A.K.A. BRANDS HOLDING CORP.
For the period ended Sep 30, 2025. Filed Nov 5, 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.
Sep 30, 2025 · Filed Nov 5, 2025
AKA$9.99-0.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-06-30; filed 2025-08-06.
0001865107-25-000059
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-30; filed 2025-11-05.
0001865107-25-000072
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 123 previous paragraphs and 126 current paragraphs.
91 unchanged; 26 reworded; 9 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 23 previous and 23 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 (9)
Current report
Gross profit was flat for the three months ended September 30, 2025 compared to the same period in 2024. Gross margin as a percentage of net sales increased primarily due to the impact from a higher mix of retail stores, which have higher margins, and less promotional activity in the current period.
Current report
Other Expense
Current report
(Provision for) benefit from Income Taxes
Current report
Marketing expenses increased by$1.2 million, or 2%, for the nine months ended September 30, 2025 compared to the same period in 2024.
Current report
Other Expense
Current report
Total other expense for the nine months ended September 30, 2025 was flat compared to 2024.
Current report
On October 14, 2025, we entered into an Amended and Restated Syndicated Facility Agreement (the “Amended and Restated Credit Agreement”), which amends and restates in its entirety the Credit Agreement. The Amended and Restated Credit Agreement amends and restates the Credit Agreement to, among other things, (i) establish revolving credit facility commitments in an aggregate principal amount of $35.3 million (ii) establish term loans in an aggregate principal amount of $85.0 million, (iii) adjust the pricing stepdowns related to the interest rate on the Term SOFR Loans, Base Rate Loans and BBSY Loans (each as defined in the Amended and Restated Credit Agreement) after delivery of a compliance certificate for the fiscal year ending December 31, 2025 and (iv) resize baskets within certain negative covenants based on a Consolidated EBITDA (as defined in the Amended and Restated Credit Agreement) of $35.2 million.
Current report
The Amended and Restated Credit Agreement extends the maturity date of (i) the revolving credit facility commitments to October 14, 2028 and (ii) the term loans to October 14, 2028. We are required to make mandatory amortization payments in respect of the term loans in an amount equal to (a) commencing with the fiscal quarter ending on December 31, 2025 and until the fiscal quarter ending on December 31, 2027, a principal amount of term loans equal to the aggregate outstanding principal amount of term loans made on the date of the execution of the Amended and Restated Credit Agreement, multiplied by 1.875% and (b) commencing with the fiscal quarter ending on March 31, 2028, a principal amount of term loans equal to the aggregate outstanding principal amount of term loans made on the date of the execution of the Amended and Restated Credit Agreement, multiplied by 2.50%.
Current report
The obligations under the Amended and Restated Credit Agreement continue to be (a) jointly and severally guaranteed by the guarantors under the senior secured credit facility, including the Company, and any future subsidiaries that execute a joinder to the guaranty and related collateral agreements and (b) secured by a first priority lien on substantially all of our assets, subject to certain customary exceptions. In addition, the Amended and Restated Credit Agreement contains customary non-financial covenants limiting, among other things, mergers and acquisitions; investments, loans and advances; affiliate transactions; changes to capital structure and the business; additional indebtedness; additional liens; the payment of dividends; and the sale of assets, in each case, subject to certain customary exceptions. The Amended and Restated Credit Agreement contains customary events of default, including payment defaults, breaches of representations and warranties, covenant defaults, defaults under other material debt, events of bankruptcy and insolvency, failure of any guaranty or security document to be in full force and effect, and a change of control of the business.
Removed paragraphs (6)
Previous report
Gross profit increased by $6.4 million, or 7%, for the three months ended June 30, 2025 compared to the same period in 2024. This increase was primarily due to the 8% increase in net sales for the three months ended June 30, 2025, as compared to the same period in 2024. Gross margin was flat for the three months ended June 30, 2025, as compared to the same period in 2024. There was an increase in tariffs and duties during the current period, as compared to the same period in 2024, but the impact was partially offset by more full-price selling in the current period.
Previous report
Other Expense, Net
Previous report
Total other expense, net increased by $0.7 million, or 29%, for the three months ended June 30, 2025 compared to the same period in 2024, primarily due to losses on disposals of screen print equipment.
