Playboy, Inc.
For the period ended Jun 30, 2025. Filed Aug 12, 2025.
View on SEC.govAbout this filing
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, 2025 · Filed Aug 12, 2025
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 2025-03-31; filed 2025-05-15.
0001803914-25-000087
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-12.
0001803914-25-000122
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 139 previous paragraphs and 170 current paragraphs.
84 unchanged; 38 reworded; 32 added; 17 removed; 0 previous and 16 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 (32)
Current report
Other Operating (Expense) Income, Net
Current report
The increase in direct-to-consumer net revenues, compared to the prior year comparative period, was due to an increase in Honey Birdette revenue as a result of the continued improvement in consumer perception of the Honey Birdette brand, which resulted in increased sales of both full-price and discounted products.
Current report
The increase in licensing net revenues, compared to the prior year comparative period, was primarily due to $5.0 million of minimum guaranteed royalties recognized pursuant to the LMA, $0.6 million higher revenues from new licensing partners and renegotiated minimum guarantees pursuant to renewal agreements with existing licensees.
Current report
The increase in direct-to-consumer cost of sales, compared to the prior year comparative period, was primarily due to a $0.5 million increase in Honey Birdette’s product, shipping and fulfillment costs due to higher revenues. The increase in gross margin was due to continued improvement in consumer demand at Honey Birdette, increasing sales of both full-price and discounted products at a higher margin.
Current report
The increase in licensing cost of sales and the corresponding decrease in gross margin, compared to the prior year comparative period, were primarily due to a $2.0 million increase in licensing commissions expense, reflecting a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent, as well as a $0.9 million reduction in licensing product costs in the prior year comparative period due to the termination of Playboy’s e-commerce licensing agreement in the second quarter of 2024.
Current report
The increase in impairments for the three months ended June 30, 2025, as compared to the prior year comparative period, was due to impairment charges on our right-of-use assets related to our corporate leases that were $0.9 million higher than in the prior year comparative period.
Current report
Other Operating (Expense) Income , Net
Current report
The change in other operating (expense) income, net for the three months ended June 30, 2025, as compared to the prior year comparative period, was immaterial.
Current report
The change in other income (expense), net for the three months ended June 30, 2025, as compared to the prior year comparative period, was primarily due to unrealized gains and losses related to foreign currency transactions.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Net Revenues
Current report
Selling and administrative expenses for the six months ended June 30, 2025 were consistent with the prior year comparative period, primarily due to a $1.7 million decrease in technology costs, a $1.1 million decrease in depreciation, and a decrease in various professional services of $1.2 million, partly offset by $1.7 million of additional legal expenses related to ongoing material litigation and a $2.0 million increase in personnel costs largely due to severance and related compensation due to the transition of our digital operations into a licensing model.
Current report
Other Operating (Expense) Income, Net
Current report
The change in other operating (expense) income, net, as compared to the prior year comparative period, was primarily due to the write off of certain property, plant and equipment items as a result of our decision to sublease certain of our office space.
Current report
The change in other income (expense), net for the six months ended June 30, 2025, as compared to the prior year comparative period, was primarily due to unrealized gains and losses related to foreign currency transactions.
Current report
Increase in expense from income taxes for the six months ended June 30, 2025, 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, offset by increased foreign income taxes in the six months ended June 30, 2025.
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 will be 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.
Current report
•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.
Current report
•Impairments for the three months ended June 30, 2024 related to impairment charges on our right-of-use assets related to our corporate leases.
Current report
•Impairments for the six months ended June 30, 2024 related to impairment charges on our artwork held for sale and our right-of-use assets related to our corporate leases.
Current report
Non-GAAP Segment Information
Current report
The increase in corporate expenses, compared to the prior year comparative period, was primarily due to a $0.9 million increase in impairment charges on our right-of-use assets related to our corporate leases, a $1.0 million increase in stock-based compensation expense, and $0.4 million increase in payroll expenses.
Current report
The decrease in adjusted corporate expenses, compared to the prior year comparative period, was primarily due to lower insurance cost of $0.3 million and a reduction in rent expense of $0.1 million as a result of cost restructuring.
Current report
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 2024 to 2025 in net revenues and gross profit classified as All Other.
