Playboy reports Q2 adjusted EPS (4c), consensus (4c)

Reports Q2 revenue $28.1M, consensus $26.76M. CEO Ben Kohn said, “Playboy’s (PLBY) improving performance, especially in the second quarter, is starting to reflect our transformation to an asset-light business model focused on the iconic Playboy brand. We significantly reduced net loss and improved adjusted EBITDA to $3.5M, which was burdened by an incremental $1.3M of litigation costs related to two former licensees; excluding those, adjusted EBITDA would have been $4.8M. In addition, licensing revenue in Q2 more than doubled year-over-year, and our pipeline is strong and growing with new partners in strategic categories, including two new deals in gaming and one in beauty and grooming. Simultaneously, Honey Birdette continued to improve its operating metrics in Q2, highlighted by revenue expanding 14%, same-store sales increasing 28% and gross margins improving approximately 200 basis points to 59%. In addition to these positive financial results, we have set the stage for new growth opportunities centered around content and hospitality… We also have in excess of $30Min cash, as of today. With our strong financial performance and improving credit markets, we will opportunistically continue to look for ways to deleverage our balance sheet and reduce the cost of our leverage. I am increasingly optimistic about the future of Playboy.”