Q2 2026 Playboy Inc Earnings Call

August 10, 2026

Speaker #1: Good afternoon. Thank you for standing by. Welcome to PLAYBOY Inc.'s second quarter 2026 earnings conference call. During today's presentation, all parties will be in a listen-only mode.

Operator 2: Good afternoon. Thank you for standing by. Welcome to Playboy Inc.'s Q2 2026 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, Monday, 7 August 2026, and the earnings press release in Form 10-Q, from which information may be referenced during this conference call, were issued after the market close today. On our call today are Playboy Inc.'s Chief Executive Officer, Ben Kohn, and Chief Financial Officer and Chief Operating Officer, Marc Crossman. I'd like to remind you that the information discussed today is qualified in its entirety by the Form 8-K and Form 10-Q filed today by Playboy Inc., which may be accessed on the SEC's website and on Playboy Inc.'s website.

Operator: Good afternoon. Thank you for standing by. Welcome to Playboy Inc.'s Q2 2026 earnings conference call. During today's presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, Monday, 7 August 2026, and the earnings press release in Form 10-Q, from which information may be referenced during this conference call, were issued after the market close today. On our call today are Playboy Inc.'s Chief Executive Officer, Ben Kohn, and Chief Financial Officer and Chief Operating Officer, Marc Crossman. I'd like to remind you that the information discussed today is qualified in its entirety by the Form 8-K and Form 10-Q filed today by Playboy Inc., which may be accessed on the SEC's website and on Playboy Inc.'s website.

Speaker #1: Following the presentation, the conference will be open for questions. This conference is being recorded today, Monday, August 10, 2026, and the earnings press release and Form 10-Q, from which information may be referenced during this conference call, were issued after the market closed today.

Speaker #1: On our call today are PLBY Group, Inc. Chief Executive Officer Ben Kohn, and Chief Financial Officer and Chief Operating Officer Mark Crossman. I'd like to remind you that the information discussed today is qualified in its entirety by the Form 8-K and Form 10-Q filed today by PLBY Group, Inc., which may be accessed on the SEC's website and on PLBY Group, Inc.'s website.

Speaker #1: Please note that statements made during this call, financial projections, and other statements that are not historical in nature may constitute forward-looking statements. Such statements are made on the basis of PLAYBOY Inc.'s reviews and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update them.

Operator 2: Please note that statements made during this call, financial projections, and other statements that are not historical in nature may constitute forward-looking statements. Such statements are made on the basis of Playboy Inc.'s reviews and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update them. Forward-looking statements are subject to risk, which could cause the company's actual results to differ from its historical results and forecasts, including those risks set forth in the SEC filings, and you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call. Do not place undue reliance on any forward-looking statements.

Operator: Please note that statements made during this call, financial projections, and other statements that are not historical in nature may constitute forward-looking statements. Such statements are made on the basis of Playboy Inc.'s reviews and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update them. Forward-looking statements are subject to risk, which could cause the company's actual results to differ from its historical results and forecasts, including those risks set forth in the SEC filings, and you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call. Do not place undue reliance on any forward-looking statements.

Speaker #1: Forward-looking statements are subject to risk, which could cause the company's actual results to differ from its historical results and forecasts, including those risk set forth in the SEC filings.

Speaker #1: And you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call. Do not place undue reliance on any forward-looking statements.

Speaker #1: In addition, throughout today's call, the company may refer to adjusted EBITDA, a non-GAAP financial measure, which it believes provides helpful information to investors about the performance of the business on an ongoing basis.

Operator 2: In addition, throughout today's call, the company may refer to Adjusted EBITDA, a non-GAAP financial measure, which it believes provides helpful information to investors about the performance of the business on an ongoing basis. Reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is included in today's earnings release, which is available on Playboy Inc.'s investor relations website. At this time, I would like to turn the call over to Playboy Chief Executive Officer, Ben Kohn. Ben, the floor is yours.

Operator: In addition, throughout today's call, the company may refer to Adjusted EBITDA, a non-GAAP financial measure, which it believes provides helpful information to investors about the performance of the business on an ongoing basis. Reconciliation of Adjusted EBITDA to its most directly comparable GAAP financial measure is included in today's earnings release, which is available on Playboy Inc.'s investor relations website. At this time, I would like to turn the call over to Playboy Chief Executive Officer, Ben Kohn. Ben, the floor is yours.

Speaker #1: Reconciliation of adjusted EBITDA to its most directly comparable GAAP financial measure is included in today's earnings release, which is available on PLAYBOY Inc. Investor Relations website.

Speaker #1: At this time, I would like to turn the call over to Playboy Chief Executive Officer, Ben Kohn. Ben, the floor is yours.

Speaker #2: Thank you, operator. Good afternoon, everyone. I appreciate you joining us. Two years ago, we articulated a clear strategy: make the Playboy brand culturally relevant, build a profitable, asset-light business model with significant growth potential around three verticals: licensing, media and experiences in hospitality, alongside hunting for debt, all while deleveraging the balance sheet.

Ben Kohn: Thank you, operator, and good afternoon, everyone. I appreciate you joining us. Two years ago, we articulated a clear strategy: make the Playboy brand culturally relevant, build a profitable asset-light business model with significant growth potential around three verticals, licensing, media and experiences, and hospitality, alongside Honey Birdette, all while deleveraging the balance sheet. Two years on, we are executing, and the balance sheet is dramatically stronger. The Q2 is the clearest evidence yet that the strategy is working. We are culturally relevant. We are profitable. We have set the stage for significant growth, testing, measuring what actually converts, leaning into what works, and being fiscally responsible with every dollar. Let me take the pieces one at a time, starting with the results, because they are the truest test of any strategy. Revenue grew to approximately $31.2 million, up roughly 11% year-over-year.

Speaker #2: Two years on, we are executing in the balance sheet is dramatically stronger. The second quarter is the clearest evidence yet that the strategy is working.

Speaker #2: We are culturally relevant, we are profitable, and we have set the stage for significant growth. Testing, measuring what actually converts, leaning into what works, and being fiscally responsible with every dollar.

