Core Insights - PITAKA has launched its latest Aramid Fiber iPhone 17 Series Cases at IFA 2025, receiving multiple Innovation Awards from media outlets like SlashGear and BGR, showcasing its commitment to redefining smartphone protection through innovative technology [1][7] Product Innovations - The Ultra-Slim Case is 1mm thick, providing full coverage protection without added bulk, featuring the world's first PitaTap™ capacitive button for precise touch control [3][5] - The Fusion Weave – LightRipple process allows for refined fiber control, creating a dynamic rhombic texture that combines technology with artistic expression [4] - The Aramid ProGuard Case offers military-grade drop resistance of up to 2.4 meters, utilizing an arched design for an "airbag effect" while maintaining a slim profile [5] - The Aramid UltraGuard Case features a composite of high-toughness Orca resin and aramid fiber, doubling impact resistance and providing dual-layer protection through flexible TPU material and 3D thermoforming technology [6] Design and Aesthetics - The iPhone 17 series cases maintain PITAKA's signature design while introducing a new colorway, "Glints of Gold," inspired by light and shadow [7] - Available in five pattern options, including Black/Grey, Sunset, Moonrise, Over the Horizon, and Glints of Gold, with prices starting from USD $49.99 [7] Availability - The Ultra-Slim Case opened for pre-order on September 5, 2025, while the Aramid ProGuard and Aramid UltraGuard Cases became available for pre-order starting September 10, 2025, through PITAKA's global website and Amazon [7]

Financial Data and Key Metrics Changes - Net revenue for Q2 totaled $40 million, at the high end of guidance, with a gross margin of 40.7%, down from 50.5% a year ago [22][23] - Adjusted EBITDA loss improved to $13 million, exceeding guidance by over $3 million, reflecting cost control efforts [27][31] - Cash and cash equivalents at the end of the quarter were $33 million, with inventories down 21% year over year [28] Business Line Data and Key Metrics Changes - The company is focusing on new product launches, with 19 new styles expected this season, a significant increase from the previous year [10][50] - Marketing expenses for Q2 were $9 million, or 21% of revenue, down from last year due to prior investments in the TreeRunner GO launch [26] Market Data and Key Metrics Changes - The company is transitioning to a distributor model in international markets, which is expected to be immediately profitable despite impacting top-line revenue [34] - The impact of store closures and distributor transitions is estimated to be $20 million to $25 million, reflecting a more conservative view of the top line due to macroeconomic uncertainties [30][44] Company Strategy and Development Direction - The company is reintroducing its brand with a focus on product innovation, marketing, and customer experience, aiming to establish itself as a modern lifestyle footwear brand [5][20] - Plans include launching new products monthly and enhancing marketing content weekly to drive consumer engagement [6][12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges uncertainty in consumer spending but remains confident in the brand's reintroduction and new product offerings [6][20] - The company expects to see year-over-year sales growth in Q4, driven by the convergence of new initiatives [46] Other Important Information - The company has completed a comprehensive financing package, including a new revolving credit facility to support growth plans [29] - The company is committed to sustainability with the launch of the REMIX initiative, focusing on circularity in product development [11] Q&A Session Summary Question: Impact of store closures and distributor model on profitability - Management indicated that the impact of store closures was estimated to be $20 million to $25 million, but these closures targeted unprofitable doors, which should improve bottom-line profitability [34][35] Question: Inventory strategy for new product launches - Management emphasized strong inventory management, expecting no significant increase in inventory despite new product launches, supported by operational improvements [37][39] Question: Clarification on sales guidance reduction - Management confirmed that the reduction in sales guidance was due to structural changes from store closures and macroeconomic factors, but core business expectations remain unchanged [44]