The Lovesac Company (LOVE): Business Model Canvas [Dec-2025 Updated]

You're looking for the engine behind this company's $680.6 million in Fiscal Year 2025 net sales, and honestly, seeing it mapped out on the Business Model Canvas cuts right to the chase. As someone who's spent two decades dissecting balance sheets, I can tell you their success isn't just about selling modular couches; it's a precise play on brand equity, a high 47% repeat purchase rate, and a physical/digital channel mix where owned showrooms still drive a massive 62.6% of revenue. We'll break down how their adaptable product platform, coupled with strategic partnerships and an inventory-light fulfillment approach, lets them command premium pricing while keeping Cost of Goods Sold tight at 41.5%. Dive below to see the nine blocks that power this unique furniture disruptor.

The Lovesac Company (LOVE) - Canvas Business Model: Key Partnerships

You're looking at the structure behind The Lovesac Company (LOVE)'s operations as of late 2025, focusing on who they rely on to deliver their Designed for Life products.

Long-term third-party manufacturers in Vietnam, Malaysia, and Indonesia

The Lovesac Company has been actively codifying its long-term strategy, which included reinventing its supply chain to reduce reliance on China, as noted following the fiscal year wrap-up. While the specific production allocation across Vietnam, Malaysia, and Indonesia isn't public, these regions represent the core of the company's long-term third-party manufacturing base. The company acknowledged the risk associated with the failure of important partners, including manufacturers, in its filings. Total merchandise inventory stood at $124.0 million as of August 3, 2025, reflecting inventory management against this production network.

Harman Kardon for integrated StealthTech Sound + Charge technology

The partnership with Harman Kardon is central to the premium technology offering within the Sactionals platform. The StealthTech Sound + Charge system delivers immersive 5.1 Dolby Digital surround sound. The core system includes 2 Sound + Charge Sides, each featuring embedded front- and rear-firing Harman Kardon speakers. This integration is a key differentiator, allowing sound to pass through the chosen fabric covers with optimized clarity.

Strategic retail partners like Costco and Best Buy for temporary pop-ups

Temporary physical presence through strategic retail partners remains a component of the omnichannel approach. Sales generated from pop-up shops and shop-in-shop locations accounted for 8.6% of total net sales for fiscal 2025. The Lovesac Company continues its 'Roadshow' events, which are exclusive bundles for Costco members, with multiple events scheduled across various regions in late 2025, such as events running from 10/31 - 11/9/25 and 11/7 - 11/16/25 in Texas locations. These events are described as ongoing typical bundles that ebb and flow.

Logistics and last-mile delivery providers for inventory-light model

The inventory-light model relies heavily on efficient logistics partners for both inbound and outbound movement. The company saw gross margin increase in fiscal 2025, partly due to operational improvements, including a decrease of 120 basis points in outbound transportation and warehousing costs during the third quarter of fiscal 2025 compared to the prior year period. The company's total net sales for the full fiscal year 2025 were $680.6 million, underscoring the volume these logistics partners handle.

Key metrics related to logistics and inventory management include:

• Total merchandise inventory as of August 3, 2025: $124.0 million.
• Availability under the line of credit as of August 3, 2025: $36.0 million.
• Gross margin for fiscal 2025: 58.5% of net sales.

Financial institutions for the reinstated consumer financing program

Access to consumer financing is a critical enabler for large purchases. The company utilizes both a proprietary card and third-party installment providers. The Lovesac Credit Card for new accounts as of July 16, 2024, carried a Purchase APR of 34.99%, with promotional options for no interest if paid in full within 12, 18 or 24 Months. Furthermore, the company partners with Affirm, which offers payment rates starting from 0% APR up to 36% APR. The Lovesac Company also secured its financial footing by extending its revolving credit facility by five years, now maturing in July 2029, which includes an option to increase the facility size by $10 million. The Board also authorized a share repurchase program of up to $40 million.

Financing Program Terms Snapshot:

Financing Partner	Key Term/Rate	Applicable Period/Condition
Lovesac Credit Card (New Accounts)	Purchase APR 34.99%	As of 07/16/24
Lovesac Credit Card (Promo)	No Interest if Paid in Full	12, 18 or 24 Months
Affirm	Rates from 0% to 36% APR	Subject to eligibility check
Revolving Credit Facility	Maturity Date	July 2029
Revolving Credit Facility	Accordion Increase Option	$10 million

Finance: draft 13-week cash view by Friday.

