NEW YORK, Dec. 17, 2025 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), announces today that it has entered into a securities purchase agreement for a private investment in public equity (“PIPE”) financing that is expected to result in gross proceeds to the Company of approximately $2.05 million, before deducting placement agent fees and offering expenses. The Company intends to use the net proceeds from the offering for general corporate purposes and working capital. Pursuan ...

Core Insights - Xcel Brands, Inc. announces a partnership between Longaberger and Shannon Doherty to launch a new home collection that emphasizes warmth, style, and functionality [2][3] Company Overview - Xcel Brands, Inc. is a media and consumer products company focused on influencer-driven brands through social commerce and livestreaming, with a portfolio that includes Halston, Judith Ripka, and Longaberger [6] - The company has generated over $5 billion in retail sales via livestreaming and interactive television, reaching over 43 million social media followers and broadcasting into 200 million households [6] Partnership Details - The collaboration between Longaberger and Shannon Doherty aims to blend American craftsmanship with a family-centered lifestyle, celebrating everyday living and creating a modern vision for the home [3][5] - Each product in the new collection will reflect Longaberger's handcrafted quality combined with Shannon's warmth and approachability, focusing on cozy entertaining and functional storage [5] Brand Background - Longaberger, founded in 1973, is known for its artisanal handcrafted products, particularly handmade maple baskets, and has a loyal customer base [7] - Shannon Doherty, founder of At Home with Shannon, shares home décor ideas and family routines, reaching millions through her lifestyle platform [8]

Core Insights - XCel Brands reported a quarterly loss of $2.02 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.93, marking an earnings surprise of -117.20% [1] - The company's revenues for the quarter ended September 2025 were $1.12 million, missing the Zacks Consensus Estimate by 27.87%, and down from $1.91 million a year ago [2] - XCel Brands shares have declined approximately 83.7% year-to-date, contrasting with the S&P 500's gain of 12.5% [3] Financial Performance - Over the last four quarters, XCel Brands has surpassed consensus EPS estimates twice and topped revenue estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.86 on revenues of $1.65 million, and for the current fiscal year, it is -$4.63 on revenues of $5.85 million [7] Industry Context - The Retail - Apparel and Shoes industry, to which XCel Brands belongs, is currently ranked in the top 23% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8] - The performance of XCel Brands may be influenced by the overall industry outlook, as empirical research shows a strong correlation between stock movements and earnings estimate revisions [5][8]

Financial Data and Key Metrics Changes - The company reported a net loss of approximately $7.9 million for Q3 2025, or minus $2.02 per share, compared to a net loss of $9.2 million, or minus $3.92 per share in Q3 2024, indicating an improvement in loss per share [19] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, compared to negative $1 million in Q3 2024, representing a 38% year-over-year improvement [20] - Year-to-date net loss for 2025 was approximately $14.7 million, or minus $5.06 per share, compared to a net loss of $15.3 million, or minus $6.82 per share in the prior year [21] Business Line Data and Key Metrics Changes - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [14][15] - Direct operating costs for Q3 2025 were $2.2 million, down 23% from the prior year quarter, reflecting cost reduction actions taken over the past two years [15][16] Market Data and Key Metrics Changes - The company noted that the transition of HSN to QVC's Pennsylvania studios disrupted sales for brands like Tower Hill by Christie Brinkley and SeaWonder, but these issues have since been resolved [11][30] - The company is focusing on domestic sourcing for new influencer-led brands to mitigate tariff impacts, particularly in food and pet products [10][25] Company Strategy and Development Direction - The company is working on new business opportunities with UTG, including leveraging their sourcing platform and retail distribution in China [9] - The launch of five new influencer-led brands is expected to drive revenue growth into 2026, with a focus on expanding into new categories [40][41] - The company is exploring potential acquisitions to enhance its brand portfolio and drive future growth [34] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for Q4 2025 due to tariff impacts on QVC, HSN, and licensees, but remains optimistic about the potential for growth in 2026 [11][12] - The company believes it is well-positioned to capitalize on the shift from linear TV to digital streaming and social commerce [9] Other Important Information - The company closed a $2 million net equity offering in Q3 2025, with proceeds used to pay down loans and for general working capital [8] - As of September 30, 2025, the company had stockholders' equity of approximately $17 million and unrestricted cash of approximately $1.5 million [22] Q&A Session Summary Question: Importance of hiring Olin Lancaster as Chief Revenue Officer - Management highlighted the significance of Olin Lancaster's extensive experience and the long-standing relationship that facilitated his hiring [24] Question: Mitigation of tariff impact through domestic sourcing - Management discussed the successful signing of licenses for domestic products, which helps mitigate tariff risks [25][26] Question: Resolution of disruption with SeaWonder and Christie - Management confirmed that the issues related to vendor disruptions and HSN's relocation have been resolved [30] Question: Updates on product roadmap and brand rollouts - Management indicated that new products will start hitting the market in Q1 2026, with a focus on food products and pet accessories [32] Question: Revenue ramp expectations for the next 12 months - Management outlined a roadmap for launching new influencer-led brands and expanding into new sales channels to drive revenue growth [40][41] Question: Potential revenue outlook for 2026 - Management refrained from providing specific guidance but referenced analyst reports for potential revenue expectations [47] Question: Long-term revenue targets and brand potential - Management reaffirmed the potential for significant revenue growth from new brands, particularly in the pet and lifestyle categories [51][52]

