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PI

Playboy, Inc. (PLBY)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 revenue was $28.1M, up 13% year over year; adjusted EBITDA improved to $3.5M from a loss of $2.9M in Q2 2024, while net loss narrowed to $7.7M from $16.7M; licensing revenue more than doubled (+105%) and Honey Birdette DTC grew 14% with gross margin up ~200 bps to 59% .
  • Results included $1.3M incremental legal expenses that reduced adjusted EBITDA; excluding these, adjusted EBITDA would have been ~$4.8M; one-time charges included $1.9M impairments (LA office sublease) and $2.1M settlement of licensing agent commissions, together equal to ~$0.04 EPS impact; absent these, net loss would have been ~$$3.7M and EPS $(0.04) .
  • Management emphasized progress on asset-light licensing, new content monetization (Great Playmate Search paid voting), and hospitality plans (Miami Beach venue); cash “in excess of $30M” as of the call supports deleveraging opportunities given improving credit markets .
  • No formal update to prior FY2025 revenue outlook (~$120M shared in March); Byborg licensing provides at least $20M per year MG over 15 years, underpinning licensing mix, with new gaming/beauty/beverage deals signed and more in pipeline .

What Went Well and What Went Wrong

What Went Well

  • Licensing revenue surged 105% YoY to $10.9M on $5M minimum guaranteed royalties, new partners, and renegotiated minimums; pipeline includes new deals in gaming and beauty/grooming .
  • Honey Birdette performance improved: revenue +14% YoY to $16.5M, same-store sales +28%, promotional days reduced 40%, gross margin up to 59% from 57%; management expects continued growth in the back half .
  • Strategic shift to content and experiences: launch of Great Playmate Search (paid fan voting) with multi-thousand registrations early in the sign-up window and intent to run quarterly contests; planning a Miami Beach Playboy Club with identified space and operating partner interest .

What Went Wrong

  • Legal expenses of $1.3M related to litigation with former licensees reduced adjusted EBITDA; litigation drag may continue depending on timing, though management is confident on merits and potential settlements .
  • One-time charges: $1.9M impairment tied to LA office sublease and fixed assets; $2.1M settlement of present/future licensing agent commissions, together impacting EPS by ~$0.04 .
  • No formal Q2 update to FY2025 revenue guidance; content/hospitality initiatives are multi-year and may not materially contribute in 2025; licensing is step-function and timing-dependent (management reiterates caution on deal pacing and brand protection) .

Financial Results

MetricQ2 2024Q4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$24.9 $33.5 $28.9 $28.1
Net Loss ($USD Millions)$16.7 $12.5 $9.0 $7.7
Diluted EPS ($USD)$(0.23) $(0.15) $(0.10) $(0.08)
Adjusted EBITDA ($USD Millions)$(2.9) $(0.1) $2.4 $3.5
Segment / KPIQ2 2024Q1 2025Q2 2025
Licensing Revenue ($USD Millions)$5.3 $11.4 $10.9
Direct-to-Consumer Revenue ($USD Millions)$14.5 $16.3 $16.5
Honey Birdette Gross Margin (%)57% 58% 59%
Honey Birdette Comparable Store Sales (%)——+28%
Promotional Days Reduction (%)——40%
Operating DetailQ4 2024Q1 2025Q2 2025
Interest Expense ($USD Millions)$4.008 $1.888 $1.907
Weighted Avg Shares (Basic & Diluted)83,893,637 92,653,367 94,397,910

Notes:

  • Adjusted EBITDA would have been ~$4.8M excluding $1.3M incremental legal costs (non-GAAP management disclosure) .
  • One-time items: $1.9M impairments and $2.1M licensing commissions settlement; combined EPS impact ~$0.04 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY 2025~$120M (provided March 13, 2025) No formal update in Q2 materials Maintained (no update)
Licensing MG (Byborg)FY 2025≥$20M per year (15-year MG; began Jan 1, 2025) Unchanged; partnership “in full swing” Maintained

