US Market News
1月前
a.k.a. Brands Holding Corp. Reports First Quarter 2026 Financial ResultsMay 12, 2026 4:05 PM
Business Wire Net Sales Increased 3% to $132.5 Million and Active Customer Growth of 3.1% on a Trailing Twelve-Month Basis Gross Margin Expansion and Continued Progress Across Strategic Priorities a.k.a. Brands Holding Corp. (NYSE: AKA), a portfolio of next generation fashion brands, today announced financial results for the quarter ended March 31, 2026. Results for the First Quarter Net sales increased 3.0% to $132.5 million, compared to $128.7 million in the first quarter of 2025, up 1.2% on a constant currency basis1. Net loss was $7.1 million, or $0.66 per share, in the first quarter of 2026, compared to net loss of $8.4 million, or $0.78 per share, in the first quarter of 2025. Adjusted EBITDA2 was $5.1 million in the first quarter of 2026, compared to $2.7 million in the first quarter of 2025. “We delivered a solid start to the year that marks a meaningful inflection point in our journey,” said Ciaran Long, Chief Executive Officer, a.k.a. Brands. “Over the past three years, we have fundamentally repositioned the business to improve profitability and durability. We’ve expanded distribution across stores, wholesale, and marketplace, strengthened our operational foundation, and instilled greater financial discipline across the business. Our first quarter results demonstrate that this strategic work is translating into our financials, and we believe 2026 will be a meaningful proof point in our trajectory.” “First quarter net sales grew 3% to $132.5 million, and we delivered adjusted EBITDA of $5.1 million, ahead of expectations. More importantly, excluding one-time adjustments, gross margin expanded materially year-over-year, driven by improved inventory discipline, stronger full-price sell-through, and the continued rollout of our test-and-repeat model.” “Our brands continued to advance their strategic priorities during the quarter. Princess Polly is on pace with its retail expansion with 17 U.S. stores and 2 Australian stores expected to be open by the end of the year, along with a pop-up store opening at The Grove in Los Angeles later this month. Petal & Pup built wholesale momentum with strong performance across an expanding base of retail partners. Culture Kings’ sustained investment in its in-house brand portfolio is delivering measurable results, with gross margin and full-price mix improving materially year-over-year. We are confident that the progress across our brands, combined with the strength of our financial foundation, positions us well for continued growth and profitability over the long term,” Long concluded. First Quarter Financial Details Net sales increased 3.0% to $132.5 million, compared to $128.7 million in the first quarter of 2025. The increase was driven by a 4.2% increase in the number of orders, that was partially offset by a 1.3% decrease in average order value. On a constant currency basis1, net sales increased 1.2%. Gross margin was 63.1%, compared to 57.2% in the first quarter of 2025. Adjusted Gross Margin2 expanded 180 basis points to 59%. The increase in gross margin was primarily driven by an improved inventory position, more full-price selling and the benefit of the IEEPA tariff adjustment; partially offset by a $12.0 million write-off of streetwear inventory, as we fully transition to our test-and-repeat model, and other tariff-related charges. Selling expenses were $41.0 million, compared to $38.2 million in the first quarter of 2025. Selling expenses were 30.9% of net sales, compared to 29.7% of net sales in the first quarter of 2025. The increase was primarily driven by an increase in store selling expenses as our retail footprint expands. Marketing expenses were $16.8 million, compared to $15.2 million in the first quarter of 2025. Marketing expenses were 12.6% of net sales, compared to 11.8% of net sales in the first quarter of 2025. General and administrative (“G&A”) expenses were $30.0 million, compared to $25.7 million in the first quarter of 2025. G&A expenses were 22.7% of net sales, compared to 20.0% of net sales in the first quarter of 2025. Adjusted EBITDA2 was $5.1 million, or 3.9% of net sales, compared to $2.7 million, or 2.1% of net sales, in the first quarter of 2025. Balance Sheet and Cash Flow Cash and cash equivalents at the end of the first quarter totaled $12.9 million, compared to $20.3 million at the end of fiscal year 2025. Inventory at the end of the first quarter totaled $67.7 million, compared to $86.2 million at the end of fiscal year 2025 and $94.4 million at the end of the first quarter of 2025. Debt at the end of the first quarter totaled $109.6 million, compared to $111.1 million at the end of fiscal year 2025 and $119.9 million at the end of the first quarter of 2025. Cash flow used in operations for the three months ended March 31, 2026 was $3.8 million, compared to cash flow used in operations of $1.9 million for the three months ended March 31, 2025. Tariff Update Following the U.S. Supreme Court’s decision that the International Emergency Economic Powers Act (“IEEPA”) does not authorize tariffs, the U.S. Court of International Trade has ordered U.S. Customs and Border Protection to refund IEEPA duties. The Company believes it is probable that it will recover the IEEPA tariffs previously paid and therefore has recognized a receivable in prepaid expenses and other current assets of $25.8 million as of March 2026. Of this amount, $18.6 million was recognized in cost of goods sold and $7.2 million is capitalized as inventory on the balance sheet. As part of the IEEPA reversal, the Company also recognized approximately $2.0 million of charges related to the reversal of duty drawback benefits and other