Walter Schenker

Walter Schenker sought clarity on Xcel Brands' revenue roadmap for the next 12 months to achieve profitability, inquiring about expectations for sequential revenue growth in 2026 and reaffirming the multi-year target for royalty income.

Answer

Robert D'Loren, Founder, Chairman, and CEO of Xcel Brands, outlined a roadmap centered on launching five new influencer-led brands, resolving past difficulties with Christie Brinkley and Sea Wonder, and expanding categories for these brands. He confirmed expectations for sequential revenue growth throughout 2026 as new brands come online and existing issues are addressed, with hopes for accelerated growth in the Halston brand. D'Loren also reaffirmed the long-term goal of achieving $50 million in royalty income, emphasizing the significant potential of powerful brands like Cesar Millan, Jenny Martinez, and Gemma Stafford.

Walter Schenker questioned the roadmap for achieving significantly higher revenues over the next 12 months and whether 2026 would show sequential quarterly revenue growth. He later asked for reaffirmation of the multi-year target of $50 million in royalty income, with $25 million attributable to Xcel Brands.

Answer

Robert D'Loren, Founder, Chairman, and CEO, outlined the roadmap, emphasizing the launch of five new influencer-led brands in 2026, expected upside from resolved issues with Christie Brinkley and SeaWonder, and expansion into new categories and sales channels. He confirmed that each quarter in 2026 should sequentially show growth as new brands come online and efforts are made to accelerate Halston's growth. D'Loren reaffirmed the multi-year target of $50 million in royalty income, highlighting the enormous potential of powerful brands like Cesar Millan, Jenny Martinez, and Gemma Stafford.

Walter Schenker questioned the slow revenue growth and asked about the key catalysts (e.g., AWS, government contracts, new products) that could significantly accelerate revenue growth towards breakeven.

Answer

The executive stated that growth will come from a combination of things: enhancing existing products, developing new offerings for areas like critical infrastructure, and leveraging scalable platforms like the AWS marketplace. They are not relying on a single catalyst. The AWS marketplace, in particular, is seen as a key opportunity for scalable growth. They are hopeful for significant increases in bookings and then revenue in the second half of the year.