a.k.a. Brands (AKA) Q4 2025 earnings summary

Executive summary

• Net sales grew 4.4% to $600 million in FY2025, with U.S. sales up 7% to $394 million and now 66% of total business; Princess Polly delivered double-digit growth, expanded its U.S. footprint, and opened its first Australian store.

• Inventory was reduced by 10% year-over-year, reflecting improved management and supply chain transformation.

• AI initiatives are driving improvements in product imagery, marketing, and inventory optimization, supporting future margin expansion.

• Net loss widened to $31.4 million for the year, compared to $26.0 million last year.

Financial highlights

• FY2025 net sales reached $600 million, up from $575 million in FY2024; Q4 net sales were $164 million, up 3.1%.

• Gross margin expanded 30 basis points to 57.3% for the year, despite a 100 basis point tariff headwind.

• Adjusted EBITDA for the year was $19.7 million (3.3% margin), down from $23.3 million (4.1%) last year.

• Q4 adjusted EBITDA was $2.5 million (1.5% margin); Q4 gross margin was 55.6%.

• Ended the year with $20.3 million in cash and $111.1 million in debt.

Outlook and guidance

• FY2026 net sales expected between $625 million and $635 million, with adjusted EBITDA guidance of $27 million to $29 million.

• Q1 2026 net sales projected at $130 million–$132 million; adjusted EBITDA $1.5 million–$2 million.

• High single-digit growth expected for Q2–Q4 on a two-year stack; EBITDA margin expansion of about 100 basis points in Q2 and Q3, larger in Q4.

• Capital expenditures for FY2026 forecasted at $18 million–$20 million.

• Guidance excludes potential tariff refunds pending Supreme Court decision.