Xcel(US:XELB)2025-11-19 23:02Financial Data and Key Metrics Changes - The company reported a net loss of approximately $7.9 million for Q3 2025, or minus $2.02 per share, compared to a net loss of $9.2 million, or minus $3.92 per share in Q3 2024, indicating an improvement in loss per share [19] - Adjusted EBITDA for Q3 2025 was approximately negative $650,000, compared to negative $1 million in Q3 2024, representing a 38% year-over-year improvement [20] - Year-to-date net loss for 2025 was approximately $14.7 million, or minus $5.06 per share, compared to a net loss of $15.3 million, or minus $6.82 per share in the prior year [21] Business Line Data and Key Metrics Changes - Net licensing revenues for Q3 2025 were $1.1 million, down from $1.5 million in Q3 2024, primarily due to cautious consumer spending and lower performance in the Halston license [14][15] - Direct operating costs for Q3 2025 were $2.2 million, down 23% from the prior year quarter, reflecting cost reduction actions taken over the past two years [15][16] Market Data and Key Metrics Changes - The company noted that the transition of HSN to QVC's Pennsylvania studios disrupted sales for brands like Tower Hill by Christie Brinkley and SeaWonder, but these issues have since been resolved [11][30] - The company is focusing on domestic sourcing for new influencer-led brands to mitigate tariff impacts, particularly in food and pet products [10][25] Company Strategy and Development Direction - The company is working on new business opportunities with UTG, including leveraging their sourcing platform and retail distribution in China [9] - The launch of five new influencer-led brands is expected to drive revenue growth into 2026, with a focus on expanding into new categories [40][41] - The company is exploring potential acquisitions to enhance its brand portfolio and drive future growth [34] Management's Comments on Operating Environment and Future Outlook - Management expressed caution for Q4 2025 due to tariff impacts on QVC, HSN, and licensees, but remains optimistic about the potential for growth in 2026 [11][12] - The company believes it is well-positioned to capitalize on the shift from linear TV to digital streaming and social commerce [9] Other Important Information - The company closed a $2 million net equity offering in Q3 2025, with proceeds used to pay down loans and for general working capital [8] - As of September 30, 2025, the company had stockholders' equity of approximately $17 million and unrestricted cash of approximately $1.5 million [22] Q&A Session Summary Question: Importance of hiring Olin Lancaster as Chief Revenue Officer - Management highlighted the significance of Olin Lancaster's extensive experience and the long-standing relationship that facilitated his hiring [24] Question: Mitigation of tariff impact through domestic sourcing - Management discussed the successful signing of licenses for domestic products, which helps mitigate tariff risks [25][26] Question: Resolution of disruption with SeaWonder and Christie - Management confirmed that the issues related to vendor disruptions and HSN's relocation have been resolved [30] Question: Updates on product roadmap and brand rollouts - Management indicated that new products will start hitting the market in Q1 2026, with a focus on food products and pet accessories [32] Question: Revenue ramp expectations for the next 12 months - Management outlined a roadmap for launching new influencer-led brands and expanding into new sales channels to drive revenue growth [40][41] Question: Potential revenue outlook for 2026 - Management refrained from providing specific guidance but referenced analyst reports for potential revenue expectations [47] Question: Long-term revenue targets and brand potential - Management reaffirmed the potential for significant revenue growth from new brands, particularly in the pet and lifestyle categories [51][52]