Playboy, Inc.
For the period ended Jun 30, 2026. Filed Aug 10, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 10, 2026
PLBY$1.29+4.0%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-11.
0001628280-26-033562
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-10.
0001628280-26-055279
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 141 previous paragraphs and 175 current paragraphs.
73 unchanged; 46 reworded; 42 added; 22 removed; 0 previous and 14 current paragraphs rearranged.
Tables are not compared: 8 previous and 14 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (42)
Current report
We are in the early stages of building out our media and experiences areas of focus. During the quarter ended June 30, 2026, we published Playboy magazine, featuring Karol G as a cover star, and introduced a new subscription offering across our print and digital content. Subsequent to quarter-end, in July 2026, we featured Cara Delevingne as an additional cover star, continuing our magazine relaunch effort. We are also investing in expanding our social media reach to drive brand engagement, and are planning consumer-facing events designed to bring the Playboy brand to life. Subscriptions and sponsorships represent net new revenue lines for the Company, and we believe these initiatives, together with the integration of licensing and sponsorship opportunities, will support commercial growth and our ability to expand into new licensing verticals and brand categories over time.
Current report
Other Operating (Expense) Income, Net
Current report
Other Income (Expense), Net
Current report
The increase in licensing net revenues, compared to the prior year comparative period, was primarily due to higher overage royalty revenues from existing licensing partners.
Current report
The increase in corporate revenues for the three months ended June 30, 2026 was primarily driven by sales of the 2026 spring issue of Playboy magazine, which launched in April 2026.
Current report
The slight decrease in direct-to-consumer cost of sales, compared to the prior year comparative period, was primarily due to a $0.8 million increase in Honey Birdette’s product, shipping and fulfillment costs driven by higher revenues, offset by tariff refunds. The improvement in gross margin reflects continued revenue growth, outpacing the increase in product, shipping and fulfillment costs, as well as improvement in quality of inventory and related reserves.
Current report
The decrease in licensing cost of sales and the corresponding increase in gross margin, compared to the prior year comparative period, were primarily due to a $2.0 million reduction in licensing commissions expense. This reduction was driven by the prior year comparative period, which included a one-time $2.4 million settlement to pay current and future commissions to a licensing agent.
Current report
The increase in corporate cost of sales and the corresponding decrease in gross margin, compared to the prior year comparative period, primarily related to the 2026 spring issue of the Playboy magazine and implementation of a revamped magazine subscription model in the second quarter of 2026. As the magazine is in an early relaunch phase, its production costs currently exceed its revenues, resulting in a negative gross margin. The increase was partially offset by $1.3 million of brand expense reimbursement applied against the cost of sales during the second quarter of 2026, representing a portion of the $4.0 million advance received from UTG under the BSSA. In the prior year comparative period, corporate revenues related primarily to payments from sales of access to our iPlayboy archives and carried a de minimis cost of sales.
Current report
The decrease in selling and administrative expenses for the three months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to lower payroll and payroll related expenses of $1.1 million, lower professional and other outside services costs of $0.3 million, a $0.9 million decrease in legal expenses, lower China operating costs of $0.4 million, and a number of offsetting changes in other accounts.
Current report
Other Operating Expense, Net
Current report
The decrease in other operating expense, net for the three months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to lower losses on the disposal of store and other fixed assets.
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Net Revenues
Current report
Corporate revenues for the six months ended June 30, 2026 were substantially consistent with the prior year comparative period. The composition shifted toward magazine subscriptions, with the release of the spring 2026 issue of Playboy magazine in April 2026, and away from sponsorship events that occurred in the prior year comparative period, as a result of changes in brand strategy.
Current report
The decrease in all other revenue, compared to the prior year comparative period, was primarily due to lower amortization of deferred revenue balances that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025) that pertain to our previously reported digital subscriptions and content operations.
Current report
Cost of Sales
Current report
The decrease in licensing cost of sales and the corresponding increase in gross margin, compared to the prior year comparative period, was primarily due to $2.0 million of lower commissions in the second quarter of 2026, as a result of the prior year comparative period having included a one-time $2.4 million commission settlement, partially offset by a $0.9 million commission payment and a $0.3 million agency-termination payment to our former China licensing agent recognized in the first quarter of 2026.
Current report
The increase in corporate cost of sales and the corresponding decrease in gross margin, compared to the prior year comparative period, primarily related to the 2026 spring issue of Playboy magazine and implementation of a revamped magazine subscription model in the second quarter of 2026. As the magazine is in an early relaunch phase, its production costs currently exceed its revenues, resulting in a negative gross margin. Corporate cost of sales for the six months ended June 30, 2026 was partially offset by $1.3 million of brand expense reimbursement applied against cost of sales during the second quarter of 2026, representing a portion of the $4.0 million advance received from UTG under the BSSA.
Current report
The decrease in selling and administrative expenses for the six months ended June 30, 2026, compared to the prior year comparative period, was primarily due to lower payroll and payroll-related expenses, including severance cost of $5.7 million, mainly due to the transition of our digital operations into a licensing model during the prior year comparative period, lower professional and other outside services of $1.2 million, lower China operating costs of $0.7 million, lower legal expenses of $0.4 million, partially offset by $2.9 million of transaction expenses related to the formation of the New China JV and a $1.3 million increase in stock-based compensation expense due to new grant issuances in 2026.
Current report
The decrease in impairments for the six months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to the non-recurrence of prior-year impairment charges recognized on our artwork held for sale of $0.3 million and on right-of-use assets related to our corporate leases of $1.5 million.
Current report
The change from other operating expense, net in prior year comparative period to other operating income, net was primarily due to a $0.9 million non-recurring release of an aged value-added tax (VAT) provision recognized in the first quarter of 2026 and $0.7 million lower net losses on the disposal and write-off of certain fixed assets.
Current report
The increase in interest expense, net for the six months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to lower amortization of debt premium and discount, partially offset by lower interest expense on our borrowings, reflecting senior secured debt repaid with proceeds from the New China JV transaction.
