aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $147.46M
• Dividend Yield: N/A
• Average Volume (3M): 19.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.83
• Revenue Growth: 5.44%
• EPS Growth: 14.75%
• Country: US
• Employees: 1,350
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): -0.46
• Shares Outstanding: 10,739,676
• 10 Day Avg. Volume: 7,309
• 30 Day Avg. Volume: 19,564
• PEG Ratio: 0.10
• Price to Book (P/B): 1.68
• Price to Sales (P/S): 0.34
• P/FCF Ratio: -18.11
• Enterprise Value/Market Cap: 1.97
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 0.85
• Enterprise Value/Ebitda: 147.44
• 1Y Price Target: $19.00
• Price Target Upside: 37.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -2.36
• Revenue Forecast (FY): $600.67M

• Rating: 52 Neutral
• Price Target: $14.00 ▲(1.38% Upside)

The overall stock score of 52 reflects significant financial challenges, including declining revenues, high leverage, and cash flow issues, which weigh heavily on the company's outlook. Technical analysis indicates positive momentum, providing some support to the stock. However, valuation concerns, particularly the negative P/E ratio, further dampen the attractiveness of the stock.

Positive Factors

Omnichannel Expansion

The expansion of physical stores enhances brand visibility and customer engagement, supporting long-term growth through diversified sales channels.

Strategic Partnerships

Partnerships with major retailers like Nordstrom expand market reach and brand exposure, potentially increasing sales and market share.

Supply Chain Diversification

Diversifying supply chains reduces risk from geopolitical tensions and tariffs, ensuring more stable and cost-effective operations.

Negative Factors

Declining Revenue

A sharp decline in revenue indicates challenges in maintaining sales momentum, which could affect long-term financial health and market position.

High Debt Levels

High debt levels can strain cash flow and limit financial flexibility, posing risks to long-term stability and growth potential.

Cash Flow Challenges

Severe cash flow challenges hinder the company's ability to invest in growth initiatives and manage debt, impacting future profitability.

aka Brands Holding Corp Business Overview & Revenue Model

Company Description

Aka Brands Holding Corp (AKA) is a global digital-first consumer brands platform that specializes in acquiring and scaling direct-to-consumer (DTC) brands in the fashion and lifestyle sectors. The company focuses on leveraging data-driven insights and innovative marketing strategies to enhance the growth potential of its portfolio brands, which primarily target Gen Z and millennial consumers. Their core offerings include a diverse range of apparel and accessories, with an emphasis on online sales through their branded e-commerce platforms.

How the Company Makes Money

Aka Brands generates revenue primarily through the sales of its portfolio brands' products via online channels. The company employs a direct-to-consumer model, allowing it to capture higher margins by selling products directly to consumers without intermediaries. Key revenue streams include the sale of apparel and accessories, as well as the monetization of its digital marketing capabilities. Additionally, AKA benefits from strategic partnerships with influencers and social media platforms to enhance brand visibility and drive sales. The company's focus on data analytics enables it to optimize inventory management and marketing spend, further contributing to its profitability.

aka Brands Holding Corp Financial Statement Overview

Summary

aka Brands Holding Corp is facing significant financial challenges, with declining revenues and profitability, high leverage, and cash flow constraints. The company needs to address operational inefficiencies and improve cash flow management to stabilize its financial position. While there are some strengths in gross profit margins, the overall outlook remains cautious due to persistent losses and high debt levels.

