Tue, May 13, 8:14 PM (41 days ago)
**a.k.a. Brands Holding Corp. (AKA) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $128.7 million, up 10% YoY. - **Gross Profit:** $73.7 million, up 12% YoY. - **Operating Loss:** $5.4 million, improved from $6.1 million YoY. - **Net Loss:** $8.4 million, improved from $8.9 million YoY. - **Cash Flow:** Net cash used in operations was $1.9 million, an improvement from $7.7 million YoY. - **Free Cash Flow:** $(5.3) million, improved from $(8.4) million YoY. - **Adjusted EBITDA:** $2.7 million, up from $0.9 million YoY. **Profit Margins:** - **Gross Margin:** 57%, up from 56% YoY. - **Operating Margin:** (4%), improved from (5%) YoY. - **Net Margin:** (6%), improved from (8%) YoY. **Key Metrics:** - **Active Customers:** 4.13 million, up from 3.83 million YoY. - **Average Order Value:** $78, up from $77 YoY. - **Number of Orders:** 1.66 million, up from 1.52 million YoY. **Trends & Uncertainties:** - Positive trends include increased net sales, improved gross margin, and better cash flow management. - Uncertainties include macroeconomic factors, geopolitical tensions, and potential impacts from tariffs and trade policies. - The company is focusing on brand awareness, customer acquisition, and inventory management to drive future growth. **Future Operations Impact:** - AKA plans to continue investing in operations, infrastructure, and marketing to support growth. - The company aims to expand into new markets and improve operational efficiencies. - AKA is also focused on addressing material weaknesses in internal controls and enhancing financial reporting processes. **Liquidity & Capital Resources:** - As of March 31, 2025, AKA had $26.7 million in cash and cash equivalents. - The company has a revolving line of credit and a term loan accordion provision to support liquidity needs. - AKA expects to meet its cash needs for the next 12 months and beyond through a combination of cash flows from operations and available borrowing capacity. **Share Repurchase Program:** - During Q1 2025, AKA repurchased 15,910 shares for $0.3 million under the share repurchase program. **Legal & Risk Factors:** - AKA received a cease and desist letter alleging copyright infringement in April 2024 and has accrued $2.0 million for estimated losses. - The company is subject to various risks, including macroeconomic factors, geopolitical tensions, and potential impacts from tariffs and trade policies.