Speaker #2: Let me take the pieces one at a time. Starting with the results, because they are the truest test of any strategy. Revenue grew to approximately $31.2 million up roughly 11% year over year.

Speaker #2: Adjusted EBITDA was approximately $7 million, including more than $700,000 of litigation expenses—nearly double a year ago—and our sixth consecutive quarter of positive adjusted EBITDA.

Ben Kohn: Adjusted EBITDA was approximately $7 million, including more than $700,000 of litigation expenses, nearly double a year ago, and our sixth consecutive quarter of positive Adjusted EBITDA. Adjusted EBITDA on a trailing 12-month basis is now $23.2 million and would have been approximately $28 million excluding litigation expenses. Just as important, we swung to positive operating income of roughly $3 million compared with an operating loss a year ago, and we reached essentially break even at the bottom line, a swing of nearly $8 million from the net loss we reported in the same quarter last year. It is turning into cash.

Speaker #2: Adjusted EBITDA on a trailing 12-month basis is now $23.2 million, and would have been approximately $28 million excluding litigation expenses. Just as important, we swung to positive operating income of roughly $3 million, compared with an operating loss a year ago, and we reached essentially break-even at the bottom line—a swing of nearly $8 million from the net loss we reported in the same quarter last year.

Speaker #2: And it is turning into cash. We generated positive operating cash flow in the quarter, and with the UTG transaction in the deal cost that came with it, now behind us, that cash flow is beginning to reflect the ongoing business we have built, rather than the two years of transactions and repositioning it took to get there.

Ben Kohn: We generated positive operating cash flow in the quarter, and with the UTG transaction and the deal cost that came with it now behind us, that cash flow is beginning to reflect the ongoing business we have built, rather than the two years of transactions and repositioning it took to get there. The headline is that the trajectory for growth is unmistakable. That turnaround is what lets us be aggressive about creating value. We have taken total debt down from the peak of $218 million to roughly $145 million today, and we have a clear path to $108 million of gross debt by January 2028 as the remaining $36.7 million of UTG proceeds are applied.

Speaker #2: The headline is that the trajectory for growth is unmistakable. That turnaround is what lets us be aggressive about creating value. We have taken total debt down from a peak of $218 million to roughly $145 million today, and we have a clear path to $108 million of gross debt by January of 2028, as the remaining $36.7 million of UTG proceeds are applied.

Speaker #2: We ended the quarter with approximately $37.1 million in total cash, including restricted cash, bringing our net debt down to $108 million and with our trailing 12-month adjusted EBITDA of $28 million excluding litigation expenses, bringing us to just under four turns of leverage, and we expect we will be under three turns of leverage once we have received the remaining UTG proceeds, a very manageable place moving forward.

Ben Kohn: We ended the quarter with approximately $37.1 million in total cash, including restricted cash, bringing our net debt down to $108 million, and with our trailing 12-month Adjusted EBITDA of $28 million, excluding litigation expenses, bringing us to just under four turns of leverage. We expect we will be under three turns of leverage once we have received the remaining UTG proceeds, a very manageable place moving forward. This quarter, we added a lever that we have not used at this scale before, a meaningful share repurchase, and here is why it matters. The shares we are buying back are essentially the same block we issued last year to convert debt into equity at a conversion price of roughly $1.75 a share.

Speaker #2: This quarter, we added a lever that we have not used at this scale before: a meaningful share repurchase. Here is why it matters.

Speaker #2: The shares we are buying back are essentially the same block we issued last year, to convert debt into equity, and a conversion price of roughly $1.75 a share.

Speaker #2: We agreed to repurchase approximately $16.6 million of them, nearly $15% of the total shares outstanding for the company, at a fixed price of $1.05, below where we issued them and below where the stock trades today, and we are doing an installment, backstop by significant long-term stockholders, so it never competes with the cash we need to run and delever the business.

Ben Kohn: We agreed to repurchase approximately 16.6 million of them, nearly 15% of the total shares outstanding for the company, at a fixed price of $1.05, below where we issued them and below where the stock trades today. We are doing installments backstopped by significant long-term stockholders, so it never competes with the cash we need to run and de-lever the business. We were also added to the Russell 2000 and the Russell 3000 in late June, which should broaden our ownership over time. Retiring debt over time and shrinking the share count at a discount are two of the most direct ways we can reward the shareholders who stay with us. Now the brand itself. We said we could put Playboy back at the center of culture, and the proof is on the newsstands and in our feed.

Speaker #2: We were also added to the Russell 2000 and the Russell 3000 in late June, which should broaden our ownership over time. Retiring debt over time and shrinking the share count at a discount are two of the most direct ways we can reward the shareholders who stay with us.

Speaker #2: Now, the brand itself. We said we could put PLAYBOY back at the center of culture, and the proof is on the newsstands and in our feed.

Speaker #2: Our spring issue with Carol G sold out at newsstands, and generated more than $5 billion media impressions in over 70 million video views around its launch.

Ben Kohn: Our spring issue with Karol G sold out at newsstands and generated more than 5 billion media impressions and over 70 million video views around its launch. Our summer issue arrived with Cara Delevingne on the cover, two consecutive covers with talent that candidly would not have taken our calls a couple of years ago. We already have two more major covers lined up for the back half of the year. Across our own platforms, we generated more than 1 billion engagements and views in the quarter, and we are leaning hard into the franchises our audience tell us they want most. The Playboy Interview, 20 Questions, and above all, more content built around our Playmates, where features like Miss June are crossing 1 million organic views on their own. Our editorial voice is the sharpest it has been in years.

Speaker #2: Our summer issue arrived with Cara Delevingne on the cover two consecutive covers with talent that candidly would not have taken her calls a couple of years ago.

Speaker #2: And we already have two more major covers lined up for the back half of the year. Across our own platforms, we generated more than a billion engagements and views in the quarter, and we are leaning hard into the franchises our audience tells us they want most: the PLAYBOY Interview, 20 Questions, and, above all, more content built around our Playmates.

Speaker #2: Where features like Miss June are crossing a million organic views on their own. Our editorial voice is the sharpest it has been in years.