The Lovesac Company (LOVE) - Canvas Business Model: Key Activities

You're looking at the core actions The Lovesac Company takes to keep its unique model running, especially as it navigates a shifting retail landscape. Here's the quick math on what they are actively doing, based on late 2025 reporting.

Continuous product innovation and R&D (e.g., EverCouch™ platform)

The Lovesac Company focuses heavily on extending its Designed for Life (DFL) platform. Fiscal 2025 was called a 'milestone year' for innovation, featuring the most new product launches ever, including the early rollout of the Sactionals Reclining Seat and the unveiling of the EverCouch™ platform. The EverCouch™, described as the first new product platform in over a decade, officially launched on May 7 [in FY2026] in 27 showrooms and online. Management planned to scale the physical inclusion of EverCouch to approximately 100 showrooms by summer. In Q1 FY2026, Sactional net sales rose 4.5% and Sacs increased 6.4%.

Managing the omnichannel 'infinity flywheel' (Showrooms and E-commerce)

The Lovesac Company manages a blend of physical and digital sales, though the balance shifted in recent periods. For the full Fiscal Year 2025 (ended February 2, 2025), Net Sales totaled $680.6 million. Omni-channel comparable net sales decreased 9.3% in FY2025, which was offset by a net addition of 27 new showrooms year-over-year, bringing the total count to 257 at year-end. The shift toward physical presence continued into FY2026; for Q1 FY2026 (ended May 4, 2025), showroom sales grew 18.2% to $96.5 million, fueled by 21 new showrooms, while internet net sales fell 8.9% to $33.3 million. Furthermore, the company completed the exit from its Best Buy partnership, estimating a nonrecurring charge of approximately $2 million in Q2 FY2026.

Global supply chain diversification to mitigate tariff risks

The Lovesac Company actively worked to strengthen its operational foundation against external pressures. CEO Shawn Nelson noted in April 2025 that the company had 'reinvented our supply chain'. To manage tariff impacts, management deployed a four-point mitigation plan, which included vendor concessions, manufacturing diversification, and selective price increases, as of Q2 CY2025. The company maintained a strong liquidity position to weather these issues, holding $83.7 million in cash and cash equivalents with no balance on its line of credit as of February 2, 2025. The Fiscal Year 2025 Gross Margin was 58.5% of net sales, an increase of 120 basis points from 57.3% in fiscal 2024.

Brand building and direct-to-consumer marketing campaigns

Marketing investment is strategically managed to support new product launches and the brand's ambition to be the 'most loved home brand in America'. For the full Fiscal Year 2025, Advertising and Marketing expense decreased 6.4% compared to the prior year, partly because the 25th anniversary campaign from fiscal 2024 did not repeat. Advertising and marketing spend was approximately 13.3% of net sales for the full fiscal year 2025. Looking to FY2026, guidance projected advertising and marketing spend to be approximately 12.5% of net sales. The company also formalized its brand leadership by appointing Heidi Cooley as Chief Brand and Marketing Officer in April 2025.

Maintaining and enforcing a robust portfolio of utility patents

Intellectual property protection is key to defending the modular design. As of the end of Fiscal 2024, The Lovesac Company reported having 32 issued U.S. utility patents and 54 issued foreign utility patents, totaling 86 issued utility patents scheduled to expire between 2024 and 2040. A new patent grant for a modular furniture assembly was recorded on June 3, 2025. The portfolio protects core technologies like the proprietary geometric modular system and segmented bi-coupling technology for Sactionals.

Key Activity Metric	Data Point	Period/Date
Fiscal Year Net Sales	$680.6 million	FY2025 (Ended Feb 2, 2025)
Gross Margin	58.5%	FY2025
New Showrooms Added	27	FY2025
Total Showrooms	257	End of FY2025
EverCouch Launch Showrooms	27	May 7, 2025
Advertising & Marketing (% of Net Sales)	13.3%	FY2025
Cash & Equivalents Balance	$83.7 million	February 2, 2025
Issued U.S. Utility Patents (Approx.)	32	April 2024
Issued Foreign Utility Patents (Approx.)	54	April 2024

• Q1 FY2026 Showroom Net Sales: $96.5 million
• Q1 FY2026 Internet Net Sales: $33.3 million
• Q1 FY2026 Showroom Sales Growth: 18.2%
• Q1 FY2026 Internet Sales Decline: 8.9%
• Estimated Best Buy Partnership Exit Charge: $2 million
• FY2026 Advertising & Marketing Guidance (% of Net Sales): 12.5%

The Lovesac Company (LOVE) - Canvas Business Model: Key Resources

You're looking at the core assets The Lovesac Company (LOVE) relies on to run its business as of late 2025. These aren't just things they own; these are the things that make their value proposition possible.