anticipated charges. The below outlook contemplates tariff rates that were in place exiting 2025 due to the uncertainty surrounding go-forward tariff rates. Outlook We are providing the following guidance for the full year ending December 31, 2026 and the second quarter ending June 30, 2026: (in millions) Updated FY 2026 Outlook Prior FY 2026 Outlook Net Sales $625 - $635 $625 - $635 Adjusted EBITDA3 $30 - $32 $27 - $29 Weighted average diluted share count 11 11 Capital expenditures $18 - $20 $18 - $20 (in millions) Second Quarter 2026 Outlook Net Sales $160 - $164 Adjusted EBITDA3 $8.5 - $9 Weighted average diluted share count 10.9 The guidance and forward-looking statements made in this press release and on the conference call are based on management’s expectations as of the date of this press release. See “Forward-Looking Statements” for additional information. Conference Call A conference call to discuss the Company’s first quarter results is scheduled for May 12, 2026, at 4:30 p.m. ET. Those who wish to participate in the call may do so by dialing (877) 858-5495 or (201) 689-8853. The conference call will also be webcast live at https://ir.aka-brands.com in the Events and Presentations section. A recording will be available shortly after the conclusion of the call. To access the replay, please dial (877) 660-6853 or (201) 612-7415 for international callers, conference ID 13760260. An archive of the webcast will be available on a.k.a. Brands’ investor relations website. Use of Non-GAAP Financial Measures and Other Operating Metrics In addition to results determined in accordance with accounting principles generally accepted in the United States of America (GAAP), management utilizes certain non-GAAP financial measures such as Adjusted EBITDA and Adjusted EBITDA margin for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures. The non-GAAP financial measures used by the Company may be different from similarly-titled non-GAAP financial measures used by other companies. See additional information at the end of this release regarding non-GAAP financial measures. About a.k.a. Brands a.k.a. Brands maintains a portfolio of global fashion brands, Princess Polly, Culture Kings, Petal & Pup and mnml. Through these brands, we reach a broad audience of next-generation consumers who seek fashion inspiration on social media and primarily shop online. Our brands are hyper-focused on the customer and serving them newness and a seamless experience throughout the entire shopping journey. We leverage a data-driven ‘test and repeat’ merchandising model that allows us to introduce new and exclusive fashion weekly, so our customers are always on-trend. We leverage innovative data-driven insights to authentically connect and engage with customers across the latest marketing platforms. Further, we are committed to showing up for customers wherever they shop, whether that’s online, in-stores or through wholesale channels. Leveraging our industry expertise and operational synergies, we help accelerate our brands so they can grow faster, reach broader audiences, achieve greater scale and enhance their profitability. We believe we are disrupting the status quo and pioneering a new approach to fashion. Forward-Looking Statements Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others, that may affect actual results or outcomes include the effects of economic downturns and unstable market conditions; our ability in the future to continue to comply with the New York Stock Exchange’s (NYSE) listing standards and maintain the listing of our common stock on the NYSE; risks related to doing business in China, including the imposition of tariffs and duties on goods imported from China; our ability to anticipate rapidly-changing consumer preferences in the apparel, footwear and accessories industries; our ability to execute our strategic initiatives, including transitioning Culture Kings to a data-driven, short lead time merchandising cycle; our ability to acquire new customers, retain existing customers or maintain average order value levels; the effectiveness of our marketing and our level of customer traffic; merchandise return rates; our ability to manage our inventory effectively; our success in identifying brands to acquire, integrate and manage on our platform; our ability to expand into new markets; the global nature of our business, including international economic, geopolitical instability (including the ongoing Russia-Ukraine and Israel-Palestine wars, relations between China and Taiwan, trade wars and relations between the U.S. and Mexico), legal, compliance and supply chain risks (including as a result of trade policies, including the negotiation or termination of trade agreements and the imposition of higher tariffs and duties on imports into the U.S. and Australia); interruptions in or increased costs of shipping and distribution, which could affect our ability to deliver our products to the market; our use of social media platforms and influencer sponsorship initiatives, which could adversely affect our reputation or subject us to fines or other penalties; fluctuating operating results; the inherent challenges in measuring certain of our key operating metrics, and the risk that real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; the potential for tax liabilities that may increase the costs to our consumers; our ability to attract and retain highly qualified personnel, including key members of our leadership team; fluctuations in wage rates and the price, availability and quality of raw materials and finished goods, which could increase costs; foreign currency fluctuations; and other risks and uncertainties set forth in the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, quarterly reports on Form 10-Q and any other periodic reports that the Company may file with the Securities and Exchange Commission (the SEC). a.k.a. Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (in thousands, except share and per share data) (unaudited) Three Months Ended March 31, 2026 2025 Net sales $ 132,464 $ 128,657 Cost of sales 48,835 55,001 Gross profit 83,629 73,656 Operating expenses: Selling 40,956 38,184 Marketing 16,751 15,173 General and administrative 30,026 25,682 Total operating expenses 87,733 79,039 Loss from operations (4,104 ) (5,383 ) Other expense Interest expense (2,178 ) (2,663 ) Other expense (642 ) (295 ) Total other expense (2,820 ) (2,958 ) Loss before income taxes (6,924 ) (8,341 ) Provision for income tax (210 ) (9 ) Net loss $ (7,134 ) $ (8,350 ) Net loss per share: Basic and diluted $ (0.66 ) $ (0.78 ) Weighted average shares outstanding: Basic and diluted 10,807,930 10,686,730 a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) March 31,
2026 December 31,
2025 Assets Current assets: Cash and cash equivalents $ 12,862 $ 20,273 Accounts receivable, net 7,638 10,650 Inventory 67,690 86,177 Prepaid expenses and other current assets 37,192 12,371 Total current assets 125,382 129,471 Property and equipment, net 39,524 39,315 Operating lease right-of-use assets 93,279 88,624 Intangible assets, net 41,322 43,470 Goodwill 95,375 93,695 Deferred tax assets 8 8 Other assets 2,797 2,799 Total assets $ 397,687 $ 397,382 Liabilities and stockholders’ equity Current liabilities: Accounts payable $ 29,491 $ 31,248 Accrued liabilities 34,147 33,532 Sales returns reserve 8,571 7,889 Deferred revenue 13,029 12,707 Income taxes payable 449 243 Operating lease liabilities, current 13,451 13,052 Current portion of long-term debt 6,375 6,375 Total current liabilities 105,513 105,046 Long-term debt 103,194 104,695 Operating lease liabilities 92,583 87,668 Other long-term liabilities 1,979 2,202 Total liabilities 303,269 299,611 Stockholders’ equity: Preferred stock — — Common stock 128 128 Additional paid-in capital 477,074 476,124 Accumulated other comprehensive loss (50,813 ) (53,644 ) Accumulated deficit (331,971 ) (324,837 ) Total stockholders’ equity 94,418 97,771 Total liabilities and stockholders’ equity $ 397,687 $ 397,382 a.k.a. BRANDS HOLDING CORP. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended March 31, 2026 2025 Cash flows from operating activities: Net loss $ (7,134 ) $ (8,350 ) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation expense 2,397 1,855 Amortization expense 2,331 2,519 Amortization of debt issuance costs 152 144 Lease incentives 657 1,025 Non-cash operating lease expense 3,185 2,833 Equity-based compensation 1,171 2,059 Changes in operating assets and liabilities: Accounts receivable, net 3,027 (5,289 ) Inventory 19,314 1,572 Prepaid expenses and other current assets (24,870 ) 2,279 Accounts payable (2,194 ) (2,699 ) Income taxes payable 205 (388 ) Accrued liabilities 297 143 Sales returns reserve 651 2,042 Deferred revenue 230 941 Lease liabilities (3,247 ) (2,561 ) Net cash used in operating activities (3,828 ) (1,875 ) Cash flows from investing activities: Purchases of property and equipment (2,582 ) (3,436 ) Net cash used in investing activities (2,582 ) (3,436 ) Cash flows from financing activities: Proceeds from line of credit, net of issuance costs — 21,500 Repayment of line of credit — (11,300 ) Repayment of debt (1,594 ) (2,100 ) Taxes paid related to net share settlement of equity awards (221 ) (248 ) Repurchase of shares — (257 ) Net cash (used in) provided by financing activities (1,815 ) 7,595 Effect of exchange rate changes on cash, cash equivalents and restricted cash 742 108 Net (decrease) increase in cash, cash equivalents and restricted cash (7,483 ) 2,392 Cash, cash equivalents and restricted cash at beginning of period 22,514 26,479 Cash, cash equivalents and restricted cash at end of period $ 15,031 $ 28,871 Reconciliation of cash, cash equivalents and restricted cash: Cash and cash equivalents $ 12,862 $ 26,679 Restricted cash, included in prepaid expenses and other current assets 106 472 Restricted cash, included in other assets 2,063 1,720 Total cash, cash equivalents and restricted cash $ 15,031 $ 28,871 a.k.a. BRANDS HOLDING CORP. KEY FINANCIAL AND OPERATING METRICS AND NON-GAAP MEASURES (unaudited) Three Months Ended March 31, (dollars in thousands) 2026 2025 Gross margin 63.1 % 57.2 % Net loss $ (7,134 ) $ (8,350 ) Net loss margin (5.4 )% (6.5 )% Adjusted EBITDA2 $ 5,148 $ 2,665 Adjusted EBITDA margin2 3.9 % 2.1 % Key Operational Metrics and Regional Sales Three Months Ended March 31, (metrics in millions, except AOV; sales in thousands) 2026 2025 % Change Key Operational Metrics Active customers4 4.26 4.13 3.1 % Average order value $ 77 $ 78 (1.3 )% Number of orders 1.73 1.66 4.2 % Sales by Region U.S. $ 90,849 $ 88,054 3.2 % Australia & New Zealand 36,932 35,593 3.8 % Rest of world 4,683 5,010 (6.5 )% Total $ 132,464 $ 128,657 3.0 % Year-over-year growth on a constant currency basis1 1.2 % Active Customers We view the number of active customers as a key indicator of our growth, our value proposition and consumer awareness of our brand, and their desire to purchase our products. In any particular period, we determine our number of active customers by counting the total number of unique customer accounts who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. Average Order Value We define average order value (“AOV”) as net sales in a given period divided by the total orders placed in that period. AOV may fluctuate as we expand into new categories or geographies or as our assortment changes. Number of Orders We define the number of orders as the total number of orders placed by our customers, prior to