MeritValue

Luvu Brands, Inc.

LUVUdata completeness 100%15 fiscal years on file
The thesis, from the filings

Luvu Brands, Inc. earns about 10% on invested capital, barely covering its ~9% cost of capital, and has bought back 100% of its shares over 5 years. The estimate methods put fair value between $0.06 and $0.08 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$23.1M1$26.3M2$29.2M3$24.6M4$24.7M4
Net income$2.56M5$604,0006$1.2M7−$399,0008−$448,0008
Operating cash flow$540,0009$387,00010$661,00011$475,00012−$410,00012
Capital expenditure$189,00013$52,00014$115,00015$71,00016$41,00016
Free cash flow (derived)$351,0009$335,00010$546,00011$404,00012−$451,00012
Total debt$2.89M17$2.8M18$2.81M19$2.49M20$2.65M20
Cash & equivalents$977,00021$859,00021$1.04M22$1.03M22$5,00023
Diluted shares75.49B76.11B76.5M76.5M76.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.31
your share of equity
Profit it earned you last year
−$0.06
Free cash flow it threw off
−$0.06
Debt you’d be carrying
$0.35

10 shares is a claim on $0.31 of net worth that earned you −$0.06 and generated −$0.06 of cash last year, against $0.35 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
10% avg · 5y
FY21 —FY22 19%FY23 30%FY24 -4%FY25 -7%

It earned about 10% on invested capital against a ~9% cost of capital — roughly what it costs to fund the business, so the numbers show no clear edge.

seeing a moat in the numbers →
Management signal · capital allocation
−100% shares · 5y

Share count is down 100% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $0.06 and $0.08 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$0.08
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth6.4%
  • fcfBase$404,000
DCF · Growth Exit 5Y
$0.06
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth6.4%
  • fcfBase$404,000
Earnings Power Value
$0.08
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$604,000
  • growthAssumed0.0%
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years6.4%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $0.06
The three cases
Bear0.0%$0.04
Base6.4%$0.06
Bull11.4%$0.09

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 6.4%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-06-30 · accession 0001654954-22-013718 (Revenues)
  2. 10-K · period ending 2022-06-30 · accession 0001654954-23-012955 (Revenues)
  3. 10-K · period ending 2023-06-30 · accession 0001654954-24-012491 (Revenues)
  4. 10-K · period ending 2024-06-30 · accession 0001654954-25-011757 (Revenues)
  5. 10-K · period ending 2021-06-30 · accession 0001654954-22-013718 (NetIncomeLoss)
  6. 10-K · period ending 2022-06-30 · accession 0001654954-23-012955 (NetIncomeLoss)
  7. 10-K · period ending 2023-06-30 · accession 0001654954-24-012491 (NetIncomeLoss)
  8. 10-K · period ending 2024-06-30 · accession 0001654954-25-011757 (NetIncomeLoss)
  9. 10-K · period ending 2021-06-30 · accession 0001654954-22-013718 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001654954-23-012955 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-06-30 · accession 0001654954-24-012491 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-06-30 · accession 0001654954-25-011757 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K/A · period ending 2021-06-30 · accession 0001654954-21-010483 (PaymentsToAcquirePropertyPlantAndEquipment)
  14. 10-K · period ending 2022-06-30 · accession 0001654954-23-012955 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2023-06-30 · accession 0001654954-24-012491 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2024-06-30 · accession 0001654954-25-011757 (PaymentsToAcquirePropertyPlantAndEquipment)
  17. 10-K · period ending 2021-06-30 · accession 0001654954-22-013718 (LongTermDebtNoncurrent)
  18. 10-K · period ending 2022-06-30 · accession 0001654954-23-012955 (LongTermDebtNoncurrent)
  19. 10-K · period ending 2023-06-30 · accession 0001654954-24-012491 (LongTermDebtNoncurrent)
  20. 10-K · period ending 2024-06-30 · accession 0001654954-25-011757 (LongTermDebtNoncurrent)
  21. 10-K · period ending 2021-06-30 · accession 0001654954-22-013718 (CashAndCashEquivalentsAtCarryingValue)
  22. 10-K · period ending 2023-06-30 · accession 0001654954-25-011757 (CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents)
  23. 10-K · period ending 2025-06-30 · accession 0001654954-25-011757 (CashAndCashEquivalentsAtCarryingValue)