A.K.A. BRANDS HOLDING CORP.

Previous wording

For the six months ended June 30, 2026, net cash provided by operating activities increased by $8.7 million compared to net cash provided by operating activities for the six months ended June 30, 2025. This was attributable primarily to the receipt of IEEPA tariff refunds offset by increased inventory purchases and timing of payments.

Current wording

For the nine months ended September 30, 2026, net cash provided by operating activities increased by $1.5 million compared to net cash provided by operating activities for the nine months ended September 30, 2025. This was attributable primarily to the receipt of IEEPA tariff refunds and timing of payments partially offset by increased inventory purchases.

Previous wording

For the six months ended June 30, 2026, Free Cash Flow increased by $9.7 million compared to Free Cash Flow for the six months ended June 30, 2025. This was attributable primarily to the receipt of IEEPA tariff refunds and less capital expenditures related to opening new stores, compared to the prior year, offset by increased inventory purchases and timing of payments.

Current wording

For the nine months ended September 30, 2026, Free Cash Flow increased by $2.0 million compared to Free Cash Flow for the nine months ended September 30, 2025. This was attributable primarily to the receipt of IEEPA tariff refunds, timing of payments and less capital expenditures related to opening new stores, compared to the prior year, offset by increased inventory purchases.

Previous wording

The macroeconomic environment in which we operate impacts consumer behavior and may have a significant impact on our business. While positive conditions in the economy generally promote customer spending on our sites and in our stores, any economic weakness can result in a reduction of customer spending and have a significant negative impact on our results of operations. Specifically, many of our products may be viewed as discretionary items rather than necessities. Consequently, our results of operations tend to be sensitive to changes in the macroeconomic environment that impact consumer discretionary spending. Macroeconomic factors that could cause significant negative impacts on our results of operations include, but are not limited to: inflationary pressures on consumers globally and on our supply chain; elevated interest rates; employment rates; business conditions; changes in the housing market; changes in stock markets; adverse developments affecting the financial services industry; the availability of credit, both for us and for our customers; foreign currency exchange rates; fuel, energy and raw materials costs; supply chain challenges; wars and geopolitical tensions; and the effects of tariffs and other trade policies. In February 2026, the U.S. Supreme Court struck down certain tariffs imposed under IEEPA, following which the administration imposed a 10% global tariff under Section 122 of the Trade Act of 1974. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels and whether further additional tariffs or other retaliatory actions may be imposed, modified or suspended.

Current wording

The macroeconomic environment in which we operate impacts consumer behavior and may have a significant impact on our business. While positive conditions in the economy generally promote customer spending on our sites and in our stores, any economic weakness can result in a reduction of customer spending and have a significant negative impact on our results of operations. Specifically, many of our products may be viewed as discretionary items rather than necessities. Consequently, our results of operations tend to be sensitive to changes in the macroeconomic environment that impact consumer discretionary spending. Macroeconomic factors that could cause significant negative impacts on our results of operations include, but are not limited to: inflationary pressures on consumers globally and on our supply chain; elevated interest rates; employment rates; business conditions; changes in the housing market; changes in stock markets; adverse developments affecting the financial services industry; the availability of credit, both for us and for our customers; foreign currency exchange rates; fuel, energy and raw materials costs; supply chain challenges; wars and geopolitical tensions; and the effects of tariffs and other trade policies. In February 2026, the U.S. Supreme Court struck down certain tariffs imposed under IEEPA, following which the administration imposed a 10% global tariff under Section 122 of the Trade Act of 1974. The Section 122 tariffs expired on July 24, 2026 following the 150-day statutory period, and additional tariffs were imposed effective the same day under Section 301 of the Trade Act of 1974, which currently apply to substantially all of our imports at rates of 12.5%. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels and whether further additional tariffs or other retaliatory actions may be imposed, modified or suspended.

Previous wording

Net sales decreased by $0.5 million for the three months ended June 30, 2026 as compared to the same period in 2025. The decrease in net sales was primarily driven by a decrease in the number of orders we processed in the three months ended June 30, 2026 compared to the same period in 2025, which was driven by lower demand in Australia and New Zealand. On a constant currency basis, net sales and average order value for the three months ended June 30, 2026 would have each decreased 5%, compared to the same period in 2025.

