HomesToLife's Investment in Zeica Labs Drives Stock Surge

Financial Performance: HomesToLife Ltd reported a significant 87% increase in net income to $10.0 million for the first half of 2025, driven by strong export sales and favorable foreign exchange gains, resulting in a 16% rise in net revenue to $180.8 million.

Operational Highlights: The company achieved a 61% return on equity and noted that its diversified export base across Europe and Asia-Pacific positions it well for sustained growth, despite modest exposure to U.S. market fluctuations.

Expense Management: Operating expenses rose 18% year-over-year, primarily due to increased selling expenses and costs associated with new retail operations in Korea, while foreign exchange gains helped offset some of these costs.

Future Outlook: HomesToLife anticipates total revenue for FY2025 to range between $340 million and $375 million, with expectations of a stronger second half, while maintaining a robust liquidity position to support growth initiatives.

Financial Performance: HomesToLife Ltd reported a significant increase in net revenue of $5.2 million for Q1 2025, up 405% from the previous year, primarily due to contributions from its Asia sales subsidiary, HTL Far East, despite a decline in revenue from its Singapore retail business.

Growth Outlook: The company anticipates continued strong revenue growth, projecting total revenue for 2025 between $260 and $290 million, bolstered by the recent acquisition of HTL Marketing and ongoing expansion efforts across the Asia-Pacific region.

Acquisition Announcement: HomesToLife Ltd has entered into a definitive agreement to acquire 100% of HTL Marketing Pte Ltd, a leading supplier of upholstered sofas, in exchange for 75 million ordinary shares, aiming to enhance its global market reach and profitability.

Financial Expectations: The acquisition is projected to significantly boost HomesToLife's revenue from $4 million in 2024 to between $250 million and $280 million in 2025, with further growth anticipated in subsequent years.

Financial Performance Overview: HomesToLife Ltd reported a net revenue of $4.17 million for fiscal year 2024, an 18% decrease from the previous year, primarily due to declining sales in upholstered furniture and increased operating expenses, resulting in a net loss of $1.67 million.

Future Outlook and Restructuring Plans: The company launched HTL Far East to expand its business in Asia, expecting it to generate $12-14 million in revenue for 2025, while also initiating a restructuring plan to improve financial performance by closing underperforming stores and controlling expenses.