Core Viewpoint - Playboy, Inc. is set to release its financial results for the second quarter of 2025 on August 12, 2025, after the U.S. stock market closes, followed by a conference call to discuss these results [1] Group 1: Financial Results Announcement - The financial results for Q2 2025 will be announced on August 12, 2025, after market close [1] - A conference call and audio webcast will take place on the same day at 5:00 a.m. Eastern Time to discuss the results [1] Group 2: Accessing the Conference Call - The conference call can be accessed via telephone at 877-423-9813 with Conference ID: 13754923 or through the live webcast on Playboy's investor relations website [2] - An audio replay of the webcast will be available on the investor relations website after the call [2] Group 3: Company Overview - Playboy, Inc. is a global pleasure and leisure company with a mission to connect consumers with products, content, and experiences that enhance their lives [3] - The brand is recognized worldwide, with products and content available in approximately 180 countries [3] - Playboy's mission emphasizes the pursuit of pleasure as a fundamental human right, rooted in values of equality and freedom of expression [3]

Industry Overview - The Zacks Leisure and Recreation Products industry is experiencing challenges due to the ongoing tariff war and soft macroeconomic data, but there is a positive trend in fitness product sales driven by growing health and fitness awareness [1][3] - The industry includes companies that provide a range of recreational products and services, thriving on economic growth that fuels consumer demand [2] Trends Impacting the Industry - The tariff war initiated by U.S. President Donald Trump is affecting the industry, with concerns about its impact on the U.S. economy amid inflation and global geopolitical tensions [3] - The golf industry is booming, with rising demand for golf equipment due to technological advancements and increased participation among young people, particularly in emerging markets like India and China [4] - There is robust demand for fitness-related products in the U.S., driven by health awareness and lifestyle changes, leading to increased investment in home workout equipment and digital fitness platforms [5] Industry Performance - The Zacks Leisure and Recreation Products industry currently holds a Zacks Industry Rank of 204, placing it in the bottom 17% of over 246 Zacks industries, indicating dismal near-term prospects [6][7] - The industry's earnings outlook is negative, with a 13.6% decrease in northbound earnings estimates since January 31, 2025 [8] Stock Market Performance - The industry has outperformed the S&P 500, with a collective growth of 49.8% over the past year compared to the S&P 500's 11.8% increase [10] Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 35.08X, significantly higher than the S&P 500's 22.64X and the sector's 18.45X [13] Notable Companies - **Peloton**: Transitioning to a profitability-driven recovery, with high-margin subscription revenues contributing nearly 70% of total sales. Expected fiscal 2025 earnings growth of 72.9% and a stock increase of 84.8% in the past year [16][17] - **Playboy**: Benefiting from an asset-light licensing model and a rebound in its China licensing business, with a stock increase of 137.5% in the past year [20][21] - **Academy Sports and Outdoors**: Gaining from a growth strategy focused on brand partnerships and digital upgrades, but shares have declined by 2.3% in the past year with expected earnings decline of 1.7% for fiscal 2025 [24]

Core Viewpoint - Playboy, Inc. has officially changed its corporate name from PLBY Group, Inc. to Playboy, Inc., aligning its corporate identity with its flagship brand [1][2]. Company Name Change - The name change reflects the company's current and future focus on the Playboy brand [2]. - The common stock will continue to trade on Nasdaq under the ticker symbol "PLBY," with no changes to the CUSIP number [3]. - The name change was approved by stockholders at the 2025 annual meeting, and it does not affect stockholder rights [3]. Company Overview - Playboy is a global pleasure and leisure company, offering products, content, and experiences aimed at enhancing consumer fulfillment [4]. - The brand is recognized worldwide, with products and content available in approximately 180 countries [4]. - Playboy's mission emphasizes creating a culture where individuals can pursue pleasure, rooted in values of equality, freedom of expression, and the belief that pleasure is a fundamental human right [4].

Core Points - PLBY Group, Inc. announced the results of its 2025 Annual Meeting of Stockholders, where stockholders elected board nominees, ratified the independent auditor, approved a name change to "Playboy, Inc.", and increased authorized shares, but did not approve the second tranche of an investment by Byborg Enterprises S.A. [1][2] Voting Results - Juliana F. Hill received 54,555,539 votes for and 8,912,000 withheld, while György Gattyán received 60,597,054 votes for and 2,870,485 withheld [3] - The proposal to issue 16,956,842 shares at $1.50 per share was approved by 17,933,040 votes for, but faced significant opposition with 30,507,913 votes against [3] - The amendment to increase authorized shares from 150 million to 400 million was approved with 63,674,008 votes for and 13,992,569 against [4] - The name change to "Playboy, Inc." received 70,613,626 votes for and 7,039,973 against [4] - The appointment of BDO USA, P.C. as independent auditors was ratified with 71,810,773 votes for and 5,723,661 against [4] - The non-binding advisory vote on executive compensation received 53,674,646 votes for and 9,526,194 against [4] - The adjournment proposal to solicit additional proxies was approved with 68,147,502 votes for and 9,505,868 against [4] Company Strategy - The CEO emphasized the commitment to the Playboy brand and the focus on scaling the high-margin, recurring revenue licensing business globally [2] - The company aims to strengthen its balance sheet and generate positive cash flow while maintaining a partnership with Byborg [2]

Group 1 - PLBY Group, Inc. is part of the Consumer Discretionary sector, which includes 255 companies and ranks 9 in the Zacks Sector Rank [2] - The Zacks Rank model indicates that PLBY Group, Inc. has a Zacks Rank of 2 (Buy), suggesting a favorable outlook for the stock [3] - The Zacks Consensus Estimate for PLBY's full-year earnings has increased by 8.8% in the past quarter, indicating improved analyst sentiment [4] Group 2 - PLBY Group, Inc. has returned approximately 7.5% year-to-date, outperforming the average return of 5.6% for the Consumer Discretionary sector [4] - PLBY is categorized under the Leisure and Recreation Products industry, which consists of 23 companies and currently ranks 183 in the Zacks Industry Rank [6] - The Leisure and Recreation Products industry has an average gain of 9.7% this year, indicating that PLBY is slightly underperforming its industry [6] Group 3 - Playa Hotels & Resorts, another Consumer Discretionary stock, has also outperformed the sector with a year-to-date increase of 6.6% [5] - The Hotels and Motels industry, which includes Playa Hotels & Resorts, has a Zacks Industry Rank of 69 and has declined by 5.5% since the beginning of the year [7]

Group 1 - PLBY Group, Inc. will be included in the Russell Microcap® Index effective June 30, 2025, following the annual reconstitution of the Russell U.S. Indexes [1] - The Russell U.S. indexes capture the 4,000 largest U.S. stocks ranked by total market capitalization as of April 30 [2] - Membership in the Russell Microcap® Index results in automatic inclusion in the appropriate growth and value style indexes for one year [2] Group 2 - The Russell indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked to these indexes as of June 2024 [3] - PLBY Group is a global pleasure and leisure company, with its flagship brand, Playboy, recognized in approximately 180 countries [4] - The company's mission emphasizes creating a culture where all people can pursue pleasure, rooted in values of equality and freedom of expression [4]

Group 1 - PLBY Group, Inc. has returned 7.5% year-to-date, outperforming the average gain of 5% in the Consumer Discretionary sector [4] - The Zacks Rank for PLBY Group, Inc. is currently 2 (Buy), indicating a positive outlook based on earnings estimates and revisions [3] - The Zacks Consensus Estimate for PLBY's full-year earnings has increased by 5.9% over the past quarter, reflecting improving analyst sentiment [3] Group 2 - PLBY Group, Inc. belongs to the Leisure and Recreation Products industry, which has 23 companies and is currently ranked 191 in the Zacks Industry Rank [6] - The average gain for stocks in the Leisure and Recreation Products industry this year is 9.9%, indicating that PLBY is slightly underperforming its industry [6] - Universal Technical Institute, another Consumer Discretionary stock, has returned 37.7% year-to-date and is part of the Schools industry, which has a higher average gain of 10.2% [4][7]

Group 1: Financial Performance - PLBY Group reported a quarterly loss of $0.10 per share, which aligns with the Zacks Consensus Estimate, an improvement from a loss of $0.23 per share a year ago [1] - The company posted revenues of $28.88 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 8.15%, compared to revenues of $28.32 million in the same quarter last year [2] - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $28.55 million, and for the current fiscal year, it is -$1.59 on revenues of $119.9 million [7] Group 2: Market Performance and Outlook - PLBY Group shares have declined approximately 17.8% since the beginning of the year, contrasting with the S&P 500's gain of 0.2% [3] - The estimate revisions trend for PLBY Group is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] - The Leisure and Recreation Products industry, to which PLBY Group belongs, is currently ranked in the bottom 11% of over 250 Zacks industries, suggesting a challenging environment for stock performance [8]