Previous report
Marketing expenses increased by$1.9 million, or 6%, for the six months ended June 30, 2025 compared to the same period in 2024. Marketing expenses as a percentage of net sales was flat for the six months ended June 30, 2025, as compared to the same period in 2024.
Previous report
Other Expense, Net
Previous report
Provision For Income Taxes
Reworded paragraphs (26)
Previous wording
1 Non-routine items include severance from headcount reductions, one time supply chain sourcing costs and sales tax penalties for the three and six months ended June 30, 2025. Non-routine items include severance from headcount reductions, sales tax penalties and insured losses, net of recoveries for the three and six months ended June 30, 2024.
Current wording
1 Non-routine items include severance from headcount reductions, one time supply chain sourcing costs and sales tax penalties for the three and nine months ended September 30, 2025. Non-routine items include severance from headcount reductions, sales tax penalties and insured losses, net of recoveries for the three and nine months ended September 30, 2024.
Previous wording
For the six months ended June 30, 2025, net cash used in operating activities decreased by $14.2 million compared to net cash used in operating activities for the six months ended June 30, 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, as net sales grew by 9%.
Current wording
For the nine months ended September 30, 2025, net cash provided by operating activities increased by $21.1 million compared to net cash used in operating activities for the nine months ended September 30, 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, as net sales grew by 5% as well as an increase in lease incentive payments received.
Previous wording
For the six months ended June 30, 2025, Free Cash Flow increased by $9.0 million compared to Free Cash Flow for the six months ended June 30, 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, partially offset by additional capital expenditures related to new stores, to support growth in the U.S.
Current wording
For the nine months ended September 30, 2025, Free Cash Flow increased by $16.4 million compared to Free Cash Flow for the nine months ended September 30, 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, as well as an increase in lease incentive payments received, partially offset by additional capital expenditures related to new stores, to support growth in the U.S.
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. For example, in the first half of 2025, the U.S. administration increased, at times, the aggregate tariff and duty levels for imported Chinese goods to greater than 150%, but have come down to the range of 50-60%. As of June 30, 2025, the U.S. administration and Chinese officials continue to work towards a trade deal, but additional tariff and/or duty increases could be imposed as trade tensions between the two countries evolve. Tariffs on Chinese goods have an acute effect on our cost of goods sold, as a substantial majority of our products are imported from China. While we are in the process of evaluating and enacting measures to mitigate the effect of the tariffs and duties on our results of operations, including sourcing products from sources located outside of China and proportional increases to the prices of our products, there are countervailing considerations that may prevent us from fully mitigating the effects, such as the cost of goods from sources located outside of China and customer attraction and retention considerations. Further, sourcing products from new suppliers might result in significant expenses, including brokerage fees, the purchase prices for designs owned by our existing suppliers and termination fees for our arrangements with our existing suppliers, and may result in higher costs of goods, all of which could reduce our gross margin and otherwise materially and adversely affect our results of operations. Additionally, the products we purchase from our new suppliers may be of lesser quality as compared to the products we purchase from our current suppliers and shipping times may be longer, each of which may have a material and adverse effect on our operations and, therefore, our results of opera…
Excerpt shortened here; the source contains the full paragraph.
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. For example, in the first half of 2025, the U.S. administration increased, at times, the aggregate tariff and duty levels for imported Chinese goods to greater than 150%. Such aggregate tariff and duty levels have since come down to the range of 50-60%. Tariffs on Chinese goods have an acute effect on our cost of goods sold, as a substantial majority of our products are imported from China. While we are in the process of evaluating and enacting measures to mitigate the effect of the tariffs and duties on our results of operations, including sourcing products from sources located outside of China and proportional increases to the prices of our products, there are countervailing considerations that may prevent us from fully mitigating the effects, such as the cost of goods from sources located outside of China and customer attraction and retention considerations. Further, sourcing products from new suppliers might result in significant expenses, including brokerage fees, the purchase prices for designs owned by our existing suppliers and termination fees for our arrangements with our existing suppliers, and may result in higher costs of goods, all of which could reduce our gross margin and otherwise materially and adversely affect our results of operations. Additionally, the products we purchase from our new suppliers may be of lesser quality as compared to the products we purchase from our current suppliers and shipping times may be longer, each of which may have a material and adverse effect on our operations and, therefore, our results of operations. We may experience inventory shortages while we identify, transition to and onboard new suppliers, which may lead to decreased sales and material and adverse effects on our …
Excerpt shortened here; the source contains the full paragraph.