Speaker #2: Our audience is growing at home and abroad, and our content calendar for the back half is the strongest we have had in a long time.

Ben Kohn: Our audience is growing at home and abroad, and our content calendar for the back half is the strongest we have had in a long time. Talent, press, and partners want to be associated with Playboy again, and that pulls the raw material for everything else we do. We also said that attention is worth little unless we own it and can monetize it directly. This is a quarter that stopped being a slide and became a business we are actively building and testing in real time. Our site drew roughly 2 million unique visitors in the quarter, and the subscription we launched on playboy.com, live for its first full quarter, is converting. We are turning that traffic into paying memberships, and July was our strongest month yet. We are testing different price points, different content, and different conversion funnels, and we are being disciplined about it.

Speaker #2: Talent, press, and partners want to be associated with PLAYBOY again, and that pull is the raw material for everything else we do. We also said that attention is worth little unless we own it and can monetize it directly, and this is a quarter that's not being a slide, and became a business we are actively building and testing in real time.

Speaker #2: Our site drew roughly 2 million unique visitors in the quarter, and the subscription we launched on PLAYBOY.com, live for its first full quarter, is converting.

Speaker #2: We are turning that traffic into paying memberships, and July was our strongest month yet. We are testing different price points, different content, and different conversion funnels.

Speaker #2: And we are being disciplined about it, as we continue to refine this, we will begin to spend to grow faster, and the early signs are exactly what we hope for.

Ben Kohn: As we continue to refine this, we will begin to spend to grow faster, and the early signs are exactly what we hope for. An anonymous audience becoming a known addressable one that we can market to directly. Here is why we are investing behind this. We are building the media and experiences business over time into a high margin, recurring asset-light business, a meaningful driver of top-line growth with several revenue streams today generated from the same audience. Subscriptions, sponsorships, paid voting, and more. On the sponsorship side, we already have sponsors lined up for our short-term video content across social and editorial, and that revenue will begin to show in our Q3 results. Each piece feeds next. The magazine and our platforms create relevance. Relevance builds an audience we own. That audience subscribes, pays to vote, and attracts sponsors.

Speaker #2: An anonymous audience becoming a known addressable one that we can market to directly. Here is why we are investing behind this. We are building the media and experiences business over time, into a high margin, recurring asset-like business, a meaningful driver of top-line growth, with several revenue streams today generated from the same audience.

Speaker #2: Subscriptions, sponsorships, paid voting, and more. On the sponsorship side, we already have sponsors lined up for our short-term video content across social and editorial, and that revenue will begin to show in our third quarter results.

Speaker #2: And each piece feeds next. The magazine and our platforms create relevance, relevance builds an audience we own, that audience subscribes, pays to vote, and attracts sponsors, and the scale and data behind the audience make our brand more valuable to every licensing partner we sit across from.

Ben Kohn: The scale and data behind the audience make our brand more valuable to every licensing partner we sit across from. That is what we mean when we call this a platform, not a slogan, but a set of businesses that compound one another. Paid voting is another proof point. Our first contest drew roughly 17,000 contestants. Our second, the model search we ran with Honey Birdette, drew nearly 50,000 and generated about 2.5 times the revenue of the first. Because voting closed just after the quarter ended, none of those economics are in today's numbers. Those will land in Q3, and we are funneling that engaged audience straight into our digital subscription, exactly the self-reinforcing cycle we are building. This is not a promotion. It is a franchise.

Speaker #2: That is what we mean when we call this a platform, not a slogan, but a set of businesses that compound one another. Paid voting is another proof point.

Speaker #2: Our first contest drew roughly 17,000 contestants. Our second, the model search we ran with Honey Birdette, drew nearly 50,000 and generated about 2.5 times the revenue of the first.

Speaker #2: Because voting closed just after the quarter ended, none of those economics are in today's numbers. We will land in those will land in the third quarter, and we are funneling that engaged audience straight into our digital subscription, exactly the self-reinforcing cycle we are building.

Speaker #2: This is not a promotion; it is a franchise. We have one more major contest planned before year-end—our Great Playmate Search—and we hope to deliver even stronger results from what is a more compelling offer.

Ben Kohn: We have one more major contest planned before year-end, our Great Playmate Search, and we hope to deliver even stronger results for what is a more compelling offer. We find by what we have learned each time, and the economics do not stop at voting. The Honey Birdette collaboration tied to the contest launches in September, adding a product revenue stream on top. On licensing, we said we would trade a long tail of small deals for fewer, bigger, better partners. In this quarter, that discipline is showing up in the quality of our partnerships. To lead that effort, we brought in Krystle Bach as our Vice President of Global Licensing and Partnerships. She joins us from Authentic Brands Group and brings a track record across Coach, Victoria's Secret, and Juicy Couture. The clearest example of this strategy is in apparel.

Speaker #2: We find by what we have learned each time. And the economics do not stop at voting. The Honey Birdette collaboration tied to the contest launches in September, adding a product revenue stream on top.

Speaker #2: On licensing, we said we would trade a long tail of small deals for fewer bigger, better partners, and this quarter that discipline is showing up in the quality of our partnerships.

Speaker #2: To lead that effort, we brought in Crystal Bach as our Vice President of Global Licensing and Partnerships. She joins us from Authentic Brands Group and brings a track record across Coach, Victoria's Secret, and Juicy Couture.

Speaker #2: The clearest example of this strategy is in apparel. We dramatically scaled back our largest apparel licensee—a major t-shirt and hoodie partner—and that decision opened the category for Misguided.

Ben Kohn: We dramatically scaled back our largest apparel licensee, a major T-shirt and hoodie partner, and that decision opened the category for Missguided, one of our strongest partners to expand. Because we pulled back that other licensee, Missguided can invest behind the market without the two cannibalizing each other. We are now working with them to grow it into additional categories. Our Supreme collaboration, which sold out, was another standout. In China, our new partner, UTG, is off to a good start transitioning the business to an owner-operator strategy. Because of this transition, the small new deals that we historically signed were largely absent in the first and second quarters. A modest reduction of a couple hundred thousand dollars a quarter while the transition sets in. Across the segment, more than $320 million of contracted not yet recognized future licensee revenue gives this business both durability and runway.

