The company’s quarterly loss of 44 cents a share stands in stark contrast to the net income of $2.42 million, or 10 cents a share, reported during the same period last year. Revenue collapsed by 43% to $16.4 million, falling significantly short of the $22.3 million target anticipated by FactSet analysts.

Chief Executive Conn Davis pointed to a persistent weakness in direct-to-consumer sales and sluggish reorder rates from retail partners as the primary drivers of the downturn. While the company does not project revenue growth for fiscal 2026, Davis expects a more stable performance in the second half of the year as holiday inventory cycles begin and new customer-acquisition initiatives take hold.