Current report
Adjusted Operating Income: The change from adjusted operating loss to adjusted 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.
Current report
Comparison of the Six Months Ended June 30, 2025 and 2024
Current report
Operating Loss: The decrease in operating loss, compared to the prior year comparative period, was primarily due to a $1.0 million increase in direct-to-consumer gross profit, as a result of improvement in consumer perception of and demand for Honey Birdette products, as well as a reduction in depreciation and amortization expenses of $1.0 million.
Current report
Adjusted Operating Loss: The change in adjusted operating loss, compared to the prior year comparative period, was immaterial.
Current report
Adjusted Operating Income: 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, which will be paid in the third quarter of 2025. There were no adjustments to licensing operating income for the six months ended June 30, 2024, and the change in adjusted operating income was the same as the change in operating income above.
Current report
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 2024 to 2025 in net revenues and gross profit classified as All Other.
Current report
On August 11, 2025, we entered into a fifth amendment of the A&R Credit Agreement. Refer to Note 18, Subsequent Events, of the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q, for further details.
Removed paragraphs (17)
Previous report
Cost of Sales
Previous report
Selling and Administrative Expenses
Previous report
Impairments
Previous report
Other Operating Expense, Net
Previous report
Nonoperating (Expense) Income
Previous report
Interest Expense, Net
Previous report
Other Income (Expense), Net
Previous report
Expense from Income Taxes
Previous report
Cost of Sales
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
•Impairments for the three months ended March 31, 2025 and 2024 related to impairment charges on our artwork held for sale.
Previous report
Segments
Previous report
On December 14, 2024, we entered into a Securities Purchase Agreement with The Million S.a.r.l. (the “Purchaser”), a wholly-owned subsidiary of Byborg, pursuant to which we agreed to sell to the Purchaser 16,956,842 shares of our common stock at a price of $1.50 per share, subject to the approval of such sale and issuance of such shares by our stockholders.
Reworded paragraphs (38)
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, 2025 and 2024 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, 2024 and 2023 and the related notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 13, 2025. 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 13, 2025. As used herein, “we”, “us”, “our”, the “Company”, “PLBY” and “Playboy” refer to PLBY Group, 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, 2025 and 2024 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, 2024 and 2023 and the related notes thereto included in our Annual Report on Form 10-K filed with the SEC on March 13, 2025. 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 13, 2025. As used herein, “we”, “us”, “our”, and the “Company” refer to Playboy, Inc. and its subsidiaries.
Previous wording
We believe that our performance and future success depends on several factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and referenced in this Quarterly Report on Form 10-Q under “Part II—Item 1A. Risk Factors”, and in “Part I—Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K.
Current wording
We believe that our performance and future success depends on several factors that present significant opportunities for us but also pose risks and challenges, including those discussed below and referenced in this Quarterly Report on Form 10-Q under “Part II—Item 1A. Risk Factors”, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 under “Part II—Item 1A. Risk Factors”, and in “Part I—Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K.
Previous wording
The United States recently announced changes to its trade policies, including increasing tariffs on imports, in some cases significantly, and potentially negotiating or terminating existing international trade agreements. These actions have prompted retaliatory tariffs and other measures by a number of countries. 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 we have a locally-based joint venture for the sale of Playboy-branded products in China. 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. Refer to “Part II, Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q for additional information on such risks.
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. 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 we have a locally-based joint venture for the sale of Playboy-branded products in China. 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. Refer to “Part II, Item 1A. Risk Factors” in this Quarterly Report on Form 10-Q and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 for additional information on such risks.
Previous wording
Our licensing revenues from China (including Hong Kong) as a percentage of our total revenues were 11% and 5% for the three months ended March 31, 2025 and 2024, respectively. At the end of the first quarter of 2023, we entered into a joint venture for the Playboy business in China (the “China JV”) with CT Licensing Limited, a brand management unit of Fung Group. The China JV owns and operates the Playboy consumer products business in mainland China, Hong Kong and Macau. In 2024, our China JV stabilized our business in China, and we expect our licensing activity in China to increase slightly in 2025 and continue to represent a modest but meaningful part of our overall business in future periods.
