a.k.a. Brands (AKA) - 2025 Q1 - Quarterly Results

a.k.a. Brands Holding Corp. First Quarter 2025 Financial Results First Quarter 2025 Performance Highlights a.k.a. Brands reported strong Q1 2025 performance with 10.1% net sales growth and Adjusted EBITDA more than doubling Q1 2025 Financial Highlights vs. Q1 2024 | Metric | Q1 2025 | Q1 2024 | Change | Constant Currency Change | | :--- | :--- | :--- | :--- | :--- | | Net Sales ($) | $128.7M | $116.8M | +10.1% | +12.3% | | U.S. Net Sales | - | - | +14.2% | - | | Gross Margin (%) | 57.2% | 56.2% | +1.0 ppt | - | | Net Loss ($) | $(8.4)M | $(8.9)M | Improved | - | | Adjusted EBITDA ($) | $2.7M | $0.9M | +200% | - | - The active customer base grew by 7.8% on a trailing twelve-month basis, indicating strong brand demand[1][3] - Omnichannel expansion is on track, with Princess Polly opening its seventh store in Soho, which was the strongest opening to date, and plans to open six more stores in 2025[3] - The company is encouraged by the early results from Princess Polly and Petal & Pup's wholesale debuts across Nordstrom's entire store fleet[3] Financial Outlook The company issued Q2 2025 net sales guidance and updated full-year 2025 outlook for net sales and Adjusted EBITDA Q2 2025 Outlook | Metric | Guidance Range ($) | | :--- | :--- | | Net Sales | $154M - $158M | | Adjusted EBITDA | $7.0M - $8.0M | Full Fiscal Year 2025 Outlook | Metric | Guidance Range ($) | | :--- | :--- | | Net Sales | $600M - $610M | | Adjusted EBITDA | $24.0M - $27.5M | | Capital Expenditures ($) | ~$12M - $14M | Consolidated Financial Statements This section presents the unaudited condensed consolidated financial statements for Q1 2025, including income, balance sheet, and cash flows Condensed Consolidated Statements of Income Q1 2025 net sales grew 10.1% to $128.7 million, gross margin expanded, and net loss improved Q1 2025 Income Statement Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net sales | $128,657 | $116,840 | | Gross profit | $73,656 | $65,674 | | Loss from operations | $(5,383) | $(6,093) | | Net loss | $(8,350) | $(8,933) | | Net loss per share ($) | $(0.78) | $(0.85) | Condensed Consolidated Balance Sheets As of March 31, 2025, total assets were $396.6 million, with cash at $26.7 million and total debt at $119.9 million Balance Sheet Summary (in thousands) | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $26,679 | $24,192 | | Inventory | $94,401 | $95,750 | | Total assets | $396,569 | $385,204 | | Total debt (current + long-term) | $119,910 | $111,711 | | Total liabilities | $285,090 | $267,570 | | Total stockholders' equity | $111,479 | $117,634 | Condensed Consolidated Statements of Cash Flows Q1 2025 net cash used in operating activities improved to $(1.9) million, with a net cash increase of $2.4 million Q1 2025 Cash Flow Summary (in thousands) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net cash used in operating activities | $(1,875) | $(7,687) | | Net cash used in investing activities | $(3,436) | $(755) | | Net cash provided by financing activities | $7,595 | $8,899 | | Net increase (decrease) in cash | $2,392 | $(133) | Key Operating Metrics and Non-GAAP Measures This section presents key operational metrics and reconciles non-GAAP Adjusted EBITDA, which improved to $2.7 million in Q1 2025 Key Operational Metrics and Regional Sales Q1 2025 key operational metrics show active customers grew 7.8% and orders increased 9.2%, with U.S. sales rising 14.2% Key Operational Metrics (vs. Q1 2024) | Metric | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | Active customers (millions) | 4.13 | 3.83 | +7.8% | | Average order value ($) | $78 | $77 | +1.3% | | Number of orders (millions) | 1.66 | 1.52 | +9.2% | Sales by Region (in thousands, vs. Q1 2024) | Region | Q1 2025 | Q1 2024 | % Change | | :--- | :--- | :--- | :--- | | U.S. | $88,054 | $77,138 | +14.2% | | Australia & New Zealand | $35,593 | $33,516 | +6.2% | | Rest of world | $5,010 | $6,186 | (19.0)% | | Total | $128,657 | $116,840 | +10.1% | Reconciliation of Non-GAAP Financial Measures This section reconciles GAAP net loss to non-GAAP Adjusted EBITDA, which reached $2.7 million in Q1 2025, representing a 2.1% margin Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | Line Item | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net loss | $(8,350) | $(8,933) | | Total other expense, net | $2,958 | $2,821 | | Provision for income tax | $9 | $19 | | Depreciation and amortization | $4,374 | $4,298 | | Equity-based compensation | $2,059 | $1,956 | | Other adjustments | $1,615 | $713 | | Adjusted EBITDA | $2,665 | $874 | | Adjusted EBITDA margin (%) | 2.1% | 0.7% |