Current report
•Transaction expenses for the three months ended June 30, 2026 primarily represent less than $0.1 million of expenses related to the seventh and eighth amendments of our senior secured credit agreement that were incurred in the second quarter of 2026 and less than $0.1 million of additional transaction expenses incurred in the second quarter of 2026 in relation to the formation of the New China JV.
Current report
•Licensing commissions settlement for thethree and six months ended June 30, 2025 represents a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent, which were paid in the third quarter of 2025.
Current report
•Impairments for the three months ended June 30, 2025 related to impairment charges on our right-of-use assets related to our corporate leases and did not recur in the second quarter of 2026.
Current report
Operating Income (Loss): The change from operating loss to operating income, compared to the prior year comparative period, was primarily due to a $3.0 million increase in gross profit related to significant sales growth and tariff refunds, partly offset by a one-time increase in transfer pricing costs.
Current report
Adjusted Operating Income (Loss): The change from adjusted operating loss to adjusted operating income, compared to the prior year comparative period, was primarily due to the change in operating income (loss) discussed above.
Current report
Operating Income: The increase in operating income, compared to the prior year comparative period, was primarily due to a $2.3 million increase in licensing gross profit, driven by lower China licensing agent commissions (the prior year comparative period included a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent) and lower selling and administrative expenses of $1.7 million, primarily driven by $0.8 million of lower legal costs and $0.4 million of lower China licensing operating costs (staffing and general and administrative expenses).
Current report
The decrease in adjusted corporate expenses, compared to the prior year comparative period, was primarily due to a $0.8 million favorable non-recurring release of a sales and use tax reserve, $1.5 million of higher intercompany cost allocations to other segments, which eliminate in consolidation, partially offset by a $1.3 million UTG brand-expense reimbursement applied against cost of sales under the BSSA .
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Operating Income (loss): Direct-to-Consumer operating income improved by $2.9 million, from an operating loss of $1.3 million in the prior year comparative period, to operating income of $1.6 million for the six months ended June 30, 2026, primarily due to a $5.5 million increase in net revenues and a $4.4 million increase in gross profit, reflecting strong sales of full-price Honey Birdette products and improved gross margin, partially offset by an approximately $1.5 million increase in selling and administrative expenses related to the segment, primarily sales and marketing and store operating costs.
Current report
Adjusted Operating Income (loss): The change in adjusted operating income (loss), compared to the prior year comparative period, was primarily due to the change in operating income (loss) discussed above.
Current report
Operating Income: The increase in operating income, compared to the prior year comparative period, was primarily due to a $0.9 million increase in licensing gross profit, reflecting lower licensing commissions expense in cost of sales following the formation of the UTG China joint venture (the prior year comparative period included a one-time $2.4 million commission settlement) and a $2.1 million decrease in selling and administrative expenses allocated to the segment. The lower selling and administrative expenses were primarily attributable to $0.7 million of lower legal costs and $0.7 million of lower China licensing operating costs (staffing and general and administrative expenses) following the formation of the UTG China joint venture.
Current report
Adjusted Operating Income: Adjustments to licensing operating income for the six months ended June 30, 2026, related to termination expenses of $0.3 million attributable to our former China joint venture arrangements prior to the formation of the New China JV in the first quarter of 2026. Adjustments to licensing operating income for the six months ended June 30, 2025 related to a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent in the second quarter of 2025, which was paid in the third quarter of 2025.
Current report
The decrease in corporate expenses, compared to the prior year comparative period, was primarily due to the non-recurrence of $1.8 million of prior-year impairment charges and $0.8 million of prior-year asset-disposal losses, and lower selling and administrative expenses, including $2.9 million of lower severance, $1.6 million of lower payroll, $0.6 million of lower professional and outside services, and $0.6 million of lower rent, together with a $0.8 million non-recurring release of a sales and use tax reserve. These improvements were partially offset by $2.9 million of transaction expenses recognized in the six months ended June 30, 2026 related to the formation of the China joint venture with UTG, a $1.3 million increase in stock-based compensation from new grants, $0.5 million of higher legal costs, and a $1.1 million increase in cost of sales related to the Spring 2026 issue of Playboy magazine and a revamped magazine subscription model launched in the second quarter of 2026 (net of a $1.3 million brand-expense reimbursement from UTG applied against cost of sales under the BSSA).
Current report
The decrease in adjusted corporate expenses, compared to the prior year comparative period, was primarily due to $0.8 million favorable non-recurring release of a sales and use tax reserve, lower selling and administrative expenses, including $1.6 million of lower payroll and $0.6 million of lower rent, partly offset by a $1.1 million increase in cost of sales related to the Spring 2026 issue of Playboy magazine and a revamped magazine subscription model launched in the second quarter of 2026 (net of a $1.3 million brand-expense reimbursement from UTG applied against cost of sales under the BSSA).
Current report
Operating Income (Loss): The change from operating loss in the prior year comparative period to operating income, was due to the transition of our digital operations into a licensing model pursuant to the LMA and inclusion of $5 million of transition expenses pursuant to the TSA in the prior year comparative period, partly offset by lower amortization of deferred revenue balances that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025) that pertain to our previously reported digital subscriptions and content operations.
Current report
Concurrently with the Repurchase Agreement, defined and described in Note 10, Stockholders’ Equity, we entered into Amendment No. 8 to the A&R Credit Agreement (the “A&R Eighth Amendment”) to obtain lender consent for the Repurchase Agreement and related backstop transactions. Refer to Note 17, Related Party Transactions, for additional details. The A&R Eighth Amendment did not modify the pricing, maturity, or financial covenants of the A&R Credit Agreement. Costs incurred in connection with the A&R Eighth Amendment of approximately $0.1 million were recognized as other expense in our condensed consolidated statements of operations for the three months ended June 30, 2026.
Current report
In the second quarter of 2026, we amended the Lease to change the lease commencement date to January 1, 2027 and the expiration date to November 30, 2037. As we did not take possession of the office space as of June 30, 2026, it is not reflected in our condensed consolidated financial statements or in the tables below. The future undiscounted fixed non-cancelable payment obligation pertaining to the Lease is approximately $25.0 million.