Financial Data and Key Metrics Changes - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [14][15] - Adjusted EBITDA loss for Q3 2025 was approximately $653,000, representing a 38% improvement compared to a loss of $1 million in Q3 2024 [11][20] - The company reported a net loss of approximately $7.9 million for Q3 2025, or $2.02 per share, compared to a net loss of $9.2 million, or $3.92 per share in the prior year [19] Business Line Data and Key Metrics Changes - Direct operating costs for Q3 2025 were $2.2 million, down 23% from the prior year quarter, and year-to-date direct operating costs decreased by 36% to $6.3 million [15][16] - The Halston brand's performance has not met expectations, leading to adjustments in merchandising and design by G-III [12][19] Market Data and Key Metrics Changes - The company has seen a decline in licensing revenues year-to-date, with $3.8 million for the current nine-month period compared to $6.5 million in the prior year, largely due to the divestiture of the Lori Goldstein brand [15][16] - The social media reach across the brand portfolio is now 46 million, with a target of reaching 100 million followers by 2026 [10] Company Strategy and Development Direction - The company is focusing on leveraging new business opportunities with UTG, including sourcing products for retail partners and potential acquisitions [9] - Plans to launch five new influencer-led brands in 2026, diversifying into food, kitchen, home, and pet products, while transitioning supply chains to domestic production [10][40] - The company is cautious about Q4 2025 due to tariff impacts on QVC, HSN, and licensees [11] Management's Comments on Operating Environment and Future Outlook - Management believes the current macroeconomic environment poses risks but is optimistic about capitalizing on the shift from linear TV to digital streaming and social commerce [9] - The company anticipates sequential revenue growth in 2026 as new influencer brands come online and existing issues are resolved [40][42] Other Important Information - The company closed a $2 million net equity offering in Q3 2025, with $250,000 used to pay down a loan [8] - As of September 30, 2025, the company had stockholders' equity of approximately $17 million and unrestricted cash of approximately $1.5 million [22] Q&A Session Summary Question: Importance of hiring Olin Lancaster as Chief Revenue Officer - Management highlighted the significance of the hire, noting Lancaster's extensive experience and the long-standing relationship with the CEO [24] Question: Mitigating tariff impacts with domestic products - Management discussed the strategic focus on domestic sourcing for food and pet products to mitigate tariff risks [25][26] Question: Resolution of disruptions with Sea Wonder and Christie Brinkley - Management confirmed that the issues have been resolved, including vendor changes and programming challenges due to HSN's relocation [30] Question: Updates on product roadmap and brand rollouts - Management indicated that new products will start hitting the market in Q1 2026, with a focus on food products and pet accessories [32] Question: Revenue ramp expectations for the next 12 months - Management outlined a roadmap for launching new influencer brands and expanding into new categories to drive revenue growth [40][41] Question: Potential revenue outlook for 2026 - Management refrained from providing specific guidance but referenced analyst reports for potential revenue expectations [47] Question: Long-term revenue targets and brand potential - Management reaffirmed the potential for significant revenue growth from new brands, particularly in the pet and lifestyle sectors [51][52]

