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HomesToLife Ltd Delivers 87% Increase in 1H 2025 Net Income to US$10.0 Million

1. HomesToLife reported an 87% year-over-year increase in net income. 2. Export sales were crucial, contributing 93% to overall revenue. 3. Company's revenue reached $180.8 million, a 16% increase from last year. 4. U.S. import policies could moderate future growth for HomesToLife. 5. Anticipated full-year revenue forecast between $340 million and $375 million.

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Why Bullish?

The significant rise in net income and revenue growth illustrates strong performance. Historical precedent shows that consistent earnings growth generally positively influences stock price.

How important is it?

The earnings report and revenue forecast are crucial for investor sentiment, indicating robust operational health despite potential regulatory headwinds.

Why Short Term?

The strong revenue guidance and immediate financial results suggest potential short-term price appreciation; however, regulatory challenges may inhibit longer-term growth.

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Export growth and geographical expansion drive strong first-half performance September 17, 2025 08:30 ET  | Source: HomesToLife Ltd SINGAPORE, Sept. 17, 2025 (GLOBE NEWSWIRE) -- HomesToLife Ltd (Nasdaq: HTLM) (“HomesToLife” or the “Company”), a Singapore-based home furniture company with sales across Asia-Pacific, Europe and North America, today announced its unaudited financial results for the six months ended June 30, 2025 (“1H 2025”). “Strong export sales and favourable foreign exchange gains underpinned a 87% increase in net income to $10.0 million,” said Ms. Phua Mei Ming, Chief Executive Officer of HomesToLife. “Our capital-efficient model delivered a strong 61%1 return on equity in 1H 2025, underscoring the benefits of consolidating all trading and marketing under one group and positioning us for sustained growth in our core B2B furniture business across key international markets.” “While we are mindful of recent U.S. policy remarks regarding furniture imports, our direct sales exposure to the U.S. remains modest at 7.7% of 1H 2025 revenue, and we are confident that our diversified export base across Europe and Asia-Pacific will continue to drive long-term growth,” Ms. Phua Mei Ming added. Selected Financial Highlights – 1H2024 vs 1H2025          1H 2024% OF REV.1H 2025% of REV.Y/Y US$’000US$’000CHANGENet revenue 156,312 180,775 16%Retail 2,0031%3,3822%69%Export 148,25795%168,00993%13%Leather Trading 6,0524%9,3845%55%       By geographical 156,312 180,775 16%Asia Pacific 42,86027%48,68327%14%Europe 94,43361%109,98961%16%2North America 19,01912%22,10312%16%       Gross profit 41,93626.8%49,83227.6%19%Retail 1,22761%1,98159%61%Export 40,43727%47,48328%17%Leather Trading 2725%3684%35%       Operating expenses 34,51522.1%40,78422.6%18%       Income from operations 7,4214.7%9,0485.0%22%Net income 5,3663.4%10,0245.5%87%       Net income per share 0.06 0.11          The Company reported net revenue of $180.8 million in 1H 2025, a 16% increase from revenue of $156.3 million in the same period last year, driven by export sales across Asia-Pacific, Europe and North America. Newly acquired retail operations in Korea, which began in November 2024, contributed $1.5 million in revenue during the period. Singapore and Korea retail stores continue to serve as brand showrooms and design testbeds, providing consumer insights to support HomesToLife’s B2B and B2C product roadmap. Export sales continued to be the cornerstone of performance, supported by strong demand in Europe (+16%) and North America (+16%), and steady growth in Asia-Pacific (+3%). The leather trading division also posted a 55% revenue increase as it plays a critical supporting role in ensuring raw material availability and pricing stability for the HomesToLife’s business. Gross profit rose 19% to $49.8 million, compared to $41.9 million in 1H 2024 pro forma results in line with the higher revenue. Gross margin remained stable at 27.6% in 1H 2025 compared to 26.8% in 1H 2024.   