Current report
On May 14, 2026, we entered into a new operating lease (the “Additional Lease”) with the Landlord for the remainder of the same floor as the Lease, comprising an additional approximately 5,696 square feet, which commenced on May 1, 2026 and expires on November 30, 2037, subject to two five-year renewal options. In addition to base rent under the Additional Lease, we are responsible for operating expenses and property taxes. During the six months ended June 30, 2026, we recognized right-of-use assets of approximately $1.6 million in exchange for the related operating lease liability. The future undiscounted lease payments under the Additional Lease are approximately $6.9 million.
Showing the first 40 of 42 passages. Open the source sections for the rest.
Removed paragraphs (22)
Previous report
Selling and Administrative Expenses
Previous report
Impairments
Previous report
Nonoperating (Expense) Income
Previous report
Interest Expense, Net
Previous report
Expense from Income Taxes
Previous report
The decrease in corporate revenues for the three months ended March 31, 2026 was primarily due to a decrease in corporate branding activities, primarily sponsorship events, as a result of changes in brand strategy.
Previous report
The increase in licensing cost of sales and the corresponding decrease in gross margin, compared to the prior year comparative period, was primarily due to a $0.9 million licensing commission payment to our China licensing agent as compared to no commission in the prior year comparative period when the agent was instead a joint venture partner. Furthermore, there was a $0.3 million payment to the China licensing agent as a result of the termination of our agency relationship.
Previous report
Corporate gross profit during the three months ended March 31, 2026 and 2025 primarily related to payments from sales of access to ouriPlayboy archives and the 2025 winter issue of Playboy magazine.
Previous report
Selling and Administrative Expenses
Previous report
The decrease in selling and administrative expenses for the three months ended March 31, 2026, as compared to the prior year comparative period, was primarily due to lower payroll expense of $4.6 million, mainly due to the transition of our digital operations into a licensing model during the prior year comparative period, lower rent expense of $0.3 million primarily due to higher sublease income, and a decrease in various professional services of $0.6 million, partly offset by transaction expenses of $2.8 million related to the formation of the New China JV, higher stock-based compensation expense of $0.5 million and a $0.5 million increase in legal expenses related to ongoing litigations.
Previous report
Impairments
Previous report
Other Operating Income (Expense), Net
Previous report
The change from other operating expense, net to other operating income, net for the three months ended March 31, 2026, as compared to the prior year comparative period, was due to a loss on the disposal of assets that did not recur in the first quarter of 2026.
Previous report
Nonoperating (Expense) Income
Previous report
Interest Expense, Net
Previous report
Expense from Income Taxes
Previous report
Operating Income (Loss): The change from operating loss to operating income, compared to the prior year comparative period, was primarily due to a $1.4 million increase in Honey Birdette’s gross profit as a result of continued revenue growth, particularly driven by sales of full-price products.
Previous report
Adjusted Operating Income: The increase in adjusted operating income, compared to the prior year comparative period, was primarily due to the change from operating loss to operating income discussed above.
Previous report
Operating Income: The decrease in operating income, compared to the prior year comparative period, was primarily due to a $1.4 million decrease in licensing gross profit, mainly resulting from a $0.9 million increase in cost of sales due to commission expense for our China licensing agent as compared to no commission in the prior year comparative period when the agent was a joint venture partner, and a $0.3 million payment to such agent as a result of the termination of the agency relationship.
Previous report
The increase in operating loss, compared to the prior year comparative period, was primarily due to transaction expenses of $2.8 million related to the formation of the New China JV, higher stock-based compensation expense of $0.5 million and higher legal expenses of $0.4 million due to ongoing litigations, partly offset by lower payroll and severance costs of $2.4 million, lower rent expense of $0.5 million, primarily as a result of higher sublease income, and lower brand marketing expenses of $0.4 million.
Previous report
On March 12, 2025, we entered into Amendment No. 4 (the “A&R Fourth Amendment”) to our amended and restated senior secured credit agreement (the “A&R Credit Agreement”). The A&R Fourth Amendment set the total net leverage ratio levels applicable under the A&R Credit Agreement, once net leverage testing resumes as of the quarter ending June 30, 2026. For the quarter ending June 30, 2026, the total net leverage ratio will be initially set at 9.00:1.00, reducing over time until the ratio reaches 7.75:1.00 for the quarter ending June 30, 2027 and any subsequent quarter. In the event we prepay at least $15 million of the principal debt under the A&R Credit Agreement, the total net leverage ratio levels are reduced such that they would be initially set at 7.75:1.00 for the quarter ending June 30, 2026, and would reduce over time until the ratio reaches 6.50:1.00 for the quarter ending June 30, 2027 and any subsequent quarter.
Previous report
The increase in net cash used in operating activities for the three months ended March 31, 2026, compared to the prior year comparative period, was primarily due to unfavorable changes in assets and liabilities that had a current period cash flow impact, such as a $4.1 million unfavorable change in working capital and a $1.4 million net decrease in non-cash charges, offset by an improvement in net loss of $5.1 million. The unfavorable change in working capital was primarily driven by a $3.0 million increase in accounts receivable reflecting the timing of royalty collections from licensees, a $0.9 million increase in contract assets and a $0.8 million increase in deferred revenues primarily due to the timing of revenue recognition, partly offset by a $0.9 million decrease in other liabilities and accrued expenses.
Reworded paragraphs (46)
Previous wording
You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited interim condensed consolidated financial statements as of and for the three months ended March 31, 2026 and 2025 and the related notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q, our audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024 and the related notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026. This discussion contains forward-looking statements that involve risks and uncertainties and that are not historical facts, including statements about our beliefs and expectations. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed below and particularly under the headings “Risk Factors”, “Business” and “Cautionary Note Regarding Forward-Looking Statements” contained in our Annual Report on Form 10-K filed with the SEC on March 16, 2026. As used herein, “we”, “us”, “our”, and the “Company” refer to Playboy, Inc. and its subsidiaries.
