Operator
Hello, ladies and gentlemen. Thank you for standing by for Light in the Box's second quarter 2026 earnings conference call. At this time, all participants are in listen-only mode. After management's prepared remarks, there will be a question and answer session. Today's conference call is being recorded. I will now turn the call over to your host, Ms. Serena Hoang. Please go ahead, Serena.
Thank you, Operator. Hello, everyone, and Welcome to Light in the Box second quarter, 2026 earnings conference call. The company's earnings results were released via Newswire services earlier today and are available on the company's IR website at ir.adoor.com. On the call from Light in the Box today are Mr. Jianhe, CEO, and Mrs. Wendy Liu, CFO. Mr. He will provide an overview of the company's Q2 highlights, results, followed by Mrs. Liu, who will go over its financial results. Following our prepared remarks, we will open the call to questions. Before we proceed, please note that today's discussion may contain forward-looking statements made under the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from the company's current expectations. To understand the factors that could cause results to materially differ from those in forward-looking statements, please refer to the company's Form 20F file with the SEC. The company does not assume any obligation to update any forward-looking statements except as required under applicable law. Please also note that net-in-the-box earnings press release and this conference call include the discussion of unaudited GAAP financial measures as well as unaudited non-GAAP financial measures. Please refer to the company's earnings press release, which contains a reconciliation of the unaudited non-GAAP measures to the unaudited GAAP measures. Now, I'd like to turn the call over to Light in the Box CEO, Mr. He. Please go ahead.
Good morning and good evening, everyone. Thank you for joining Light in the Box second quarter, 2026 earnings call. We are pleased to report exciting results for the first half in the second quarter of 2026. Our first half results provide a clear view of the progress we are working. Revenue increased 3% year-over-year to 108.8 million. Net income grew by approximately 28% to 2.7 million. Adjusted EBITDA also improved to 3.3 million. In the second quarter, revenue declined modestly as we face all the long tail products. Despite a challenging external environment, gross margin remained residently at 66%. Through disciplined expense management, we remained profitable, delivering net income of $1.6 million and adjusted EBITDA of $1.9 million. Over the past several years, we have steadily reshaped Light-in-the-box and laid the foundation for sustainable, profitable growth. From 2023 to 2024, we invested in our proprietary apparel brands and strengthening our in-house product development and production capabilities. These investments gave us greater control over product differentiation, quality, and speed to market. In 2025, we made meaningful progress in involving the Light in the Box online platform into a consumer lifestyle company. By developing a deeper understanding of consumer preference and sentiment, we delivered different showed products, they forced engagement and they built a stronger emotional connection with consumers. This year, we are seeing another important shift. AI is rapidly becoming embedded in how people work, communicate, create, and make decisions. We believe their chance for not only how consumers discover, evaluate, and purchase products, but also what they value and seek in their daily lives. As technology becomes more deeply integrated into everyday life, we believe the desire for emotional connection, self-expression, and visually a better quality of life and memorable experiences will become even more important. As a lifestyle company, we are well positioned to address these evolving needs. Our transformation from the AI year goes beyond adopting new technology tools. It requires a deeper understanding of consumer intent. Our AI strategy will focus on using technologies to anticipate evolving consumer needs and collect them more effectively with product discovery, personalization, and the creation. At the same time, we will continue to evolve our product strategy around enduring human aspiration for self-inspiration, emotional value, and memorable experience. With that, I will now hand the call over to Wendy to go through our financial results.
Thank you, Mr. He. Good morning and good evening, everyone. Before we go over our financials, please note that unless otherwise stated, all figures are presented in U.S. dollars. In the second quarter, our total revenues were $57 million, a modest 4% decrease year over year as we deliberately phased out long-term products. This quarter was affected by a challenging in external environment. Geopolitical disruptions increased pressure on cross-border logistics and related costs. Well, the weaker US dollar created additional foreign exchange headwinds for our global operation. These factors, growth margin remained very stable at 66.1% compared with 65.9% a year ago, reflecting our continued efforts on higher margin lifestyle products total operating expenses in the second quarter decreased by 4% year-over-year to 35 million of which fulfillment expenses decreased by 3% to 4 million selling and marketing expenses decreased by 4% to 27 million and G&A expenses decreased by 5% to 5 million total operating expenses as a percentage of revenue decreased from 63% to 62% Our net income in the second quarter reached $1.6 million compared to $2 million in the same quarter last year. This concludes my remarks. We are now open to your questions. Operator, please continue.
Operator
Thank you. If you wish to ask a question, please press star 1 on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star 2. If you're on a speakerphone, please pick up the handset to ask your question. We will now pause momentarily to allow questions to register. Thank you. Your question comes from Cyril Duking, a private investor. Please go ahead.
Hi, team. Thanks for taking my call. I have questions relating to two topics, and two topics are insider ownership and your brand matrix strategy. and I'll start with the first topic. I would appreciate if you could provide an update on how many shares are in the public float and how much do insiders own of the company.
I thank you for your question. Related to insider share percentage, you may refer to our IR website for more details.
Sorry, there's another question. Thank you.
Yes, I'll go ahead and ask. My second question was concerning the brand matrix strategy. At an investor conference earlier this year, the company stated that its three brands are Ador, Ms. Glamour, and A. Skull. And I was wondering if you could provide, you know, any details about any of the brands.
And also you mentioned potentially adding, you know, maybe one to two brands a year if you find the right market and just would appreciate any thoughts about plans for new brands in the this year or the next thank you oh thank you for your question for these three brands we do see progress in terms of top line as well as bottom line and we do see repeated purchase rates are increasing so these three brands are progressing really good at the same time we are preparing other brands as well to enhance the brand metrics thank you thank you there are no further phone questions at this
Operator
time and that does conclude our conference for today thank you for participating you may now disconnect