product returns, across our platform or in our stores in any given period. An order is counted on the day the customer places the order. We consider the number of orders to be a key indicator of our ability to attract and retain customers, as well as an indicator of the desirability of our products. a.k.a. BRANDS HOLDING CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited) Adjusted EBITDA and Adjusted EBITDA Margin Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that management uses to assess our operating performance. Because Adjusted EBITDA and Adjusted EBITDA margin facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect Adjusted EBITDA margin to increase over the long-term as we continue to scale our business and achieve greater leverage in our operating expenses. We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: interest and other expense; provision for (benefit from) income taxes; depreciation and amortization expense; equity-based compensation expense; costs to establish or relocate distribution centers; transaction costs; costs related to severance from headcount reductions; goodwill and intangible asset impairment; sales tax penalties; insured losses, net of any recoveries; and one-time or non-recurring items. We calculate Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA and Adjusted EBITDA margin are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in net income (loss) and net income (loss) margin, the most directly comparable financial measures calculated in accordance with GAAP. A reconciliation of non-GAAP Adjusted EBITDA to net loss for the three months ended March 31, 2026 and 2025, is as follows: Three Months Ended March 31, (dollars in thousands) 2026 2025 Net loss $ (7,134 ) $ (8,350 ) Add (deduct): Total other expense 2,820 2,958 Provision for income tax 210 9 Depreciation and amortization expense 4,728 4,374 Equity-based compensation expense 1,171 2,059 Distribution center relocation costs 484 737 Non-routine legal matters 2,650 711 Non-routine items5 219 167 Adjusted EBITDA $ 5,148 $ 2,665 Net loss margin (5.4 )% (6.5 )% Adjusted EBITDA margin 3.9 % 2.1 % Adjusted Gross Margin Adjusted Gross Margin is a non-GAAP financial measure that management uses to assess our operating performance. Because Adjusted Gross Margin facilitates internal comparison of our historical operating performance on a more consistent basis, we use this measure for business planning purposes. We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect Adjusted Gross Margin to increase over the long-term as we continue to leverage our test-and-repeat strategy, curate our brand portfolios and elevate product quality. We calculate Adjusted Gross Margin as gross margin (calculated in accordance with GAAP) adjusted to exclude: the IEEPA tariff adjustment; any reversal of duty drawback benefits and other charges related to the IEEPA tariff adjustment; an inventory write-off; and one-time or non-recurring items. Adjusted Gross Margin is considered a non-GAAP financial measure under the SEC’s rules because it excludes certain amounts included in gross margin, the most directly comparable financial measure calculated in accordance with GAAP. A reconciliation of non-GAAP Adjusted Gross Margin to gross margin for the three months ended March 31, 2026 and 2025, is as follows: Three Months Ended March 31, 2026 2025 Gross margin 63.1 % 57.2 % Add (deduct): IEEPA tariff adjustment (13.9 )% — % Reversal of duty drawback benefits and related charges 0.8 % — % Inventory write-off 9.0 % — % Adjusted Gross Margin 59.0 % 57.2 % _____________________________ 1 In order to provide a framework for assessing the performance of our underlying business, excluding the effects of foreign currency rate fluctuations, we compare the percent change in the results from one period to another period using a constant currency methodology wherein current and comparative prior period results for our operations reporting in currencies other than U.S. dollars are converted into U.S. dollars at constant exchange rates (i.e., the rates in effect on December 31, 2025, which was the last day of our prior fiscal year) rather than the actual exchange rates in effect during the respective periods. 2 See additional information at the end of this release regarding non-GAAP financial measures. 3 The Company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income (loss) outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future equity-based compensation expense, income taxes, interest expense and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. See additional information at the end of this release regarding non-GAAP financial measures. 4 Trailing twelve months. 5 Non-routine items include severance from headcount reductions, one time supply chain sourcing costs and sales tax penalties. View source version on businesswire.com: https://www.businesswire.com/news/home/20260512152227/en/ Investor Contact
investors@aka-brands.com Media Contact
media@aka-brands.com Original: a.k.a. Brands Holding Corp. Reports First Quarter 2026 Financial Results
US Market News
4月前
a.k.a. Brands Holding Corp. Reports Fourth Quarter and Full Year 2025 Financial ResultsMarch 5, 2026 4:05 PM
Business Wire
Delivers Another Consecutive Year of Net Sales Growth; Expands Gross Margin and Enters 2026 with Strengthening Momentum
Princess Polly Announces Eight New U.S. Store Leases
a.k.a. Brands Holding Corp. (NYSE: AKA), a portfolio of next generation fashion brands, today announced financial results for the fourth quarter and full year ended December 31, 2025.
Fourth Quarter Financial Highlights
Net sales increased 3.1% to $164.0 million, compared to $159.0 million in the fourth quarter of 2024; up 2.8% on a constant currency basis1.