Current wording
You should read the following discussion of our financial condition and results of operations in conjunction with our unaudited interim condensed consolidated financial statements as of and for the three and six months ended June 30, 2026 and 2025 and the related notes thereto included in Part I, Item 1 of this Quarterly Report on Form 10-Q, our audited consolidated financial statements as of and for the years ended December 31, 2025 and 2024 and the related notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 16, 2026. This discussion contains forward-looking statements that involve risks and uncertainties and that are not historical facts, including statements about our beliefs and expectations. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those discussed below and particularly under the headings “Risk Factors”, “Business” and “Cautionary Note Regarding Forward-Looking Statements” contained in our Annual Report on Form 10-K filed with the SEC on March 16, 2026. As used herein, “we”, “us”, “our”, and the “Company” refer to Playboy, Inc. and its subsidiaries.
Previous wording
We are a global consumer lifestyle company marketing our brands through a wide range of licensing initiatives, direct-to-consumer products, Playboy magazine, digital subscriptions and content, and online and location-based entertainment. We have two reportable segments: Direct-to-Consumer and Licensing. Our Direct-to-Consumer segment derives revenue from sales of consumer products sold directly to consumers by Honey Birdette online or at its brick-and-mortar stores, with 50 stores in three countries as of March 31, 2026. Our Licensing segment derives revenue from trademark licenses for third-party consumer products, primarily for various apparel and accessories categories, hospitality, digital gaming and location-based entertainment businesses.
Current wording
We are a global lifestyle, media and licensing company built on the Playboy brand—one of the world’s most recognizable and enduring consumer brands, with Playboy-branded products and content available in over 100 countries. We pursue a capital-light business model in which the Playboy brand serves as the foundation for three brand-powered activities, licensing, media and experiences, and hospitality, which is further complemented by Honey Birdette, our premium direct-to-consumer lingerie business, which operates as a separate direct-to-consumer growth engine. We report our operations in two reportable segments: Direct-to-Consumer and Licensing. Our Direct-to-Consumer segment derives revenue from consumer products sold directly to consumers by Honey Birdette online and through its brick-and-mortar stores, with 48 stores in three countries as of June 30, 2026. Our Licensing segment derives revenue from trademark licenses for third-party consumer products across various apparel and accessories categories, as well as hospitality, digital gaming and location-based entertainment. Effective January 1, 2025, we license our adult businesses, including Playboy Club, Playboy Plus, and Playboy TV digital assets to Byborg Enterprises SA (“Byborg”) pursuant to a License & Management Agreement (the “LMA”). We continue to directly publish editorial and Playmate content in support of our brand and licensing, media and experiences activities.
Previous wording
In the fourth quarter of 2024, we entered into a License & Management Agreement (the “LMA”) with Byborg Enterprises SA (“Byborg”) to license intellectual property and select Playboy digital assets for $300.0 million in minimum guaranteed payments over the initial 15-year term of the license, which began January 1, 2025.
Current wording
In the fourth quarter of 2024, we entered into the LMA with Byborg to license intellectual property and select Playboy digital assets for $300.0 million in minimum guaranteed payments over the initial 15-year term of the license, which began January 1, 2025.
Previous wording
After having stabilized Playboy’s China business in 2024 and 2025, in the fourth quarter of 2025, we transitioned our joint venture for the Playboy business in China into a more typical licensing structure, with an affiliate of our former China joint venture partner becoming our licensing agent in China. On February 9, 2026, we terminated such licensing agent in preparation for the New China JV (defined below). Also on February 9, 2026, we entered into a share purchase agreement (the “Purchase Agreement”) with UTG Brands Management Group Limited (“UTG”) for a new joint venture for the Playboy business in China (the “New China JV”), in which UTG is to ultimately own a 50% interest and operate Playboy’s China licensing business. The initial closing pursuant to the Purchase Agreement (the “New China JV Initial Closing”) occurred, and the New China JV was established, on March 20, 2026. As of the New China JV Initial Closing, we owned 83.33% of the New China JV and UTG owned 16.67%. While we retain majority control of the New China JV, UTG manages all operational aspects of Playboy’s licensing business in China, Hong Kong and Macau.
Current wording
After having stabilized Playboy’s China business in 2024 and 2025, in the fourth quarter of 2025, we transitioned our joint venture for the Playboy business in China into a more typical licensing structure, with an affiliate of our former China joint venture partner becoming our licensing agent in China. On February 9, 2026, we terminated such licensing agent in preparation for the New China JV (defined below). Also on February 9, 2026, we entered into a share purchase agreement (the “Purchase Agreement”) with UTG Brands Management Group Limited (“UTG”) for a new joint venture for the Playboy business in China (the “New China JV”), in which UTG is to ultimately own a 50% interest and operate Playboy’s China licensing business. The initial closing pursuant to the Purchase Agreement (the “New China JV Initial Closing”) occurred, and the New China JV was established, on March 20, 2026. As of the New China JV Initial Closing and June 30, 2026, we owned 83.33% of the New China JV and UTG owned 16.67%. While we retain majority control of the New China JV, UTG manages all operational aspects of Playboy’s licensing business in China, Hong Kong and Macau.
Previous wording
We expect our licensing business in China to continue to represent a material part of our overall business. Our licensing revenues from China as a percentage of our total revenues were 10% and 11% for the three months ended March 31, 2026 and 2025, respectively.
Current wording
We expect our licensing business in China to continue to represent a material part of our overall business. Our licensing revenues from China as a percentage of our total revenues were 10% and 11% for each of the three and six months ended June 30, 2026 and 2025, respectively.
