour Loop is not able to provide forward-looking guidance at this time due to ongoing economic uncertainty, primarily influenced by current tariff conditions. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round, including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of March 31, 2025 and December 31, 2024 (Unaudited) March 31, 2025 December 31, 2024 ASSETS Current assets Cash $ 1,260,122 $ 2,119,581 Accounts receivable, net 394,242 1,650,547 Inventory, net 15,889,482 14,640,632 Prepaid expenses and other current assets 614,685 327,894 Total current assets 18,158,531 18,738,654 Property and equipment, net 42,759 56,797 Deferred tax assets 821,205 1,060,104 Operating lease right-of-use lease assets 54,978 111,409 Total non-current assets 918,942 1,228,310 TOTAL ASSETS $ 19,077,473 $ 19,966,964 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 6,859,536 $ 4,176,305 Credit cards payable 2,404,365 3,389,880 Short-term loan 603,227 610,967 Operating lease liabilities-current 56,478 114,540 Accrued expenses and other current liabilities 677,726 2,322,535 Due to related parties 2,660,418 4,192,995 Total current liabilities 13,261,750 14,807,222 Total liabilities 13,261,750 14,807,222 Commitments and contingencies - - Stockholders’ equity Preferred stock: $0.0001 par value, 10,000,000 shares authorized; none issued and outstanding as of March 31, 2025 and December 31, 2024, respectively - - Common stock: $0.0001 par value, 300,000,000 shares authorized; 35,151,440 and 35,143,460 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively 3,515 3,514 Additional paid-in capital 5,817,685 5,802,686 Retained earnings (accumulated deficit) 59,342 (595,175 ) Accumulated other comprehensive loss (64,819 ) (51,283 ) Total stockholders’ equity 5,815,723 5,159,742 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 19,077,473 $ 19,966,964 The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (In U.S. Dollars, except for share and per share data) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) Three Months Ended March 31, 2025 2024 Revenues, net $ 25,837,090 $ 24,681,122 Cost of revenues (11,691,792 ) (10,228,916 ) Gross profit 14,145,298 14,452,206 Operating expenses Selling and marketing 11,246,997 11,174,191 General and administrative 1,977,436 1,739,843 Total operating expenses 13,224,433 12,914,034 Income from operations 920,865 1,538,172 Other income (expense) Other income (expense) 301 (1,156 ) Interest expense (47,055 ) (62,112 ) Other income 61,825 28,034 Total other income (expense), net 15,071 (35,234 ) Income before income taxes 935,936 1,502,938 Income tax expense (281,419 ) (437,124 ) Net income 654,517 1,065,814 Other comprehensive loss Foreign currency translation adjustments (13,536 ) (16,533 ) Total comprehensive income $ 640,981 $ 1,049,281 Basic and diluted earnings per common share $ 0.02 $ 0.03 Weighted-average number of common shares outstanding 35,151,351 35,095,602 The accompanying footnotes are an integral part of these unaudited consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Three Months Ended March 31, 2025 and 2024 (Unaudited) Three Months Ended March 31, 2025 2024 Cash flows from operating activities Net income $ 654,517 $ 1,065,814 Reconciliation of net income to net cash used in operating activities: Depreciation expenses 14,126 35,273 Amortization of operating lease right-of-use lease assets 55,383 42,892 Deferred tax assets 238,899 351,127 Stock-based compensation 15,000 36,000 Inventory allowance 497,347 637,058 Unrealized foreign exchange gain (24,826 ) - Changes in operating assets and liabilities: Accounts receivable 1,256,305 210,133 Inventory (1,746,197 ) 2,021,008 Prepaid expenses and other current assets (286,791 ) 76,091 Accounts payable 2,683,231 (392,733 ) Credit cards payable (985,515 ) (2,543,010 ) Accrued expenses and other current liabilities (2,338,386 ) (1,093,909 ) Operating lease liabilities (56,984 ) (35,175 ) Income taxes payable - 82,374 Net cash (used in) provided by operating activities (23,891 ) 492,943 Cash flows from investing activities: Purchases of property and equipment (720 ) (17,798 ) Net cash used in investing activities (720 ) (17,798 ) Cash flows from financing activities: Payments to related parties (839,000 ) - Net cash used in financing activities (839,000 ) - Effect of changes in foreign currency exchange rates 4,152 (37,218 ) Net change in cash (859,459 ) 437,927 Cash at beginning of period 2,119,581 2,484,153 Cash at end of period $ 1,260,122 $ 2,922,080 Supplemental disclosures of cash flow information: Cash paid for interest $ 4,986 $ 3,380 Cash paid for income tax $ 6,230 $ - Non-cash investing and financing activities: Operating lease right-of-use of assets and operating lease liabilities recognized $ - $ 123,107 The accompanying footnotes are an integral part of these unaudited consolidated financial statements.

