aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $106.54M
• Dividend Yield: N/A
• Average Volume (3M): 3.97K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: 7.67%
• EPS Growth: 71.96%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.34
• Shares Outstanding: 10,844,082
• 10 Day Avg. Volume: 2,147
• 30 Day Avg. Volume: 3,974
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.65
• Enterprise Value/Revenue: 0.47
• Enterprise Value/Gross Profit: 0.84
• Enterprise Value/Ebitda: 52.75
• 1Y Price Target: $17.83
• Price Target Upside: 78.66% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 51 Neutral
• Price Target: $10.50 ▲(5.21% Upside)

aka Brands Holding Corp's overall stock score reflects significant financial challenges, particularly in profitability and cash flow, which weigh heavily on the score. The technical indicators suggest a bearish trend, and valuation concerns persist due to negative earnings. However, the positive sentiment from the earnings call, driven by strong sales growth and strategic initiatives, provides some optimism for future performance.

Positive Factors

Revenue Growth

Consistent revenue growth over multiple quarters indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Omnichannel Expansion

Expanding physical retail presence complements digital sales, enhancing customer engagement and potentially increasing market share.

Supply Chain Diversification

Diversifying supply chain reduces risk from geopolitical tensions and tariffs, ensuring more stable and predictable cost structures.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, especially if revenue growth slows or interest rates rise, impacting long-term stability.

Negative Profit Margins

Sustained negative margins indicate challenges in cost management and pricing power, potentially hindering long-term profitability and growth.

Cash Flow Challenges

Weak cash flow generation limits the ability to invest in growth opportunities and manage debt, posing risks to financial health and operational flexibility.

aka Brands Holding Corp Business Overview & Revenue Model

Company Description

a.k.a. Brands Holding Corp. operates a portfolio of online fashion brands in the United States, Australia, and internationally. It offers apparel, footwear, and accessories through its online stores under the Princess Polly, Culture Kings, Petal & Pup, mnml, and Rebdolls brands, as well as operates eight physical stores under the Culture Kings brand name. The company was founded in 2018 and is headquartered in San Francisco, California.

How the Company Makes Money

AKA Brands makes money primarily through the sale of apparel and accessories via its various digital platforms and e-commerce websites. The company generates revenue by leveraging its portfolio of brands, which each target specific fashion markets and customer demographics. AKA Brands' revenue streams are primarily derived from direct sales to consumers, utilizing efficient supply chain and digital marketing strategies to optimize profitability. Additionally, the company may engage in collaborations or partnerships with influencers and other brands to expand its reach and enhance its product offerings.

aka Brands Holding Corp Financial Statement Overview

Summary

aka Brands Holding Corp faces significant financial challenges, particularly in profitability and cash flow generation. While revenue growth is present, the company struggles with negative margins and high leverage, posing risks to financial stability. Improvements in operational efficiency and cash flow management are crucial for future financial health.

Income Statement

The company has shown some revenue growth in the TTM period, but profitability remains a concern with negative net profit and EBIT margins. Gross profit margin is relatively stable, indicating some control over cost of goods sold. However, the persistent negative net income and EBIT margins highlight ongoing operational challenges.

Balance Sheet

The balance sheet shows high leverage with a debt-to-equity ratio of 1.71 in the TTM period, indicating significant reliance on debt financing. Return on equity is negative, reflecting the company's inability to generate profit from shareholders' equity. The equity ratio is low, suggesting potential financial instability.

Cash Flow

The cash flow statement reveals a concerning decline in free cash flow growth and negative free cash flow in the TTM period. The operating cash flow to net income ratio is low, indicating weak cash generation relative to net income. The negative free cash flow to net income ratio further underscores cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	598.11M	574.70M	546.26M	611.74M	562.19M	215.92M
Gross Profit	337.52M	327.50M	300.28M	337.25M	307.66M	126.40M
EBITDA	5.35M	6.23M	-66.66M	-143.44M	27.20M	28.90M
Net Income	-26.77M	-25.99M	-98.89M	-176.70M	-6.09M	14.33M
Balance Sheet
Total Assets	410.82M	385.20M	361.72M	509.64M	687.85M	189.44M
Cash, Cash Equivalents and Short-Term Investments	23.70M	24.19M	21.86M	46.32M	38.83M	26.26M
Total Debt	195.37M	183.59M	136.25M	184.70M	135.87M	10.85M
Total Liabilities	296.68M	267.57M	213.10M	262.56M	236.82M	50.55M
Stockholders Equity	114.14M	117.63M	148.62M	247.08M	451.03M	19.98M
Cash Flow
Free Cash Flow	-1.90M	-10.92M	27.39M	-20.31M	15.39M	19.93M
Operating Cash Flow	14.88M	669.00K	33.43M	-319.00K	23.97M	21.71M
Investing Cash Flow	-16.79M	-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
Financing Cash Flow	-313.00K	15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.98
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Negative. The current price of 9.98 is below the 20-day moving average (MA) of 10.55, below the 50-day MA of 10.89, and below the 200-day MA of 13.20, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 42.20 is Neutral, neither overbought nor oversold. The STOCH value of 25.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for AKA.

aka Brands Holding Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RVLV	76 Outperform	1.62B	35.05	9.66%	―	10.68%	37.84%
BZUN	63 Neutral	248.24M	-9.32	-4.73%	―	7.91%	30.18%
TDUP	63 Neutral	1.17B	-18.75	-94.46%	―	-10.39%	14.92%
AKA	51 Neutral	$106.54M	―	-21.36%	―	7.67%	71.96%
DIBS	49 Neutral	100.77M	-4.91	-21.10%	―	3.21%	-56.15%
LOGC	41 Neutral	213.19M	-13.12	―	―	-100.00%	93.34%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

aka Brands Holding Corp Corporate Events

aka Brands Reports Q2 2025 Sales Increase

a.k.a. Brands Holding Corp. reported a 7.8% increase in net sales for the second quarter of 2025 compared to the previous year, with U.S. sales up by 13.7%. Despite a net loss of $3.6 million, the company achieved $7.5 million in adjusted EBITDA, reflecting strong brand performance and strategic execution. The company continues to expand its retail footprint and deepen wholesale partnerships, with notable success in launching brands at Nordstrom. The diversification of sourcing initiatives is on track, enhancing supply chain flexibility. The company projects continued growth and market share expansion in the near and long term.