Speaker #2: One of our strongest partners to expand. Because we pulled back that other licensee, misguided can invest behind the market without the two cannibalizing each other, and we are now working with them to grow it into additional categories.

Speaker #2: Our supreme collaboration, which sold out, was another standout. In China, our new partner, UTG, is off to a good start, transitioning the business to an owner-operator strategy.

Speaker #2: Because of this transition, the small new deals that we historically signed were largely absent in the first and second quarters—a modest reduction of a couple hundred thousand dollars a quarter while the transition sets in.

Speaker #2: And across the segment, more than $320 million of contracted, not-yet-recognized future licensing revenue gives this business both durability and runway. And Honey Birdette is doing exactly what we said it would.

Ben Kohn: Honey Birdette is doing exactly what we said it would. It grew double digits again with every region comping up. This quarter's double-digit retail comp came on top of the double-digit comp a year ago. The engine is full price selling and tight product discipline, carrying the right assortment in the right quantities, relying on markdowns far less than we used to. Our mid-year sale is an event we run every year. Difference now is that pent-up demand and full price discipline lets us run shallower discounts and control the promotional narrative rather than the ad hoc discounting we leaned on when comps were declining. Paired with the loyalty program that keeps deepening how often our best customers come back, June was the brand's strongest month ever. This is not a brand searching for a model, it is a brand compounding on one.

Speaker #2: It grew double digits again, with every region comping up. And this quarter’s double-digit retail comp came on top of the double-digit comp a year ago.

Speaker #2: The engine is full-price selling and tight product discipline, carrying the right assortment in the right quantities, relying on markdowns far less than we used to.

Speaker #2: Our mid-year sale is an event we run every year. The difference now is that pent-up demand and full-price discipline let us run shallower discounts and control the promotional narrative, rather than the ad hoc discounting we leaned on when comps were declining.

Speaker #2: Paired with the loyalty program that keeps deepening how often our best customers come back, June was the brand's strongest month ever. This is not a brand searching for a model.

Speaker #2: It is a brand compounding on one. Two more markers of where we are headed. In hospitality, we continue to make progress on our first new flagship PLAYBOY Club in Miami.

Ben Kohn: Two more markers of where we are headed. In hospitality, we continue to make progress on our first new flagship Playboy Club in Miami, a franchise we intend to grow without risking our own capital. We strengthened our board, adding Jennifer Cabalquinto, former Chief Financial Officer of 2K and the Golden State Warriors, as an independent director, adding public company financial and operating depth as we scale. With that, let me turn it over to Marc to take you through the numbers.

Speaker #2: The franchise we intend to grow without risking our own capital. And we strengthened our board. Adding Jennifer, Cabo Quinto, former chief financial officer of 2K and the Golden State Warriors, as an independent director, adding public company financial and operating depth as we scale.

Speaker #2: And with that, let me turn it over to Mark to take you through the numbers.

Speaker #1: Thank you, Ben. Consolidated revenue in the second quarter grew to $31.2 million, compared to $28.1 million in the second quarter of 2025.

Marc Crossman: Thank you, Ben. Consolidated revenue in Q2 grew to $31.2 million, compared to $28.1 million in Q2 2025, an increase of approximately $3.1 million, or 10.9% year-over-year. The increase was led by continued double-digit growth at Honey Birdette, with licensing also returning to year-over-year growth. Honey Birdette net revenue grew to $19.5 million, up 18% year-over-year from $16.5 million in the prior quarter. On a like-for-like basis, total comparable stores grew 15%, with retail comps up 13% and online up 16%, and every region positive. For Q2, Honey Birdette has now delivered its seventh consecutive quarter of double-digit brick and mortar comparable store sales growth and its fifth consecutive quarter of combined brick and mortar and online comparable store sales growth.

Speaker #1: An increase of approximately 3.1 million dollars or 10.9% year over year. The increase was led by continued double-digit growth at Honey Birdette with licensing also returning to year-over-year growth.

Speaker #1: Honey Birdette net revenue grew to $19.5 million, up 18% year-over-year from $16.5 million in the prior quarter. On a like-for-like basis, total comparable stores grew 15%, with retail comps up 13% and online up 16%, and every region was positive.

Speaker #1: With the second quarter, Honey Birdette has now delivered its seventh consecutive quarter of double-digit brick-and-mortar comparable sales stores growth, and its fifth consecutive quarter of combined brick-and-mortar and online comparable store sales growth.

Speaker #1: Full-price selling continued to drive the mix, and product margin increased year over year, led by full-price sales and higher average selling prices. Licensing revenue was 11.2 million dollars in the second quarter, up approximately 2% from 10.9 million in the prior quarter.

Marc Crossman: Full price selling continued to drive the mix, and product margin increased year-over-year, led by full price sales and higher average selling prices. Licensing revenue was $11.2 million in Q2, up approximately 2% from $10.9 million in the prior quarter, and would have been higher but for a modest step-down of a couple hundred thousand dollars a quarter in China as our JV partner transitions the business. Growth in our Rest of World business was led by our Supreme collaboration, which sold out, and by our Missguided partnership, which has been successful enough that we are now working to expand it into additional categories. Our Byborg strategic partnership contributed $5 million of digital licensing revenue in the quarter, consistent with the contractual minimum guarantee.

Speaker #1: And would have been higher, but for a modest step-down of a couple hundred thousand dollars a quarter in China, as our JV partner transitions the business.

Speaker #1: Growth in our rest-of-world business was led by our supreme collaboration, which sold out, and by our misguided partnership, which has been successful enough that we are now working to expand it into additional categories.

Speaker #1: Our BuyBorg strategic partnership contributed $5 million of digital licensing revenue in the quarter, consistent with the contractual minimum guarantee. Total selling and administrative expenses were $19.8 million in the quarter, down $2.6 million, or 12%, from $22.4 million in the prior-year quarter.

