Feel The World, Inc.
Feel The World, Inc. (Xero Shoes) filed its 10-Q for Q2 FY2026, reporting revenue of $16.9M (+14.7% YoY), gross margin of 51.6% (up from 47.1%), and operating income of $885,930 versus $83,735 a year ago. Net income was $600,393, though after $507K in Series A preferred stock accretion, net income attributable to common stockholders was just $93,110 ($0.02/share). The balance sheet shows a $4.96M stockholders' deficit against $26.2M in temporary equity from two preferred stock series.
- Q2 FY2026 revenue rose 14.7% YoY to $16.9M, driven by DTC and wholesale growth.
- Gross margin expanded to 51.6% from 47.1% a year ago on higher full-price sales mix.
- Income from operations swung to $885,930 from $83,735 in the prior-year quarter.
- Net income attributable to common stockholders was $93,110 after $507K in preferred stock accretion.
- Total stockholders' deficit deepened to $4.96M; temporary equity (preferred stock) stands at $26.2M.
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A niche footwear brand showing genuine operating leverage — revenue +14.7%, gross margin +450bps, operating income 10x — but common equity remains deeply underwater at -$4.96M.
Feel The World (Xero Shoes) operates in the minimalist footwear niche, competing with brands like Vivobarefoot. The DTC-heavy model and 51.6% gross margin are consistent with premium footwear peers, though the negative equity position and preferred-stock overhang distinguish it from better-capitaliz
Tariff exposure: the company notes "substantial uncertainty" around existing and newly announced tariffs, which could materially affect results. European revenue declined 21.4% YoY in Q2 ($3.0M vs $3.8M), signaling geographic concentration risk.
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