Xcel Brands, Inc. Announces Second Quarter 2025 Financial Results

Core Viewpoint - Xcel Brands, Inc. reported a significant decline in revenue for the second quarter of 2025, primarily due to the divestiture of the Lori Goldstein brand, while the company is focusing on strengthening its balance sheet and launching new creator/influencer brands in the near future [2][3][5]. Financial Results - Total revenue for Q2 2025 was $1.3 million, a decrease of approximately $1.6 million (-55%) from Q2 2024, attributed to the decline in net licensing revenue following the divestiture of the Lori Goldstein brand [3][7]. - Direct operating costs and expenses decreased by approximately $1.2 million (-39%) year-over-year to $1.9 million, reflecting cost reductions and the impact of the employee retention tax credit [4][8]. - The net loss attributable to Xcel Brands stockholders for Q2 2025 was approximately $4.0 million, or $(1.66) per share, compared to a net income of $0.2 million, or $0.08 per share, in the prior year [5][11]. - Adjusted EBITDA for Q2 2025 was negative $0.3 million, compared to negative $0.04 million in the prior year, indicating a 45% year-over-year improvement when adjusting for the prior year’s contribution from the Lori Goldstein brand [6][12]. Year-to-Date Performance - For the six-month period ended June 30, 2025, total revenue was $2.7 million, a decrease of approximately $2.5 million (-48%) from the same period in 2024, again driven by the decline in net licensing revenue [7][11]. - The net loss attributable to Xcel Brands stockholders for the six months was approximately $6.8 million, or $(2.84) per share, compared to a net loss of $6.1 million, or $(2.78) per share, for the same period in 2024 [11][12]. - Year-to-date Adjusted EBITDA for 2025 was negative $1.0 million, an improvement from negative $1.6 million for the first six months of 2024, representing a 38% improvement [9][12]. Balance Sheet and Financing - As of June 30, 2025, the company had stockholders' equity of approximately $22.5 million, unrestricted cash and cash equivalents of approximately $1.0 million, and long-term debt of $11.8 million [13][29]. - In August 2025, Xcel closed a public equity offering and a concurrent private placement for combined gross proceeds of approximately $2.6 million, enhancing the company's liquidity [14]. Social Media and Brand Development - The company's social media following increased from 5 million to 43 million in Q2 2025, reflecting the impact of new influencer brand announcements [9]. - Xcel Brands is focused on developing new creator/influencer brands, with planned launches starting later this year and into 2026 [2].