Marc Crossman: Total selling and administrative expenses were $19.8 million in the quarter, down $2.6 million or 12% from $22.4 million in the prior year quarter. Put simply, we grew revenue 11% while reducing total operating costs, all while continuing to invest in content and media and experiences. As Ben noted, we view that brand spend as investment, not overhead, and this quarter it began to show a return. Operating income was $3 million in the quarter, compared with an operating loss of $5.9 million a year ago, a swing of nearly $9 million, driven by higher revenue on lower cost base I just walked through. Below the operating line, net income was approximately $200,000 or break even on a per share basis, compared with a net loss of $7.7 million or $0.08 per share in Q2 2025. Weighted average shares outstanding were 114.7 million.

Speaker #1: Put simply, we grew revenue 11% while reducing total operating costs, all while continuing to invest in content and media and experiences. As Ben noted, we view that brand spend as investment, not overhead, and this quarter it began to show a return.

Speaker #1: Operating income was $3 million in the quarter, compared with an operating loss of $5.9 million a year ago, a swing of nearly $9 million, driven by higher revenue on a lower cost base.

Speaker #1: I just walked through. Below the operating line, net income was approximately 200,000 dollars or break even on a per share basis, compared with a net loss of 7.7 million dollars or 8 cents per share in the second quarter of 2025.

Speaker #1: Weighted average shares outstanding were 114.7 million. Adjusted EBITDA for the second quarter was 7 million dollars, an increase of 3.5 million versus adjusted EBITDA of 3.5 million dollars in the prior quarter.

Marc Crossman: Adjusted EBITDA for Q2 was $7 million, an increase of $3.5 million versus Adjusted EBITDA of $3.5 million in the prior year quarter, effectively doubling for an Adjusted EBITDA margin of 22%. This represents our sixth consecutive quarter of positive Adjusted EBITDA. Turning to cash flow, we generated positive operating cash flow of approximately $2 million in the quarter. With the UTG transaction executed and its one-time cost now behind us, this figure reflects the ongoing operations of the business. A clean baseline for our cash generation going forward. On the balance sheet, we ended the quarter with $37.1 million in total cash, including restricted cash. Total debt was $144.9 million at quarter end, consistent with the end of Q1, and down from $159.9 million at year end 2025, reflecting the $15 million pay down from the initial UTG proceeds earlier this year.

Speaker #1: Effectively doubling for an adjusted EBITDA margin of 22%. This represents our sixth consecutive quarter of positive adjusted EBITDA. Turning to cash flow, we generated positive operating cash flow of approximately $2 million in the quarter.

Speaker #1: With the UTG transaction executed and its one-time cost now behind us, this figure reflects the ongoing operations of the business—a clean baseline for our cash generation going forward.

Speaker #1: On the balance sheet, we ended the quarter with 37.1 million dollars in total cash, including restricted cash. Total debt was 144.9 million at quarter end, consistent with the end of the first quarter, and down from 159.9 million a year end 2025, reflecting the 15 million dollar pay down from the initial UTG proceeds earlier this year.

Speaker #1: Let me put the share repurchase in numbers. The block we agreed to repurchase is essentially the same stock we issued last year to convert debt into equity at a conversion price of roughly $1.75 per share.

Marc Crossman: Let me put the share repurchase in numbers. The block we agreed to repurchase is essentially the same stock we issued last year to convert debt into equity at a conversion price of roughly $1.75 per share. We are buying back approximately 16.6 million shares, nearly 15% of shares outstanding at a fixed price of $1.05 or roughly $17 million in total, below where we issued it and below where the stock trades today. The repurchase is paid in installments. We paid $2 million on the effective date, and we plan on paying the next installment of $3 million on or before 31 August with cash from our balance sheet. Beyond the repurchase, nearly $37 million of forthcoming UTG proceeds remain earmarked for further debt reduction, which would bring our net debt well below $100 million.

Speaker #1: We are buying back approximately 16.6 million shares—yes, nearly 15% of shares outstanding—at a fixed price of $1.05, or roughly $17 million in total. That’s below where we issued it and below where the stock trades today.

Speaker #1: The repurchase is paid in installments. We paid $2 million on the effective date, and we plan on paying the next installment of $3 million on or before August 31st with cash from our balance sheet.

Speaker #1: Beyond the repurchase, nearly 37 million dollars of forthcoming UTG proceeds remain earmarked for further debt reduction. Which would bring our net debt well below 100 million dollars.

Speaker #1: Between the shares we are retiring and the debt we intend to pay down, we are using a stronger balance sheet and a more profitable business to compound value on a per share basis.

Marc Crossman: Between the shares we are retiring and the debt we intend to pay down, we are using a stronger balance sheet and a more profitable business to compound value on a per share basis. That concludes my prepared remarks. Let me turn the call back to Ben.

Speaker #1: That concludes my prepared remarks. Let me turn the call back to Ben.

Speaker #2: Thank you, Mark. I'll keep my closing brief because the financial results speak for themselves. None of this work is finished. Now that we have established a solid, profitable base, we are focusing on growth.

Ben Kohn: Thank you, Marc. I will keep my closing brief because the financial results speak for themselves. None of this work is finished. Now that we have established a solid, profitable base, we are focusing on growth. We have a media platform still in its early stages, a subscription business we are testing and refining, a licensing pipeline to convert, a Playboy Club to open, and debt still to retire. But we have shown you this quarter that when we set out to do something, it shows up in the results, that we will build the newer businesses with the same discipline: test, lean into what works, and stay fiscally responsible. That is the standard we hold ourselves to, and it is how we intend to keep creating value for our fellow shareholders. With that, operator, let us open the line for questions.

Speaker #2: We have a media platform still in its early stages, a subscription business we are testing and refining, a licensing pipeline to convert, a Playboy Club to open, and debt still to retire.

Speaker #2: But we have shown you this quarter that when we set out to do something, it shows up in the results. That we will build the newer businesses with the same discipline, tests, lean into what works, and stay fiscally responsible.

Speaker #2: That is the standard we hold ourselves to, and it is how we intend to keep creating value for our fellow shareholders. With that, operator, let us open the line for questions.

Speaker #3: Thank you, sir. We will now begin the question-and-answer session. If you have a question, please press the star, followed by the one, on your touch-tone phone.