Previous wording
We continue to monitor ongoing changes in U.S. trade policies, including increasing tariffs on imports, in some cases significantly, and changes to existing international trade agreements. These actions have prompted retaliatory tariffs and other measures by a number of countries. Starting in the second quarter of 2025, actions were taken by the U.S. and certain other countries to modify the timing, rates and/or other aspects of certain of these tariffs. However, some of the new tariffs remain in effect, including tariffs between the U.S. and China, where we source the manufacturing of our Honey Birdette products and where many of our licensees source their products. While the impact of such trade policies on our business remains uncertain, we continue to closely monitor such matters and potential impacts, including increased production costs and higher pricing to our customers, either of which could negatively affect our business, results of operations and financial condition. We are also pursuing refunds of tariffs paid to the U.S. government, to the extent such tariffs are determined to be refundable by the U.S. government.
Current wording
We continue to monitor ongoing changes in U.S. trade policies, including increasing tariffs on imports, in some cases significantly, and changes to existing international trade agreements. These actions have prompted retaliatory tariffs and other measures by a number of countries. Starting in the second quarter of 2025, the U.S. and certain other countries have taken actions to modify the timing, rates and/or other aspects of certain of these tariffs. However, some of the new tariffs remain in effect, including tariffs between the U.S. and China, where we source the manufacturing of our Honey Birdette products and where many of our licensees source their products. While the impact of such trade policies on our business remains uncertain, we continue to closely monitor such matters and potential impacts, including increased production costs and higher pricing to our customers, either of which could negatively affect our business, results of operations and financial condition. Certain of these tariffs were imposed under the International Emergency Economic Powers Act (“IEEPA”). In February 2026, the U.S. Supreme Court issued a decision that the tariffs imposed under IEEPA were not authorized under such statute, and U.S. Customs and Border Protection has since established a process for claiming refunds of tariffs paid under IEEPA. As of June 30, 2026, we had a determinable claim for $1.1 million of such refunds, which was recorded as a reduction of cost of sales in our condensed consolidated statements of operations for the three and six months ended June 30, 2026. Substantially all of this amount was collected in July 2026, with the remainder received prior to June 30, 2026. We have also submitted claims for additional IEEPA tariffs paid. Such additional claims remain subject to ongoing legal, regulatory, and administrative developments, and the timing, amount, and availability of any further refunds remain uncertain. Accordingly, we have not recognized any additional receivable or reduction of cost of sales relating to such claims because realization is not assured.
Previous wording
We generate revenue from sales of consumer products sold through our Honey Birdette retail stores or online directly to customers, trademark licenses for third-party consumer products and online and location-based entertainment businesses, and licensing the operation of digital subscriptions and content businesses, which were previously owned and operated by us, to Byborg pursuant to the LMA.
Current wording
We generate revenue from sales of consumer products sold through our Honey Birdette retail stores or online directly to customers, trademark licenses for third-party consumer products and online and location-based entertainment businesses, and licensing the operation of our digital subscriptions and content businesses, which were previously owned and operated by us, to Byborg pursuant to the LMA.
Previous wording
Cost of sales primarily consist of merchandise costs, warehousing and fulfillment costs, agency and commission fees, website expenses, marketplace traffic acquisition costs, transition expenses per the TSA (commencing January 1, 2025 through June 30, 2025), credit card processing fees, personnel costs, costs associated with branding events, customer shipping and handling expenses, fulfillment activity costs and freight-in expenses.
Current wording
Cost of sales primarily consist of merchandise costs, warehousing and fulfillment costs, agency and commission fees, website expenses, marketplace traffic acquisition costs, transition expenses per the TSA (commencing January 1, 2025 through June 30, 2025), credit card processing fees, personnel costs, costs associated with branding activities, including the magazine, net of brand expense reimbursement pursuant to the terms of a Brand Support Services Agreement with UTG (the “BSSA”), customer shipping and handling expenses, fulfillment activity costs and freight-in expenses.
Previous wording
Impairments consist of the impairments of our artwork held for sale during the 2025 period.
Current wording
Impairments consist of the impairments of our artwork held for sale during the 2025 period and right-of-use assets related to our corporate leases during the 2025 period.
Previous wording
Other operating income (expense), net consists primarily of gains and losses on the disposal of assets and other miscellaneous items.
Current wording
Other operating (expense) income, net consists primarily of losses on the disposal of assets and other miscellaneous items.
Previous wording
Other income, net consists primarily of other miscellaneous nonoperating items, such as nonrecurring transaction fees, foreign exchange realized and unrealized transaction gains or losses, early termination fees, debt related costs, bank charges and interest income.
Current wording
Other income (expense), net consists primarily of other miscellaneous nonoperating items, such as nonrecurring transaction fees, foreign exchange realized and unrealized transaction gains or losses, early termination gains, debt related costs, bank charges and interest income.
Previous wording
The increase in direct-to-consumer net revenues, compared to the prior year comparative period, was driven by continued strong sales of full price Honey Birdette products, particularly in the United States.
Current wording
The increase in direct-to-consumer net revenues, compared to the prior year comparative period, was driven by continued strong performance of Honey Birdette products, both full price and discounted items, particularly e-commerce sales in the United States and retail sales in Australia.
Previous wording
The decrease in all other cost of sales and the increase in the related gross margin, compared to the prior year comparative period, was primarily related to the licensing of our digital subscriptions and content operations to Byborg pursuant to the LMA, effective as of January 1, 2025, and the inclusion of transition expenses incurred pursuant to the TSA during the three months ended March 31, 2025.
Current wording
The decrease in all other cost of sales and related increase in gross margin, compared to the prior year comparative period, was primarily related to the licensing of our digital subscriptions and content operations to Byborg pursuant to the LMA, effective as of January 1, 2025, and the inclusion of transition expenses incurred pursuant to the TSA during the three months ended June 30, 2025, which did not recur in 2026.
Previous wording
The decrease in impairments for the three months ended March 31, 2026, as compared to the prior year comparative period, was due to impairment charges of $0.3 million related to our artwork held for sale, which was recognized in the prior year comparative period and did not recur in the first quarter of 2026.
Current wording
The decrease in impairments for the three months ended June 30, 2026, as compared to the prior year comparative period, was due to impairment charges of $1.5 million related to our right-of-use assets for corporate leases that were recognized in the prior year comparative period and did not recur.
