Financial Data and Key Metrics Changes - Revenue increased by 13% year over year, with licensing revenue surging by 105% [5] - Adjusted EBITDA improved to $3,500,000, a positive swing of $6,400,000 compared to a loss of $2,900,000 in the same quarter last year [5] - The net loss included $1,900,000 in impairment charges and $2,100,000 related to a one-time settlement, resulting in an adjusted net loss of approximately $3,700,000 [6] Business Line Data and Key Metrics Changes - The licensing business is thriving, with new agreements in gaming, beauty, grooming, energy drinks, and fashion, guaranteeing $300,000,000 in minimum royalties over fifteen years for the digital business [10] - Honey Burdette brand showed strong growth with gross margins expanding, supported by a 28% increase in retail business at full price [36][38] Market Data and Key Metrics Changes - The company is focusing on the Miami market for its new Playboy Club concept, which is expected to be a significant revenue driver [10][26] - The reintroduction of the Playboy magazine is aimed at enhancing brand relevance, with the next issue featuring 12 Playmates, marking a historic first [8] Company Strategy and Development Direction - The company is evolving into a licensing-focused, asset-light business, aiming to enhance brand relevance through compelling content and experiences [5][7] - Plans to relocate corporate headquarters to Miami Beach to leverage a vibrant content creation and event strategy [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current strategy, team, and momentum to continue building on recent successes [11] - The company is focused on maintaining brand health and is selective about new licensing deals to avoid brand dilution [20][22] Other Important Information - The company has over $30,000,000 in cash on hand and a clear plan to reduce debt and lower the cost of capital [6] - Legal expenses related to litigation are expected to continue impacting EBITDA, but management is confident in their cases against former partners [40][41] Q&A Session Summary Question: Opportunity and registrations for paid voting - Management indicated that over 50% of expected registrations were achieved in the first few days without any marketing [13][14] Question: Materiality and timing of new licensing deals - Management emphasized the importance of strategic partnerships and brand health over rushing into deals, noting that annual deals exceed seven figures [18][20][21] Question: Structure and development of the Miami hospitality venue - Management confirmed that plans are in progress with a partner, focusing on remaining asset-light while exploring opportunities in other cities [25][26] Question: Impact of licensing commissions settlement on expense structure - Management noted that the settlement would reduce expenses moving forward, although specifics were not disclosed for competitive reasons [28][29] Question: Growth expectations for Honey Burdette - Management expects continued growth in the back half of the year, supported by strong retail performance [36][37]

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, with 2,946 homes sold [18] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [18] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [19] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [19] - Fixed operating expenses decreased by $19 million, or 33%, compared to the previous year [15] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [19] - The strategy includes maintaining pricing discipline and improving conversion through better pricing models and marketing investments [12][13] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6][7] - The company anticipates continued headwinds in the housing market, impacting performance in the near term [21] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [8] - A new strategy involves expanding partnerships with agents to provide customers with more selling options, including cash offers and traditional listings [9][10] - The company is piloting a new experience in select markets to improve conversion rates and customer satisfaction [11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the need for a cautious approach due to consumer hesitation [24] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit of $65 million to $75 million [21] - The company expects to see a decline in revenue year-over-year in the latter half of the year due to a slowdown in acquisitions [24] Other Important Information - The company ended the quarter with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [20] - Total capital at quarter-end was $1 billion, primarily consisting of $559 million in unrestricted cash [20] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a seasonal pattern in acquisitions, with a decline from Q1 to Q2 and a ramp-up in Q4, indicating a cautious approach due to market uncertainty [29] Question: Health of older inventory and valuation - Management noted that older inventory typically has lower margins, but recent acquisitions are performing well, providing confidence in future contribution margins [36] Question: Agent partnership expansion - The company is shifting to a model where agents are brought in earlier in the process, enhancing conversion and providing local expertise [42] Question: Cost savings opportunities - Management highlighted ongoing efforts to optimize the cost structure, with a significant reduction in fixed costs already achieved [53] Question: Marketing expense reduction - The majority of the expected reduction in operating expenses is attributed to lower marketing spend due to seasonal dynamics [58] Question: Economics of the agent partnership - The partnership will generate revenue through commission sharing on listings and margins on cash offers, with expectations that conversion benefits will outweigh referral costs [61]

Financial Data and Key Metrics Changes - The company reported revenue of $1.2 billion in Q1 2025, roughly in line with the same quarter in 2024, representing 2,946 homes sold [16] - Acquisition volumes increased by 4% year-over-year, with 3,609 homes purchased in Q1 2025 [16] - Contribution profit was $54 million in Q1 2025, down from $57 million in Q1 2024, resulting in a contribution margin of 4.7% [16] - Adjusted EBITDA loss improved to $30 million in Q1 2025 from a loss of $50 million in Q1 2024, driven by reduced operating expenses [17][18] - Fixed operating expenses in Q1 2025 were $19 million lower, down 33% compared to the previous year [14] Business Line Data and Key Metrics Changes - The company is focusing on enhancing its product flow and pricing models to improve conversion rates despite higher spreads [16] - The strategy includes expanding the market approach by leveraging partnerships with agents, which is expected to improve conversion rates and asset-light revenue [9][10] Market Data and Key Metrics Changes - The housing market is experiencing challenges, with mortgage rates exceeding 7%, clearance rates down nearly 25% year-over-year, and delistings up over 30% [6] - The company anticipates that the housing market will continue to deteriorate, impacting performance in the near term [20] Company Strategy and Development Direction - The company aims to drive towards profitability while enhancing product experience and leadership position in the residential real estate market [5] - A shift towards a platform that allows sellers to explore various selling options, including cash offers and listings with agents, is underway [7][8] - The company is piloting a new experience in select markets to improve customer engagement and conversion rates [10][11] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the challenging macroeconomic environment and the uncertainty affecting home sellers and buyers [5][6] - The outlook for Q2 2025 includes expected revenue between $1.45 billion and $1.525 billion, with a contribution profit between $65 million and $75 million [20] - The company expects a sequential decline in acquisitions from Q1 to Q2, with a focus on maintaining pricing discipline and improving conversion rates [12][21] Other Important Information - The company ended Q1 2025 with 7,080 homes in inventory, valued at $2.4 billion, a 24% increase from the prior year [19] - The company has a total capital of $1 billion, primarily consisting of $559 million in unrestricted cash [19] Q&A Session Summary Question: Acquisition growth slowdown and market performance - Management expects a sequential decline in acquisitions from Q1 to Q2, with a similar pattern anticipated for the second half of the year [28] Question: Contribution margins of newer homes - Contribution margins are expected to be between 4.5% and 4.9%, with a decline driven by older inventory making up a larger share of homes sold [29] Question: Health of inventory and valuation - Management noted a natural degradation in margins over time, but recent acquisitions are starting at higher contribution margins [34] Question: Agent partnership expansion - The company is leveraging existing relationships with agents to improve conversion and provide local expertise [42] Question: Cost savings opportunities - The company is focused on optimizing its cost structure, with a year-over-year fixed cost reduction of nearly $20 million [52] Question: Marketing expense reduction - The majority of the operating expense reduction is attributed to lower marketing expenses due to seasonal dynamics [57] Question: Economics of the agent partnership - The partnership will generate asset-light revenue through commission sharing on listings and margins on cash offers, minus referral fees [61] Question: Signals for broader rollout of partnerships - Management is looking for improved conversion rates as a signal for expanding the agent partnership program [70]