Proprietary Designed for Life (DFL) product platform and patents

The DFL platform is central, representing products built to last and evolve. This is backed by intellectual property protection. The Lovesac Company is a recipient of Repreve's 7th Annual Champions of Sustainability Award, which speaks to the innovation embedded here.

• Products are protected by a robust portfolio of utility patents.
• The DFL approach underpins core products like Sactionals and Sacs, and newer launches like the Sactionals Reclining Seat and the EverCouch™, which expanded their offering into the armchair, loveseat, and sofa category in FY2026.

The Lovesac brand equity and high customer loyalty/repeat purchase rate

Brand equity is a key intangible asset, supported by a focus on customer relationships. While a specific repeat purchase rate percentage isn't immediately available in the latest filings, the strategic focus on deepening customer relationships via CRM tools highlights this area's importance.

The CEO noted strengthening the fundamental drivers of the business, including brand equity, as a focus during FY2025.

Omnichannel network of over 257 physical showrooms as of FY2025 end

The physical footprint is a critical component of the omnichannel strategy, supporting online sales. The net addition of 27 new showrooms in FY2025 helped offset a decrease in comparable net sales for the year.

Here's a look at the physical footprint data around the FY2025 period:

Metric	Value as of FY2025 End (Feb 2, 2025)	Value as of Q1 FY2026 End (May 4, 2025)
Ending Showroom Count	257	267
Net Showroom Additions in FY2025	+27 vs. prior year	N/A

Core product inventory (Sactionals and Sacs) and premium foam technology

The physical goods themselves, especially the modular Sactionals, represent a significant asset base. The company also emphasizes the technology within, including the use of reclaimed foam remnants called Durafoam for Sacs. Furthermore, the base fabric for Sac and Sactionals Inserts uses material derived from over 100+ Million Plastic Bottles Saved.

The scale of inventory held as of the end of Q1 FY2026 shows a planned increase:

Inventory Metric	Amount as of May 4, 2025	Amount as of May 5, 2024
Total Merchandise Inventory	$124.9 million	$94.7 million
Inventory Increase (FY2024 to Q1 FY2026)	Increase of $25.9 million planned stock increase	N/A

The overall financial scale supported by these products in the last full fiscal year was substantial.

FY2025 Financial Metric	Amount
Total Net Sales	$680.6 million
Gross Margin	58.5% of net sales

Customer data and CRM tools for personalized engagement

The Lovesac Company specifically highlighted the enhancement of its customer relationship management (CRM) tools as a key action taken in FY2025 to deepen its competitive moat. This data infrastructure is vital for personalized engagement across its direct-to-consumer and showroom channels.

The strategic investment in CRM tools is intended to capitalize on customer relationship opportunities.

Finance: draft 13-week cash view by Friday.

The Lovesac Company (LOVE) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose The Lovesac Company (LOVE) over established furniture giants. It's not just about a couch; it's about a platform designed to stick around, which is reflected in their financial structure, like maintaining a Gross Margin of 58.5% of net sales in fiscal year 2025, up 120 basis points from the prior year.

The primary value proposition centers on the Sactionals system, which the company markets as The World's Most Adaptable Couch. This modularity is the engine of the business, evidenced by the fact that Sactionals represented 91.4% of The Lovesac Company's net sales for fiscal 2025. This adaptability means the product is designed to change as your life changes, a concept backed by a strong warranty structure.

Durability and longevity: Products built to last a lifetime

The commitment to longevity is a key differentiator against typical furniture lifecycles. The hard parts of the Sactionals, specifically the frame and feet, come with a lifetime warranty. Furthermore, the CEO has stated that no matter what technology upgrades The Lovesac Company makes to the couch, they will always be backwards-compatible, meaning the technology embedded in your existing Sactionals will forever be upgradeable.

Integrated home technology: StealthTech immersive sound and charging

This proposition layers technology directly into the furniture platform. The StealthTech system integrates immersive surround sound, powered by Harman Kardon, and convenient wireless charging ports directly inside the Sactionals Side pieces. This creates a clean, hidden audio solution for the home.