1H 2024% OF REV.1H 2025% of REV.Y/Y    US$’000US$’000CHANGE USD'000Operating expenses         Selling expenses (26,226)(16.8%)(31,092)(17.2%)19% (4,866)Administrative expenses (7,978)(5.1%)(9,026)(5.0%)13% (1,048)Listing status maintenance expenses - 0.0%(666)(0.4%)NA  (666)IPO audit fees (311)(0.2%)- 0.0%NA  311          Total Operating Expenses (34,515) (40,784) 18% (6,269)              In 1H 2025, total operating expenses rose 18 % year-over-year to $40.8 million, driven by a 19% increase in selling expenses to $31.0 million. The $4.9 million increase in selling and distribution costs reflects several factors. A key contributor was the disruption in the Suez Canal, which pushed freight rates up 39 % and added US$2.4 million in ocean-shipping costs; these were partially offset by price increases passed on to customers. Additional pressures came from a $1.2 million increase in warranty provisions, a $0.4 million rise in commission expenses, and $0.8 million in start-up costs related to the acquisition of retail operations in South Korea. General and administrative expenses rose 13% to $9.0 million, which included $0.1 million from the new Korea operations and wage adjustments across HomesToLife and its subsidiaries. HomesToLife also incurred $0.6 million in listing-maintenance expenses in 1H 2025, following its successful Nasdaq listing on October 1, 2024. These expenses were partially offset by foreign exchange gains of $4.3 million, up from $0.5 million in the same period last year. The increase was mainly driven by favourable movements in accounts receivable denominated in GBP and EUR, which appreciated against the USD between December 31, 2024 and June 30, 2025, as well as accounts payable denominated in CNH, which depreciated against the USD over the period from January 1 to June 30, 2025. Net income for the period rose 87% to $10.0 million, compared to a pro forma net profit of $5.4 million in 1H 2024, translating to earnings per share of $0.11, up from $0.06 per share. As of June 30, 2025, the Company remained in a healthy financial position, with $20.0 million in cash and bank balances. Borrowings stood at $23.3 million, primarily due to short-term trade financing facilities to support higher working capital needs from export volume growth. Net cash used in operating activities was $11.2 million in 1H 2025, largely due to working capital movements. This included a $17.3 million increase in payment to accounts payable, primarily related to growing export volumes. Inventories rose by $2.4 million, mainly from sales under DDU/CIF terms, which increased goods in transit by $2.2 million, and from the start-up of retail operations in Korea. Accounts receivable increased by $4.7 million, in line with the 16% revenue growth. The Company continues to actively manage its export sales cash conversion cycle, which improved to 78 days from 83 days a year ago. Management expects working capital efficiency to normalize in the six months ending December 31, 2025, supported by stronger seasonal collections and tighter inventory management. Outlook The Company anticipates total revenue for FY2025 to range between $340 million and $375 million. The upper end of this range reflects expectations of a seasonally stronger second half of 2025 compared to 1H 2025 as well as continued momentum in export markets. The lower end takes into account potential headwinds from recently announced U.S. policy statements concerning furniture imports. The Company plans to continue to maintain a robust liquidity position, ensuring financial flexibility to support its strategic growth initiatives while meeting short-term operational and financing obligations. About HomesToLife Ltd (Nasdaq: HTLM) HomesToLife Ltd is a holding company with two core divisions in global furniture industry: a Consumer Retail Division with direct operations in Singapore and Korea, and a Wholesale & Trade Division supplying furniture and leather to retail partners worldwide. Its integrated model combines retail, distribution, and sourcing, supported by a diversified manufacturing network across China, Italy, Vietnam and India. HomesToLife has appointed its affiliated entity, the Design, Product Development & Marketing business unit (DPM), to spearhead research, sourcing, design, and value-engineering—ensuring every product is precisely