Xcel Brands reported a stable revenue of $1.3 million in the second quarter of 2025.
The company experienced a 55% decrease in total revenue compared to the second quarter of 2024, mainly due to the divestiture of the Lori Goldstein brand.
Direct operating costs and expenses decreased by 39% to $1.9 million in the current quarter.
Social Media Following Growth
Social media following in the brand portfolio increased significantly from 5 million to 43 million in the second quarter of 2025, showcasing strong engagement.
Financial Performance
The net loss on a GAAP basis was $4.0 million for the current quarter, with a year-to-date adjusted EBITDA of negative $1.0 million in 2025, showing a 38% improvement from the previous year.
Future Projections
Xcel Brands projects approaching break-even monthly adjusted EBITDA by the end of 2025 following recent debt and equity financing transactions.
- The decrease in total revenue was primarily driven by the divestiture of the Lori Goldstein brand, but was partially offset by increased licensing revenues from other brands.
- Cost reductions and a working-capital-light operating model have contributed to the stabilization of revenue streams and the company's financial performance.
Xcel Brands, Inc. demonstrated resilience in its business model amidst economic challenges, with a focus on strengthening its balance sheet through strategic financing moves and continued brand development.