Previous wording
The increase in interest expense, net for the three months ended March 31, 2026, as compared to the prior year comparative period, was primarily due to lower amortization of debt premium.
Current wording
The increase in interest expense, net for the three months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to lower amortization of debt premium, net, partially offset by lower interest expense on our borrowings, reflecting senior secured debt repaid with proceeds from the New China JV transaction.
Previous wording
The increase in other income, net for the three months ended March 31, 2026, as compared to the prior year comparative period, was primarily due to a $0.5 million fee to vacate a leased store space early and unrealized gains and losses related to foreign currency transactions.
Current wording
The decrease in other income, net for the three months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to lower unrealized gains and losses related to foreign currency transactions.
Previous wording
The decrease in licensing net revenues, compared to the prior year comparative period, was primarily due to the expiration of a small number of licensing agreements, some of which are expected to be replaced in subsequent quarters.
Current wording
The decrease in licensing net revenues, compared to the prior year comparative period, was primarily due to the expiration of a small number of licensing agreements, some of which are expected to be replaced in subsequent quarters, partially offset by higher royalty overages revenue from existing licensees.
Previous wording
The increase in direct-to-consumer cost of sales, compared to the prior year comparative period, was primarily due to a $0.4 million increase in Honey Birdette’s product, shipping and fulfillment costs as a result of revenue growth, and higher inventory reserves and related write-offs of $0.7 million due to an increase in Honey Birdette’s inventory balance as it prepares for growth. The increase in gross profit was due to higher revenue, particularly driven by sales of full-price products, partly offset by an increase in inventory reserves.
Current wording
The increase in direct-to-consumer cost of sales, compared to the prior year comparative period, was primarily due to $1.0 million of higher Honey Birdette product, shipping and fulfillment costs associated with Honey Birdette’s revenue growth, partially offset by $1.1 million of tariff refunds, together with a $0.9 million increase in inventory reserves and related write-offs (of which approximately $0.7 million was recognized in the first quarter of 2026) as Honey Birdette increased its inventory balance in preparation for such growth. Gross margin improved to 61%, as higher full-price product sales outpaced the increase in inventory reserves.
Previous wording
The decrease in expense from income taxes for the three months ended March 31, 2026, as compared to the prior year comparative period, was primarily driven by the decrease in pretax book loss and a change in valuation allowance due to a reduction in net indefinite-lived deferred tax liabilities.
Current wording
The decrease in expense from income taxes for the six months ended June 30, 2026, as compared to the prior year comparative period, was primarily driven by the change in valuation allowance due to a reduction in net indefinite-lived deferred tax liabilities in the six months ended June 30, 2026.
Previous wording
The following table reconciles net loss to EBITDA and Adjusted EBITDA (in thousands):
Current wording
The following table reconciles net income (loss) to EBITDA and Adjusted EBITDA (in thousands):
Previous wording
•Transaction expenses for the three months ended March 31, 2026 represent transaction costs of $2.8 million related to the formation of the New China JV, termination expenses of $0.3 million related to our former China joint venture arrangements, and $0.3 million of expenses related to the seventh amendment of our senior secured credit agreement.
Current wording
•Transaction expenses for the six months ended June 30, 2026 primarily represent $2.9 million related to the formation of the New China JV, termination expenses of $0.3 million related to our former China joint venture arrangements, and $0.4 million of expenses related to the seventh and eighth amendments of our senior secured credit agreement.
Previous wording
•Transition expenses for the three months ended March 31, 2025 represent costs associated with the digital operations licensed to Byborg.
Current wording
•Transition expenses for the three and six months ended June 30, 2025 represent costs associated with the digital operations licensed to Byborg pursuant to the TSA.
Previous wording
•Severance expenses for the three months ended March 31, 2025 were primarily due to the reduction of headcount related to the transition of our digital subscriptions and content operations into a licensing model.
Current wording
•Severance expenses for the three and six months ended June 30, 2025 were due to the reduction of headcount related to the transition of our digital subscriptions and content operations into a licensing model.
Previous wording
•Impairments for the three months ended March 31, 2025 related to impairment charges on our artwork held for sale.
Current wording
•Impairments for the six months ended June 30, 2025 related to impairment charges on our artwork held for sale and our right-of-use assets related to our corporate leases and did not recur in the first half of 2026.
Previous wording
•Adjustments for the three months ended March 31, 2026 are related to a non-cash fair value change related to the contingent liabilities fair value remeasurement with respect to potential shares issuable for our 2021 acquisition of GlowUp Digital, Inc. that remained unsettled as of March 31, 2026 and other miscellaneous items.
Current wording
•Adjustments for the three and six months ended June 30, 2026 are primarily related to losses on asset disposals and the non-cash fair value change related to contingent liabilities fair value remeasurement with respect to potential shares issuable for our 2021 acquisition of GlowUp Digital, Inc. that remained unsettled as of June 30, 2026, as well as other miscellaneous items.
Previous wording
•Adjustments for the three months ended March 31, 2025 are primarily related to a non-cash fair value change related to the contingent liabilities fair value remeasurement with respect to potential shares issuable for our 2021 acquisition of GlowUp Digital, Inc. that remained unsettled as of March 31, 2025, loss on the sale of artwork, consulting, advisory and other costs relating to corporate transactions, as well as reorganization costs resulting from the elimination or rightsizing of specific business activities or operations.
Current wording
•Adjustments for the three and six ended June 30, 2025 are primarily related to the non-cash fair value change related to contingent liabilities fair value remeasurement with respect to potential shares issuable for our 2021 acquisition of GlowUp Digital, Inc. that remained unsettled as of June 30, 2025, loss on the sale of artwork, loss on disposal of assets, consulting, advisory and other costs relating to corporate transactions, as well as reorganization costs resulting from the elimination or rightsizing of specific business activities or operations.
Previous wording
“Adjusted Operating Income (Loss)” is defined as operating income or loss adjusted for stock-based compensation and other special items determined by management. Adjusted operating income (loss) is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP. We believe that the use of adjusted operating income (loss) provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating adjusted operating income (loss), we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Our computation of adjusted operating income (loss) may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate adjusted operating income (loss) in the same fashion.
