10-Q: My Size Inc. Q1 2026 Results Show Revenue Growth Amidst Net Loss

My Size, Inc. reported a 62% increase in revenue for Q1 2026 to $2.39 million, but also saw an expanded net loss of $1.48 million.

Summary

• My Size, Inc. reported first-quarter 2026 revenues of $2.39 million, a significant increase from $1.48 million in the same period of 2025.
• The company's cost of revenues also increased to $1.45 million from $1.06 million.
• Operating expenses rose substantially, with research and development up to $239,000 from $82,000, sales and marketing at $890,000 from $567,000, and general and administrative expenses at $1.22 million from $831,000.
• This led to an increased operating loss of $1.41 million for Q1 2026, compared to $1.06 million in Q1 2025.
• The net loss for the quarter was $1.48 million, an increase from $1.06 million in the prior year's quarter.
• As of March 31, 2026, the company had cash and cash equivalents of $654,000, a decrease from $2.30 million at the end of 2025.
• Management expresses substantial doubt about the company's ability to continue as a going concern, citing insufficient cash to fund operations for more than 12 months.
• The company plans to mitigate this by continuing product commercialization, acquiring technology, and securing financing through equity sales, debt, or strategic partnerships.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this filing as having a negative sentiment due to the increased net loss, widening operating loss, and significant concerns about the company's ability to continue as a going concern, despite revenue growth.

Positives

• Revenue increased by 62% to $2.39 million in Q1 2026 compared to $1.48 million in Q1 2025, driven by growth in the fashion e-commerce platform and the inclusion of Percentil's revenue.
• The acquisition of ShoeSize.Me AG in September 2025 is expected to expand the company's offering outreach and customer base.
• The company has secured a $400,000 capital advance from Payoneer Inc. in January 2026.
• The company sold 2,011,912 shares under its At The Market Offering Agreement, raising approximately $3.59 million in gross proceeds as of March 31, 2026.

Negatives

• Net loss increased to $1.48 million in Q1 2026 from $1.06 million in Q1 2025.
• Operating loss widened to $1.41 million in Q1 2026 from $1.06 million in Q1 2025.
• Cash and cash equivalents decreased significantly to $654,000 as of March 31, 2026, from $2.30 million as of December 31, 2025.
• The company has an accumulated deficit of $71.2 million as of March 31, 2026.
• Management believes existing cash is insufficient to fund operations for more than 12 months, raising substantial doubt about the company's ability to continue as a going concern.
• Increased operating expenses across R&D, sales & marketing, and G&A contributed to the wider net loss.

Risks

• The company has a history of losses and requires additional capital to fund operations, with an inability to obtain such capital on acceptable terms or at all.
• There is substantial doubt about the company's ability to continue as a going concern.
• The measurement technology markets are new and unproven.
• The company may not be able to achieve customer adoption of its products.
• The company may not be able to realize the benefits of its acquisitions (Orgad, Naiz, Percentil, ShoeSize.Me).
• The company may not be able to enhance its brand and increase market awareness.
• The company may not be able to introduce new products and continually enhance its product offerings.
• The success of strategic relationships with third parties is not guaranteed.
• Information technology system failures or breaches of network security are potential risks.
• Competition from other companies poses a risk.
• Reliance on key members of the management team is a factor.
• Current or future litigation could negatively impact the business.
• Unfavorable economic and market conditions, and adverse developments with financial institutions, could lead to liquidity risk.
• Changes in tariffs, trade barriers, price and exchange controls, and other regulatory requirements could impact the business.
• The political and security situation in Israel could have an impact on the business.

Future Outlook

Management expects to continue generating losses and negative cash flows from operations for the foreseeable future. The company believes its existing cash will be sufficient to fund operations for less than 12 months, creating substantial doubt about its ability to continue as a going concern. Mitigation plans include continuing product commercialization, acquiring technology, and securing financing through equity sales, debt, or strategic partnerships. However, there is no guarantee that additional funds will be available on acceptable terms or at all. If the company fails to successfully commercialize its products or secure sufficient financing, it may be forced to cease operations.

Management Comments

• Management believes existing cash will be sufficient to fund operations for less than 12 months, creating substantial doubt about the Company's ability to continue as a going concern.
• Managements plans to mitigate this include continuing product commercialization, acquiring technology or intellectual property, and securing financing through equity sales, debt, or strategic partnerships.
• However, there is no guarantee that additional funds will be available on acceptable terms or at all.
• If the Company fails to successfully commercialize its products or secure sufficient financing, it may be forced to cease operations.

Industry Context

StockSavvy.ai notes that My Size, Inc. operates in the fashion technology sector, focusing on AI-driven sizing solutions, e-commerce platforms, and resale markets. The company's strategy to build an integrated fashion platform addressing size/fit, inventory, sustainability, and distribution is a response to significant pain points in the industry. The increased revenue growth, while positive, is overshadowed by rising operating costs and a widening net loss, a common challenge for growth-stage tech companies in competitive markets. The ongoing need for capital and going concern uncertainty are critical factors for investors to monitor.

Comparison to Industry Standards

• The revenue growth of 62% for My Size, Inc. in Q1 2026 is strong compared to the broader e-commerce sector, which experienced more moderate growth in early 2026.
• However, the company's net loss of $1.48 million and operating loss of $1.41 million indicate a significant divergence from industry profitability standards for established players.
• Companies like Stitch Fix (SFIX) and ThredUp (TDUP), which operate in related segments (personalized styling and resale, respectively), have also faced profitability challenges, but My Size's cash position and going concern issues are more acute.
• The investment in R&D ($239,000) and Sales & Marketing ($890,000) as a percentage of revenue is high, reflecting a strategy common in early-stage tech companies aiming for market penetration, but it strains current financial resources.

Legal Proceedings

• A legal complaint was filed by Shimon Shukron in July 2024 for a monetary award of approximately $510,000 (NIS 1,895,345), alleging damages from a fire at Orgad's warehouse in January 2023. The company has filed a defense and estimates the claim at approximately $102,000 (NIS 325,000), which is recorded as a current liability.

Stakeholder Impact

• Shareholders: Potential dilution from future equity issuances for capital raising. The going concern issue poses a significant risk to their investment.
• Employees: Continued employment is dependent on the company's ability to secure financing and continue operations. Stock-based compensation is a component of employee incentives.
• Suppliers: Potential impact on payment terms or business continuity if the company faces severe financial distress.
• Creditors: The company's ability to service its debt obligations is a concern given its liquidity position and going concern status.

Next Steps

• Continue product commercialization.
• Acquire technology or intellectual property.
• Secure financing through equity sales, debt, or strategic partnerships.
• Monitor and assess the impact of geopolitical conflicts and economic conditions on business operations.
• Continue to invest in innovation and product enhancement.
• Enhance brand and increase market awareness.
• Pursue growth opportunities.
• Hire and retain qualified management and key employees.
• Respond to competitive pressures.
• Comply with regulatory requirements.
• Maintain compliance with applicable laws.

Key Dates

Recommendation

While revenue growth is positive, the significant increase in net loss, widening operating loss, and critical going concern warning necessitate a cautious approach. The company's reliance on future financing and its ability to execute its strategy in a challenging market warrant a 'hold' recommendation until there is clearer evidence of financial stability and sustainable profitability.

Keywords

My Size Inc., 10-Q Filing, Quarterly Report, Fashion Technology, E-commerce, SaaS Solutions, Resale Platform, Financial Results, Net Loss, Revenue Growth, Going Concern, Capital Raise