Profitability Continues Despite Challenges for the Overall Economy Provides Full Year 2025 Revenue and Net Income Guidance Redmond, WA, March 27, 2025 (GLOBE NEWSWIRE) -- Hour Loop, Inc. (NASDAQ: HOUR) (“Hour Loop”), a leading online retailer, announces its financial and operational results for the year ended December 31, 2024. Financial Highlights for 2024: Net revenues increased 4.6% to $138.3 million, compared to $132.1 million in 2023; Net revenues increased 4.6% to $138.3 million, compared to $132.1 million in 2023; Net income totaled $0.66 million, compared to net loss of $2.43 million in 2023; and Net income totaled $0.66 million, compared to net loss of $2.43 million in 2023; and Cash provided by operating activities was $0.3 million, compared with cash used in operating activities $2.1 million for the year ended December 31, 2024 and 2023, respectively. Cash provided by operating activities was $0.3 million, compared with cash used in operating activities $2.1 million for the year ended December 31, 2024 and 2023, respectively. Management Commentary “We are pleased to report our full year 2024 results, in which we continued to deliver good revenue growth, despite challenges for the overall economy and congested inbound logistics in the 4th quarter,” said Sam Lai, CEO and interim CFO of Hour Loop. “The revenue growth rate for 2024 was 4.6%, compared with 2023.” “Our gross margin and operating margin were both improved, compared with the year-ago period, because of efforts made for inventory quality and efficiency enhancement, operation efficiency improvement, as well as expenses management. Overall, we believe we’ve built a solid foundation to continue generating satisfactory growth while maintaining profitability.” “Looking forward, we’re cautiously optimistic. Despite an uncertain economy, we continue to see good demand for our products so far in 2025. We are confident in our ability to continue delivering value to our vendors, customers, and shareholders.” Full Year 2024 Financial Results Net revenues in 2024 were $138.3 million, compared to $132.1 million in 2023. The increase was primarily due to continued growth and maturity in our personnel and operating model, despite the overall e-commerce traffic slowdown, intense competition and congested inbound logistics in the 4th quarter. Gross profit percentage increased 1.8% to 52.1%, compared to 50.3% of net revenues in 2023. The increase was a function of improved product costs, enhanced inventory quality and efficiency, and efforts made on margin increase. Operating expenses as a percentage of net revenues in 2024 decreased by 1%, to 51.6%, compared to 52.6% of net revenues in 2023. The decrease reflected better management of normal and long-term storage fees despite a significant increase in inbound placement fees. Net income in 2024 was $0.66 million, or $0.02 per diluted share, compared to net loss of $2.43 million, or $0.07 per diluted share, in 2023. The increase was driven by reduced costs as a result of the reasons mentioned above and efforts made for expenses management. As of December 31, 2024, the Company had $2.1 million in cash and cash equivalents, compared to $2.5 million as of December 31, 2023. This decrease was mainly due to loan repayment. Inventories as of December 31, 2024, were $14.6 million, similar to $14.3 million as of December 31, 2023. Full Year 2025 Financial Outlook For the full year 2025, Hour Loop is providing guidance for net revenue to be in the range of $145 million to $160 million, representing about 5% to 15% year-over-year growth. The Company expects 2025 net income to be in the range of $0.5 million to $2 million. About Hour Loop, Inc. Hour Loop is an online retailer engaged in e-commerce retailing in the U.S. market. It has operated as a third-party seller on www.amazon.com and has sold merchandise on its website at www.hourloop.com since 2013. Hour Loop further expanded its operations to other marketplaces such as Walmart, eBay, and Etsy. To date, Hour Loop has generated practically all its revenue as a third-party seller on www.amazon.com and only a negligible amount of revenue from its own website and other marketplaces. Hour Loop manages more than 100,000 stock-keeping units (“SKUs”). Product categories include home/garden décor, toys, kitchenware, apparel, and electronics. Hour Loop’s primary strategy is to bring most of its vendors’ product selections to the customers. It has advanced software that assists Hour Loop in identifying product gaps so it can keep such products in stock year-round including the entirety of the last quarter (holiday season) of the calendar year. In upcoming years, Hour Loop plans to expand its business rapidly by increasing the number of business managers, vendors, and SKUs. Forward-Looking Statements This press release contains statements that constitute "forward-looking statements," including with respect to Hour Loop’s business strategy, product development and industry trends. Forward-looking statements are subject to numerous conditions, many of which are beyond the control of Hour Loop. While Hour Loop believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to Hour Loop on the date of this release. These forward-looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including, without