Previous wording
Net sales increased by $11.6 million, or 8%, for the three months ended June 30, 2025 as compared to the same period in 2024. The increase in net sales was primarily driven by a 7% increase in the number of orders we processed in the three months ended June 30, 2025 compared to the same period in 2024, which was driven by demand growth in the U.S. On a constant currency basis, net sales and average order value for the three months ended June 30, 2025 would have increased 9% and 3%, respectively, compared to the same period in 2024.
Current wording
Net sales decreased by $2.8 million, or 2%, for the three months ended September 30, 2025 as compared to the same period in 2024. The decrease in net sales was primarily driven by a 4% decrease in the average order value that was partially offset by a 2% increase in the number of orders we processed in the three months ended September 30, 2025 compared to the same period in 2024, which was driven by demand growth in Australia and New Zealand. On a constant currency basis, net sales and average order value for the three months ended September 30, 2025 would have decreased 3% and 5%, respectively, compared to the same period in 2024.
Previous wording
Cost of sales increased by$5.2 million, or 8%, for the three months ended June 30, 2025 compared to the same period in 2024. This increase was primarily due to the 8% increase in net sales for the three months ended June 30, 2025, as compared to the same period in 2024. Cost of sales as a percentage of net sales was flat for the three months ended June 30, 2025, as compared to the same period in 2024. There was an increase in tariffs and duties during the current period, as compared to the same period in 2024, but the impact was partially offset by more full-price selling in the current period.
Current wording
Cost of sales decreased by$2.9 million, or 5%, for the three months ended September 30, 2025 compared to the same period in 2024. This decrease was due to the 2% decrease in net sales for the three months ended September 30, 2025, as compared to the same period in 2024, a higher mix of retail stores, targeted price increases and less promotional activity. Partially offsetting these factors was the impact of higher tariffs and duties net of duty drawback. The decrease in cost of sales as a percentage of net sales was primarily due to the impact from a higher mix of retail stores, which have higher margins, and less promotional activity in the current period.
Previous wording
Selling expenses increased by $4.2 million, or 10%, for the three months ended June 30, 2025, as compared to the same period in 2024. This increase was driven by the opening of additional stores, as well as the 8% increase in net sales for the three months ended June 30, 2025, as compared to the same period in 2024. Selling expenses as a percentage of net sales was flat for the three months ended June 30, 2025, as compared to the same period in 2024.
Current wording
Selling expenses increased by $1.3 million, or 3%, for the three months ended September 30, 2025, as compared to the same period in 2024. This increase, as well as the increase in selling expenses as a percentage of net sales, was driven by the opening of additional stores.
Previous wording
Marketing expenses increased by$1.6 million, or 9%, for the three months ended June 30, 2025, as compared to the same period in 2024. Marketing expenses as a percentage of net sales was flat for the three months ended June 30, 2025, as compared to the same period in 2024.
Current wording
Marketing expenses decreased by$0.8 million, or 4%, for the three months ended September 30, 2025, as compared to the same period in 2024. Marketing expenses as a percentage of net sales was flat for the three months ended September 30, 2025, as compared to the same period in 2024.
Previous wording
General and administrative expenses increased by $1.7 million, or 6%, for the three months ended June 30, 2025, as compared to the same period in 2024. This increase was due to a $0.7 million increase in wages and incentive compensation expense, a $0.6 million increase in non-routine legal matters and a $0.4 million increase in professional fees. General and administrative expenses as a percentage of net sales was flat for the three months ended June 30, 2025, as compared to the same period in 2024.
Current wording
General and administrative expenses decreased by $1.1 million, or 4%, for the three months ended September 30, 2025, as compared to the same period in 2024. This decrease was due to a $2.3 million decrease in non-routine legal expenses, a $0.5 million decrease in insurance expenses and a $0.4 million decrease in non-recurring penalties. Partially offsetting these decreases was a $1.0 million increase in headcount to support omnichannel growth and severance expense, a $0.7 million increase in professional and administrative fees and a $0.3 million increase in information technology fees. The decrease in general and administrative expenses as a percentage of net sales was primarily due to the decrease in non-routine legal expenses.
Previous wording
Other expense, net increased by $0.8 million, or 16%, for the six months ended June 30, 2025 compared to the same period in 2024, primarily due to higher interest expense from an increase in short term borrowings and losses on disposals of screen print equipment.