Financial Data and Key Metrics Changes - The company reported a positive adjusted EBITDA of $2.4 million for Q1 2025, marking its first positive EBITDA quarter since 2023 [21] - There were $1 million in personnel-related costs in Q1 that have been eliminated, which would have resulted in a positive adjusted EBITDA of $3.4 million [22] Business Line Data and Key Metrics Changes - Licensing revenue increased significantly by 175% year-over-year, and even without the ByBorg deal, it was still up over 50% [33] - The ByBorg deal, effective January 1, contributes $5 million per quarter, with the first two payments already made [33] Market Data and Key Metrics Changes - The U.S. market represents approximately $35 million of the business, with a 10% price increase implemented to mitigate tariff impacts [12][22] - The company is seeing improvements in its China licensing business despite challenges from the tariff environment [34] Company Strategy and Development Direction - The company is focusing on an asset-light model and aims to reduce overhead while increasing EBITDA [22][28] - There are plans to explore growth opportunities in gaming and hospitality, including potential development of a Playboy Club [23][28] - The company is also looking to expand its content licensing and media strategy, including paid voting campaigns and magazine sales [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the next few years, particularly in licensing and content [28] - The company is preparing for potential revenue recognition from multi-year deals in the gaming sector [24][35] Other Important Information - The annual meeting for shareholder voting on the second equity investment is scheduled for June 16 [17] - The company plans to release additional magazine issues and capitalize on ancillary revenue streams from its content [25][28] Q&A Session Summary Question: Expectations for Honeybird debt and gross margin changes - Management indicated that they are ahead of plan for the second quarter and expect an easy comparable from last year [9][10] Question: Impact of Chinese tariffs on gross margin - The near-term impact of tariffs is estimated at about $1 million, but price increases and changes in shipping thresholds are expected to mitigate this [10][12] Question: Plans for new product development with ByBorg - Management is excited about new designs and has a minimum guarantee of $20 million per year from ByBorg [14][15] Question: Potential around other licensing categories - Management highlighted ongoing efforts in gaming and hospitality, with potential revenue recognition expected in the second half of the year [20][24] Question: Drivers of the licensing business in the quarter - Licensing was significantly up due to the ByBorg deal and improvements in the China licensing business [33][34]

Financial Data and Key Metrics Changes - The company reported a positive adjusted EBITDA of $2.4 million for Q1 2025, marking its first positive EBITDA quarter since 2023 [21][22] - There were $1 million in personnel-related costs in Q1 that have been eliminated, which would have resulted in a positive adjusted EBITDA of $3.4 million [22] Business Line Data and Key Metrics Changes - Licensing revenue increased significantly by 175% year-over-year, and even without the ByBorg deal, it was still up over 50% [33] - The ByBorg deal, effective January 1, contributes $5 million per quarter, with the first two payments already made [33][34] Market Data and Key Metrics Changes - The company is seeing improvements in its China licensing business despite a challenging environment due to tariffs, indicating potential for continued growth [34] Company Strategy and Development Direction - The company is focusing on an asset-light model and aims to reduce overhead while increasing EBITDA [21][28] - There are plans to develop new licensing deals in gaming and hospitality, with potential projects like a Playboy Club expected to take one to two years for physical build-out [23][28] - The company is also exploring opportunities in mainstream content, including TV shows and paid voting campaigns, which could generate additional revenue streams [25][27] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the next few years, particularly in gaming and content licensing [28] - The company is preparing for potential revenue recognition from multi-year deals in the second half of the year [24][28] Other Important Information - The company plans to release an additional magazine issue this year, with hopes to ramp up to four issues next year, which could create ancillary revenue streams [25][28] - A second equity investment vote has been moved to the annual meeting scheduled for June 16 [17] Q&A Session Summary Question: Expectations for Honeybird debt and gross margin changes - Management indicated that they are ahead of plan for the second quarter and expect an easy comparable from last year [8] - The near-term gross margin is expected to remain stable, with a $1 million impact from tariffs, which has been mitigated by a 10% price increase [9][11] Question: Plans for new product development with ByBorg - Management confirmed ongoing collaboration with ByBorg and a minimum guarantee of $20 million per year, with a $5 million payment scheduled for July 1 [14][15] Question: Potential in other licensing categories - Management highlighted enthusiasm for new licensing opportunities in clubs and hospitality, with a focus on an asset-light model and positive EBITDA [21][28]