PLBY Group, Inc. (PLBY)·Q1 2025 Earnings Summary

Executive Summary

• Q1 2025 delivered modest top-line growth ($28.9M, +2% YoY), a sharply narrower net loss ($9.0M; $0.10 loss per share), and the first positive adjusted EBITDA since 2023 ($2.4M), driven by the asset-light pivot to licensing and improved Honey Birdette margins .
• Licensing revenue surged 175% YoY to $11.4M, including $5.0M in guaranteed royalties from the Byborg partnership (15-year, $20M/year MG), while direct-to-consumer declined 13% as management reduced promotional days to protect brand health .
• Management highlighted upcoming $20M of cash inflows from Byborg by July 1 ($5M for last two quarters of 2025 + $10M security deposit), with transition expenses largely done by end of May; pipeline building in gaming and land-based entertainment/hospitality (Playboy Club concept), and monetization from the successful magazine relaunch (paid voting, events, calendars) .
• Street consensus for Q1 2025 (EPS, revenue) was unavailable via S&P Global; estimate comparisons are therefore not provided (values retrieved from S&P Global).

What Went Well and What Went Wrong

What Went Well

• Licensing scale and visibility: Licensing revenue +175% YoY to $11.4M (including $5.0M Byborg MG), underpinning an asset-light model that produced positive adjusted EBITDA; “we achieved our first positive adjusted EBITDA quarter since 2023” .
• Honey Birdette margin and mix: Gross margin expanded to 58% from 52% YoY; full-price sales +8% YoY and now 80% of sales (vs. 65%), reflecting disciplined promotional reductions and focus on brand health .
• Cash inflow visibility: Expect $20M payment from Byborg by July 1 (minimum guarantee for last two quarters of 2025 + $10M security deposit), and reimbursement of remaining legacy digital costs after May transition expenses .

What Went Wrong

• Direct-to-consumer revenue softness: DTC fell 13% YoY to $16.3M as promotional days were cut; management emphasizes this was intentional to strengthen brand/price integrity .
• Transition costs weighed on Q1: ~$3.8M nonrecurring transition expenses with another ~$1.2M expected by end of May tied to the Byborg migration, temporarily burdening profitability .
• Limited Street estimates: S&P Global consensus data not available for Q1 2025, constraining “beat/miss” context (values retrieved from S&P Global).

Financial Results

Notes: Adjusted EBITDA margin (derived) — Q3: -13.7% (= -1.8/12.864) using , ; Q4: -0.4% (= -0.131/33.493) using , ; Q1: 8.2% (= 2.377/28.875) using , .

Segment Breakdown

KPIs

Vs. Estimates

*Values retrieved from S&P Global; consensus for Q1 2025 was unavailable.

Guidance Changes

Earnings Call Themes & Trends

Management Commentary

• “Licensing revenue grew 175% YoY, as the Byborg licensing deal went into effect on January 1… Honey Birdette’s gross margin expanded to 58% from 52% YoY… we achieved our first positive adjusted EBITDA quarter since 2023… On a proforma basis, adjusted EBITDA would have been $3.4 million without those costs” .
• “In Q1, we generated $5 million in guaranteed royalties… which will deliver at least $20 million each year for the next 15 years… we expect $20 million in payments from Byborg by July 1…” .
• “The relaunch of Playboy magazine in February was met with great enthusiasm… we plan to release a second issue… and expect to publish four issues [in 2026]… developing new revenue streams… paid voting, events, special editions, calendars…” .
• “We grew revenue, improved margins, and achieved our first quarter of positive adjusted EBITDA since 2023… we will continue to reduce corporate expenses… better positioned to strengthen the brand and drive growth” .

Q&A Highlights

• Honey Birdette trajectory: Easier comps starting Q2; ahead of plan in Q2; tariff impact estimated ~$1M for 3Q–4Q, mitigated by 10% price increases and shipping threshold changes; U.S. HB business ~$35M exposure .
• Byborg development and cash timing: New designs and live cams in development; assume $20M/year MG near-term; $20M payment scheduled by July 1 ($5M MG for last two quarters + $10M security deposit); profit share 25% above MGs .
• Licensing pipeline: Expect deals in gaming and hospitality (Playboy Club); multiyear deal accounting may straight-line revenue; paid voting and calendar initiatives targeted for H2 2025 .

Estimates Context

• S&P Global Wall Street consensus for Q1 2025 revenue and EPS was unavailable; no beat/miss determination can be made (values retrieved from S&P Global).
• Given actuals, sell-side models are likely to adjust for: higher recurring licensing MGs from Byborg, lower DTC promotional cadence sustaining margin mix, and one-off transition costs rolling off after May .

Key Takeaways for Investors

• Licensing is now the core earnings engine with high visibility: $5M recognized in Q1 and $20M annual MGs over 15 years, plus near-term $20M cash inflow by July 1; watch incremental royalties above MGs as product rollouts scale .
• Honey Birdette margin structure is improving with mix shift and pricing; Q2 comps should be easier, with tariff impact likely modest and offsettable via pricing and shipping tactics .
• Q1 marks an inflection to positive adjusted EBITDA; with ~$1.0M of costs eliminated post-Q1, EBITDA trajectory should improve as transition expenses end and overhead is reduced .
• Brand monetization catalysts: magazine relaunch traction, paid voting, calendars, sponsorships, and potential gaming/hospitality licensing (Playboy Club concept) in H2 and into 2026 .
• Balance sheet stabilizing post debt restructuring and equity infusion; monitor liquidity progression as Byborg payments arrive and HB cash generation improves .
• With estimates unavailable, price action may key off narrative strength (licensing visibility, margin mix, upcoming cash inflows) and pipeline news flow; watch for contract signings in gaming/hospitality and content monetization updates .