Hour Loop Inc. Common Stock (HOUR)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses with durable economics. Hour Loop is an online retailer selling home/garden décor, toys, kitchenware, apparel, and electronics through its own site and third-party marketplaces. The filed figures show a real turnaround but not a fortress: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $33.9M, net income $1.1M, diluted EPS $0.03. In fiscal Q1 2026, the quarter ended 2026-03-31, net income was $823,482 on $29.9M revenue. For FY2025, ended 2025-12-31, revenue was $142.4M and net income $1.7M; FY2023 had a net loss of $2.4M. FairStock classifies it as a TURNAROUND. The business has no obvious durable moat in online retail, and returns on total capital are modest: FairStock’s ROCE is 5.97% while ROE is 21.79%, debt-to-equity is 0.47, and the Piotroski F-Score is 5/9. Trailing free cash flow is -$132,895, so profits are not yet converting into cash. As of the 2026-10-13 close at $1.73, FairStock’s P/E is 43.25, P/B 6.92, EV/EBITDA 23.91, and Graham Number is $0.47, leaving a -268.09% margin of safety. That is not a Graham bargain. Altman Z-Score 4.12 and PEG 0.76 offer some comfort, but the margin of safety is negative and cash generation is weak. The evidence does not yet support calling this a high-quality compounder; consistent free cash flow and wider margins are needed.

In plain English: Hour Loop is an online retailer that sells home décor, toys, kitchenware, clothes and electronics through its own website and marketplaces. It has returned to profit, but sales growth is slow, profit margins are thin, and the business is not producing positive cash after running itself. At $1.73, the stock looks expensive compared with the small profit and net assets behind each share.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer