PLBY (US:PLBY)2025-11-12 21:33Licensing and Revenue Growth - The company entered into a License & Management Agreement with Byborg Enterprises SA, guaranteeing $300 million in minimum payments over 15 years starting January 1, 2025[153]. - Licensing revenues from China represented 11% of total revenues for the three months ended September 30, 2025, consistent with the same period in 2024, and 11% and 9% for the nine months ended September 30, 2025 and 2024, respectively[154]. - The company is focusing on expanding its Playboy licensing business into new categories and territories, supported by brand marketing initiatives, including the re-launch of Playboy magazine in 2025[155]. - The transition of the Playboy business in China to a licensing structure is expected to enhance the licensing revenue stream[154]. - Licensing net revenues increased by $15.0 million from minimum guaranteed royalties and $2.1 million from other licensing partners, including $2.2 million from a new Chinese licensing agreement[194]. - Licensing segment revenues for the nine months ended September 30, 2025, increased by 103% to $34,312,000, compared to $16,921,000 in 2024[192]. - Corporate revenues rose due to branding activities related to Playboy magazine and sponsorship events not present in the prior year[195]. Financial Performance - Net revenues for the three months ended September 30, 2025, were $28,994,000, a decrease of 2% from $29,438,000 in 2024[173]. - Direct-to-consumer segment revenues decreased by 1% to $16,388,000, while licensing revenues increased by 61% to $11,995,000[174]. - Total operating expenses for the three months ended September 30, 2025, were $27,628,000, down 52% from $57,702,000 in 2024[173]. - Operating income for the three months ended September 30, 2025, was $1,366,000, compared to a loss of $28,264,000 in 2024, representing a significant improvement[173]. - Net income for the three months ended September 30, 2025, was $460,000, a turnaround from a net loss of $33,755,000 in 2024[173]. - For the nine months ended September 30, 2025, net revenues increased by 4% to $86,017,000 from $82,642,000 in 2024[191]. - Total gross profit for the three months ended September 30, 2025, was $22,040,000, a 23% increase from $17,963,000 in 2024[179]. - Adjusted EBITDA for the nine months ended September 30, 2025, was $9.9 million, compared to a loss of $6.1 million in the prior year[213]. - Adjusted operating income for the three months ended September 30, 2025, was $3.605 million, compared to an adjusted operating loss of $2.407 million for the same period in 2024, reflecting a significant improvement[219]. Cost Management and Expenses - Selling and administrative expenses decreased by 17% to $20,434,000 for the three months ended September 30, 2025, from $24,521,000 in 2024[173]. - Impairments for the three months ended September 30, 2025, were $245,000, a significant decrease from $21,706,000 in 2024, reflecting improved asset management[185]. - Selling and administrative expenses decreased by $1.7 million due to reductions in technology costs, depreciation, and various professional services[203]. - Impairment charges decreased significantly, with prior year charges of $17.0 million for goodwill and $4.7 million for software not recurring in the current period[204]. Direct-to-Consumer Business - The Honey Birdette business aims to concentrate on the U.S. market, where stores generate higher revenue and better margins[156]. - The Honey Birdette direct-to-consumer business has experienced seasonality, which may be influenced by competition and economic conditions[158]. - Direct-to-consumer net revenues decreased due to a significant sale in March 2024 that did not recur in 2025, impacting Honey Birdette revenue[193]. - The Direct-to-Consumer segment saw a $1.0 million increase in gross profit due to improved consumer perception and increased sales of full-price products[221]. - The company reported a $2.1 million increase in direct-to-consumer gross profit, attributed to improved demand for Honey Birdette products[231]. Cash Flow and Debt Management - As of September 30, 2025, the company had cash of $27.5 million, primarily held in operating and deposit accounts[239]. - The company sold 191,260 shares of common stock in the third quarter of 2025 for net proceeds of $0.3 million, with $14.7 million remaining capacity under the ATM offering[240]. - The company reported a net cash used in operating activities of $1.4 million for the nine months ended September 30, 2025, a 93% improvement from the prior year[258]. - The company experienced a $50.6 million reduction in net loss compared to the prior year, contributing to improved cash flow from operating activities[259]. - The company reduced outstanding term loan amounts from approximately $218.4 million to approximately $153.1 million in exchange for $28.0 million of Series B Convertible Preferred Stock[248]. - As of September 30, 2025, the company had outstanding debt obligations of $160.3 million, with an interest rate of 10.49% for Tranche A and Tranche B A&R Term Loans[269]. Market and Economic Conditions - The company continues to monitor U.S. trade policies and their potential impacts on production costs and pricing, particularly concerning tariffs on imports from China[157]. - Inflationary factors may adversely affect the company's operating results, although no material impact has been observed in recent periods[272]. - The company does not have an active foreign exchange hedging program, exposing it to potential losses from currency fluctuations[270]. - A 10% movement in currency exchange rates could have a material impact on the company's financial results, assuming no hedging is in place[271]. - Approximately 68% of the company's revenue for the three months ended September 30, 2025, was derived from international customers, with 44% of that revenue denominated in foreign currency[270]. - For the nine months ended September 30, 2025, 67% of revenue came from outside the United States, with 44% in foreign currency[270].