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a.k.a. Brands Holding (AKA) investor relations material
a.k.a. Brands Holding Q3 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Net sales for Q3 were $147.1 million, down 1.9%-2% year-over-year, but nine-month sales rose 5% to $436.3 million, driven by increased orders in Australia and New Zealand despite lower average order value from supply chain disruptions.
Gross margin improved to 59.1% in Q3 2025 from 58% in Q3 2024, attributed to a higher mix of retail stores, less promotional activity, and a duty drawback benefit.
Net loss for Q3 2025 was $5.0 million, or $(0.46) per share, a slight improvement from $5.4 million, or $(0.51) per share, in the prior year quarter; nine-month net loss was $16.9 million, nearly flat year-over-year.
Adjusted EBITDA for Q3 2025 was $7.0 million (4.8%-5% margin), and $17.2 million for the nine months (4% margin), reflecting stable profitability on an adjusted basis.
Strategic initiatives included debt refinancing, retail expansion for Princess Polly, and sourcing optimization to enhance operational resilience.
Financial highlights
Cost of sales decreased 5% in Q3 2025, reflecting improved inventory management and less promotional activity, partially offset by higher tariffs and duties.
Selling expenses rose to $43.2 million (29.4% of net sales) due to new store openings; marketing and G&A expenses decreased year-over-year.
Operating cash flow for the nine months was $14.7 million, a $21.1 million improvement year-over-year, driven by better inventory sell-through and increased lease incentives.
Free cash flow for the nine months was $2.4 million, up $16.4 million from the prior year.
Cash and equivalents at quarter-end were $23.4 million; inventory was $96.7 million, and debt stood at $111.3 million.
Outlook and guidance
Full-year 2025 net sales expected between $598 million-$602 million, up 4%-5%, but revised down from prior $608–$612 million due to tariff impacts.
Full-year adjusted EBITDA expected between $23 million-$23.5 million, revised from prior $24.5–$27.5 million.
Full-year gross margin anticipated at 57.6%-57.7%.
CapEx for 2025 projected at $16-18 million, including new store openings.
Management expects existing cash, operations, and credit facilities to be sufficient for at least the next 12 months.
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