Playboy, Inc. (PLBY)·Q3 2025 Earnings Summary

Executive Summary

• Playboy delivered its third straight quarter of positive adjusted EBITDA and its first positive net income since going public: revenue $29.0M, net income $0.5M, adjusted EBITDA $4.1M (would have been $6.6M excluding $2.5M litigation expense). Licensing revenue rose 61% YoY, underscoring traction in the asset‑light pivot .
• Underlying revenue improved YoY after normalizing for one‑time Q3’24 items tied to ecommerce outsourcing and store closures; management emphasized normalized revenue would have been up 4.2% YoY .
• Honey Birdette comps rose 22% with gross margin up 700 bps to 61% as the brand leaned into full‑price mix (+15%); AOV increased 9% after website relaunch, with loyalty launching and geographic expansion planned .
• Balance sheet and liquidity improved with >$32M cash and extended debt maturity to May 2028 (with interest rate reductions upon prepayments), creating flexibility to fund brand/content initiatives and continue deleveraging .

What Went Well and What Went Wrong

What Went Well

• Licensing acceleration: Q3 licensing revenue $12.0M (+61% YoY) aided by $5.0M in minimum guarantees from the digital licensing deal and stronger overages; six new deals signed in Q3 (14 YTD) and China partnership restructured to revenue‑based terms .
• Profitability inflection: First positive net income since going public and third consecutive quarter of positive adjusted EBITDA, despite $2.5M litigation expense burden in Q3 (Adj. EBITDA would have been $6.6M ex‑litigation) .
• Honey Birdette brand health: Comps +22%, GM +700 bps to 61% as promotional intensity fell; management flagged >30% four‑wall margins at flagship/U.S. stores and reiterated focus on high‑margin growth channels (ecommerce, flagship expansion) .

Management quotes:

• “This quarter marks our third consecutive quarter of positive adjusted EBITDA and… our first quarter of positive net income since going public.”
• “Licensing continues to be a bright spot for us, with revenue up 61% year‑over‑year.”
• “We ended Q3 with over $32 million in cash, and we amended our debt facility, extending the maturity until May 2028 and reducing interest rates upon prepayments.”

What Went Wrong

• Legal costs remain a drag: Q3 included $2.5M in litigation expense (ex‑litigation Adj. EBITDA would have been $6.6M), and management expects legal expenses to continue near‑term while pursuing enforcement and domestic litigation .
• Segment normalization effects: Q3 revenue was flat YoY (-$0.4M) due to non‑recurring items in Q3’24 (ecommerce outsourcing, store closures) that flattered the prior year; normalized growth was positive but reported headline growth muted .
• Hospitality monetization timing pushed out: Management does not expect meaningful revenue from the Miami club in 2026; earlier focus will be on capital raise, operating partner selection, and eventually membership sales beginning 2027 .

Financial Results

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