PLBY (PLBY) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Highlights Executive Summary Playboy reported significant improvements in Q2 2025, with revenue up 13% year-over-year, net loss substantially reduced, and Adjusted EBITDA turning positive, reflecting a successful shift to an asset-light, brand-focused model Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Revenue | $28.1M | $24.9M | +13% | | Net Loss | $(7.7)M | $(16.7)M | Improved by $9.0M | | Adjusted EBITDA | $3.5M | $(2.9)M | Improved by $6.4M | CEO Commentary CEO Ben Kohn highlighted the positive impact of the asset-light business model, leading to improved financial metrics. He emphasized the doubling of licensing revenue, strong pipeline, and continued operational improvements at Honey Birdette. New growth avenues in content and hospitality are being pursued, alongside efforts to deleverage the balance sheet - Playboy's performance reflects a transformation to an asset-light business model focused on the iconic Playboy brand[2] - Licensing revenue more than doubled year-over-year, with a strong and growing pipeline including new deals in gaming and beauty/grooming[2] - Honey Birdette continued to improve its operating metrics, with revenue expanding 14%, same-store sales increasing 28%, and gross margins improving approximately 200 basis points to 59%[2] - New growth opportunities are being set around content (Great Playmate Search) and hospitality (planning a Miami Beach venue)[2] - The company has over $30 million in cash and plans to opportunistically deleverage its balance sheet[2] Second Quarter 2025 Financial Performance Revenue Analysis Total revenue increased by 13% year-over-year, driven primarily by a significant increase in licensing revenue and growth in direct-to-consumer sales from Honey Birdette, which offset the loss from legacy digital business Total Revenue Total Revenue Metrics | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Total Revenue | $28.1M | $24.9M | +13% | - The increase was due to a 105% increase in licensing revenue and a 14% increase in revenue from Honey Birdette, which more than offset the loss of revenue from Playboy's legacy digital business[3] Licensing Revenue Licensing Revenue Metrics | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Licensing Revenue | $10.9M | $5.3M | +105% | - The increase was due to $5 million in minimum guaranteed royalties, higher revenue from new licensing partners, and renegotiated minimum guarantees pursuant to renewal agreements with existing licensees[4] Direct-to-Consumer Revenue (Honey Birdette) Direct-to-Consumer Revenue Metrics | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Direct-to-Consumer Revenue | $16.5M | $14.5M | +14% | - The increase was due to continued improvement in consumer perception of the Honey Birdette brand, resulting in increased sales of both full-price and discounted products[5] - Honey Birdette margins increased from 57% to 59%, comparable store sales were up 28%, and promotional days were reduced a further 40%[5] Profitability Metrics Playboy significantly improved its profitability in Q2 2025, reducing net loss by $9.0 million and achieving positive Adjusted EBITDA, reflecting the impact of strategic shifts and operational efficiencies Net Loss Net Loss Metrics | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Net Loss | $(7.7)M | $(16.7)M | Improved by $9.0M | | Net Loss per diluted share | $(0.08) | $(0.23) | Improved by $0.15 | - The net loss for Q2 2025 included $1.9 million in impairment charges and $2.1 million related to a one-time settlement of licensing agent commissions, totaling $0.04 in earnings per share[6] Adjusted EBITDA Adjusted EBITDA Metrics | Metric | Q2 2025 | Q2 2024 | Change YoY | | :----- | :------ | :------ | :--------- | | Adjusted EBITDA | $3.5M | $(2.9)M | Improved by $6.4M | - Adjusted EBITDA was burdened by an incremental $1.3 million of litigation costs; excluding those, adjusted EBITDA would have been $4.8 million[2] Financial Statements and Reconciliations Condensed Consolidated Statements of Operations The condensed consolidated statements of operations provide a detailed breakdown of revenues, costs, and expenses, showing the progression from net revenues to net loss for the three and six months ended June 30, 2025 and 2024 Condensed Consolidated Statements of Operations (Unaudited) - Three Months Ended June 30 | Metric (in thousands) | 2025 | 2024 | | :-------------------- | :--- | :--- | | Net revenues | $28,148 | $24,885 | | Cost of sales | (9,739) | (8,018) | | Selling and administrative expenses | (22,366) | (25,489) | | Impairments | (1,541) | (599) | | Other operating (expense) income, net | (385) | 18 | | Total operating expense | (34,031) | (34,088) | | Operating loss | (5,883) | (9,203) | | Interest expense, net | (1,907) | (6,588) | | Other income (expense), net | 1,000 | (245) | | Total nonoperating expense | (907) | (6,833) | | Loss before income taxes | (6,790) | (16,036) | | Expense from income taxes | (889) | (616) | | Net loss | (7,679) | (16,652) | | Net loss per share, basic and diluted | $(0.08) | $(0.23) | | Weighted-average shares outstanding | 94,397,910 | 73,040,566 | Non-GAAP Financial Measures Reconciliation This section explains the definitions and limitations of non-GAAP financial measures like EBITDA and Adjusted EBITDA, emphasizing their supplemental nature to GAAP results for evaluating performance Explanation of Non-GAAP Measures - EBITDA is defined as earnings (net income or loss) before interest, income tax expense or benefit, and depreciation and amortization[16] - Adjusted EBITDA is defined as EBITDA adjusted for stock-based compensation and other special items determined by management, such as non-cash charges, impairments, settlements, and transition expenses[16][17] - These non-GAAP measures are supplemental and should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP[18] GAAP Net Loss to Adjusted EBITDA Reconciliation GAAP Net Loss to Adjusted EBITDA Reconciliation (in thousands) - Three Months Ended June 30 | Metric | 2025 | 2024 | | :-------------------------- | :--- | :--- | | Net loss | $(7,679) | $(16,652) | | Adjusted for: | | | | Interest expense | 1,907 | 6,588 | | Expense from income taxes | 889 | 616 | | Depreciation and amortization | 778 | 2,511 | | EBITDA | $(4,105) | $(6,937) | | Adjusted for: | | | | Licensing commissions settlement | 2,400 | — | | Transition expenses | 1,170 | — | | Severance | 322 | 139 | | Stock-based compensation | 1,666 | 2,005 | | Impairments | 1,541 | 599 | | Adjustments | 477 | 1,258 | | Adjusted EBITDA | $3,471 | $(2,936) | Corporate Information About Playboy, Inc. Playboy is a globally recognized lifestyle brand focused on pleasure, leisure, style, and sophistication. It collaborates with leading licensees to offer products, content, and experiences across approximately 180 countries, upholding values of equality and freedom of expression - Playboy is one of the most recognizable and iconic lifestyle brands in the world, synonymous with pleasure, leisure, style, and sophistication[1][9] - In collaboration with leading licensees, Playboy connects consumers with products, content, and experiences across approximately 180 countries[9] - The company's mission is to create a culture where all people can pursue pleasure, building upon over 70 years of creating groundbreaking media and hospitality experiences and fighting for cultural progress rooted in equality, freedom of expression, and the idea that pleasure is a fundamental human right[9] Investor Relations & Forward-Looking Statements This section provides details for investor engagement, including webcast information, and a standard disclaimer regarding forward-looking statements and associated risks Webcast Details - The Company will host a webcast at 5:00 p.m. Eastern Time on August 12, 2025, to discuss Q2 2025 financial results[8] - Participants can access the live webcast and a letter to stockholders on the Events & Presentations section of the Playboy Investor Relations website[8] Forward-Looking Statements Disclaimer - This press release includes "forward-looking statements" subject to significant risks and uncertainties, and actual results may differ materially from expectations[10][12] - Factors that may cause such differences include inability to maintain Nasdaq listing, risks related to transactions, ability to recognize anticipated benefits, costs, regulatory changes, economic factors, and risks related to growth and demand[12] - The Company does not undertake any obligation to update or revise any forward-looking statements[12] Contact Information - Investors can contact FNK IR (Rob Fink / Matt Chesler) at investors@playboy.com[13] - Media inquiries can be directed to press@playboy.com[13]