Current wording
“Adjusted Operating (Loss) Income” is defined as operating income or loss adjusted for stock-based compensation and other special items determined by management. Adjusted operating (loss) income is intended as a supplemental measure of our performance that is neither required by, nor presented in accordance with, GAAP. We believe that the use of adjusted operating (loss) income provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating adjusted operating (loss) income, we may incur future expenses similar to those excluded when calculating these measures. In addition, our presentation of these measures should not be construed as an inference that our future results will be unaffected by unusual or nonrecurring items. Our computation of adjusted operating (loss) income may not be comparable to other similarly titled measures computed by other companies, because not all companies may calculate adjusted operating (loss) income in the same fashion.
Previous wording
Because of the limitations described above, adjusted operating income (loss) should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using adjusted operating income (loss) on a supplemental basis. Investors should review the reconciliation of operating loss to adjusted operating income (loss) below and not rely on any single financial measure to evaluate our business.
Current wording
Because of the limitations described above, adjusted operating (loss) income should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. We compensate for these limitations by relying primarily on our GAAP results and using adjusted operating income (loss) on a supplemental basis. Investors should review the reconciliation of operating loss to adjusted operating (loss) income below and not rely on any single financial measure to evaluate our business.
Previous wording
The following table reconciles Operating (Loss) Income to Adjusted Operating Income (Loss) by reportable segment (in thousands):
Current wording
The following table reconciles Operating (Loss) Income to Adjusted Operating (Loss) Income by reportable segment (in thousands):
Previous wording
Adjusted Operating Income: The decrease in adjusted operating income, compared to the prior year comparative period, was primarily due to the decrease in operating income discussed above. Adjustments to licensing operating income for the three months ended March 31, 2026 related to the termination of the China licensing agent relationship.
Current wording
Adjusted Operating Income: Adjustments to licensing operating income for the three months ended June 30, 2025 related to a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent. There were no adjustments to licensing operating income for the three months ended June 30, 2026, and the change in adjusted operating income was the same as the change in operating income above.
Previous wording
Adjusted operating loss, compared to the prior year comparative period, remained consistent.
Current wording
The decrease in corporate operating loss, compared to the prior year comparative period, was primarily due to the non-recurrence of $1.5 million of prior-year impairment charges and the non-recurrence of $0.4 million of prior-year asset-disposal losses, $1.5 million of higher transfer price cost allocations to other segments, which eliminate in consolidation, and lower selling and administrative expenses, including $0.3 million of lower professional and outside services and $0.3 million of lower severance. These improvements were partially offset by a $1.1 million increase in costs of sales, primarily related to the 2026 spring issue of Playboy magazine and implementation of a revamped magazine subscription model in the second quarter of 2026 (net of a $1.3 million UTG brand-expense reimbursement applied against cost of sales during the second quarter of 2026, representing a portion of the $4.0 million advance received from UTG under the BSSA) and a $0.9 million increase in stock-based compensation due to new grant issuances.
Previous wording
Operating Income: The change from operating loss to operating income, compared to the prior year comparative period, was due to the transition of our digital operations into a licensing model pursuant to the LMA in the prior year comparative period.
Current wording
Operating Income (loss): The change from operating loss in the prior year comparative period to operating income, was due to the transition of our digital operations into a licensing model pursuant to the LMA and inclusion of $1.2 million of transition expenses pursuant to the TSA in the prior year comparative period, partly offset by lower amortization of deferred revenue balances that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025) that pertain to our previously reported digital subscriptions and content operations.
Previous wording
Our sources of liquidity are cash generated from operating activities, which primarily includes cash derived from revenue generating activities, from financing activities, including proceeds from our issuance of debt, and proceeds from stock offerings (as described further below), and from investing activities, which includes the sale of assets (as described further below). As of March 31, 2026, our principal source of liquidity was cash and cash equivalents in the amount of $30.2 million, which is primarily held in operating and deposit accounts.
Current wording
Our sources of liquidity are cash generated from operating activities, which primarily includes cash derived from revenue generating activities, from financing activities, including proceeds from our issuance of debt, and proceeds from stock offerings (as described further below), and from investing activities, which includes the sale of assets (as described further below). As of June 30, 2026, our principal source of liquidity was cash in the amount of $31.9 million, which is primarily held in operating and deposit accounts.
Previous wording
During the three months ended March 31, 2026, we sold shares of our common stock pursuant to our previously registered and announced at-the-market offering (the “ATM”), selling a total of 1,389,751 shares for net proceeds of $2.5 million. As of March 31, 2026, we had $197.2 million of remaining capacity under the ATM.
Current wording
During the three months ended June 30, 2026, we sold shares of our common stock pursuant to our previously registered and announced at-the-market offering (the “ATM”), selling a total of 2,051,498 shares for net proceeds of $2.8 million, out of which 56,255 shares were issued in July 2026. During the six months ended June 30, 2026, we sold 3,441,249 shares of our common stock under the ATM for net proceeds of $5.2 million. As of June 30, 2026, we had $194.4 million of remaining capacity under the ATM.
Previous wording
In the fourth quarter of 2023, we began the sale of our art assets, and we have continued the sale of our art assets through 2025 and 2026.
Current wording
In the fourth quarter of 2023, we began the sale of our art assets, and we continued the sale of our art assets in 2025. However, in the second quarter of 2026 we made a decision to cease sales of our artwork.
Previous wording
Since going public in 2021, we have yet to generate year-to-date operating income from our core business operations and have incurred significant operating losses, including $1.6 million of operating losses for the three months ended March 31, 2026. We expect our capital expenditures and working capital requirements in 2026 to be largely consistent with 2025.
Current wording
Since going public in 2021, we have incurred significant operating and net losses. However, during the three and six months ended June 30, 2026, our business performance continued to improve and we generated operating income of $3.0 million and $1.3 million, respectively. We continue to expect our capital expenditures and working capital requirements in 2026 to be largely consistent with 2025.
