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].

Core Insights - Xcel Brands, Inc. has announced a strategic licensing partnership with TSC Product Lab to launch a new food brand, Mesa Mia by Jenny Martinez, inspired by Latin cooking traditions [1][2][3] Company Overview - Xcel Brands, Inc. is a media and consumer products company engaged in various sectors including design, licensing, marketing, and social commerce sales of branded products [6] - The company was founded in 2011 and has generated over $5 billion in retail sales through livestreaming and digital channels [6] - Xcel's brand portfolio includes well-known names such as Halston and Judith Ripka, and it has a significant social media presence with over 43 million followers [6] Product Launch Details - Mesa Mia by Jenny Martinez will feature a curated line of food products including chips, salsas, proteins, meals, and drink mixes aimed at making Latin cooking accessible [2][5] - The collaboration combines Xcel's brand development expertise with TSC Product Lab's product innovation capabilities [2] Brand and Creator Background - Jenny Martinez is a Latina home cook and social media influencer known for sharing authentic Mexican recipes, which resonate with a large audience [4][9] - Her first cookbook, "My Mexican Mesa, Y Listo!" debuted in Spring 2024, featuring 100 family-style recipes [9] - Jenny has also launched a line of cookware and dinnerware at over 600 department stores and a spice line available in grocery stores [9] Strategic Vision - The partnership aims to inspire families across the country by bringing the joy of Latin cooking into their homes [3][5] - The initiative reflects Xcel Brands' commitment to developing creator-led businesses that align with contemporary cooking and celebration practices [5]