Playboy, Inc. Q2 FY2025 earnings call

• The company has evolved to a licensing-focused, asset-light business.
• Second quarter results show financial improvement with revenue up 13% y-o-y and adjusted EBITDA positive.
• Relaunched Playboy Magazine, with next issue in November, and launched Playmate of the Month and Great Playmate Search.
• Planning to relocate corporate headquarters to Miami Beach and develop a new Playboy Club concept there.
• Signed new licensing deals in gaming, beauty, grooming, energy drinks, and fashion, with multiple-year deals exceeding 7 figures annually.
• Honey Birdette business saw Q2 revenues rise 14% with gross margins expanding.

Revenue climbed 13% year-over-year, with Licensing revenue surging 105%. Adjusted EBITDA was $3.5 million, a $6.4 million positive swing compared to a loss of $2.9 million in last year's second quarter. Net loss included impairment charges and legal expenses. Excluding those charges, adjusted EBITDA would have been approximately $4.8 million. As of today, the company has over $30 million in cash on hand. Licensing revenue contributed significantly, surging 105% to drive the overall revenue growth.

• Focus on returning to being an aspirational men's lifestyle brand via content and experiences.
• Licensing business has potential for further growth with more deals in pipeline.
• Expect growth in the back half of 2025, particularly in the Licensing and Honey Birdette businesses.

• Legal expenses from litigations with former licensees, with uncertainty around case resolutions.
• Risk of brand dilution if not careful with selecting licensing deals.

Q: As signed new deals in categories like gaming and beauty, help think about TAM and opportunity?

A: Signed multiple new deals over 7 figures annually, just scratching the surface, underpenetrated in some categories, strategic in deals, content strategy will help grow categories.