Financial Data and Key Metrics Changes - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [12] - Year-to-date net licensing revenues were $3.8 million, compared to $6.5 million for the same period last year, largely due to the divestiture of the Lori Goldstein brand [12] - The company reported a net loss of approximately $7.9 million for Q3 2025, an improvement from a net loss of $9.2 million in Q3 2024 [17] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, representing a 38% year-over-year improvement from negative $1 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - Direct operating costs for Q3 2025 were $2.2 million, down 23% from the prior year quarter, and year-to-date direct operating costs were $6.3 million, a decrease of 36% [12][13] - The company generated an adjusted EBITDA loss of $653,000 in Q3, which is a $400,000 improvement over Q3 2024 [10] Market Data and Key Metrics Changes - The company is experiencing a shift in its core business from linear TV to digital streaming and social commerce, with TikTok Shops surpassing eBay in quarterly volume [7] - The social media reach across the brand portfolio is now 46 million, with a target of reaching 100 million followers by 2026 [8] Company Strategy and Development Direction - The company is focusing on leveraging new business opportunities with UTG, including sourcing products for retail partners and potential acquisitions [6][7] - New influencer brands have diversified product categories into food, kitchen, home, and pet products, with a shift towards domestic production [8] - The company is cautious about Q4 2025 due to tariff impacts on QVC, HSN, and licensees [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for transformative transactions and the ability to capitalize on changes in the market [7] - The company is working to resolve issues related to the Halston brand and expects growth in 2026 [10][11] - Management highlighted the importance of top-line royalty revenue and the potential for significant asset value in the company's IP [46] Other Important Information - The company closed a $2 million net equity offering in Q3 2025, with part of the proceeds used to pay down loans [6] - As of September 30, 2025, the company had stockholders' equity of approximately $17 million and unrestricted cash of approximately $1.5 million [20] Q&A Session Summary Question: Importance of hiring Olin Lancaster as Chief Revenue Officer - Management emphasized the significance of the hire, noting Lancaster's extensive experience and the potential for growth with new influencer brands [22] Question: Mitigating tariff impacts with domestic products - Management discussed the strategic focus on domestic sourcing for food and pet products to reduce tariff risks [23][24] Question: Resolution of disruptions with SeaWonder and Christie - Management confirmed that the issues have been resolved, including vendor changes and programming challenges [28] Question: Updates on product roadmap and brand rollouts - Management indicated that new products will start hitting the market in Q1 2026, with a focus on food products and pet accessories [31] Question: Revenue ramp expectations for the next 12 months - Management outlined a roadmap for launching five new influencer-led brands to drive revenue growth into 2026 [39][40] Question: Potential revenue outlook for 2026 - Management refrained from providing specific guidance but referenced analyst reports for potential revenue expectations [45] Question: Long-term revenue targets - Management reiterated the potential for significant royalty income from new brands, emphasizing the global opportunities with influencers [49]

