A.K.A. BRANDS HOLDING CORP.

Previous wording

For the three months ended March 31, 2026, net cash used in operating activities increased by $2.0 million compared to net cash used in operating activities for the three months ended March 31, 2025. This was attributable primarily to timing of payments.

Current 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.

Previous wording

For the three months ended March 31, 2026, Free Cash Flow decreased by $1.1 million compared to Free Cash Flow for the three months ended March 31, 2025. This was attributable primarily to timing of payments, offset by less capital expenditures related to opening new stores, compared to the prior year.

Current 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.

Previous wording

Provision for income taxes changed by $0.2 million for the three months ended March 31, 2026 compared to the same period in 2025. This change was primarily due to 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

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.

Previous wording

Net sales increased by $3.8 million, or 3%, for the three months ended March 31, 2026 compared to the same period in 2025. The increase in net sales was primarily driven by a 4% increase in the number of orders we processed in 2026 compared to 2025, partially offset by a decrease in our average order value of 1%, from $78 in 2025 to $77 in 2026. On a constant currency basis, net sales and average order value for the three months ended March 31, 2026 would have increased 1% and decreased 3%, respectively, compared to 2025.

Current 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.

Previous wording

Gross profit increased by $10.0 million, or 14%, for the three months ended March 31, 2026 compared to the same period in 2025. This increase was primarily driven by a 3% increase in net sales in 2026, as compared to 2025, an improved inventory position and more full price selling, our actions in 2025 to offset the impact of IEEPA tariffs 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 improved inventory position and more full price selling.

Current 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.

Previous wording

Selling expenses increased by $2.8 million, or 7%, for the three months ended March 31, 2026 compared to the same period in 2025. This increase was driven by the opening of additional stores, as well as the 3% increase in net sales for the three months ended March 31, 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 $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.

Previous wording

General and administrative expenses increased by $4.3 million, or 17%, for the three months ended March 31, 2026 compared to the same period in 2025. The increase was primarily driven by a $2.0 million increase in wages and incentive compensation expense, a $1.9 million increase in non-routine legal expenses and a $0.8 million increase in information technology 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 non-routine legal expenses.

Current 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.

Previous wording

Other expense decreased by$0.1 million, or 5%, for the three months ended March 31, 2026 compared to the same period in 2025 primarily due to lower interest expense from a decrease in our long-term debt balance and interest rates partially offset by the impact of foreign currency.

Current 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.

Previous wording

As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents totaling $12.9 million, our revolving line of credit and our term loan accordion provision.

Current 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.

Previous wording

As of March 31, 2026, most of our cash was held for working capital purposes. We have historically financed our operations and capital expenditures primarily through cash flows generated by operations, the incurrence of debt and through the issuance of equity. We believe that our existing cash, together with cash generated from operations and available borrowing capacity under our credit facilities and lines of credit, will be sufficient to meet our anticipated cash needs for the next 12 months. We believe that cash generated from ongoing operations and continued access to debt markets will be sufficient to satisfy our cash requirements beyond 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. We may seek to borrow funds under our credit facility or raise additional funds at any time through equity, equity-linked or debt financing arrangements. Our future capital requirements and the adequacy of available funds will depend on many factors, including those described in the section of our 2025 Form 10-K captioned “Risk Factors.” We may not be able to secure additional financing to meet our operating requirements on acceptable terms, or at all. The inability to raise capital if needed would adversely affect our ability to achieve our business objectives.

Current wording

Most of our cash was held for working capital purposes. We have historically financed our operations and capital expenditures primarily through cash flows generated by operations, the incurrence of debt and through the issuance of equity. We believe that our existing cash, together with cash generated from operations and available borrowing capacity under our credit facilities and lines of credit, will be sufficient to meet our anticipated cash needs for the next 12 months. We believe that cash generated from ongoing operations and continued access to debt markets will be sufficient to satisfy our cash requirements beyond 12 months. However, our liquidity assumptions may prove to be incorrect, and we could exhaust our available financial resources sooner than we currently expect. We may seek to borrow funds under our credit facility or raise additional funds at any time through equity, equity-linked or debt financing arrangements. Our future capital requirements and the adequacy of available funds will depend on many factors, including those described in the section of our 2025 Form 10-K captioned “Risk Factors.” We may not be able to secure additional financing to meet our operating requirements on acceptable terms, or at all. The inability to raise capital if needed would adversely affect our ability to achieve our business objectives.

Previous wording

Net cash used in operating activities consists primarily of net income (loss) adjusted for certain non-cash items, including depreciation, amortization, equity-based compensation, the effect of changes in working capital and other activities.

Current wording

Net cash provided by operating activities consists primarily of net income (loss) adjusted for certain non-cash items, including depreciation, amortization, equity-based compensation, the effect of changes in working capital and other activities.

Previous wording

During the three months ended March 31, 2026, net cash used in investing activities decreased by $0.9 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 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.

Previous wording

During the three months ended March 31, 2026, net cash used in financing activities increased by $9.4 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 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.

Previous wording

During the three months ended March 31, 2026, no shares were repurchased under the Share Repurchase Program.

Current wording

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