Current wording

Net sales increased by $14.3 million, or 10%, for the three months ended September 30, 2026 as compared to the same period in 2025. The increase in net sales was primarily driven by a 13% increase in the number of orders we processed partially offset by a 3% decrease in the average order value in the three months ended September 30, 2026 compared to the same period in 2025. On a constant currency basis, net sales increased 8% and average order value decreased 5% for the three months ended September 30, 2026, compared to the same period in 2025.

Previous wording

Gross profit increased by $5.5 million, or 6%, for the three months ended June 30, 2026 compared to the same period in 2025. This increase as well as the increase to gross margin were primarily driven by lower tariff rates and the improved full price selling on our streetwear brands.

Current wording

Gross profit increased by $10.0 million, or 11%, for the three months ended September 30, 2026 compared to the same period in 2025 primarily due to the 10% increase in net sales. The increase to gross margin was primarily driven by improved full price selling on our streetwear brands, partially offset by higher inbound freight costs.

Previous wording

Selling expenses increased by $2.4 million, or 5%, for the three months ended June 30, 2026, as compared to the same period in 2025. This increase, as well as the increase in selling expenses as a percentage of net sales, was driven by the opening of additional stores.

Current wording

Selling expenses increased by $9.1 million, or 21%, for the three months ended September 30, 2026, as compared to the same period in 2025. This increase was primarily driven by $5.3 million in costs for relocation of our distribution center to Ohio, as well as the 10% increase in net sales for thethree months ended September 30, 2026, as compared to the same period in 2025. The increase in selling expenses as a percentage of net sales was primarily driven by the increase in costs for relocation of our distribution center to Ohio.

Previous wording

Benefit from (provision for) income taxes changed by$0.1 million for the three months ended June 30, 2026 compared to the same period in 2025. This change was primarily due to a reduction in projected full-year pre-tax income in the U.S. in the current year, compared to a projected full-year pre-tax loss in the same period in 2025.

Current wording

Provision for income taxes changed by$0.7 million for the three months ended September 30, 2026 compared to the same period in 2025. This change was primarily due to tax adjustments related to amended tax returns recorded in the same period in 2025, which did not recur in the current period.

Previous wording

Comparison of the Six Months Ended June 30, 2026 and 2025

Current wording

Comparison of the Nine Months Ended September 30, 2026 and 2025

Previous wording

Net sales increased by $3.4 million, or 1%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase in net sales was primarily driven by a 2% increase in the number of orders we processed in 2026 compared to 2025. On a constant currency basis, net sales and average order value for the six months ended June 30, 2026 would have decreased 3% and 4%, respectively, compared to 2025.

Current wording

Net sales increased by $17.6 million, or 4%, for the nine months ended September 30, 2026 compared to the same period in 2025. The increase in net sales was primarily driven by a 5% increase in the number of orders we processed partially offset by a 1% decrease in average order value in the nine months ended September 30, 2026 compared to the same period in 2025. On a constant currency basis, net sales and average order value for the nine months ended September 30, 2026 would have increased by 1.7% and decreased by 3.2%, respectively, compared to 2025.

Previous wording

Gross profit increased by $15.5 million, or 9%, for the six months ended June 30, 2026 compared to the same period in 2025. This increase was primarily driven by lower current year tariff rates, the improved full price selling on our streetwear brands, and a $16.5 million benefit from tariff refunds related to prior periods; partially offset by a $12.0 million write-off of streetwear inventory as we fully transition to our test-and-repeat model. Gross margin increased primarily due to the impact from lower current year tariff rates and an improved inventory position.

Current wording

Gross profit increased by $25.4 million, or 10%, for the nine months ended September 30, 2026 compared to the same period in 2025. This increase was primarily driven by the 4% increase in net sales, a $16.5 million benefit from tariff refunds related to prior periods, partially offset by a $12.0 million write-off of streetwear inventory as we fully transition to our test-and-repeat model. Gross margin increased primarily due to improved full-price selling on our streetwear brands and the impact of the tariff refunds related to prior periods, partially offset by the streetwear inventory write-off.