Current wording
Total other expense decreased by $0.8 million, or 23%, for the three months ended September 30, 2025 compared to the same period in 2024, primarily due to the impact of foreign currency and lower interest expense from a decrease in our long-term debt balance and interest rates.
Previous wording
Provision for income taxes changed by$0.5 million for the three months ended June 30, 2025 compared to the same period in 2024. This change was due to a decrease in the taxable income in the United States.
Current wording
(Provision for) benefit from income taxes changed by$1.0 million for the three months ended September 30, 2025 compared to the same period in 2024. This change was due to current tax expense as a result of amended tax amounts owed in relation to the acquisition of mnml.
Previous wording
Comparison of the Six Months Ended June 30, 2025 and 2024
Current wording
Comparison of the Nine Months Ended September 30, 2025 and 2024
Previous wording
Net sales increased by $23.4 million, or 9%, for the six months ended June 30, 2025 compared to the same period in 2024. The increase in net sales was primarily driven by a 8% increase in the number of orders we processed in 2025 compared to 2024, and an increase in our average order value of 1%, from $77 in 2024 to $78 in 2025. These increases were driven primarily by demand growth in the U.S. On a constant currency basis, net sales and average order value for the six months ended June 30, 2025 would have increased 11% and 3%, respectively, compared to 2024.
Current wording
Net sales increased by $20.6 million, or 5%, for the nine months ended September 30, 2025 compared to the same period in 2024. The increase in net sales was primarily driven by a 6% increase in the number of orders we processed in 2025 compared to 2024, partially offset by a decrease in our average order value of 1%, from $79 in 2024 to $78 in 2025. On a constant currency basis, net sales and average order value for the nine months ended September 30, 2025 would have increased 5.8% and been flat, respectively, compared to 2024.
Previous wording
Cost of sales increased by $9.1 million, or 8%, for the six months ended June 30, 2025 compared to the same period in 2024. This increase was primarily driven by the 9% increase in net sales in 2025, as compared to 2024, partially offset by the impact from more full-price selling and improved inventory position. Cost of sales as a percentage of net sales was flat for the six months ended June 30, 2025, as compared to the same period in 2024. There was an increase in tariffs and duties during the current period, as compared to the same period in 2024, but the impact was partially offset by more full-price selling in the current period.
Current wording
Cost of sales increased by $6.2 million, or 3%, for the nine months ended September 30, 2025 compared to the same period in 2024. This increase was primarily driven by the 5% increase in net sales in 2025, as compared to 2024, and the impact of higher tariffs and duties net of duty drawback. Partially offsetting these impacts was a higher mix of retail stores, an improved inventory position, more full-price selling and targeted price increases. The decrease in cost of sales as a percentage of net sales was primarily due to the impact from a higher mix of retail stores, which have higher margins, and more full-price selling.in the current period.
Previous wording
Gross profit increased by $14.4 million, or 9%, for the six months ended June 30, 2025 compared to the same period in 2024. This increase was primarily driven by the 9% increase in net sales in 2025, as compared to 2024, and the impact from more full-price selling and improved inventory position. Gross margin as a percentage of net sales was flat for the six months ended June 30, 2025, as compared to the same period in 2024. There was an increase in tariffs and duties during the current period, as compared to the same period in 2024, but the impact was partially offset by more full-price selling in the current period.
Current wording
Gross profit increased by $14.4 million, or 6%, for the nine months ended September 30, 2025 compared to the same period in 2024. This increase was primarily driven by the 5% increase in net sales in 2025, as compared to 2024, a higher mix of retail stores, an improved inventory position, more full-price selling and targeted price increases, partially offset by the impact of increased tariffs and duties net of duty drawback. Gross margin as a percentage of net sales increased primarily due to the impact from a higher mix of retail stores, which have higher margins, and more full-price selling in the current period.
Previous wording
Selling expenses increased by $8.2 million, or 11%, for the six months ended June 30, 2025 compared to the same period in 2024. This increase was driven by the opening of additional stores, as well as the 9% increase in net sales for the six months ended June 30, 2025. 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 $9.5 million, or 8%, for the nine months ended September 30, 2025 compared to the same period in 2024. This increase was driven by the opening of additional stores, as well as the 5% increase in net sales for the nine months ended September 30, 2025. The increase in selling expenses as a percentage of net sales was primarily due to the opening of additional stores.