In the U.S., net sales increased 5.3% compared to the fourth quarter of 2024.
Net loss was $(14.5) million, or $(1.35) per share, in the fourth quarter of 2025, compared to net loss of $(9.4) million, or $(0.88) per share, in the fourth quarter of 2024.
Adjusted EBITDA2 was $2.5 million, or 1.5% of net sales, compared to $6.2 million, or 3.9% of net sales in the fourth quarter of 2024.
Fiscal 2025 Financial Highlights
Net sales increased 4.4% to $600.2 million, compared to $574.7 million in 2024; and increased 5.0% on a constant currency basis1.
Net loss was $(31.4) million, or $(2.93) per share, compared to net loss of $(26.0) million, or $(2.46) per share, in 2024.
Adjusted EBITDA2 was $19.7 million, or 3.3% of net sales, compared to $23.3 million, or 4.1% of net sales in 2024.
“We’re pleased with the progress we made in 2025 as we continued to execute against our strategic priorities and strengthen the foundation of the business,” said Ciaran Long, Chief Executive Officer of a.k.a. Brands. “We delivered another year of growth, with net sales increasing 4.4% to $600 million, including 7% growth in the U.S., which is now up 25% on a two-year stack. During the year, we diversified our supply chain, reduced inventory by 10%, opened eight new Princess Polly stores and continued to invest in our brands. Importantly, we expanded gross margin by 30 basis points despite a dynamic trade environment.”
“We enter 2026 from a position of strength, with growing momentum across the brands and mid-single-digit net sales growth quarter to date,” Long continued. “We remain focused on driving direct-to-consumer growth through exclusive, trend-right product and disciplined marketing. We see significant opportunity to expand our reach through targeted retail growth, including the new Princess Polly stores announced today, as well as strategic wholesale partnerships. At the same time, we are simplifying the business and embedding AI-driven tools to move faster, operate more efficiently and support margin expansion. We believe 2026 represents an inflection point for the company, and we are confident in our ability to deliver sustainable growth, expand adjusted EBITDA and create long-term shareholder value.”
In a separate press release issued today, the Company announced it has executed eight new Princess Polly store leases across the U.S., with additional locations expected to be announced throughout the year.
Fourth Quarter Financial Details
Net sales increased 3.1% to $164.0 million, compared to $159.0 million in the fourth quarter of 2024. On a constant currency1 basis, net sales increased 2.8%.
Gross margin was 55.6% in the fourth quarter of 2025, compared to 55.9% in the same period last year, reflecting out-of-stocks in best-selling styles in October due to the supply chain transition.
Selling expenses were $51.0 million, compared to $44.6 million in the fourth quarter of 2024. Selling expenses were 31.1% of net sales, compared to 28.0% of net sales in the fourth quarter of 2024, driven by the expanding retail footprint.
Marketing expenses were $20.5 million, compared to $22.3 million in the fourth quarter of 2024. Marketing expenses were 12.5% of net sales, compared to 14.0% of net sales in the fourth quarter of 2024.
General and administrative (“G&A”) expenses were $30.3 million, compared to $24.9 million in the fourth quarter of 2024. G&A expenses were 18.5% of net sales, compared to 15.7% of net sales in the fourth quarter of 2024. The increase in G&A expenses as a percentage of net sales was primarily due to an increase in non-routine legal matters.
Adjusted EBITDA2 was $2.5 million, or 1.5% of net sales, compared to $6.2 million, or 3.9% of net sales in the fourth quarter of 2024.
Full year 2025 financial details are included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025.
Balance Sheet and Cash Flow
Cash and cash equivalents at the end of the fourth quarter totaled $20.3 million, compared to $24.2 million at the end of the fourth quarter of 2024.
Inventory at the end of the fourth quarter totaled $86.2 million, compared to $95.8 million at the end of the fourth quarter of 2024.
Debt at the end of the fourth quarter totaled $111.1 million, compared to $111.7 million at the end of the fourth quarter of 2024.
Cash flow provided by operations for the year ended December 31, 2025 was $16.4 million, compared to cash provided by operations of $0.7 million for the year ended December 31, 2024. The increase was primarily driven by more sell through of inventory in 2025, as compared to 2024.
Outlook
For the full year fiscal 2026, the Company expects:
Net sales between $625 million and $635 million
Adjusted EBITDA3 between $27 million and $29 million
Weighted average diluted share count of 11 million
Capital expenditures of approximately $18 million to $20 million
For the first quarter of 2026, the Company expects:
Net sales between $130 million and $132 million
Adjusted EBITDA3 between $1.5 million and $2.0 million
Weighted average diluted share count of 10.8 million
The outlook above contemplates the tariff rates in place exiting 2025, and does not include the impact of any potential refunds as a result of the Supreme Court’s decision to overturn the IEEPA tariffs. The guidance and forward-looking statements made in this press release and on the conference call are based on management's expectations as of the date of this press release. See “Forward-Looking Statements” for additional information.