Previous wording

Selling expenses increased by $5.2 million, or 6%, for the six months ended June 30, 2026 compared to the same period in 2025. This increase was driven by the opening of additional stores, as well as the 1% increase in net sales for the six months ended June 30, 2026. The increase in selling expenses as a percentage of net sales was primarily due to the opening of additional stores.

Current wording

Selling expenses increased by $14.3 million, or 11%, for the nine months ended September 30, 2026 compared to the same period in 2025. This increase was primarily driven by the 4% increase in net sales for the nine months ended September 30, 2026, $6.0 million in costs for relocation of our distribution center to Ohio, and the opening of additional stores . The increase in selling expenses as a percentage of net sales was primarily due to the increase in costs for relocation of our distribution center to Ohio and the opening of additional stores.

Previous wording

General and administrative expenses increased by $4.3 million, or 8%, for the six months ended June 30, 2026 compared to the same period in 2025. The increase was primarily driven by a $2.3 million increase in wages and incentive compensation expenses, a $1.6 million increase in information technology expenses and a $1.5 million increase in non-routine legal expenses partially offset by a $0.8 million decrease in office related expenses, and a $0.2 million decrease in travel and entertainment expenses. The increase in general and administrative expenses as a percentage of net sales was primarily due to the increase in wages and incentive compensation expenses and information technology expenses.

Current wording

General and administrative expenses increased by $5.3 million, or 7%, for the nine months ended September 30, 2026 compared to the same period in 2025. The increase was primarily driven by a $2.7 million increase in information technology expenses, largely related to software subscriptions and cloud hosting associated with our artificial intelligence initiatives and a $2.4 million increase in wages and incentive compensation expenses. The increase in general and administrative expenses as a percentage of net sales was primarily due to the increase in information technology expenses and wages and incentive compensation expenses.

Previous wording

Other expense decreased by$1.8 million, or 30%, for the six months ended June 30, 2026 compared to the same period in 2025 primarily due to $1.0 million increase in interest income from IEEPA tariff refunds, lower interest expense from a decrease in our long-term debt balance and interest rates and the impact of foreign currency. The decrease in other expense as a percentage of net sales was primarily due to interest income from IEEPA tariff refunds and the decrease in our long-term debt balance and interest rates.

Current wording

Other expense decreased by$1.1 million, or 12%, for the nine months ended September 30, 2026 compared to the same period in 2025 primarily due to $1.0 million increase in interest income from IEEPA tariff refunds, lower interest expense from a decrease in our long-term debt balance and interest rates and the impact of foreign currency.

Previous wording

Provision for income taxes changed by $0.1 million for the six months ended June 30, 2026 compared to the same period in 2025. This change was primarily due to projected taxable income in the U.K. and New Zealand in the current year.

Current wording

Provision for income taxes changed by $0.6 million for the nine months ended September 30, 2026 compared to the same period in 2025. This change was primarily due to tax adjustments related to amended tax returns recorded in the same period in 2025, which did not recur in the current period.

Previous wording

As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents totaling $21.1 million, our revolving line of credit and our term loan accordion provision.

Current wording

As of September 30, 2026, our principal sources of liquidity were cash and cash equivalents totaling $15.6 million, our revolving line of credit and our term loan accordion provision.

Previous wording

During the six months ended June 30, 2026, net cash used in investing activities decreased by $1.0 million, as compared to the same period in 2025. This was attributable to less capital expenditures related to opening new stores compared to the prior year.

Current wording

During the nine months ended September 30, 2026, net cash used in investing activities decreased by $0.5 million, as compared to the same period in 2025. This was attributable to less capital expenditures related to opening new stores compared to the prior year.

Previous wording

During the six months ended June 30, 2026, net cash used in financing activities increased by $8.1 million, as compared to the same period in 2025. This was primarily attributable to no borrowings on our line of credit in 2026, as compared to the prior period.

Current wording

During the nine months ended September 30, 2026, net cash used in financing activities increased by $6.9 million, as compared to the same period in 2025. This was primarily attributable to the decrease in net borrowings on our line of credit in 2026, as compared to the prior period.

Previous wording

During the three and six months ended June 30, 2026, no shares were repurchased under the Share Repurchase Program.

Current wording

During the three and nine months ended September 30, 2026, no shares were repurchased under the Share Repurchase Program.