Previous wording
General and administrative expenses increased by $4.7 million, or 10%, for the six months ended June 30, 2025 compared to the same period in 2024. The increase was primarily driven by a $2.5 million increase in incentive and stock-based compensation expense, a $1.1 million increase in other non-routine legal matters, a $0.8 million increase in professional services and a $0.7 million increase in travel expenses. Partially offsetting these increases was a $0.7 million decrease in insurance costs. General and administrative expenses as a percentage of net sales was flat for the six months ended June 30, 2025, as compared to the same period in 2024.
Current wording
General and administrative expenses increased by $3.5 million, or 5%, for the nine months ended September 30, 2025 compared to the same period in 2024. The increase was primarily driven by a $3.5 million increase in headcount to support omnichannel growth and severance expense, a $1.5 million increase in professional services and a $0.9 million increase in travel expenses. Partially offsetting these increases was a $1.2 million decrease in insurance costs and a $1.1 million decrease in non-routine legal expenses. General and administrative expenses as a percentage of net sales was flat for the nine months ended September 30, 2025, as compared to the same period in 2024.
Previous wording
Provision for income taxes changed by $0.5 million, or 96% for the six months ended June 30, 2025 compared to the same period in 2024. This change was due to a decrease in the taxable income in the United States.
Current wording
Provision for income taxes changed by $0.5 million, or 126% for the nine months ended September 30, 2025 compared to the same period in 2024. This change was due to current tax expense as a result of amended tax amounts owed in relation to the acquisition of mnml.
Previous wording
As of June 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $23.1 million, our revolving line of credit and our term loan accordion provision.
Current wording
As of September 30, 2025, our principal sources of liquidity were cash and cash equivalents totaling $23.4 million, our revolving line of credit and our term loan accordion provision.
Previous wording
In connection with our initial public offering of common stock in September 2021 (the “IPO”), we entered into a senior secured credit facility comprised of a $100.0 million term loan and a $50.0 million revolving line of credit, with an option of up to $50.0 million in an additional term loan through an accordion provision. We used borrowings under this credit facility, together with a portion of the proceeds from the IPO, to repay our previous debt in full. As of June 30, 2025, we owed a combined $84.9 million in term loan and accordion borrowings, as well as $24.3 million borrowed under the revolving line of credit. The term loan requires us to make amortized annual payments of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year with the balance of the loan due at maturity. Borrowings under the term loan accrue interest at Term SOFR, as defined in the credit agreement for the senior secured credit facility (the “Credit Agreement”), plus an applicable margin dependent upon our net leverage ratio, as defined in the Credit Agreement. The revolving line of credit, when used, also accrues interest at Term SOFR plus an applicable margin dependent upon our net leverage ratio. The highest interest rates under the Credit Agreement for both the term loan and the revolving line of credit occur at a net leverage ratio of greater than 2.75x, yielding an interest rate of a benchmark rate plus 3.25%. The accordion provision allows us to borrow additional amounts of term loan at terms to be agreed upon at the time of issuance, but on substantially the same basis as the original term loan. As of June 30, 2025, principal payments of our term loan and accordion for the next twelve months are anticipated to total $7.7 million.
Current wording
In connection with our initial public offering of common stock in September 2021 (the “IPO”), we entered into a senior secured credit facility comprised of a $100.0 million term loan and a $50.0 million revolving line of credit, with an option of up to $50.0 million in an additional term loan through an accordion provision. We used borrowings under this credit facility, together with a portion of the proceeds from the IPO, to repay our previous debt in full. As of September 30, 2025, we owed a combined $84.9 million in term loan and accordion borrowings, as well as $26.8 million borrowed under the revolving line of credit. The term loan requires us to make amortized annual payments of 5.0% during the first and second years, 7.5% during the third and fourth years and 10.0% during the fifth year with the balance of the loan due at maturity. Borrowings under the term loan accrue interest at Term SOFR, as defined in the credit agreement for the senior secured credit facility (the “Credit Agreement”), plus an applicable margin dependent upon our net leverage ratio, as defined in the Credit Agreement. The revolving line of credit, when used, also accrues interest at Term SOFR plus an applicable margin dependent upon our net leverage ratio. The highest interest rates under the Credit Agreement for both the term loan and the revolving line of credit occur at a net leverage ratio of greater than 2.75x, yielding an interest rate of a benchmark rate plus 3.25%. The accordion provision allows us to borrow additional amounts of term loan at terms to be agreed upon at the time of issuance, but on substantially the same basis as the original term loan. As of September 30, 2025, principal payments of our term loan and accordion for the next twelve months are anticipated to total $7.7 million.
