Hour Loop, Inc. (HOUR) AI Stock Analysis

NASDAQ: HOURAI research summary: business, growth, valuation, analysts, bull and bear case.

HOUR AI stock analysis summary

AI Research

Hour Loop, Inc. (HOUR) is an e-commerce retailer distributing consumer merchandise across multiple online platforms. Over the trailing twelve months, the company generated $153.4M in revenue with a profit margin of 1.1%. Its balance sheet holds $855,905 in net cash, though its trailing price-to-earnings ratio stands at 44.2x.

Market cap
$62.3M
Revenue (TTM)
$153.4M
P/E
44.2x
1Y return
-20.3%
S&P 500 16.8%
Avg. target
$1.75
-1.1% vs last close

Bull case

  • Quarterly revenue grew 25.2% year-over-year for the period ended June 30, 2026.
  • The balance sheet maintains net cash of $855,905 with minimal debt of $129,499.
  • Free cash flow improved from -$2.1M in FY2023 to $2.5M in FY2025.

Bear case

  • Trailing twelve-month profit margin is thin at 1.1%.
  • Quarterly earnings fell 10.7% year-over-year in the latest quarter ended June 30, 2026.
  • The stock trades at a high trailing P/E of 44.2x compared to the peer median of 18.0x.

What Hour Loop does

Established in 2013 and headquartered in Redmond, Washington, Hour Loop, Inc. operates as an e-commerce retailer within the United States. The company offers a broad range of merchandise across multiple categories, including home and garden decor, toys, kitchenware, apparel, and electronics. Hour Loop sells its products through its proprietary website at hourloop.com and through established third-party marketplaces, such as amazon.com and walmart.com. This multi-channel approach enables the company to access a large consumer audience while operating with 159 employees.

Growth and profitability

Hour Loop grew annual revenue from $62.8M in FY2021 to $142.4M in FY2025, recording a 5-year revenue compound annual growth rate of 29.8%. Revenue growth slowed to 4.6% in FY2024 and 3.0% in FY2025. Gross margin was 52.4% in FY2025, while operating margin recovered to 1.7% from -2.3% in FY2023. Net income reached $1.7M in FY2025 with an EPS of $0.04. Over the trailing twelve months, revenue totaled $153.4M with an operating margin of 3.8% and a profit margin of 1.1%. For the latest quarter ended June 30, 2026, revenue increased 25.2% year-over-year, while earnings declined 10.7%.

HOUR income statement →

Balance sheet and cash flow

As of June 30, 2026, Hour Loop held $985,404 in cash and short-term investments alongside total debt of $129,499, resulting in net cash of $855,905. The current ratio stood at 1.49, and the debt-to-equity ratio was 0.01 against shareholders' equity of $8.9M. In FY2025, operating cash flow was $2.6M and free cash flow reached $2.5M. Capital expenditures for FY2025 were $78,113, and share count expanded 1.1% over five years.

HOUR balance sheet →

Valuation and performance

Hour Loop trades at a trailing price-to-earnings multiple of 44.2x, which is elevated compared to the 18.0x median of its US-listed Consumer Cyclical peers. Its EV-to-EBITDA multiple is 25.0x versus the peer median of 11.1x. Conversely, its price-to-sales ratio of 0.4x is lower than the peer median of 0.7x. The company has an enterprise value of $61.0M and a market capitalization of $62.3M. Over the past year, HOUR shares fell 20.3%, trailing the S&P 500 return of 16.8%.

HOUR key metrics →

What analysts expect

Wall Street coverage lists a mean price target of $1.75 for Hour Loop, representing a potential decline of 1.1% compared to its last close of $1.77 on October 16, 2026. Over the prior four quarters, the company delivered three EPS beats. The next scheduled earnings report date is November 11, 2026.

Key risks and what to watch

  • High stock price volatility is reflected in a beta of 1.38.
  • The company's 1-year return fell 20.3%, underperforming the broader market.
  • Operating cash reserves remain limited with cash and short-term investments at $985,404.

AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer

About this HOUR AI stock analysis

This page is an AI-written research summary of Hour Loop, Inc. (HOUR). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

Related: HOUR income statement, HOUR balance sheet, HOUR key metrics, HOUR chart. See the HOUR stock overview for the latest quote and news.

HOUR AI stock analysis FAQ

What is Hour Loop's core business?

Hour Loop, Inc. is an online retailer selling products such as home and garden decor, toys, kitchenware, apparel, and electronics through hourloop.com, amazon.com, and walmart.com.

Does Hour Loop pay a dividend?

No, Hour Loop does not currently pay a dividend to shareholders.

How does Hour Loop's valuation compare to its peers?

Hour Loop trades at a trailing P/E of 44.2x and an EV-to-EBITDA of 25.0x, both higher than the US-listed Consumer Cyclical peer medians of 18.0x and 11.1x, respectively. However, its price-to-sales ratio of 0.4x is lower than the peer median of 0.7x.

What is the analyst price target for HOUR?

The mean analyst price target for HOUR is $1.75, which sits 1.1% below the last close of $1.77 on October 16, 2026.

More Consumer Cyclical AI stock analysis