Current wording
Our licensing revenues from China (including Hong Kong) as a percentage of our total revenues were 11% and 12% for the three months ended June 30, 2025 and 2024, respectively, and 11% and 8% for the six months ended June 30, 2025 and 2024, respectively. At the end of the first quarter of 2023, we entered into a joint venture for the Playboy business in China (the “China JV”) with CT Licensing Limited, a brand management unit of Fung Group. The China JV owns and operates the Playboy consumer products business in mainland China, Hong Kong and Macau. In 2024, our China JV stabilized our business in China, and we expect our licensing activity in China to increase slightly in 2025 and continue to represent a modest but meaningful part of our overall business in future periods.
Previous wording
Cost of sales primarily consist of merchandise costs, warehousing and fulfillment costs, agency fees, website expenses, marketplace traffic acquisition costs, digital platform expenses (prior to January 1, 2025), transition expenses per the TSA (commencing January 1, 2025), credit card processing fees, personnel costs, including stock-based compensation, 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, digital platform expenses (prior to January 1, 2025), transition expenses per the TSA (commencing January 1, 2025), credit card processing fees, personnel costs, including stock-based compensation, costs associated with branding events, 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.
Current wording
Impairments consist of the impairments of our artwork held for sale and right-of-use assets related to our corporate leases.
Previous wording
Other operating expense, net consists primarily of losses on disposal of assets and other miscellaneous items.
Current wording
Other operating (expense) income, net consists primarily of losses on disposal of assets and other miscellaneous items.
Previous wording
Interest expense consists of interest on our long-term debt and the amortization of deferred financing costs and debt premium/discount.
Current wording
Interest expense, net consists of interest on our long-term debt and the amortization of deferred financing costs and debt premium/discount.
Previous wording
The decrease in all other cost of sales and gross margin, compared to the comparable prior year 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 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.
Previous wording
The increase in selling and administrative expenses for the three months ended March 31, 2025, as compared to the prior year comparative period, was primarily due to higher severance and employee benefits expense of $2.6 million related to headcount reductions as a result of the transition of our digital operations into a licensing model, higher payroll expense of $1.2 million, most of which related to the Playboy Club digital team that was hired in the second quarter of 2024, and a $0.7 million increase in digital marketing spend related to branding events and sponsorships, partly offset by a $0.5 million decrease in stock-based compensation expense.
Current wording
The decrease in selling and administrative expenses for the three months ended June 30, 2025, as compared to the prior year comparative period, was primarily due to a $1.2 million reduction in technology costs, a $0.9 million decrease in depreciation, a decrease in various professional services of $0.7 million, lower payroll expense of $0.9 million and a $0.3 million decrease in stock-based compensation expense, partly offset by $1.4 million in additional legal expenses related to ongoing material litigation, and severance and employee benefits expense of $0.4 million related to headcount reductions as a result of the transition of our digital operations into a licensing model.
Previous wording
The change in provision for income taxes for the three months ended March 31, 2025, as compared to the prior year comparative period, was primarily due to lower impairment charges on artwork held for sale in the first quarter of 2025, the decrease in foreign taxes and change in valuation allowance due to the reduction in net indefinite-lived deferred tax liabilities in the three months ended March 31, 2025.
Current wording
The increase in income taxes for the three months ended June 30, 2025, 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, offset by increased foreign income taxes in the three months ended June 30, 2025.
Previous wording
The decrease in direct-to-consumer net revenues, compared to the prior year comparative period, was primarily due to a decrease in Honey Birdette revenue as a result of a large sale in March of 2024 that did not recur in March of 2025, as part of the broader initiative to improve margins and consumer perception of the Honey Birdette brand.
Current wording
The decrease in direct-to-consumer net revenues, compared to the prior year comparative period, was primarily due to a decrease in Honey Birdette revenue as a result of a large sale in March of 2024 that did not recur in March of 2025, as part of the broader initiative to improve margins and consumer perception of the Honey Birdette brand, partially offset by an increase in Honey Birdette revenue in the second quarter of 2025 as a result of improved consumer demand for Honey Birdette products.
Previous wording
The increase in licensing net revenues, compared to the prior year comparative period, was primarily due to $5.0 million of minimum guaranteed royalties received pursuant to the LMA, and a $2.2 million increase in minimum guarantees received from other licensing partners, out of which $1.8 million pertained to a licensing agreement with one of our Chinese licensees signed in the second quarter of 2024.
