PLBY Group Elects to Retain Honey Birdette Following Transformative Byborg Agreement

Core Insights - PLBY Group has decided to retain its Honey Birdette business due to significant improvements in its balance sheet and operational metrics, leading to positive cash flow and growth prospects [1][2] - The company expects to be cash flow positive for the full year 2025 and aims to reduce net senior debt to below $100 million by the end of 2025 [2][5] - PLBY Group anticipates generating approximately$120 million in total revenue in 2025, supported by guaranteed royalty and licensing payments [2][5] Financial Position - As of early 2025, PLBY Group has $36 million in cash and$120 million in net senior debt [2] - The company plans to use the net proceeds from a proposed $25.4 million follow-on investment to pay down its senior debt, contingent on stockholder approval [2] Strategic Direction - The transition to an asset-light model is underway, which is expected to enhance operational efficiency and profitability [2] - The Board of Directors has decided to focus on growing the Honey Birdette business rather than exploring strategic alternatives, indicating confidence in its future value [2]