Digital Brands Group (DBGI) Q2 2026 earnings summary

Executive summary

• Net revenues for Q2 2026 were $1.2M, down from $2.3M in Q2 2025; net loss widened to $9.0M from $2.1M year-over-year.

• Six-month net revenues were $2.5M (down from $4.1M), with a net loss of $20.4M versus $4.2M in the prior year.

• Revenue decline was driven by lower wholesale shipments, partially offset by collegiate apparel program growth.

• The company expects Q3 2026 revenues of $8.5M–$11.0M, driven by collegiate apparel initiatives.

Financial highlights

• Gross margin for Q2 2026 was 27% (down from 32% in Q2 2025); six-month gross margin was 15% (down from 38%).

• Operating expenses rose to $7.8M in Q2 2026 (from $2.7M), mainly due to prepaid marketing amortization and a $764K impairment.

• Other expense increased to $1.5M in Q2 2026, primarily from fair value changes in share-based payment liabilities.

• Cash used in operations was $10.3M for the six months ended June 30, 2026.

Outlook and guidance

• Q3 2026 revenue guidance is $8.5M–$11.0M, reflecting anticipated collegiate apparel program growth.

• Management expects gross margins to expand as revenue increases and fixed costs are leveraged.

• Substantial doubt exists about the company's ability to continue as a going concern due to recurring losses and liquidity constraints.