Current wording
The increase in licensing net revenues, compared to the prior year comparative period, was primarily due to $10.0 million of minimum guaranteed royalties recognized pursuant to the LMA, and a $2.8 million increase in minimum guarantees recognized from other licensing partners, out of which $1.8 million pertained to a licensing agreement with one of our Chinese licensees signed in the second quarter of 2024.
Previous wording
The decrease in direct-to-consumer cost of sales and increase in gross margin, compared to the prior year comparative period, was primarily due to a $2.1 million reduction in Honey Birdette’s product, shipping and fulfillment costs due to lower revenue and improved gross margin due to lack of promotional activity in the first quarter of 2025.
Current wording
The decrease in direct-to-consumer cost of sales and the increase in gross profit, compared to the prior year comparative period, was primarily due to a $1.7 million reduction in Honey Birdette’s product, shipping and fulfillment costs due to lower revenue, and improved gross margin was due to reduced promotional activity in the first and second quarters of 2025 as part of the broader initiative to improve margins and consumer perception of the Honey Birdette brand, as well as stronger sales of full-price Honey Birdette products.
Previous wording
The increase in licensing cost of sales was immaterial and the increase in gross margin, compared to the comparable prior year period, was primarily related to higher licensing revenues.
Current wording
The increase in licensing cost of sales and corresponding decrease in gross margin, compared to the comparable prior year period, was primarily due to a $2.3 million increase in licensing commissions expense, reflecting a one-time settlement amount of $2.4 million to pay current and future commissions to a licensing agent, as well as a $0.9 million reduction in licensing product costs in the prior year comparative period due to the termination of Playboy’s e-commerce licensing agreement in the second quarter of 2024.
Previous wording
The decrease in impairments for the three months ended March 31, 2025, as compared to the prior year comparative period, was due to a $2.1 million decrease in impairment charges related to our artwork held for sale.
Current wording
The decrease in impairments for the six months ended June 30, 2025, as compared to the prior year comparative period, was primarily due to a decrease of $2.1 million of impairment charges on our artwork held for sale, partly offset by a $0.9 million increase in impairment charges on our right-of-use assets related to our corporate leases.
Previous wording
In addition to adjusting for non-cash stock-based compensation, non-cash charges for the fair value remeasurements of certain liabilities, non-recurring non-cash impairments and asset write-downs, we typically adjust for non-operating expenses and income, such as nonrecurring special projects, including related consulting expenses, transition expenses, nonrecurring gain or loss on the sale of assets, expenses associated with financing activities, and reorganization and severance expenses that result from the elimination or rightsizing of specific business activities or operations.
Current wording
In addition to adjusting for non-cash stock-based compensation, non-cash charges for the fair value remeasurements of certain liabilities, non-recurring non-cash impairments and asset write-downs, we typically adjust for non-operating expenses and income, such as nonrecurring special projects, including related consulting expenses, transition expenses, settlements, nonrecurring gain or loss on the sale of assets, expenses associated with financing activities, and reorganization and severance expenses that result from the elimination or rightsizing of specific business activities or operations.
Previous wording
•Transition expenses for the three months ended March 31, 2025 represent costs associated with the digital operations licensed to Byborg, solely during the transition period pursuant to the TSA.
Current wording
•Transition expenses for the three and six months ended June 30, 2025 represent costs associated with the digital operations licensed to Byborg, solely during the transition period pursuant to the TSA.
Previous wording
•Severance expenses for the three months ended March 31, 2025 were 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
•Adjustments for the three months ended March 31, 2025 are primarily related to a 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 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 months 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
•Adjustments for the three months ended March 31, 2024 are primarily related to a non-cash fair value change related to contingent liabilities fair value remeasurement with respect to potential shares issuable for the acquisition of GlowUp that remained unsettled as of March 31, 2024, loss on the sale of artwork, consulting, advisory and other costs relating to corporate transactions and other strategic opportunities, 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 months ended June 30, 2024 are related to the non-cash fair value change related to contingent liabilities fair value remeasurement with respect to potential shares issuable for the acquisition of GlowUp Digital, Inc. that remained unsettled as of June 30, 2024, loss on the sale of artwork, consulting, advisory and other costs relating to corporate transactions and other strategic opportunities as well as reorganization and severance costs resulting in the elimination or rightsizing of specific business activities or operations.