Sustainability: Washable, replaceable covers reduce furniture waste

The Designed for Life philosophy inherently supports sustainability by promoting buying better and buying less. The ability to replace only the covers, rather than the entire piece, is central to this. The company's focus on value over pure volume is visible in their financial discipline, even as total net sales for fiscal year 2025 were $680.6 million, a 2.8% decrease from the prior year.

You can see the financial context of the full fiscal year 2025 results here:

Metric	Amount / Rate (FY2025 Ended Feb 2, 2025)
Total Net Sales	$680.6 million
Gross Margin	58.5%
Net Income	$11.6 million
Sactionals % of Net Sales	91.4%
Showroom Sales % of Net Sales	62.6%
Internet Sales % of Net Sales	28.8%

Fast delivery of customized pieces, unlike traditional furniture lead times

The Lovesac Company aims to beat the notoriously long lead times of traditional furniture. Orders are usually delivered within 2 weeks, and shipping within the contiguous United States is free. However, you must note that customization impacts this speed. For example, orders with custom fabrics can have estimated shipping lead times ranging from 6-8 weeks up to 8-10 weeks, depending on the specific fabric chosen. Still, the company is growing its physical footprint to support this omnichannel approach, operating 257 showrooms as of February 2, 2025, which grew to 270 showrooms by the second quarter of fiscal 2026.

The value proposition is built on these tangible differences:

• Sactionals are guaranteed compatible over time.
• Technology is designed to be forever upgradeable.
• Standard orders typically ship in about 2 weeks.
• The hard components carry a lifetime warranty.
• The Q4 FY2025 net income showed a strong rebound, increasing 14.1% year-over-year for that quarter.

Finance: draft 13-week cash view by Friday.

The Lovesac Company (LOVE) - Canvas Business Model: Customer Relationships

You're looking at how The Lovesac Company keeps customers engaged and coming back, which is key when your product is a long-term investment like modular furniture. Honestly, their strategy is all about making the initial purchase an experience and then making the next purchase easy.

Direct-to-Consumer (DTC) model for maximum brand control

The Lovesac Company leans heavily into a DTC approach to own the customer journey from start to finish. This lets them control the brand message, which is crucial for a premium, innovative product line. For the full fiscal year 2025, this split was quite clear:

Channel	Net Sales as % of Total (FY2025)
Showroom Channel	62.6%
Internet Channel	28.8%
Other (Pop-up/Shop-in-Shop)	8.6%

The showroom channel is clearly the revenue driver, even with a strong digital presence. Still, the internet channel accounted for nearly 29% of sales in fiscal 2025. That's a solid foundation for direct engagement.

High-touch, experiential showrooms for product education and feel

You can't really understand Sactionals online alone; you need to touch the fabric and see the modularity. The Lovesac Company uses its physical footprint for this education. As of May 2025, they operated 267 showrooms. These locations are vital for conversion, which you can see in the latest reported performance. For the first quarter of fiscal year 2026, showroom net sales jumped 18.2% year-over-year, hitting $96.5 million. That growth helped offset a decline in internet sales during the same period. It definitely shows the power of that physical touchpoint.

Focus on long-term relationships to drive a 47% repeat transaction rate

The whole Designed for Life philosophy is built to bring customers back for add-ons, covers, or new components. For the full fiscal year 2025, repeat customers accounted for approximately 46.8% of all transactions, up from 43.6% in fiscal 2024. That's almost half of their business coming from existing customers. It's a defintely sticky model.

• Sactionals, which are the core of the system, represented 91.4% of net sales in fiscal 2025.
• The modularity encourages customers to return to expand their existing Sactionals configurations.

Dedicated customer service for warranty and add-on component purchases

The long-term relationship is monetized through accessories and upgrades. The company actively promotes these add-ons to existing Sactional owners. For example, the Sactionals StealthTech Sound + Charge system is a premium add-on that generates nearly three-times the average Sactional order value. This focus on evolving the core product drives high-value repeat business, which is supported by customer service for setup and warranty questions on these integrated technologies.

Financing options to enhance consumer attractiveness and conversion

To make those larger, modular purchases more accessible, The Lovesac Company integrates financing options directly at checkout, both online and in showrooms. They partner with Affirm, offering flexible payment structures. You can choose between 3, 6, or 12 monthly payments, with rates ranging from 0-36% APR depending on eligibility. These financing fees are a cost of acquisition, but they help conversion. In the first quarter of fiscal 2025, customer financing fees specifically increased by 8.6% to reach $6.7 million compared to the prior year period.