Previous wording
Refer to Note 7, “Debt,” in the notes to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our senior secured credit facility.
Current wording
Refer to Note 7, “Debt,” and Note 17, “Subsequent Events” in the notes to our condensed consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information regarding our senior secured credit facility and the Amended and Restated Credit Agreement.
Previous wording
During the six months ended June 30, 2025, net cash provided by operating activities increased by $14.2 million as compared to the same period in 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, as net sales grew by 9%.
Current wording
During the nine months ended September 30, 2025, net cash provided by operating activities increased by $21.1 million as compared to the same period in 2024. This was attributable primarily to more sell through of inventory in the current period, as compared to the prior period, as net sales grew by 5% as well as an increase in lease incentive payments received.
Previous wording
During the six months ended June 30, 2025, net cash used in investing activities increased by $5.2 million, as compared to the same period in 2024. This was attributable to additional capital expenditures related to opening new stores compared to the prior year.
Current wording
During the nine months ended September 30, 2025, net cash used in investing activities increased by $4.6 million, as compared to the same period in 2024. This was attributable to additional capital expenditures related to opening new stores compared to the prior year.
Previous wording
During the six months ended June 30, 2025, net cash used in financing activities increased by $15.8 million, as compared to the same period in 2024. This was primarily attributable to additional repayment of amounts owed under our senior secured credit facility and line of credit in 2025, as compared to the prior period.
Current wording
During the nine months ended September 30, 2025, net cash used in financing activities increased by $19.5 million, as compared to the same period in 2024. This was primarily attributable to additional repayment of amounts owed under our senior secured credit facility and line of credit in 2025, as compared to the prior period.
Previous wording
During the three months ended June 30, 2025, we repurchased 12,095 shares of our common stock under the Share Repurchase Program for $0.1 million, at an average price of $9.19 per share. During the six months ended June 30, 2025, we repurchased 28,005 shares of our common stock under the Share Repurchase Program for $0.4 million, at an average price of $13.14 per share.
Current wording
During the three months ended September 30, 2025, no shares were repurchased under the Share Repurchase Program. During the nine months ended September 30, 2025, we repurchased 28,005 shares of our common stock under the Share Repurchase Program for $0.4 million, at an average price of $13.14 per share.
Previous wording
As discussed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K, significant judgment and estimates are required in assessing impairment of goodwill and intangible assets, including identifying whether events or changes in circumstances require an impairment assessment, estimating future cash flows and determining appropriate discount rates. Our estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In June 2025, due to a continued period of uncertain trade policy and the impact of increased tariffs and duties between countries, we revised our forecasts for each of our reporting units. These revisions and a continued decrease in our stock price were identified as triggering events and a subsequent quantitative test concluded that the fair value of each of our reporting units exceeded their carrying values as of June 30, 2025. As of the testing date, the estimated fair value of the mnml reporting unit exceeded the carrying value by 4.6% and the carrying value of the related goodwill was $30.0 million. Holding all other assumptions used in the fair value measurement of the mnml reporting unit constant, a 60 basis points increase in the selected discount rate would result in impairment.
Current wording
As discussed in the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2024 Form 10-K, significant judgment and estimates are required in assessing impairment of goodwill and intangible assets, including identifying whether events or changes in circumstances require an impairment assessment, estimating future cash flows and determining appropriate discount rates. Our estimates of fair value are based on assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. In June 2025, due to a continued period of uncertain trade policy and the impact of increased tariffs and duties between countries, we revised our forecasts for each of our reporting units. These revisions and a continued decrease in our stock price were identified as triggering events and a subsequent quantitative test concluded that the fair value of each of our reporting units exceeded their carrying values as of June 30, 2025. As of the testing date, the estimated fair value of the mnml reporting unit exceeded the carrying value by 4.6% and the carrying value of the related goodwill was $30.0 million. Holding all other assumptions used in the fair value measurement of the mnml reporting unit constant, a 60 basis points increase in the selected discount rate would result in impairment. No goodwill impairment was required during either of the three or nine months ended September 30, 2025.