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
Operating Loss: The increase in operating loss, compared to the prior year comparative period, was primarily due to a $2.4 million decrease in Honey Birdette’s net revenue as a result of a large sale in March of 2024 that did not recur in March of 2025, as part of the broader initiative to improve margins and consumer perception of the Honey Birdette brand, partly offset by a $2.1 million decrease in Honey Birdette’s product, shipping and fulfillment costs.
Current wording
Operating Loss: The decrease in operating loss, compared to the prior year comparative period, was primarily due to a $2.0 million increase in Honey Birdette’s net revenue as a result of the continued improvement in consumer perception of the Honey Birdette brand, which resulted in increased sales of both full-price and discounted products.
Previous wording
Adjusted Operating Income: The decrease in adjusted operating income, compared to the prior year comparative period, was primarily due to the increase in operating loss discussed above.
Current wording
Adjusted Operating Loss: The decrease in adjusted operating loss, compared to the prior year comparative period, was primarily due to the decrease in operating loss discussed above.
Previous wording
Adjusted Operating Income: There were no adjustments to licensing operating income during the three months ended March 31, 2025 and 2024, and the change in adjusted operating income was the same as the change in operating income above.
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, 2024, and the change in adjusted operating income was the same as the change in operating income above.
Previous wording
Operating Income: The increase in operating income, compared to the prior year comparative period, was primarily due to a $7.0 million increase in licensing gross profit, primarily as a result of higher revenues resulting from the LMA as well as certain other licensing agreements signed in the second quarter of 2024.
Current wording
Operating Income: The increase in operating income, compared to the prior year comparative period, was primarily due to a $9.6 million increase in licensing gross profit, primarily as a result of higher revenues resulting from the LMA, as well as certain other licensing agreements signed in the second quarter of 2024.
Previous wording
The decrease in corporate expenses, compared to the prior year comparative period, was primarily due to an increase in severance and employee benefits expense of $1.2 million related to headcount reductions as a result of the licensing of the operations of our digital businesses, a $1.1 million increase in payroll expenses, partly offset by a $2.1 million decrease in impairment charges on our artwork held for sale and a $0.5 million decrease in stock-based compensation expense.
Current wording
The increase in corporate expenses, compared to the prior year comparative period, was primarily due to an increase in severance and employee benefits expense of $1.3 million related to headcount reductions as a result of the licensing of the operations of our digital businesses, a $0.9 million increase in impairment charges on our right-of-use assets related to our corporate leases, a $1.4 million increase in payroll expenses, and a $0.5 million increase in stock-based compensation expense, partly offset by a $2.1 million decrease in impairment charges on our artwork held for sale.
Previous wording
The increase in adjusted corporate expenses, compared to the prior year comparative period, was primarily due to expenses associated with Playboy magazine, events and sponsorships in the first quarter of 2025 that did not occur in the prior year comparative period.
Current wording
The increase in adjusted corporate expenses, compared to the prior year comparative period, was primarily due to expenses associated with Playboy magazine, events and sponsorships in 2025 that did not occur in the prior year comparative period.
Previous wording
Operating Loss: The increase in operating loss, compared to the prior year comparative period, was due to the transition of our digital operations into a licensing model pursuant to the LMA and inclusion of $3.8 million of transition expenses pursuant to the TSA, which are expected to continue through the second quarter of 2025.
Current wording
Operating Loss: The increase in operating loss, compared to the prior year comparative period, was due to the transition of our digital operations into a licensing model pursuant to the LMA and inclusion of $5.0 million of transition expenses pursuant to the TSA.
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, 2025, our principal source of liquidity was cash in the amount of $23.7 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, 2025, our principal source of liquidity was cash in the amount of $19.6 million, which is primarily held in operating and deposit accounts.
Previous wording
Since going public in 2021, we have yet to generate operating income from our core business operations and have incurred significant operating losses, including $6.3 million of operating losses for the quarter ended March 31, 2025. We expect our capital expenditures and working capital requirements in 2025 to be largely consistent with 2024.