Core Insights - The company reported a net loss of approximately $7.9 million for Q3 2025, an improvement from a net loss of $9.2 million in the same quarter of the previous year, indicating a positive trend in financial performance [18] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, representing a 38% year-over-year improvement compared to negative $1 million in Q3 2024 [19] - The company is focusing on launching five new influencer-led brands in 2026, which are expected to drive revenue growth and mitigate tariff impacts by sourcing products domestically [31][24] Financial Performance - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [12] - Direct operating costs decreased by 23% year-over-year to $2.2 million in Q3 2025, attributed to business transformation and cost reduction efforts [13] - The company had a net loss of approximately $14.7 million for the nine months ended September 30, 2025, compared to a net loss of $15.3 million for the same period in the previous year [19] Strategic Developments - The company closed a $2 million net equity offering in Q3 2025, with management and insiders investing a total of $935,000 [5] - The company is exploring new business opportunities, including leveraging partnerships for product supply and potential acquisitions [6] - The addition of Olin Lancaster as Chief Revenue Officer is expected to enhance the company's strategic direction and brand launches [22] Market Positioning - The company is well-positioned to capitalize on the shift from linear TV to digital streaming and social commerce, with a social media reach of 46 million people across its brand portfolio [7] - The company anticipates reaching 100 million followers across its brand portfolio by 2026, indicating strong growth potential [8] - The Halston brand is undergoing adjustments in merchandising and design to improve performance, with expectations for growth in 2026 [11] Future Outlook - The company plans to diversify into new sales channels and expand product categories, particularly in home and garden and beverage sectors [31] - Analysts project potential revenue growth in 2026, with expectations for sequential increases each quarter as new brands are launched [33] - The company aims to achieve significant royalty income from its brands, with potential valuations indicating a disconnect between current market cap and asset value [35][37]

Financial Performance - Current quarter net revenue decreased by $0.79 million to $1.12 million from $1.91 million in the prior year quarter, primarily due to lower licensing revenues and the sale of remaining Longaberger inventory in the prior year [159]. - The company reported a net loss of $7.90 million for the current quarter, an improvement from a net loss of $9.21 million in the prior year quarter [167]. - Non-GAAP net loss for the current quarter was approximately $1.34 million, or $(0.34) per diluted share, compared to a non-GAAP net loss of $1.33 million, or $(0.57) per diluted share, in the prior year quarter [168]. - Adjusted EBITDA for the current quarter was approximately $(0.65) million, an improvement from approximately $(1.05) million in the prior year quarter [169]. - For the nine months ended September 30, 2025, net revenue decreased by $3.28 million to $3.77 million from $7.05 million in the prior year nine months, primarily due to the divestiture of the Lori Goldstein brand [177]. - The company recognized a net loss of $14.68 million for the current nine months, compared to a net loss of $15.31 million for the prior year nine months [186]. - Non-GAAP net loss was approximately $3.61 million, or $(1.24) per diluted share, for the current nine months, compared to a non-GAAP net loss of approximately $3.44 million, or $(1.53) per diluted share, for the prior year [187]. Operating Costs and Expenses - Direct operating costs and expenses decreased approximately $0.66 million, from $2.83 million in the prior year quarter to $2.17 million in the current quarter, attributed to restructuring and cost reduction actions [160]. - Direct operating costs and expenses for the nine months decreased approximately $3.56 million, from $9.91 million in the prior year to $6.35 million in the current nine months, due to restructuring and cost reduction actions [178]. - The Company’s direct operating costs have been reduced from approximately $8 million per quarter to less than $2.5 million per quarter, resulting in over $22 million in annualized cost savings compared to 2022 [217]. - The company has reduced its direct operating expenses to an expected run rate of less than $10 million per annum as part of ongoing cost-cutting measures [179]. Cash Flow and Liquidity - Net cash used in operating activities was approximately $5.20 million in the current nine months, compared to approximately $3.31 million in the prior year [198]. - As of September 30, 2025, the company had unrestricted cash and cash equivalents of approximately $1.5 million [189]. - The working capital deficit was approximately $0.89 million as of September 30, 2025, primarily due to the amendment of the term loan debt [192]. - Interest and finance expense increased to approximately $3.42 million for the current nine months, up from approximately $0.44 million in the prior year [184]. - The company incurred a $1.85 million loss on early extinguishment of debt during the current nine months due to refinancing activities [184]. - The Company closed on a public offering and private placement of common stock in August 2025, providing additional net proceeds to improve liquidity [195]. - The total net proceeds from the 2025 Public Offering and Private Placement Transactions amounted to approximately $2.0 million [214]. Debt and Financing - Interest and finance expense increased to approximately $0.52 million for the current quarter, compared to approximately $0.14 million in the prior year quarter, due to higher interest rates [165]. - The Company plans to make a prepayment of $3,250,000 on Term Loan A by February 20, 2026, along with an amendment fee of $450,000 [210]. - The liquid asset covenant requirement was reduced to $1,000,000 following the amendment of the loan agreement on October 7, 2025 [209]. - The Company is currently in compliance with all applicable financial covenants as per the loan agreements [208]. - The restructuring of term debt in April 2025 improved the Company's liquidity position despite higher interest payments over the term of the debt [218]. Strategic Initiatives - The company is focused on building a diversified portfolio of lifestyle consumer products brands through organic growth and strategic acquisitions [158]. - The Company plans to launch three new brands in Q4 2025, including Trust, Respect, Love by Cesar Millan, GemmaMade, and Mesa Mia [216]. Market Conditions - The company recognized losses related to equity investments of approximately $5.49 million in the current quarter, compared to $6.85 million in the prior year quarter [164]. - The Company continues to face headwinds from poor economic conditions, inflation, and rising consumer debt levels, which may negatively impact demand for its products [220].