aligned with customer needs and market strategy. With rapid expansion underway across Asia-Pacific, Europe and North America, HomesToLife and its subsidiaries leverage long-standing supplier partnerships and a global footprint to deliver scale, efficiency, and resilience. FORWARD-LOOKING STATEMENTS Certain statements in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect financial condition, results of operations, business strategy and financial needs of the Company and its subsidiaries. Forward-looking statements can be identified by the words such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions in this press release. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company’s registration statement and other filings with the SEC. Contacts HomesToLife Ltd Contact: 6 Raffles Boulevard, #02-01/02 Marina Square, Singapore 039594 Email: Investor@homestolife.com Investor Relations Inquiries: Edelman Smithfield Roger Ng, Senior Director Jass Lim, Associate Director HomesToLife@edelmansmithfield.com HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS(Currency expressed in United States Dollars (“US$”), except for number of shares)   UNAUDITED CONDENSED CONSOLIDATED AND COMBINED BALANCE SHEETS As of  December 31, 2024 June 30, 2025ASSETS      Current assets:      Cash and cash equivalents $24,860,621 $20,071,387Accounts receivables, net (including receivable from related parties of $928,951 and $353,886 as of December 31, 2024 and June 30, 2025, respectively)  66,928,602  71,669,261Inventories, net  8,032,089  10,613,295Amounts due from related parties  2,807,854  4,967,733Deposit, prepayments and other receivables  5,145,372  7,189,424Total current assets  107,774,538  114,511,100       Non-current assets:      Property, plant and equipment, net  3,734,157  4,499,588Right-of-use assets, net  6,632,749  7,256,728Deferred tax asset, net  636,581  786,384Total non-current assets  11,003,487  12,542,700       TOTAL ASSETS $118,778,025 $127,053,800       LIABILITIES AND SHAREHOLDERS’ EQUITY      Current liabilities:      Accounts payable $2,701,283 $2,867,425Accounts payable, related parties  72,724,799  55,254,469Customer deposits  853,626  1,236,916Accrued liabilities and other payables  4,428,806  6,541,572Short-term borrowings  15,255,874  23,382,206Amounts due to related parties  292,753  292,753Lease liabilities  2,100,281  2,320,101Warranty liabilities  2,095,842  3,129,470Derivatives and hedging instruments  -  753,243Income tax payable  2,467,506  3,546,279Total current liabilities  102,920,770  99,324,434       Long-term liabilities:      Provision for reinstatement cost  262,479  339,756Lease liabilities  4,883,321  5,285,905Total long-term liabilities  5,145,800  5,625,661       TOTAL LIABILITIES  108,066,570  104,950,095   -  -   Commitments and contingencies             Shareholders’ equity:      Ordinary share, $0.0001 par value, 100,000,000 shares authorized,89,687,500 and 89,687,500 shares issued and outstanding as of June 30, 2025 and December 31, 2024*  8,969  8,969Additional paid-in capital  37,179,424  37,179,424Accumulated other comprehensive loss  (12,686,896)  (11,318,721)Accumulated losses  (13,790,042)  (3,765,967)Total shareholders’ equity  10,711,455  22,103,705       TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $118,778,025 $127,053,800 * The share amounts are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1).  HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME(Currency expressed in United States Dollars (“US$”), except for number of shares)     Six months ended June 30,  2024  2025 Revenues, net      From third parties $150,461,612  $170,117,861 From related parties  5,850,497   10,656,942    156,312,109   180,774,803 Cost of goods sold  (114,376,152)  (130,942,258)       Gross profit  41,935,957   49,832,545        Operating expenses:      Sales and distribution expenses  (26,226,218)  (31,092,110)General and administrative expenses  (7,978,231)  (9,025,931)Listing expenses  (310,502)  (666,021)Total operating expenses  (34,514,951)  (40,784,062)       Income from operations  7,421,006   9,048,483        Other income (expense):      Interest expense  (387,263)  (730,372)Interest income  95,040   16,246 Government