limitation, those set forth in Hour Loop’s filings with the Securities and Exchange Commission, as the same may be updated from time to time. Thus, actual results could be materially different. Hour Loop undertakes no obligation to update these statements whether as a result of new information, future events or otherwise, after the date of this release, except as required by law. Investor Contact Finance Department, Hour Loop, Inc. [email protected] HOUR LOOP, INC. CONSOLIDATED BALANCE SHEETS (In U.S. Dollars, except for share and per share data) As of December 31, 2024 and 2023 December 31, 2024 December 31, 2023 ASSETS Current assets Cash $ 2,119,581 $ 2,484,153 Accounts receivable, net 1,650,547 747,650 Inventory, net 14,640,632 14,276,555 Prepaid expenses and other current assets 327,894 504,973 Total current assets 18,738,654 18,013,331 Property and equipment, net 56,797 148,788 Deferred tax assets 1,060,104 1,304,215 Operating lease right-of-use lease assets 111,409 83,946 Total non-current assets 1,228,310 1,536,949 TOTAL ASSETS $ 19,966,964 $ 19,550,280 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 4,176,305 $ 3,812,954 Credit cards payable 3,389,880 4,404,445 Short-term loan 610,967 652,422 Operating lease liabilities-current 114,540 82,269 Accrued expenses and other current liabilities 2,322,535 1,972,512 Due to related parties 4,192,995 - Total current liabilities 14,807,222 10,924,602 Non-current liabilities Operating lease liabilities-non-current - 2,363 Due to related parties - 4,170,418 Total non-current liabilities - 4,172,781 Total liabilities 14,807,222 15,097,383 Commitments and contingencies - Stockholders’ equity Preferred stock: $0.0001 par value, 10,000,000 shares authorized, none issued and outstanding as of December 31, 2024 and 2023 - - Common stock: $0.0001 par value, 300,000,000 shares authorized, 35,143,460 and 35,082,464 shares issued and outstanding as of December 31, 2024 and 2023, respectively 3,514 3,508 Additional paid-in capital 5,802,686 5,727,650 Accumulated deficit (595,175 ) (1,252,622 ) Accumulated other comprehensive loss (51,283 ) (25,639 ) Total stockholders’ equity 5,159,742 4,452,897 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 19,966,964 $ 19,550,280 The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (In U.S. Dollars, except for share and per share data) For the Years Ended December 31, 2024 and 2023 2024 2023 Revenues, net $ 138,252,861 $ 132,124,202 Cost of revenues (66,242,153 ) (65,606,947 ) Gross profit 72,010,708 66,517,255 Operating expenses Selling and marketing 61,808,979 61,135,227 General and administrative 9,470,789 8,385,451 Total operating expenses 71,279,768 69,520,678 Income (loss) from operations 730,940 (3,003,423 ) Other (expenses) income Other expense (12,695 ) (9,542 ) Interest expense (249,587 ) (248,779 ) Other income 490,903 101,290 Total other expenses, net 228,621 (157,031 ) Income (loss) before income taxes 959,561 (3,160,454 ) Income tax (expense) benefit (302,114 ) 730,760 Net income (loss) 657,447 (2,429,694 ) Other comprehensive loss Foreign currency translation adjustments (25,644 ) (2,597 ) Total comprehensive income (loss) $ 631,803 (2,432,291 ) Basic and diluted income (loss) per common share $ 0.02 (0.07 ) Weighted-average number of common shares outstanding 35,119,761 35,066,592 The accompanying notes are an integral part of these consolidated financial statements. HOUR LOOP, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In U.S. Dollars) For the Years Ended December 31, 2024 and 2023 2024 2023 Cash flows from operating activities Net income (loss) $ 657,447 $ (2,429,694 ) Reconciliation of net income (loss) to net cash used in operating activities: Depreciation expenses 119,064 138,001 Amortization of operating lease right-of-use lease assets 211,348 387,446 Deferred tax assets 244,111 (754,895 ) Stock-based compensation 75,042 52,332 Inventory allowance 560,293 675,886 Unrealized Foreign Exchange Gain (87,520 ) - Changes in operating assets and liabilities: Accounts receivable (902,897 ) (395,271 ) Inventory (924,370 ) 3,849,088 Prepaid expenses and other current assets 177,079 236,270 Accounts payable 363,351 (2,838,767 ) Credit cards payable (1,014,565 ) (827,087 ) Accrued expenses and other current liabilities 1,043,600 229,540 Operating lease liabilities (208,843 ) (386,224 ) Net cash provided by (used in) operating activities 313,140 (2,063,375 ) Cash flows from investing activities: Purchases of property and equipment (35,996 ) (14,823 ) Net cash used in investing activities (35,996 ) (14,823 ) Cash flows from financing activities: Payments to related parties (671,000 ) - Net cash used in financing activities (671,000 ) - Effect of changes in foreign currency exchange rates 29,284 (238 ) Net change in cash (364,572 ) (2,078,436 ) Cash at beginning of year 2,484,153 4,562,589 Cash at end of year $ 2,119,581 $ 2,484,153 Supplemental disclosures of cash flow information: Cash paid for interest $ 249,296 $ 406,103 Cash paid for income tax $ 211,911 $ 1,696 Noncash investing and financing activities: Operating lease right-of-use of assets and operating lease liabilities recognized $ 248,716 $ 27,249 The accompanying notes are an integral part of these consolidated financial statements.