Core Insights - Xcel Brands, Inc. reported a total revenue of $1.1 million for Q3 2025, a decrease of approximately $0.8 million (42%) compared to Q3 2024, primarily due to a decline in net licensing revenue and cautious consumer spending [3][7] - The company is focused on returning to profitability and aims to achieve 100 million social media followers across its brand portfolio [2] Financial Performance - Total revenue for the nine-month period ended September 30, 2025, was $3.8 million, representing a decrease of approximately $3.3 million (47%) from the prior year's nine-month period [7] - Direct operating costs and expenses decreased by approximately $3.6 million (36%) to $6.3 million for the current nine months, reflecting cost reduction measures [8] - The net loss attributable to Xcel Brands stockholders for Q3 2025 was approximately $7.9 million, or $(2.02) per share, compared to a net loss of $9.2 million, or $(3.92) per share, for the prior year quarter [5][24] - Non-GAAP net loss for Q3 2025 was approximately $1.3 million, or $(0.34) per share, showing an improvement from a net loss of approximately $1.3 million, or $(0.57) per share, for the prior year quarter [6][11] Cost Management - Direct operating costs and expenses for Q3 2025 were $2.2 million, a decrease of approximately $0.7 million (23%) from the prior year quarter [4] - The company has reduced its direct operating expenses to an expected run rate of approximately $9 million per annum [4][9] Impairment and Debt - During Q3 2025, the company recognized a $5.5 million non-cash impairment charge related to its investment in the Isaac Mizrahi brand [4][9] - The balance sheet at September 30, 2025, reflected stockholders' equity of approximately $16.6 million and $12.5 million of term loan debt [12][26] Future Outlook - Management anticipates that upcoming launches of new brands will drive revenue growth in Q4 2025 and beyond [3][7] - The company aims to leverage its expertise in livestream shopping and social commerce to enhance its market position [14]

Core Viewpoint - Xcel Brands, Inc. is set to report its third quarter 2025 financial results on November 19, 2025, and will hold a conference call with the investment community on the same day [1][2]. Company Overview - Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company involved in the design, licensing, marketing, live streaming, and social commerce sales of various branded products [3]. - The company was founded in 2011 with a vision to innovate shopping, entertainment, and social media through social commerce [3]. - Xcel owns several brands including Halston, Judith Ripka, and C. Wonder, and has collaborations with brands like TowerHill by Christie Brinkley and Trust. Respect. Love by Cesar Millan [3]. - The company has generated over $5 billion in retail sales through livestreaming and digital channels, with more than 20,000 hours of content production in live-stream and social commerce [3]. - Xcel's brand portfolio has a reach of over 46 million social media followers and broadcasts into 200 million households [3]. - The executive team at Xcel has extensive experience in live streaming, production, merchandising, design, marketing, retailing, and licensing [3].