Conference Call
A conference call to discuss the Company’s fourth quarter and full year 2025 results is scheduled for March 5, 2026, at 4:30 p.m. ET. a.k.a. Brands’ webcast will be available via the company website at ir.aka-brands.com. Analysts and investors may call in on (877) 858-5495 or (201) 689-8853. A replay of the conference call will be available approximately three hours after the conclusion of the call on the Company’s website at ir.aka-brands.com or by dialing (877) 660-6853 or (201) 612-7415 for international callers, conference ID 13757915. The replay will be available until March 12, 2026.
Use of Non-GAAP Financial Measures and Other Operating Metrics
In addition to results determined in accordance with accounting principles generally accepted in the United States of America (GAAP), management utilizes certain non-GAAP financial measures such as Adjusted EBITDA and Adjusted EBITDA margin for purposes of evaluating ongoing operations and for internal planning and forecasting purposes. We believe that these non-GAAP financial measures, when reviewed collectively with our GAAP financial information, provide useful supplemental information to investors in assessing our operating performance. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures. The non-GAAP financial measures used by the Company may be different from similarly-titled non-GAAP financial measures used by other companies. See additional information at the end of this release regarding non-GAAP financial measures.
About a.k.a. Brands
a.k.a. Brands maintains a portfolio of global fashion brands, Princess Polly, Culture Kings, Petal and Pup and mnml. Through these brands we reach a broad audience of next-generation consumers who seek fashion inspiration on social media and primarily shop online. Our brands are hyper-focused on the customer and serving them newness and a seamless experience throughout the entire shopping journey. We leverage a data-driven ‘test, repeat & clear’ merchandising model that allows us to introduce new and exclusive fashion weekly, so our customers are always on-trend. We leverage innovative data-driven insights to authentically connect and engage with customers across the latest marketing platforms. Further, we are committed to showing up for customers wherever they shop, whether that’s online, in-stores or through wholesale channels. Leveraging our industry expertise and operational synergies, we help accelerate our brands so they can grow faster, reach broader audiences, achieve greater scale and enhance their profitability. We believe we are disrupting the status quo and pioneering a new approach to fashion.
Forward-Looking Statements
Certain statements made in this release are “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words “estimates,” “projected,” “expects,” “anticipates,” “forecasts,” “plans,” “intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,” “propose” and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside the Company’s control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements.
Important factors, among others, that may affect actual results or outcomes include the effects of economic downturns and unstable market conditions; our ability in the future to continue to comply with the New York Stock Exchange’s (NYSE) listing standards and maintain the listing of our common stock on the NYSE; risks related to doing business in China; our ability to anticipate rapidly-changing consumer preferences in the apparel, footwear and accessories industries; our ability to execute our strategic initiatives, including transitioning Culture Kings to a data-driven, short lead time merchandising cycle; our ability to acquire new customers, retain existing customers or maintain average order value levels; the effectiveness of our marketing and our level of customer traffic; merchandise return rates; our ability to manage our inventory effectively; our success in identifying brands to acquire, integrate and manage on our platform; our ability to expand into new markets; the global nature of our business, including international economic, geopolitical instability (including the ongoing Russia-Ukraine, Israel-Palestine wars, U.S.-Iran conflict and relations between China and Taiwan), legal, compliance and supply chain risks (including as a result of trade policies, including the negotiation or termination of trade agreements and the imposition of higher tariffs on imports into the U.S. and Australia); interruptions in or increased costs of shipping and distribution, which could affect our ability to deliver our products to the market; our use of social media platforms and influencer sponsorship initiatives, which could adversely affect our reputation or subject us to fines or other penalties; fluctuating operating results; the inherent challenges in measuring certain of our key operating metrics, and the risk that real or perceived inaccuracies in such metrics may harm our reputation and negatively affect our business; the potential for tax liabilities that may increase the costs to our consumers; our ability to attract and retain highly qualified personnel, including key members of our leadership team; fluctuations in wage rates and the price, availability and quality of raw materials and finished goods, which could increase costs; foreign currency fluctuations; and other risks and uncertainties set forth in the sections entitled “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (SEC) on March 5, 2026. a.k.a. Brands does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share data)
