My Size, Inc. (MYSZ) - 10-Q Summary for Period Ended June 30, 2026
Business Context and Reporting Period
This is a Quarterly Report (Form 10-Q) for My Size, Inc., a fashion technology company operating an integrated portfolio including AI-driven sizing solutions (Naiz Fit, ShoeSizeMe), an e-commerce platform (Orgad), a resale platform (Percentil), and distribution services (Ten Peacks). The report covers the six-month and three-month periods ended June 30, 2026. The company is a smaller reporting company and a non-accelerated filer. All share and per-share data have been retroactively adjusted for a 1-for-8 reverse stock split effective August 12, 2026.
Key Financial Metrics
| Metric (in thousands) | Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | Three Months Ended June 30, 2026 | Three Months Ended June 30, 2025 |
|---|---|---|---|---|
| Revenues | $5,464 | $3,485 | $3,070 | $2,006 |
| Gross Profit | $1,913 | $1,544 | $973 | $1,124 |
| Gross Margin | 35.0% | 44.3% | 31.7% | 56.0% |
| Operating Loss | $(3,128) | $(1,646) | $(1,722) | $(586) |
| Net Loss | $(3,228) | $(1,510) | $(1,752) | $(450) |
| Loss Per Share (Basic/Diluted) | $(5.37) | $(4.78) | $(2.92) | $(1.32) |
| Cash and Cash Equivalents | $453 | $2,303 (Dec 31, 2025) | - | - |
| Restricted Cash | $258 | $254 (Dec 31, 2025) | - | - |
| Total Debt (Short + Long Term) | $981 | $925 (Dec 31, 2025) | - | - |
| Net Cash Used in Operating Activities | $(2,044) | $(2,306) | - | - |
Material Changes vs. Prior Period
- Revenue Growth: Revenue increased 57% year-over-year for the six months ended June 30, 2026, driven by growth in the fashion e-commerce platform (Orgad) and the inclusion of new acquisitions (ShoeSizeMe and Ten Peacks) in the consolidated results.
- Margin Compression: Gross margin declined significantly from 44.3% to 35.0% for the six-month period. This was primarily due to higher cost of revenues associated with increased sales volume in Orgad and the inclusion of lower-margin resale and distribution segments.
- Expense Increases: Operating expenses rose sharply. Research and Development (R&D) expenses more than doubled to $614,000 due to increased headcount and subcontractor costs. Sales and Marketing expenses increased to $2.025 million, largely due to higher Amazon fees and marketing for the Percentil resale platform.
- Liquidity Decline: Cash and cash equivalents decreased from $2.303 million at year-end 2025 to $453,000 at June 30, 2026, a reduction of approximately 80%.
Guidance, Outlook, Risks, and Unusual Items
- Going Concern Warning: Management has expressed substantial doubt about the company's ability to continue as a going concern. Based on projected cash flows, existing cash is sufficient to fund operations for less than 12 months. The company relies heavily on external funding.
- Nasdaq Compliance: The company received a deficiency notice for failing to maintain the $1.00 minimum bid price. A 1-for-8 reverse stock split was approved to regain compliance. Additionally, the company faces a new Nasdaq rule requiring a minimum Market Value of Listed Securities (MVLS) of $5.0 million; the company's MVLS is approximately $2.3 million. The implementation of this rule is currently stayed pending SEC review, but delisting remains a significant risk if the rule takes effect.
- Financing Activities: The company raised $190,000 via its At-The-Market (ATM) offering and $400,000 via a capital advance from Payoneer. Subsequent to the period end, the company entered into an Equity Purchase Agreement allowing for up to $10.0 million in future sales.
- Geopolitical Risks: The filing details ongoing conflicts in the Middle East (Israel-Iran, Israel-Hezbollah) and Russia-Ukraine. While management states the impact on operations has been immaterial so far due to diversified fulfillment (Amazon) and office locations in Spain, the situation remains a material risk factor.
- Legal Settlement: The company settled a legal claim regarding a warehouse fire with Shimon Shukron for approximately $143,000, which has been accrued as a liability.
Key Facts for Investor Verification
- Cash Runway: Verify the sufficiency of the $711,000 total cash position (including restricted cash) against the stated need for additional capital within 12 months.
- Reverse Stock Split Impact: Confirm the trading status and price of the stock post-split (effective August 13, 2026) and whether it successfully restored Nasdaq compliance regarding the minimum bid price.
- Debt Obligations: Review the terms of the Payoneer capital advance ($400k principal, $24k fee) and other short-term loans to assess immediate repayment pressures.
- Acquisition Integration: Assess the financial performance and integration progress of the ShoeSizeMe (acquired Sept 2025) and Percentil (acquired May 2025) units, which are driving revenue growth but also expense increases.
- Equity Dilution: Monitor the utilization of the new $10.0 million Equity Purchase Agreement and the ATM offering, as these will likely result in significant shareholder dilution.