a.k.a. Brands (AKA) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2025 decreased by 1.9% to $147.1 million, compared to $149.9 million in Q3 2024, and down 2.7% on a constant currency basis [5]. - Adjusted EBITDA for Q3 2025 was $7.0 million, or 4.8% of net sales, compared to $8.2 million, or 5.5% of net sales in Q3 2024 [6]. - The net loss for Q3 2025 was $(5.0) million, or $(0.46) per share, compared to a net loss of $(5.4) million, or $(0.51) per share in Q3 2024 [5]. - Net loss for the nine months ended September 30, 2025, was $16,935 million, slightly higher than the net loss of $16,633 million for the same period in 2024 [23]. - Adjusted EBITDA for the three months ended September 30, 2025, was $7,022 million, compared to $8,208 million in 2024, reflecting a decrease of 14.5% [24]. Margins and Expenses - Gross margin improved to 59.1% in Q3 2025, up from 58.0% in Q3 2024, primarily due to a higher mix of retail stores and less promotional activity [6]. - Selling expenses increased to $43.2 million, or 29.4% of net sales, compared to $41.9 million, or 27.9% of net sales in Q3 2024 [6]. - Marketing expenses decreased to $18.5 million, or 12.6% of net sales, compared to $19.3 million, or 12.9% of net sales in Q3 2024 [6]. - Gross margin improved to 59.1% for the three months ended September 30, 2025, compared to 58.0% in 2024 [24]. Sales and Customer Metrics - Active customers increased to 4.07 million for the three months ended September 30, 2025, a 0.5% increase from 4.05 million in 2024 [25]. - Average order value (AOV) decreased to $78 for the three months ended September 30, 2025, down 3.7% from $81 in 2024 [25]. - Total sales for the three months ended September 30, 2025, were $147,077 million, a decrease of 1.9% compared to $149,903 million in 2024 [25]. - U.S. sales for the three months ended September 30, 2025, were $96,562 million, down 3.6% from $100,180 million in 2024 [25]. Outlook and Cash Position - The updated full-year 2025 net sales outlook is $598 - $602 million, down from the prior outlook of $608 - $612 million [8]. - Cash and cash equivalents at the end of Q3 2025 totaled $23.4 million, down from $24.2 million at the end of fiscal year 2024 [12]. - Cash and cash equivalents at the end of the period were $23,426 million, compared to $24,192 million at the end of 2024 [21]. - Total current liabilities increased to $107,626 million as of September 30, 2025, from $97,038 million at the end of 2024, an increase of 10.5% [21]. Inventory and Assets - Inventory at the end of Q3 2025 was $96.7 million, compared to $106.0 million at the end of Q3 2024 [12]. - Total assets increased to $411,327 million as of September 30, 2025, up from $385,204 million on December 31, 2024, representing a growth of 6.0% [21]. - The company opened its 11th Princess Polly store during the quarter and expanded wholesale partnerships [2].