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 2024)Previous Mentions (Q1 2025)Current Period (Q2 2025)Trend
Asset-light licensing modelTransformation largely complete; Byborg deal sets cash-flow baseline Licensing +175% YoY; MG $20M/yr; pipeline strong (gaming) Licensing +105% YoY; new gaming, beauty/grooming deals signed; more in pipeline Strengthening
Content strategy (magazine, Playmates)Relaunch as “brand bible”; aim for quarterly issues and monetization via sponsorships/voting Feb relaunch sold out online; plan a second issue with 12 Playmates; developing paid voting/events/podcasts Great Playmate Search launched; multi-thousand sign-ups; quarterly contests planned Accelerating
Hospitality/experientialConsidering hospitality/licensing opportunities; multi-year build Approached by top operators; long development timeline Miami Beach venue planning underway; identified space; partner engagement; HQ move to Miami Advancing
Honey Birdette executionQ4 GM 60%; same-store sales +4% Prioritizing brand health; GM 58%; pricing actions vs tariffs Revenue +14%; GM 59%; comps +28%; promos reduced 40% Improving
Tariffs/macroLicensing insulated via territorial structures Potential ~$1M tariff impact H2 with pricing offsets; 10% price increase in U.S. No new tariff commentary; HB trends strong Neutral
Regulatory/legal——Litigation with former licensees; $1.3M Q2 legal drag; confidence on outcomes Ongoing
AI initiatives—Exploring operational margin improvement with AI Using AI in operations and Playmate voting process Emerging

Management Commentary

  • “Playboy’s improving performance… reflects our transformation to an asset-light business model… adjusted EBITDA to $3.5 million… licensing revenue… more than doubled… Honey Birdette… same-store sales increasing 28% and gross margins… 59%.”
  • “We launched the Great Playmate Search… and have begun planning a Playboy hospitality venue in Miami Beach… in excess of $30 million in cash… we will opportunistically… deleverage our balance sheet.”
  • “We are now in a strong financial position with over $30,000,000 in cash on hand… and a clear plan to continue reducing debt and lowering our cost of capital.”
  • “The deals that we signed… exceed 7 figures… licensing is a step function… we want to be strategic… with better partners.”

Q&A Highlights

  • Paid voting monetization: early sign-ups reached >50% of expected total in first few days without marketing; contests planned quarterly and modeled like licensing via a technology partner (high-margin) .
  • Licensing commissions settlement lowers expense run-rate going forward; changes start in Q3 with accounting complexity; management sees margin enhancement opportunities including AI .
  • Honey Birdette outlook: strong full-price retail, +28% comps; management expects growth in H2 despite tougher comparisons; gross margin improvement cited .
  • Legal matters: two major litigations; one resolved litigation portion, one ongoing; drag may persist, but management confident and notes potential for significant settlements .
  • Hospitality: asset-light structuring with operating partners; Miami likely first site; emphasis on selecting the right partner to protect brand experience .

Estimates Context

  • Wall Street consensus via S&P Global for Q2 2025 revenue and EPS was unavailable; as a result, we cannot benchmark the quarter against sell-side estimates or classify beat/miss versus consensus at this time. Values retrieved from S&P Global were unavailable for PLBY this quarter.

Key Takeaways for Investors

  • Licensing momentum is real and broad-based; Q2 licensing +105% YoY on $5M MG and new/renewed minimums, with pipeline in gaming/beauty/accessories; expect step-function growth cadence rather than linear .
  • Honey Birdette turnaround is gaining traction: comps +28%, GM 59%, reduced promotions; management anticipates H2 growth despite harder laps; pricing actions and levers in place against tariff risk .
  • Non-GAAP adjustments and one-time items obscured the underlying profitability; excluding $1.3M legal costs, adjusted EBITDA would have been ~$4.8M; watch for margin tailwinds from reduced licensing commission expense .
  • Content and experiential strategies are stock catalysts: paid voting contests, magazine relaunch, and Miami hospitality could create new high-margin revenue streams; near-term revenue impact is likely modest, with greater contributions in 2026+ .
  • Balance sheet actions continue: cash >$30M, preferred stock conversion post-Q2 streamlined capital structure; management focused on deleveraging and lowering cost of capital .
  • Litigation is a swing factor: near-term drag persists, but potential settlements could be material; monitor disclosures for resolution timing .
  • With estimates unavailable, trading setups should focus on licensing pipeline news flow, Honey Birdette comp/margin continuity, and execution milestones on content/hospitality (Playmate Search traction, Miami venue partner announcements) as narrative drivers .