Operator 2: Thank you, sir. We will now begin the question and answer session. If you have a question, please press the star followed by the one on your touch tone phone. If you would like to withdraw your question, please press the star followed by the two. If you are using speaker equipment, you will need to lift your handset before making your selection. We will now pause as we assemble the queue. Our first question is from JP Wollam with Roth Capital Partners. Please proceed with your question.

Operator: Thank you, sir. We will now begin the question and answer session. If you have a question, please press the star followed by the one on your touch tone phone. If you would like to withdraw your question, please press the star followed by the two. If you are using speaker equipment, you will need to lift your handset before making your selection. We will now pause as we assemble the queue. Our first question is from JP Wollam with Roth Capital Partners. Please proceed with your question.

Speaker #3: If you would like to withdraw your question, please press the star followed by the 2. If you're using speaker equipment, you will need to lift your handset before making your selection.

Speaker #3: We'll now pause as we assemble the queue. Our first question is from JP Wallen with Roth Capital Partners. Please proceed with your question.

Speaker #2: Great. Hi guys. Appreciate

JP Wollam: Great. Hi, guys. Appreciate you taking my question today. A couple for you here. Maybe if we could start in terms of the licensing business, and it sounds like there is some nice movement with Missguided and kind of opening up the runway there for them. As we think about all the different areas, I guess, are there anywhere else that you are thinking in the near term is sort of ripe for further licensee consolidation? There are some big opportunities to hand it over to other partners like Missguided that are showing some early signs.

Speaker #4: Thank you for taking my question today. A couple for you here. So maybe if we could start in terms of the licensing business—it sounds like there's some nice movement with Missguided and kind of opening up the runway there for them.

Speaker #4: But as we think about all the different areas, I guess, is there anywhere else that you are thinking in the near term is sort of ripe for further licensee consolidation?

Speaker #4: And there are some big opportunities to hand it over to other partners like Misguided that are showing some early signs. And just as you think about kind of the next 12 months and sort of the P&L, are the biggest kind of growth engines and maybe changes there going to come from some more of this licensing consolidation?

JP Wollam: Just as you think about kind of the next 12 months and sort of the P&L, are the biggest kind of growth engines and maybe changes there going to come from some more of this licensing consolidation, or is it really going to be sort of the other media business that is driving some growth there?

Speaker #4: Or is it really going to be sort of the other media business that's driving some growth there?

Speaker #2: Hey, JP. It's Ben. Look, we're very happy with where the licensing business is, and especially the pipeline that we have moving forward. The P&L growth is going to come from two things, right?

Ben Kohn: Hey, JP, it is Ben. Look, we are very happy with where the licensing business is and especially the pipeline that we have moving forward. The P&L growth is going to come from two things, right? Obviously, as we have talked about historically, we have a lot of white space both from a geographical perspective and a categories perspective. Starting to get some real traction on the gaming side right now. That doesn't compete with existing licensees. There are certain markets that over time, again, it is sort of a puzzle you are putting together because you have contractual obligations that you have to meet, both from a category perspective and a timing perspective, and that is coupled with a larger strategy, specifically bringing in like Krystle and the new team that we are bringing in to help us with that. That will just happen over time.

Speaker #2: Obviously, as we've talked about historically, we have a lot of white space, both from a geographical perspective and a category perspective. Starting to get some real traction on the gaming side right now.

Speaker #2: And so, that doesn't compete with existing licensees. There are certain markets that, over time—and again, it's sort of a puzzle you're putting together because you have contractual obligations that you have to meet.

Speaker #2: Both from a category perspective and a timing perspective. And that is coupled with a larger strategy, specifically bringing in Crystal and the new team that we are bringing in to help us with that.

Speaker #2: That will just happen over time. We also want to be very sensitive that we are not taking down revenue or EBITDA from licensing business.

Ben Kohn: We also want to be very sensitive that we are not taking down revenue or Adjusted EBITDA from the licensing business. We want to make sure that we are doing it in a very fiscally responsible way. As far as growth moving forward for the business, we think over time, the media and experiences business can be as large as the licensing business with a very similar profile. We are starting to see traction. I look at, for example, Miss July, and I look at that conversion funnel from social media posts to paying subscribers on our website or members. We are starting to get better at that. We just brought in Radhika, who joined us two weeks ago to really lead that effort on the digital side, and we are continuing to hire more people now that we have actually proven it out. We have limited resources.

Speaker #2: We want to make sure that we're doing it in a very fiscally responsible way. As far as growth moving forward, for the business, we think over time, the median experiences business can be as large as licensing business with a very similar profile.

Speaker #2: We are starting to see traction. I look at, for example, this July, and I look at that conversion funnel from social media posts to paying subscribers on our website, or members.

Speaker #2: And we're starting to get better at that. We just brought in Radhika who joined us two weeks ago, to really lead that effort on the digital side, and we're continuing to hire more people.

Speaker #2: Now that we've actually proven it out, right? So again, we have limited resources. We want to be really fiscally responsible. We tested something. We're seeing that it's work, and now we're going to build a team to actually accelerate that growth moving forward.

Ben Kohn: We want to be really fiscally responsible. We tested something. We are seeing that it has worked, and now we are going to build the team to actually accelerate that growth moving forward. I think growth will come from licensing. Again, licensing is more of a step function. I think on the digital side, it is a recurring revenue base. We are bringing people in. You bill them next year. There is a lot of upside in that. On top of that, we have signed our first sponsorship deals for content. Paid voting was up roughly 2.5x from a revenue perspective versus the first contest. We have another one. It is multiple different revenue streams coming off really the same investment, which is the content side of it, which we have to do from a brand perspective, irrespective.

Speaker #2: So I think growth will come from licensing. Again, licensing is more of a step function. I think on the digital side, it's a recurring revenue base, right?

Speaker #2: We're bringing people in. We bill them next year. And there's a lot of upside in that. And then on top of that, we've signed our first sponsorship deals for content.

Speaker #2: Paid voting was up roughly two and a half times from a revenue perspective versus the first contest. We have another one, and so it's multiple different revenue streams.