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
2025
2024
2025
2024
Net sales
$
163,950
$
159,023
$
600,208
$
574,697
Cost of sales
72,874
70,081
256,149
247,192
Gross profit
91,076
88,942
344,059
327,505
Operating expenses:
Selling
51,021
44,559
177,822
161,852
Marketing
20,534
22,278
74,125
74,710
General and administrative
30,268
24,897
110,161
101,264
Total operating expenses
101,823
91,734
362,108
337,826
Loss from operations
(10,747
)
(2,792
)
(18,049
)
(10,321
)
Other expense, net:
Interest expense
(2,451
)
(2,635
)
(9,975
)
(10,296
)
Other (expense) income
(73
)
4
(1,291
)
(1,044
)
Total other expense, net
(2,524
)
(2,631
)
(11,266
)
(11,340
)
Loss before income taxes
(13,271
)
(5,423
)
(29,315
)
(21,661
)
Provision for income tax
(1,227
)
(3,934
)
(2,119
)
(4,329
)
Net loss
$
(14,498
)
$
(9,357
)
$
(31,434
)
$
(25,990
)
Net loss per share, basic and diluted
$
(1.35
)
$
(0.88
)
$
(2.93
)
$
(2.46
)
Weighted average shares outstanding, basic and diluted
10,751,859
10,655,476
10,725,607
10,567,656
a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
December 31,
2025
December 31,
2024
Assets
Current assets:
Cash and cash equivalents
$
20,273
$
24,192
Accounts receivable, net
10,650
8,107
Inventory
86,177
95,750
Prepaid expenses and other current assets
12,371
16,720
Total current assets
129,471
144,769
Property and equipment, net
39,315
31,262
Operating lease right-of-use assets
88,624
65,382
Intangible assets, net
43,470
52,354
Goodwill
93,695
89,254
Deferred tax assets
8
47
Other assets
2,799
2,136
Total assets
$
397,382
$
385,204
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable
$
31,248
$
30,299
Accrued liabilities
33,532
31,216
Sales returns reserve
7,889
7,587
Deferred revenue
12,707
12,215
Income taxes payable
243
1,039
Operating lease liabilities, current
13,052
8,382
Current portion of long-term debt
6,375
6,300
Total current liabilities
105,046
97,038
Long-term debt
104,695
105,411
Operating lease liabilities
87,668
63,496
Other long-term liabilities
2,202
1,625
Total liabilities
299,611
267,570
Stockholders’ equity:
Preferred stock
—
—
Common stock
128
128
Additional paid-in capital
476,124
471,758
Accumulated other comprehensive loss
(53,644
)
(60,849
)
Accumulated deficit
(324,837
)
(293,403
)
Total stockholders’ equity
97,771
117,634
Total liabilities and stockholders’ equity
$
397,382
$
385,204
a.k.a. BRANDS HOLDING CORP.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Year Ended December 31,
2025
2024
Cash flows from operating activities:
Net loss
$
(31,434
)
$
(25,990
)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation expense
8,332
6,550
Amortization expense
9,426
11,047
Amortization of debt issuance costs
761
597
Lease incentives
3,621
—
Loss on disposal of businesses
600
673
Non-cash operating lease expense
13,615
8,979
Equity-based compensation
7,049
7,980
Deferred income taxes, net
41
1,508
Changes in operating assets and liabilities, net of effects of acquisitions:
Accounts receivable, net
(2,331
)
(3,294
)
Inventory
12,070
(10,657
)
Prepaid expenses and other current assets
4,273
1,539
Accounts payable
811
2,442
Income taxes payable
(802
)
778
Accrued liabilities
1,781
7,138
Sales returns reserve
220
(1,849
)
Deferred revenue
202
856
Lease liabilities
(11,799
)
(7,628
)
Net cash provided by operating activities
16,436
669
Cash flows from investing activities:
Purchases of intangible assets
—
(2
)
Purchases of property and equipment
(17,069
)
(11,592
)
Net cash used in investing activities
(17,069
)
(11,594
)
Cash flows from financing activities:
Payments of debt issuance costs
(1,406
)
—
Proceeds from line of credit
40,900
49,500
Repayment of line of credit
(35,600
)
(26,200
)
Proceeds from issuance of debt, net of issuance costs
13,773
—
Repayment of debt
(19,417
)
(5,400
)
Taxes paid related to net share settlement of equity awards
(944
)
(1,103
)
Proceeds from issuances under equity-based compensation plans
237
224
Repurchase of shares
(1,976
)
(1,515
)
Net cash (used in) provided by financing activities
(4,433
)
15,506
Effect of exchange rate changes on cash, cash equivalents and restricted cash
1,101
(2,131
)
Net change in cash, cash equivalents and restricted cash
(3,965
)
2,450
Cash, cash equivalents and restricted cash at beginning of period
26,479
24,029
Cash, cash equivalents and restricted cash at end of period
$
22,514
$
26,479
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents
$
20,273
$
24,192
Restricted cash, included in prepaid expenses and other current assets
232
577
Restricted cash, included in other assets
2,009
1,710
Total cash, cash equivalents and restricted cash
$
22,514
$
26,479
a.k.a. BRANDS HOLDING CORP.
KEY OPERATING AND FINANCIAL METRICS
(unaudited)
Three Months Ended December 31,
Year Ended December 31,
(dollars in thousands)
2025
2024
2025
2024
Gross margin
55.6
%
55.9
%
57.3
%
57.0
%
Net loss
$
(14,498
)
$
(9,357
)
$
(31,434
)
$
(25,990
)
Net loss margin
(8.8
)%
(5.9
)%
(5.2
)%
(4.5
)%
Adjusted EBITDA2
$
2,512
$
6,216
$
19,721
$
23,309
Adjusted EBITDA margin2
1.5
%
3.9
%
3.3
%
4.1
%
Key Operational Metrics and Regional Sales
Three Months Ended
December 31,
Year Ended December 31,
(metrics in millions, except AOV; sales in thousands)
2025
2024
% Change
2025
2024
% Change
Key Operational Metrics
Active customers4
4.18
4.07
2.7
%
4.18
4.07
2.7
%
Average order value
$
76
$
78
(2.6
)%
$
77
$
79
(2.5
)%
Number of orders
2.17
2.04
6.4
%
7.77
7.32
6.1
%
Sales by Region
U.S.