The Lovesac Company (LOVE) - Canvas Business Model: Channels

You're looking at how The Lovesac Company moves its modular furniture to the customer, which is a core part of its direct-to-consumer strategy. This channel mix is designed to balance physical experience with digital convenience, a key differentiator in home furnishings.

The primary sales channels for The Lovesac Company in fiscal year 2025 were heavily weighted toward physical locations, though e-commerce remains a substantial piece of the pie. The company ended fiscal year 2025, which concluded on February 2, 2025, with a total net sales figure of $680.6 million.

The breakdown of net sales across the main channels for the full fiscal year 2025 shows a clear reliance on their owned footprint:

• Owned retail showrooms accounted for 62.6% of FY2025 net sales.
• E-commerce platform (lovesac.com) accounted for 28.8% of FY2025 net sales.
• Other touchpoints, which include temporary shop-in-shops and pop-up locations, accounted for 8.6% of total net sales for fiscal 2025.

To give you a sense of the dollar value behind those percentages for the full fiscal year 2025:

Channel Type	FY2025 Net Sales Percentage	Approximate FY2025 Net Sales (USD)
Owned Retail Showrooms	62.6%	$426.01 million
E-commerce Platform	28.8%	$196.01 million
Other Touchpoints (Pop-ups/Shop-in-Shops)	8.6%	$58.53 million

The physical channel performance within the year showed some volatility. For the third quarter of fiscal 2025, showroom sales specifically saw a decrease of 7.8% year-over-year, while internet sales for that same quarter increased by 12.1%.

The physical footprint itself is managed to support an inventory-light fulfillment model, meaning inventory is largely held in distribution centers rather than sitting on showroom floors. As of the end of fiscal 2025, February 2, 2025, The Lovesac Company operated 257 retail showrooms, representing a net addition of 27 new showrooms compared to the prior year period.

The temporary shop-in-shops and pop-up locations are a key part of augmenting the core showroom strategy. For example, in the prior year, Costco hosted pop-up roadshows in nearly 150 locations, with plans to increase that presence by almost 50% in the following year.

The direct-to-consumer distribution centers are the backbone that enables the inventory-light approach for the showrooms. This setup helps maintain favorable margins compared to traditional brick-and-mortar models that require high levels of on-site stock. Finance: draft 13-week cash view by Friday.

The Lovesac Company (LOVE) - Canvas Business Model: Customer Segments

You're looking at the core buyers for The Lovesac Company (LOVE) as of late 2025. This isn't a mass-market furniture play; it's focused on a specific, financially stable consumer base that values longevity and flexibility over fast, disposable trends.

The primary financial indicator for the target customer base is high disposable income. Based on internal data, The Lovesac Company targets customers with an annual household income of over $100,000. More specifically, the company caters to a premium demographic where 82% of buyers earn over $100,000 annually. This group is highly attractive due to their higher-than-average rates of household formation and furniture purchasing.

The segments are defined by lifestyle and purchasing intent, which translate directly into the high-value, modular Sactionals platform, which accounted for 91.0% of sales in fiscal 2024.

Here's a breakdown of the key customer segments and supporting data points:

• Upper-middle-income families with household income exceeding $100,000 annually.
• 'Young parent want-it-alls' (HENRYs) aged 25 to 45 seeking adaptable, premium furniture.
• Design-conscious consumers prioritizing customization and modern aesthetics.
• Environmentally aware buyers valuing durability and waste reduction.

The company's success in retaining and growing this base is reflected in the transaction metrics:

Metric	Fiscal 2025 Number	Context
New Customer Transactions	155,000	Number of new customers acquired in fiscal 2025.
Repeat Customer Transactions	43%	Percentage of total transactions from repeat customers in the recent fiscal year.
Sactionals Sales Contribution	91.0%	Percentage of total sales for fiscal 2024.
Sac Product Sales Contribution	7.4%	Percentage of total sales for fiscal 2024.

The commitment to sustainability directly appeals to the environmentally aware buyer. The fabric for both Sactionals and Sac products is made from 100% repurposed plastic bottles. This focus on longevity and material sourcing supports the premium price point and the 'Designed for Life' philosophy.

The company's growth in showrooms also reflects reaching these segments where they shop. As of the end of fiscal 2025, The Lovesac Company operated over 257 retail showrooms.

