Xcel Brands Reports Q2 2025 Financial Results

XCel Brands Inc ( (XELB) ) has released its Q2 earnings. Here is a breakdown of the information XCel Brands Inc presented to its investors.

Xcel Brands, Inc. is a media and consumer products company specializing in the design, licensing, marketing, and sales of branded apparel, footwear, accessories, and home goods, with a focus on livestream shopping and social commerce.

In its second quarter of 2025, Xcel Brands reported stable revenues of $1.3 million, consistent with the first quarter of the year, despite a 55% year-over-year decrease due to the divestiture of the Lori Goldstein brand. The company also saw a significant increase in its social media following, which grew from 5 million to 43 million followers.

Key financial metrics for the quarter include a net loss of $4.0 million and a year-to-date net loss of $6.8 million, attributed to non-cash charges related to debt refinancing. However, the company reported a 38% improvement in year-to-date Adjusted EBITDA, moving closer to a break-even point by the end of 2025. The company’s balance sheet was strengthened by recent debt and equity financing transactions, which are expected to support the development of new influencer brands.

Operating costs and expenses decreased by 39% compared to the prior year, reflecting cost reductions and the impact of an employee retention tax credit. Despite the financial challenges, Xcel Brands is optimistic about its strategic initiatives, including planned brand launches later this year and in 2026.

Looking forward, Xcel Brands aims to leverage its strengthened financial position and expanded social media reach to enhance its brand portfolio and capitalize on opportunities in the social commerce space, with management projecting improved financial performance in the coming quarters.