Income Statement

The company has experienced a significant decline in revenue with a negative growth rate of -47.2% TTM, indicating challenges in maintaining sales momentum. Profitability metrics are concerning, with a negative net profit margin of -4.48% and EBIT margin of -2.07%, reflecting operational inefficiencies. Although the gross profit margin remains relatively stable at 56.43%, the overall financial health is weakened by consistent net losses.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 1.71 TTM, suggesting a heavy reliance on debt financing, which could pose risks if not managed properly. Return on equity is negative at -22.30%, indicating that the company is not generating sufficient returns on shareholders' equity. The equity ratio stands at 26.77%, highlighting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis reveals a troubling free cash flow growth rate of -390.26% TTM, indicating severe cash flow challenges. The operating cash flow to net income ratio is low at 0.13, suggesting limited cash generation from operations relative to net income. The free cash flow to net income ratio is negative, further emphasizing cash flow difficulties.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	595.28M	574.70M	546.26M	611.74M	562.19M	215.92M
Gross Profit	341.93M	327.50M	300.28M	337.25M	307.66M	126.40M
EBITDA	1.97M	6.23M	-66.66M	-153.22M	20.96M	28.75M
Net Income	-26.29M	-25.99M	-98.89M	-176.70M	-5.97M	14.33M
Balance Sheet
Total Assets	411.33M	385.20M	361.72M	509.64M	687.85M	189.44M
Cash, Cash Equivalents and Short-Term Investments	23.43M	24.19M	21.86M	46.32M	38.83M	27.10M
Total Debt	210.76M	183.59M	136.25M	184.70M	135.87M	10.85M
Total Liabilities	301.22M	267.57M	213.10M	262.56M	236.82M	50.55M
Stockholders Equity	110.11M	117.63M	148.62M	247.08M	451.03M	128.90M
Cash Flow
Free Cash Flow	5.51M	-10.92M	27.39M	-20.31M	15.39M	19.93M
Operating Cash Flow	21.75M	669.00K	33.43M	-319.00K	23.97M	21.71M
Investing Cash Flow	-16.24M	-11.59M	-6.03M	-25.31M	-278.07M	-2.38M
Financing Cash Flow	-4.04M	15.51M	-52.83M	33.26M	269.85M	1.24M

aka Brands Holding Corp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.81
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AKA, the sentiment is Positive. The current price of 13.81 is above the 20-day moving average (MA) of 12.84, above the 50-day MA of 12.02, and above the 200-day MA of 11.84, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 57.46 is Neutral, neither overbought nor oversold. The STOCH value of 73.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AKA.

aka Brands Holding Corp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIBS	60 Neutral	$208.34M	―	-17.73%	―	3.49%	-16.10%
AKA	52 Neutral	$147.46M	―	-21.29%	―	5.44%	14.75%
SPWH	48 Neutral	$81.86M	―	-16.56%	―	-2.92%	-8.22%
NHTC	48 Neutral	$50.43M	144.55	-0.38%	28.67%	-5.07%	-115.50%
BARK	47 Neutral	$121.68M	―	-33.59%	―	-7.61%	-18.41%
QVCGA	40 Underperform	$75.76M	―	―	―	-7.21%	-1200.27%

aka Brands Holding Corp Corporate Events

A.K.A. Brands Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for A.K.A. Brands Holding Corp. revealed a mixed sentiment, highlighting both positive achievements and notable challenges. The company reported strong performance in Australia, retail expansion, and an improved gross margin. However, these positives were tempered by supply chain disruptions that led to a decline in U.S. sales and lower average order values. Despite these challenges, the company demonstrated resilience through adjusted EBITDA growth and successful debt refinancing.

A.K.A. Brands Reports Q3 2025 Results and Strategic Moves

A.K.A. Brands Holding Corp. is a portfolio company of next-generation fashion brands, operating primarily in the fashion retail sector with a focus on online and social media-driven sales. The company recently reported its third-quarter financial results for 2025, highlighting strategic initiatives aimed at enhancing financial strength and flexibility.

a.k.a. Brands Reports Q3 2025 Sales Decline

a.k.a. Brands Holding Corp. reported a slight decrease in net sales for the third quarter of 2025, with sales totaling $147.1 million, down 1.9% from the same period in 2024. The company made significant progress in strategic initiatives, such as opening new retail locations and refinancing debt, which are expected to enhance financial strength and operational flexibility. Despite temporary supply chain disruptions affecting inventory levels, the company maintained a strong gross margin and improved inventory management, positioning itself for sustainable growth.

The most recent analyst rating on (AKA) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.

aka Brands Refinances Credit Facility for Flexibility

On October 14, 2025, a.k.a. Brands Holding Corp. announced the successful refinancing of its credit facility, which now includes an $85 million term loan and approximately $35 million in revolving credit capacity. This new agreement extends the maturity of the company’s debt to October 14, 2028, and enhances its financial flexibility, allowing the company to execute strategic priorities and create long-term value for shareholders. The refinancing is expected to strengthen the company’s balance sheet and provide additional flexibility in its operations.

The most recent analyst rating on (AKA) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on aka Brands Holding Corp stock, see the AKA Stock Forecast page.