Speaker #2: Coming off really the same investment, which is the content side of it, which we have to do from a brand perspective. Irrespective.

Speaker #4: Great, that makes a lot of sense. Switching over, maybe on Honey Birdette—I don't think you had touched on it. You provided some good detail on some of the strength there, but I know we've talked in the past about deploying capital for some additional units.

JP Wollam: Great. That makes a lot of sense. Switching over maybe on Honey Birdette. I do not think you had touched on it. You provided some good detail on just some of the strength there, but I know we have talked in the past about deploying capital for some additional units. Could you just share any updates there? How are you thinking about timing? I think maybe around five units was what you guys were thinking in the past, but could you just provide us any update in terms of additional brick and mortar at Honey Birdette?

Speaker #4: So, could you share any updates there? How are you thinking about timing? I think maybe around five units was what you guys were thinking in the past, but could you just provide us with any update in terms of additional brick and mortar at Honey Birdette?

Speaker #2: Yeah. Look, the business is doing great. The product is speaking to the consumer. We are actively looking for other brick-and-mortars, but there are multiple different ways to grow, including e-commerce, which doesn't require the capex that brick-and-mortar does.

Ben Kohn: Yeah. Look, the business is doing great. The product is speaking to the consumer. We are actively looking for other brick and mortars, but there are multiple different ways to grow, including e-commerce, which does not require the CapEx that brick and mortar does. In an ideal world, we would open five more stores. We just want to make sure that those stores maintain the same margin profile that our existing stores do in the United States. Rents are expensive right now, and so we are being very selective in where we go, making sure it is the right market, coupled with the right economics. We do not want to open a store to decrease our margin profile moving forward. So, in the interim, we will focus on e-commerce and the business continues to perform really well.

Speaker #2: In an ideal world, we would open five more stores. We just want to make sure that those stores maintain the same margin profile that our existing stores do in the United States.

Speaker #2: Rents are expensive right now, and so we're being very, very selective in where we go, making sure it's the right market. Coupled with the right economics, we don't want to open a store and have to decrease our margin profile moving forward.

Speaker #2: So, in the interim, we'll focus on e-commerce, and the business continues to perform really well.

Speaker #4: Great. And then just the last one for me, a little bit more in terms of the capital allocation question — Mark provided the update in terms of the second payment of the share repurchase for August.

JP Wollam: Great. Then just the last one for me. A little bit more in terms of a capital allocation question. Marc provided the update in terms of the second payment of the share repurchase for August. As we think about the remaining, I think that would put it at about 5 of the $17 million. Just as we think about that remaining $12 million, how aggressive do you want to be with that entire repurchase versus balancing where debt sits today and understanding that the repurchase is backstopped by some of your strong partners? How aggressive or how optimistic, I guess, are you that you will take down the entirety of that share repurchase?

Speaker #4: But as we think about kind of the remaining, I think that would put it at about $5 million of the $17 million. So, just as we think about kind of that remaining $12 million, how aggressive do you want to be with that entire repurchase versus sort of balancing where debt sits today, and understanding that the repurchase is kind of backstopped by some of your strong partners?

Speaker #4: But how aggressive or, sort of, how optimistic, I guess, are you that you will take down the entirety of that share repurchase?

Speaker #2: Yeah. So the first two million, we funded the second three million, we'll fund from cash on our balance sheet as Mark stated. We have 37 million dollars of cash of total cash when we start to cash on our balance sheet today.

Ben Kohn: Yeah. The first $2 million we funded. The second $3 million we will fund from cash on our balance sheet. As Marc stated, we have $37 million of total cash, unrestricted cash on our balance sheet today. The great thing about the way we structured the deal is we have a backstop from our two largest partners. Obviously, in the ideal world for the rest of the shareholders, you would reduce the full share count to 16.6 million and return those shares to treasury. That is what we plan on doing today. Obviously, can not predict the future, but that is our plan today. As far as debt, we have approximately $145 million today, right? We have $36.7 million of future earmarked UTG payments that will take our debt down to $108.

Speaker #2: The great thing about the way we structured the deal is we have a backstop from our two largest partners. Obviously, in the ideal world for the rest of the shareholders, you would reduce the full share count—the 16.6 million—and return those shares to treasury.

Speaker #2: And that's what we plan on doing today. Obviously, we can't predict the future, but that is our plan today. As far as debt, we have approximately $145 million today, right?

Speaker #2: We have $36.7 million of future earmarked UTG payments that will take our debt down to $108 million. So you take $108 million, and you take off $37 million of cash and cash equivalents, right?

Ben Kohn: You take $108, you take off $37 of cash and cash equivalents, and the balance sheet is in a really good place from a net debt perspective. We will continue to monitor what is the best return for our shareholders moving forward. Do everything we can to try to create shareholder value.

Speaker #2: And the balance sheet's in a really good place from a net debt perspective, and so we'll continue to monitor what's the best return for our shareholders moving forward.

Speaker #2: And do everything we can to try to create shareholder value.

Speaker #4: Great. I'll pass it along. Best of luck, guys.

JP Wollam: Great. I will pass it along. Best of luck, guys.

Speaker #2: Thanks, JP.

Ben Kohn: Thanks, JP.

Speaker #1: Our next question is from James Heaney with Jefferies LLC. Please proceed with your question.

Operator 2: Our next question is from James Heaney with Jefferies LLC. Please proceed with your question.

Operator: Our next question is from James Heaney with Jefferies LLC. Please proceed with your question.

Speaker #3: Terrific, thank you guys for having me on. Just kind of looking at the direct-to-consumer segment, I think this was actually 18%. I think that's the fastest growth rate.

James Heaney: Terrific. Thank you guys for having me on. Just looking at the direct-to-consumer segment, I think this was actually 18%. I think that's the fastest growth rate we've seen in the segment since 2022. Obviously a big breakthrough there. Maybe just talk about where you saw the most strength. What was the primary reason for that re-acceleration? Then just try to help us understand the sustainability of growth in that segment and maybe if there's any near to medium term sort of growth expectations would be helpful. Thank you. Then I have one more.

