CURV

Torrid is in secular decline, not a temporary slump. Revenue has fallen every year since FY2023 — $1.30B → $1.29B → $1.15B → $1.10B → $1.00B — and FY2026 sales dropped another 9.4% to $1.00B while the company swung to a $7.0M net loss (EPS -$0.07) from $16.3M of prior-year profit. The internal metrics confirm the erosion: comparable sales were -7%, active customers fell to 3.44M from 3.66M, net sales per customer slipped to $291, and store count was cut from 634 to 483 (with up to 40 more closures targeted in FY2026). Adjusted EBITDA collapsed from $109M to $63.6M. This is a business shrinking its footprint faster than it is stabilizing demand.

The balance sheet is the disqualifier. Stockholders' equity is deeply negative at -$213M against a -$338M accumulated deficit, total liabilities of $614M dwarf $400M of assets, and long-term debt sits at $256M. Cash fell 58.7% to just $20M, and operating cash flow turned negative at -$13.0M — after $8.85M of capex the company was free-cash-flow negative. Yet management still paid $20.1M to repurchase stock, a capital-allocation choice that drained more than the entire remaining cash balance while the business was burning cash. The 10-K itself flags 'substantial indebtedness and lease obligations' as a core risk.