$
101,232
$
96,106
5.3
%
$
394,288
$
368,799
6.9
%
Australia/New Zealand
58,134
57,225
1.6
%
185,638
180,328
2.9
%
Rest of world
4,584
5,692
(19.5
)%
20,282
25,570
(20.7
)%
Total
$
163,950
$
159,023
3.1
%
$
600,208
$
574,697
4.4
%
Year-over-year growth on a constant currency basis1
2.8
%
5.0
%
Sales by Region - Two-Year Stack
Three Months Ended
December 31,
Year Ended December 31,
2025
2023
% Change
2025
2023
% Change
U.S.
$
101,232
$
79,057
28.0
%
$
394,288
$
315,496
25.0
%
Australia/New Zealand
58,134
63,272
(8.1
)%
185,638
202,777
(8.5
)%
Rest of world
4,584
6,583
(30.4
)%
20,282
27,985
(27.5
)%
Total
$
163,950
$
148,912
10.1
%
$
600,208
$
546,258
9.9
%
Active Customers
We view the number of active customers as a key indicator of our growth, our value proposition and consumer awareness of our brand, and their desire to purchase our products. In any particular period, we determine our number of active customers by counting the total number of unique customer accounts who have made at least one purchase in the preceding 12-month period, measured from the last date of such period.
Average Order Value
We define average order value (“AOV”) as net sales in a given period divided by the total orders placed in that period. AOV may fluctuate as we expand into new categories or geographies or as our assortment changes.
Number of Orders
We define the number of orders as the total number of orders placed by our customers, prior to product returns, across our platform or in our stores in any given period. An order is counted on the day the customer places the order. We consider the number of orders to be a key indicator of our ability to attract and retain customers, as well as an indicator of the desirability of our products.
a.k.a. BRANDS HOLDING CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except per share data)
(unaudited)
Adjusted EBITDA and Adjusted EBITDA Margin
Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures that management uses to assess our operating performance. Because Adjusted EBITDA and Adjusted EBITDA margin facilitate internal comparisons of our historical operating performance on a more consistent basis, we use these measures for business planning purposes.
We also believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. We expect Adjusted EBITDA margin to increase over the long-term as we continue to scale our business and achieve greater leverage in our operating expenses.
We calculate Adjusted EBITDA as net income (loss) adjusted to exclude: interest and other expense; provision for (benefit from) income taxes; depreciation and amortization expense; equity-based compensation expense; costs to establish or relocate distribution centers; transaction costs; costs related to severance from headcount reductions; goodwill and intangible asset impairment; sales tax penalties; insured losses, net of any recoveries; and one-time or non-recurring items. We calculate Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net sales. Adjusted EBITDA and Adjusted EBITDA margin are considered non-GAAP financial measures under the SEC’s rules because they exclude certain amounts included in net income (loss) and net income (loss) margin, the most directly comparable financial measures calculated in accordance with GAAP.
A reconciliation of non-GAAP Adjusted EBITDA to net loss for the three months and year ended December 31, 2025 and 2024 is as follows:
Three Months Ended
December 31,
Year Ended December 31,
2025
2024
2025
2024
Net loss
$
(14,498
)
$
(9,357
)
$
(31,434
)
$
(25,990
)
Add (deduct):
Total other expense, net
2,524
2,631
11,266
11,340
Provision for income tax
1,227
3,934
2,119
4,329
Depreciation and amortization expense
4,491
4,575
17,758
17,597
Equity-based compensation expense
1,252
1,993
7,049
7,980
Distribution center relocation costs
3,045
1,435
4,632
2,101
Non-routine legal matters
4,230
960
6,647
4,498
Non-routine items5
241
45
1,684
1,454
Adjusted EBITDA
$
2,512
$
6,216
$
19,721
$
23,309
Net loss margin
(8.8
)%
(5.9
)%
(5.2
)%
(4.5
)%
Adjusted EBITDA margin
1.5
%
3.9
%
3.3
%
4.1
%
_____________________________
1 In order to provide a framework for assessing the performance of our underlying business, excluding the effects of foreign currency rate fluctuations, we compare the percent change in the results from one period to another period using a constant currency methodology wherein current and comparative prior period results for our operations reporting in currencies other than U.S. dollars are converted into U.S. dollars at constant exchange rates (i.e., the rates in effect on December 31, 2024, which was the last day of our prior fiscal year) rather than the actual exchange rates in effect during the respective periods.
2 See additional information at the end of this release regarding non-GAAP financial measures.
3 The Company has not provided a quantitative reconciliation of its Adjusted EBITDA outlook to a GAAP net income (loss) outlook because it is unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future equity-based compensation expense, income taxes, interest expense and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of the Company’s control or ability to predict. See additional information at the end of this release regarding non-GAAP financial measures.
4 Trailing twelve months.
5 Non-routine items include severance from headcount reductions; one time supply chain sourcing costs and sales tax penalties.
View source version on businesswire.com: https://www.businesswire.com/news/home/20260305195931/en/
Investor Contact
investors@aka-brands.com
Media Contact
media@aka-brands.com
Original: a.k.a. Brands Holding Corp. Reports Fourth Quarter and Full Year 2025 Financial Results
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