Previous wording
On August 11, 2025, we entered into Amendment No. 5 to the A&R Credit Agreement (the “A&R Fifth Amendment”). The A&R Fifth Amendment revised the definition of Consolidated EBITDA in the A&R Credit Agreement to allow for $2.4 million of non-cash rent expense related to our Miami Beach office lease to be added back when calculating such Consolidated EBITDA for applicable periods.
Current wording
On August 11, 2025, we entered into Amendment No. 5 (the “A&R Fifth Amendment”) to our amended and restated senior secured credit agreement (the “A&R Credit Agreement”). The A&R Fifth Amendment revised the definition of Consolidated EBITDA in the A&R Credit Agreement to allow for $2.4 million of non-cash rent expense related to our Miami Beach office lease to be added back when calculating such Consolidated EBITDA for applicable periods.
Previous wording
We performed an assessment of the A&R Seventh Amendment, on a lender-by-lender basis, and accounted for the transaction as a debt modification. As a result of the A&R Seventh Amendment, fees of $0.3 million were expensed as incurred and recorded in Other income, net and $0.2 million were capitalized in the first quarter of 2026 as a result of the A&R Seventh Amendment.
Current wording
We performed an assessment of the A&R Seventh Amendment, on a lender-by-lender basis, and accounted for the transaction as a debt modification. As a result of the A&R Seventh Amendment, fees of $0.3 million were expensed as incurred and recorded in Other income for the six months ended June 30, 2026, net and $0.2 million were capitalized in the first quarter of 2026 as a result of the A&R Seventh Amendment.
Previous wording
The stated interest rate of each of the Tranche A and Tranche B term loans under the A&R Credit Agreement (the “A&R Term Loans”) as of March 31, 2026 was 10.02%. The stated interest rate of each of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2025 was 10.08%. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of March 31, 2026 was 2.93% and 5.74%, respectively. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2025 was 3.88% and 6.34%, respectively.
Current wording
The stated interest rate of each of Tranche A and Tranche B of the term loans under the A&R Credit Agreement (the “A&R Term Loans”) as of June 30, 2026 was 10.09%. The stated interest rate of each of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2025 was 10.08%. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of June 30, 2026 was 2.93% and 5.74%, respectively. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2025 was 3.88% and 6.34%, respectively.
Previous wording
Our principal lease commitments are for office space and operations under several noncancelable operating leases with contractual terms expiring through 2033. Some of these leases contain renewal options and rent escalations. As of March 31, 2026 and December 31, 2025, our fixed leases were $20.5 million and $22.2 million, respectively, with $7.3 million and $7.4 million due in the next 12 months, respectively. We also have certain finance lease obligations; however, those are not material to our liquidity or capital resources.
Current wording
Our principal lease commitments are for office space and operations under several noncancelable operating leases with contractual terms expiring through 2033. Some of these leases contain renewal options and rent escalations. As of June 30, 2026 and December 31, 2025, our fixed leases were $21.4 million and $22.2 million, respectively, with $6.9 million and $7.4 million due in the next 12 months, respectively. We also have certain finance lease obligations; however, those are not material to our liquidity or capital resources.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (14)
Current report — wording carried from elsewhere
The increase in income taxes for the three months ended June 30, 2026, as compared to the prior year comparative period, was primarily driven by the change in valuation allowance due to the reduction in net indefinite-lived deferred tax liabilities in the three months ended June 30, 2026.
Current report — wording carried from elsewhere
The following table summarizes key components of our results of operations for the periods indicated (in thousands, except percentages):
Current report — wording carried from elsewhere
The following table sets forth our condensed consolidated statements of operations data expressed as a percentage of total revenue for the periods indicated:
Current report — wording carried from elsewhere
The following table sets forth net revenues by reportable segment (in thousands):
Current report — wording carried from elsewhere
The increase in direct-to-consumer net revenues, compared to the prior year comparative period, was primarily due to continued over-performance of full price Honey Birdette products.
Current report — wording carried from elsewhere
The following table sets forth cost of sales and gross margin by reportable segment (in thousands):
Current report — wording carried from elsewhere
The decrease in all other cost of sales and the corresponding increase in gross margin, compared to the prior year comparative period, was primarily related to the licensing of our digital subscriptions and content operations to Byborg pursuant to the LMA, effective as of January 1, 2025, and the inclusion of transition expenses incurred pursuant to the TSA during the six months ended June 30, 2025, which did not recur in 2026.
Current report — wording carried from elsewhere
The increase in other income, net for the six months ended June 30, 2026, as compared to the prior year comparative period, was primarily due to a $0.5 million fee to vacate a leased store space early in the first quarter of 2026, partially offset by lower net unrealized gains on foreign currency transactions.
Current report — wording carried from elsewhere
The following table reconciles Operating (Loss) Income to Adjusted Operating (Loss) Income by reportable segment (in thousands):
Current report — wording carried from elsewhere
Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Non-GAAP Financial Measures” for descriptions of the adjustments to reconcile net loss to Adjusted EBITDA, certain of which adjustments are listed in the table above and the descriptions used for the reconciliation of net loss to Adjusted EBITDA are also applicable for the table above.
Current report — wording carried from elsewhere
Net Revenues and Gross Margin: Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” for a discussion of changes in net revenues and gross profit in our Direct-to-Consumer segment from 2025 to 2026.
Current report — wording carried from elsewhere
Net Revenues and Gross Margin: Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” for a discussion of changes in net revenues and gross profit in our Licensing segment from 2025 to 2026.
Current report — wording carried from elsewhere
Net Revenues and Gross Margin: Refer to “Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations—Results of Operations” for a discussion of changes from 2025 to 2026 in net revenues and gross profit classified as All Other.
Current report — wording carried from elsewhere
Adjusted Operating Income: The decrease in adjusted operating income, compared to the prior year comparative period, was primarily due to lower amortization of deferred revenue balances that existed as of December 31, 2024 (prior to the LMA effective date of January 1, 2025) that pertain to our previously reported digital subscriptions and content operations.