subsidies  21,232   16,950 Foreign exchange gain, net  532,909   4,293,633 Net gain from related parties debt restructuring  -   1,460,543 Professional fees on acquisition of HTL Marketing -   (1,261,560)Scrap sofa sale income  303,452   223,263 Sundry income  81,816   39,404 Change in fair value of derivatives and hedging instruments  (1,064,841)  (753,243)Total other (expense) income, net  (417,655)  3,304,864        Income before income taxes  7,003,351   12,353,347        Income tax expense  (1,637,735)  (2,329,272)       NET INCOME $5,365,616  $10,024,075        Other comprehensive income (loss):      – Foreign currency translation adjustments  (1,648,993)  1,368,175        COMPREHENSIVE INCOME $3,716,623  $11,392,250        Weighted average number of ordinary shares:      Basic and diluted *  88,250,000   89,687,500        EARNINGS PER SHARE – BASIC AND DILUTED $0.06  $0.11           * The share amounts and per share data are presented on a retroactive basis, giving the effect from the completion of common control acquisition (see Note 1). HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME – SEGMENT REPORTING(Currency expressed in United States Dollars (“US$”), except for number of shares)     Six months ended June 30, 2024    ExportSales  Leather Trading  Corporate and unallocated   Retail Sales   Total                    Revenues, net                  From third party $2,003,351  $147,484,078  $974,183  $-  $150,461,612 From related parties  -   773,015   5,077,482   -   5,850,497    2,003,351   148,257,093   6,051,665   -   156,312,109 Cost of goods sold  (776,807)  (107,820,138)  (5,779,207)  -   (114,376,152)                Gross profit  1,226,544   40,436,955   272,458   -   41,935,957                 Operating expenses:               Sales and distribution  (1,362,959)  (24,754,901)  (108,358)  -   (26,226,218)General and administrative  (616,212)  (7,262,510)  (3,553)  (95,956)  (7,978,231)Listing expenses  -   -   -   (310,502)  (310,502)Total operating expenses  (1,979,171)  (32,017,411)  (111,911)  (406,458)  (34,514,951)                Operating (loss) profit  (752,627)  8,419,544   160,547   (406,458)  7,421,006                 Other income (expenses):               Interest expense  (93,345)  (143,112)  (150,806)  -   (387,263)Interest income  -   94,861   179   -   95,040 Government subsidies  13,689   7,543   -   -   21,232 Foreign exchange gain (loss), net  (523)  532,768   2,176   (1,512)  532,909 Scrap sofa sale income  -   303,452   -   -   303,452 Sundry income  27,144   54,669   3   -   81,816 Change in fair value of derivatives and hedging instruments  -   (1,064,841)  -   -   (1,064,841)Total other expense, net  (53,035)  (214,660)  (148,448)  (1,512)  (417,655)                Income (loss) before income expense  (805,662)  8,204,884   12,099   (407,970)  7,003,351 Income tax expense  -   (1,635,679)  (2,056)  -   (1,637,735)                Segment income (loss) $(805,662) $6,569,205  $10,043  $(407,970) $5,365,616                       HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME – SEGMENT REPORTING(Currency expressed in United States Dollars (“US$”), except for number of shares)     Six months ended June 30, 2025    ExportSales  Leather Trading  Corporate and unallocated   Retail Sales   Total                    Revenues, net                  From third party $3,382,273  $166,459,189  $276,399  $-  $170,117,861 From related parties  -   1,550,023   9,106,919   -   10,656,942    3,382,273   168,009,212   9,383,318   -   180,774,803 Cost of goods sold  (1,401,494)  (120,526,294)  (9,014,470)  -   (130,942,258)                Gross profit  1,980,779   47,482,918   368,848   -   49,832,545                 Operating expenses:               Sales and distribution  (2,404,689)  (28,634,760)  (52,661)  -   (31,092,110)General and administrative  (906,968)  (8,099,908)  (3,025)  (16,030)  (9,025,931)Listing expenses  -   -   -   (666,021)  (666,021)Total operating expenses  (3,311,657)  (36,734,668)  (55,686)  (682,051)  (40,784,062)                Operating profit (loss)  (1,330,878)  10,748,250   313,162   (682,051)  9,048,483                 Other income (expenses):               Interest expense  (125,183)  (394,423)  (210,766)  -   (730,372)Interest income  130   15,946   170   -   16,246 Government subsidies  12,238   4,712   -   -   16,950 Foreign exchange gain (loss), net  (9,647)  4,292,067   6,215   4,998   4,293,633 Net gain from forgiveness of related parties debt restructuring  -   -   -   1,460,543   1,460,543 Professional fees on acquisition of HTL Marketing  -   (133,960)  -   (1,127,600)  (1,261,560)Scrap sofa sale income  -   223,263   -   -   223,263 Sundry income (expense)  78,284   21,551   7   (60,438)  39,404 Change in fair value of derivatives and hedging instruments  -   (753,243)  -   -   (753,243)Total other income (expenses), net  (44,178)  3,275,913   (204,374)  277,503   3,304,864                 Income (loss) before income expense  (1,375,056)  14,024,163   108,788   (404,548)  12,353,347 Income tax expense  -   (2,310,779)  (18,493)  -   (2,329,272)                Segment income (loss) $(1,375,056) $11,713,384  $90,295  $(404,548) $10,024,075                       HOMESTOLIFE LTD AND SUBSIDIARIESUNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS(Currency expressed in United States Dollars (“US$”), except for number of shares)   UNAUDITED CONDENSED CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS Six Months ended June 30,  2024 2025Cash flows from operating activities:      Net income $5,365,616 $10,024,075Adjustments to reconcile net income to net cash used in operating activities      Depreciation of property, plant and equipment  95,004  142,739Amortization of operating right-of-use assets  890,642  1,118,679Allowance (reversal) for obsolete inventories  120,699  (164,167)Benefit for deferred income taxes  (27,357)  (136,389)(Written-off) provision for allowance for expected credit losses  (8,453)  4,665Provision for warranty liabilities  2,769,218  4,004,614(Reversal) provision for reinstatement cost  (56,503)  77,277Changes in operating leases  (764,938)  (1,159,429)Change in fair value of derivatives and hedging instruments  1,064,841  753,243Written-off property, plant and equipment  13,858  -       Change in operating assets and liabilities:      Accounts receivables  (1,990,471)  (4,745,325)Inventories  (966,774)  (2,417,038)Deferred offering cost  (763,877)  -Deposit, prepayments, and other receivables  (1,941,737)  (2,044,057)Accounts payable  (13,673,912)  (17,304,187)Customer deposits  25,303  383,291Accrued liabilities and other payables  (396,701)  2,112,765Warranty liabilities  (2,706,303)  (2,970,986)Income tax payable  1,031,205  1,078,773Net cash used in operating activities  (11,920,640)  (11,241,457)       Cash flows from investing activities:      Purchase of property, plant and equipment  (450,220)  (557,755)Net cash used in investing activities  (450,220)  (557,755)       Cash flows from financing activities:      Net proceeds from short-term borrowings  9,036,565  8,126,333Amounts due from related parties  4,579,697  (9,226,649)Amount due to related parties  (2,051,283)  -Amount due from related parties - Reorganization and scrapping  (2,556,410)  7,066,770Net cash provided by financing activities  9,008,569  5,966,454       Effect of foreign exchange rates on cash and cash equivalents  (796,843)  1,043,524       Net change in cash and cash equivalents  (4,159,134)  (4,789,234)       BEGINNING OF PERIOD  22,624,972  24,860,621       END OF PERIOD $18,465,838 $20,071,387       SUPPLEMENTAL CASH FLOW INFORMATION:      Cash paid for income taxes $604,730 $1,398,808Cash paid for interest $282,280 $570,293       NON-CASH INVESTING AND FINANCING ACTIVITIES:      Shares issued for common control acquisition $75,000,000 $75,000,000Related parties balances under offsetting arrangement upon reorganization $(493,039) $15,337,816        See accompanying notes to the unaudited condensed consolidated and combined financial statements. 1 Return on Equity (“ROE”) is calculated as net income attributable to shareholders divided by average shareholder equity for the period, where average equity is derived from the sum of opening and closing equity balances divided by two. For 1H 2025, ROE was 61% (Net income: $10.0 million; Average equity: $16. 41 million). 2 North America includes United States of America and Canada.

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