Speaker #3: We've seen it in the segment since 2022, so obviously a big breakthrough there. Maybe just talk about where you saw the most strength.

Speaker #3: What was the primary reason for that re-acceleration? And then, just to help us understand, the sustainability of growth in that segment—and maybe if there's any kind of near- to medium-term sort of growth expectations would be helpful.

Speaker #3: Thank you. And then I have one more.

Speaker #1: Okay. Hey, it's Mark. Appreciate that question. On the Honey Birdette side, yeah, we had another strong comp on comp at the retail business. Really, what we're seeing, though, is a strength in the online business.

Marc Crossman: Okay. Hey, it's Marc. Appreciate that question. On the Honey Birdette side, yeah, we had another strong comp at the retail business. Really what we're seeing though is the strength in the online business, and that's where it's been the last piece to turn, and we're seeing that turn predominantly in the US market. But across all markets. It's really online, as Ben had touched on, that's reigniting growth. I think that's where obviously comps become a little more difficult on retail as you start triple comping. But online, there is plenty of room for us to continue to grow and comp.

Speaker #1: And that's where it's been the last piece to turn. And we're seeing that turn predominantly in the U.S. market, but across all markets. So really, online has been a touchstone that's reigniting growth.

Speaker #1: And I think that's where, obviously, comps become a little more difficult on retail as you start triple-comping. But online, there is plenty of room for us to continue to grow and comp.

Speaker #3: Great. And then my second one was just around—I mean, you've made a lot of key leadership hires, even in the last month, but just broadly over the last year across licensing, consumer goods, and obviously the media and brand side.

James Heaney: Great. Then my second one was just around, you've made a lot of key leadership hires, even in the last month, but just broadly over the last year across licensing, consumer goods, obviously the media and brand side. I'm just hoping you could talk about the significance of these hires and what the key growth areas are for each of these leaders. Just if there's going to be any other kind of changes to the organization as they implement their strategies. Thank you.

Speaker #3: I'm just hoping you could talk about the significance of these hires and what the key growth areas are for each of these leaders.

Speaker #3: And just if there's going to be any other kind of changes to the organization as they implement their strategies. Thank you.

Speaker #2: Thanks, James. Yeah, look, we're only as good as our weakest link. When we did this restructuring a few years ago, we had a clear business plan that we've been executing on. Now that we're in a place where we can actually reinvest in the business, we're bringing in the right talent.

Ben Kohn: Thanks, James. Yeah, look, we're only as good as our weakest link. When we did this restructuring a few years ago with a clear business plan that we've been executing on, now that we're in a place that we can actually reinvest in the business, we're bringing in the right talent to actually grow those businesses and monetize them, right? David Miller joined us, who had built the digital business and the licensing business for National Geographic. Great Disney experience before that, AOL. He's come in, and I think he's done a great job, and is now hiring the team underneath him with Krystle, with Radhika, with Phillip, and more, to actually execute on those businesses.

Speaker #2: To actually grow those businesses and monetize them, right? So, David Miller joined us—who had built the digital business and the licensing business for Nat Geo, had great Disney experience, and before that, AOL.

Speaker #2: He's come in. And I think he's done a great job. And there's now hiring the team underneath him with Crystal, with Radica, with Philip, and more.

Speaker #2: To actually execute on those businesses. Look, if we do it right, then over time, as I said, the media and experiences business should be as large, if not larger, from a revenue perspective compared to our licensing business.

Ben Kohn: Look, if we do it right, then over time, as I said, the media and experiences business should be as large, if not larger from a revenue perspective, compared to our licensing business. Based on how we have it set up, it can be extremely profitable as well. We will continue to add talent based on making sure, one, we stay really disciplined with hiring the right people, and two, that the business from a growth perspective warrants the cost of bringing on additional talent. As we sort of said in the prepared remarks, we're testing, we're iterating, and we're leaning more into what works and abandoning what doesn't work. We'll continue to take that fiscal discipline moving forward as we build out the team. The other area that we've highlighted is the hospitality side, and we're making progress on bringing that Playboy Mansion to life.

Speaker #2: And based on how we have it set up, it can be extremely profitable as well. We will continue to add talent, making sure that, first, we stay really disciplined in hiring the right people.

Speaker #2: And two, that the business, from a growth perspective, warrants the cost of bringing on additional talent. So, as we said in the prepared remarks, we're testing, we're iterating, and we're leaning more into what works.

Speaker #2: And abandoning what doesn't work. And so we'll continue to take that fiscal discipline moving forward as we build out the team. The other area that we've highlighted is the hospitality side.

Speaker #2: And we're making progress on bringing that Playboy mansion to life. And we'll have more to talk about that in the future as things continue to progress on that.

Ben Kohn: We'll have more to talk about that in the future as things continue to progress on that. Obviously, to the extent we do get that off the ground, we'll need to bring in someone to help us on the hospitality side as well. But the way we're setting up that deal is really as a licensing deal, so we're not taking capital risk ourselves.

Speaker #2: Obviously, to the extent we do get that off the ground, we'll need to bring in someone to help us on the hospitality side as well.

Speaker #2: But the way we're setting up that deal is really as a licensing deal, so we're not taking capital risk ourselves.

Speaker #3: Great, appreciate the insights. Thank you, guys.

James Heaney: Great. Appreciate the insight. Thank you, guys.

Speaker #2: Thanks, James.

Ben Kohn: Thanks, James.

Speaker #1: We have reached the end of the question and answer session. We'd like to turn the floor back over to Ben Kohn for closing comments.

Operator 2: We have reached the end of the question and answer session. We'd like to turn the floor back over to Ben Kohn for closing comments.

Operator: We have reached the end of the question and answer session. We'd like to turn the floor back over to Ben Kohn for closing comments.

Speaker #2: Thank you, operator. I just wanted to thank everyone who listened for joining today for our Q2 results, and I look forward to talking to you in the fall when we report our Q3 results.

Ben Kohn: Thank you, operator. I just want to thank everyone who listened for joining today for our Q2 results, and look forward to talking to you in the fall when we report our Q3 results. Thank you.

Speaker #2: Thank you.

Operator 2: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

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