Current wording
Since going public in 2021, we have yet to generate operating income from our core business operations and have incurred significant operating losses, including $12.1 million of operating losses for the six months ended June 30, 2025. We expect our capital expenditures and working capital requirements in 2025 to be largely consistent with 2024.
Previous wording
The stated interest rate of each Tranche A and Tranche B as of March 31, 2025 was 10.65%. The stated interest rate of each Tranche A and Tranche B as of December 31, 2024 was 11.01%. The effective interest rate of Tranche A and Tranche B as of March 31, 2025 was 0.74% and 4.60%, respectively. The effective interest rate of Tranche A and Tranche B as of December 31, 2024 was 1.05% and 4.93%, respectively.
Current wording
The stated interest rate of each of Tranche A and Tranche B of the A&R Term Loans as of June 30, 2025 was 10.69%. The stated interest rate of each of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2024 was 11.01%. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of June 30, 2025 was 0.77% and 4.64%, respectively. The effective interest rate of Tranche A and Tranche B of the A&R Term Loans as of December 31, 2024 was 1.05% and 4.93%, respectively.
Previous wording
Our principal lease commitments are for office space and operations under several noncancellable operating leases with contractual terms expiring through 2033. Some of these leases contain renewal options and rent escalations. As of March 31, 2025 and December 31, 2024, our fixed leases were $24.0 million and $25.5 million, respectively, with $6.7 million and $6.6 million due in the next 12 months, respectively. For further information on our lease obligations, refer to Note 12, Commitments and Contingencies, of the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
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, 2025 and December 31, 2024, our fixed leases were $23.3 million and $25.5 million, respectively, with $7.0 million and $6.6 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. For further information on our lease obligations, refer to Note 12, Commitments and Contingencies, of the Notes to our Condensed Consolidated Financial Statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
The decrease in net cash used in operating activities from continuing operations for the three months ended March 31, 2025, compared to the prior year comparable period, was primarily due to a reduction in net loss of $7.4 million, partly offset by changes in assets and liabilities that had a current period cash flow impact, such as changes in working capital of $3.6 million, and changes in non-cash charges of $8.8 million. The change in assets and liabilities as, compared to the prior year comparable period, was primarily driven by a $5.4 million increase in other liabilities and accrued expenses and a $3.4 million increase in accounts payable due to the timing of payments, a $1.3 million decrease in accounts receivable due to the timing of royalty collections and a $1.2 million increase in operating lease liabilities, partly offset by a $3.9 million decrease in deferred revenues due to the timing of direct-to-consumer order shipments and a $3.1 million change in inventories, net due to higher inventory turnover in the prior year comparative period as a result of a large sale in March 2024 that did not recur in March 2025. The change in non-cash charges, compared to the change in the prior year comparable period, was primarily driven by a $3.3 million decrease in the amortization of debt premium/discount and issuance costs due to the A&R Third Amendment, the $2.1 million decrease in the impairment of our artwork held for sale, a $1.1 million decrease in stock-based compensation expense, a $1.2 million decrease in the amortization of right-of-use assets, and a $1.0 million decrease in depreciation and amortization, primarily due to the write-off of our internally developed software in 2024.
Current wording
The decrease in net cash used in operating activities for the six months ended June 30, 2025, compared to the prior year comparable period, was primarily due to a reduction in net loss of $16.4 million, partly offset by changes in assets and liabilities that had a current period cash flow impact, such as $4.2 million of net changes in working capital and $10.9 million of changes in non-cash charges. The change in assets and liabilities, as compared to the prior year comparable period, was primarily driven by a $7.9 million decrease in deferred revenues primarily due to the timing of revenue recognition, a $3.1 million decrease in accounts payable due to the timing of payments, a $1.7 million lower decrease in inventories, net due to higher inventory turnover in the prior year comparative period as a result of a large sale in March 2024 that did not recur in 2025, a $1.3 million increase in contract assets primarily due to the nonrecurring impairment, modification or termination of certain trademark licensing contracts in the prior year comparative period, and a $1.6 million decrease in other assets and liabilities, partly offset by a $4.9 million decrease in other liabilities and accrued expenses, a $2.5 million increase in accrued agency fees and commissions primarily due to the accrual of a one-time settlement to pay current and future commissions to a licensing agent, a $2.3 million decrease in accounts receivable due to the timing of royalty collections, and a $1.7 million increase in operating lease liabilities. The change in non-cash charges, compared to the change in the prior year comparable period, was primarily driven by a $6.8 million decrease in the amortization of debt premium/discount and issuance costs due to the A&R Third Amendment, a $2.7 million decrease in depreciation and amortization, primarily due to the write-off of our internally developed software in 2024, a $1.5 million decrease in amortization of right-of-use assets, a $1.5 million decrease in stock-based compensation expense, and a $1.2 million decrease in impairment charges on our artwork held for sale and right of use assets related to our corporate leases, partly offset by a $1.8 million increase in capitalized paid-in-kind interest.
