Xcel Brands reported a stable quarter with revenues of $1.3 million, similar to the first quarter of 2025.
The company experienced a significant increase in social media following within its brand portfolio from 5 million to 43 million.
Net loss on a GAAP basis for the quarter was $4.0 million, including non-cash charges related to debt refinancing.
Year-to-Date Adjusted EBITDA for 2025 improved by 38% compared to the first six months of 2024, aiming for break-even monthly Adjusted EBITDA by the end of 2025.
Social Media Growth
The brand portfolio's social media following surged from 5 million to 43 million during the quarter.
Stable Revenues
Quarterly revenues remained consistent at $1.3 million, showing stability in revenue streams.
Adjusted EBITDA Improvement
Year-to-Date Adjusted EBITDA for 2025 saw a 38% enhancement, with a target to reach break-even monthly Adjusted EBITDA by the end of 2025.
- The decrease in total revenue for the second quarter of 2025 compared to the previous year was mainly due to the divestiture of the Lori Goldstein brand in June 2024.
- Cost reductions and restructuring efforts led to a significant decrease in direct operating costs and expenses, setting the Company on track for sustainable operations.
- The Company recognized a loss on early extinguishment of debt related to refinancing, impacting the net loss for the quarter.
Xcel Brands showcased resilience and strategic financial management, aiming for sustainable growth through cost reductions and a focus on operational efficiency. The company's plans for new creator/influencer brands signal an exciting future ahead.