The Lovesac Company (LOVE) - Canvas Business Model: Cost Structure

You're looking at the core expenses The Lovesac Company incurs to keep its unique omnichannel model running, especially as of late 2025. This structure is heavily influenced by its physical footprint and its commitment to product longevity.

The single largest component of cost, directly tied to the product itself, is the Cost of Goods Sold (COGS). For the full fiscal year 2025, COGS represented 41.5% of net sales, derived from a reported gross margin of 58.5% of net sales for FY2025.

Operating expenses are dominated by the physical presence. The Lovesac Company supported its operations with a network ending fiscal 2025 at 257 retail showrooms, though the network has grown beyond that number since. These locations drive significant fixed and variable costs, including rent and personnel expenses.

Marketing and advertising is a crucial variable cost, used to drive traffic to those showrooms and support online sales. For fiscal 2025, advertising and marketing expense actually decreased $6.1 million, or 6.4% compared to fiscal 2024. The full-year guidance for this line item was set at approximately 13% of net sales for fiscal 2025.

Controlling logistics is a key focus, especially outbound transportation and warehousing costs, given the size and modular nature of Sactionals. In fiscal 2025, these costs saw an increase of 40 basis points, which partially compressed the gross margin improvement seen from lower inbound transportation costs.

The company also invests in protecting its proprietary designs. The Lovesac Company emphasizes that its products are protected by a robust portfolio of utility patents, which necessitates ongoing investment in patent maintenance, though specific R&D or patent costs for FY2025 aren't explicitly broken out in the latest reports.

Here's a look at the key cost percentages relative to net sales for the full fiscal year 2025, using reported figures and guidance:

Cost Component	Percentage of Net Sales (FY2025)	Notes
Cost of Goods Sold (COGS)	41.5%	Calculated from 58.5% Gross Margin.
Selling, General & Administrative (SG&A) Expense	41.4%	Reported as a percentage of Net Sales for FY2025.
Advertising and Marketing Expense	~13.0%	Based on the guidance provided for fiscal 2025.

The SG&A line item, which encompasses showroom operating expenses like rent and personnel, was reported at 41.4% of net sales for fiscal 2025, an increase of $17.2 million, or 6.5% year-over-year.

You can see the major cost buckets:

• COGS: 41.5% of net sales.
• Total Operating Expenses (SG&A + Advertising): Approximately 54.4% of net sales (41.4% + 13.0%).
• Showroom Count at FYE 2025: 257 locations.
• Outbound Transportation Cost Impact: Increased by 40 basis points in FY2025.
• Marketing Spend Change: Decreased 6.4% in FY2025 versus FY2024.

Finance: draft 13-week cash view by Friday.

The Lovesac Company (LOVE) - Canvas Business Model: Revenue Streams

You're looking at how The Lovesac Company actually brought in the money in Fiscal Year 2025. It's heavily weighted toward the core product, which makes sense for a furniture company, but you need to see all the pieces.

Total Net Sales for Fiscal Year 2025 were reported at $680.6 million. This number is the foundation for understanding the revenue mix.

Here is the breakdown of the primary product sales streams for FY2025:

Revenue Source	Percentage of FY2025 Net Sales	Calculated Dollar Amount (FY2025)
Sales of Sactionals modular couches	91.4%	$621.8764 million
Sales of Sacs premium foam beanbag chairs	7.2%	$48.9932 million
Combined Product Sales	98.6%	$670.8696 million

The remaining revenue, which covers accessories and financing components, accounts for the difference between the combined product sales and the total net sales. Here's the quick math: $680.6 million minus $670.8696 million leaves $9.7304 million in other revenue streams for the full year.

This remaining amount is where you find the sales of accessories and the revenue derived from consumer financing programs. The Lovesac Company markets several accessory lines that enhance the core offerings, which you should factor into your analysis of that remaining revenue bucket.

The revenue streams categorized as accessories include:

• Sales of StealthTech Sound + Charge product line
• Sales of removable covers
• Sales of Footsac blankets
• Sales of other items like drink holders and fitted seat tables

Regarding the financing component, while a full-year number for interest and fees isn't explicitly broken out for FY2025 in the same way as product sales, we do see the cost associated with facilitating these programs. For instance, customer financing fees in the first quarter of fiscal 2025 alone were $6.7 million, which is an increase of 8.6% over the prior year's first quarter fee of $6.1 million. This indicates that interest and fees from consumer financing programs are a recognized, albeit smaller, part of the overall revenue picture, as these fees are often netted against selling expenses or recognized as revenue depending on the specific arrangement.