Previous wording
The decrease in net cash used in investing activities for the three months ended March 31, 2025, compared to the prior year comparable period, was primarily due to a $0.6 million decrease in purchases of property and equipment.
Current wording
The decrease in net cash provided by investing activities for the six months ended June 30, 2025, compared to the prior year comparable period, was primarily due to a $1.3 million decrease in proceeds from the sale of our artwork, partly offset by a $0.8 million decrease in purchases of property and equipment.
Previous wording
The decrease in net cash used in financing activities for the three months ended March 31, 2025, compared to the prior year comparable period, was immaterial.
Current wording
The decrease in net cash used in financing activities for the six months ended June 30, 2025, compared to the prior year comparable period, was immaterial.
Previous wording
For the quarter ended March 31, 2025, there were no material changes to our contractual obligations from December 31, 2024, as disclosed in our audited consolidated financial statements included in our Annual Report on Form 10-K filed on March 13, 2025.
Current wording
For the six months ended June 30, 2025, there were no material changes to our contractual obligations from December 31, 2024, as disclosed in our audited consolidated financial statements included in our Annual Report on Form 10-K filed on March 13, 2025.
Previous wording
During the three months ended March 31, 2025, there were no material changes to our critical accounting estimates or in the methodology used for estimates from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K filed with the SEC on March 13, 2025.
Current wording
During the six months ended June 30, 2025, there were no material changes to our critical accounting policies or in the methodology used for estimates from those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K filed with the SEC on March 13, 2025.
Rearranged current paragraphs (16)
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
Corporate revenues for the six months ended June 30, 2025 related to corporate branding, including Playboy magazine and sponsorship events.
Current report — wording carried from elsewhere
The decrease in all other net revenues, compared to the prior year comparative period, was primarily due to the licensing of our digital subscriptions and content operations to Byborg pursuant to the LMA, effective as of January 1, 2025. As a result, our previously reported Digital Subscriptions and Content operating and reportable segment was eliminated and its operations in the prior year comparative period were recast to be included in “All Other” for comparative purposes. “All Other” net revenues for the six months ended June 30, 2025 related to the 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 previously reported digital subscriptions and content operations.
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
Corporate gross profit during the six months ended June 30, 2025, which was from our relaunch of Playboy magazine and sponsorship events, was immaterial. There were no activities related to Playboy magazine and sponsorship events in the prior year comparative period.
Current report — wording carried from elsewhere
The decrease in all other cost of sales and gross margin, compared to the comparable prior year 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.
Current report — wording carried from elsewhere
The decrease in interest expense, net for the six months ended June 30, 2025, as compared to the prior year comparative period, was primarily due to a reduction of our debt balance and amortization of debt premium in connection with the A&R Third Amendment.
Current report — wording carried from elsewhere
Comparison of the Three Months Ended June 30, 2025 and 2024
Current report — wording carried from elsewhere
Operating Income: The increase in operating income, compared to the prior year comparative period, was primarily due to a $2.7 million increase in licensing gross profit, primarily as a result of higher revenues resulting from the LMA as well as certain other licensing agreements signed in the second quarter of 2024, partly offset by a $1.3 million increase in legal expenses.
Current report — wording carried from elsewhere
Operating Loss: The decrease in operating loss, compared to the prior year comparative period, 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.
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 2024 to 2025.
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 2024 to 2025.