aka Brands Holding Corp (AKA) AI Stock Analysis

• Market Cap: $117.71M
• Dividend Yield: N/A
• Average Volume (3M): 7.23K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.99
• 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: 4,092
• 30 Day Avg. Volume: 7,226
• 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: 2.66
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 0.92
• Enterprise Value/Ebitda: 158.91
• 1Y Price Target: $19.00
• Price Target Upside: 37.58% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $11.50 ▼(-16.73% Downside)

The overall stock score of 41 reflects significant financial challenges, including declining revenues, high leverage, and cash flow constraints. Technical indicators suggest bearish momentum, and the valuation is unattractive due to ongoing losses. While the company has shown some resilience in its earnings call and improved financial flexibility through refinancing, these factors are not enough to offset the broader financial and operational concerns.

Positive Factors

Gross Margin Expansion

A sustained ~110bp improvement in gross margin driven by higher in-store mix and less promotional activity strengthens unit economics. Higher gross margins provide a durable buffer against marketing cost inflation and support margin recovery even if top-line growth is uneven.

Debt Refinancing

Extending credit maturities reduces near-term refinancing risk and creates operational flexibility to execute strategic initiatives. A two-year extension is a structural improvement in liquidity, providing time to stabilize operations and improve cash generation before facing major maturities.

Retail & International Expansion

Sequential positive comps in Australia and brick-and-mortar expansion diversify channels beyond pure DTC. Building physical retail and international penetration can improve brand discovery, increase customer lifetime value, and reduce sole reliance on paid digital acquisition over the medium term.

Negative Factors

High Leverage

A debt-to-equity ratio near 1.7 indicates heavy reliance on debt financing, raising default and interest-service risk. Elevated leverage constrains strategic choices, increases sensitivity to revenue or margin volatility, and limits capacity for reinvestment or opportunistic M&A without deleveraging.

Weak Cash Flow Conversion

Severely negative FCF growth and very low operating-cash-to-net-income conversion signal poor cash generation. Persistent weak cash flow limits ability to service debt, fund inventory or store rollout organically, and forces reliance on refinancing or equity to sustain operations over the medium term.

Revenue Decline & Losses

A steep TTM revenue decline and negative net margins indicate structural demand or execution issues within the portfolio. Reduced scale undermines marketing ROI and fixed-cost absorption, making it harder to reach sustainable profitability without consistent revenue stabilization or meaningful margin expansion.

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 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: Negative
• Last Price: 13.81
• 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 13.81 is above the 20-day moving average (MA) of 11.61, above the 50-day MA of 11.69, and above the 200-day MA of 11.32, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 45.84 is Neutral, neither overbought nor oversold. The STOCH value of 22.95 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
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
DIBS	61 Neutral	$200.65M	-11.10	-17.73%	―	3.49%	-16.10%
BARK	50 Neutral	$152.72M	-4.20	-33.59%	―	-7.61%	-18.41%
NHTC	48 Neutral	$43.86M	-371.57	-0.38%	25.20%	-5.07%	-115.50%
SPWH	43 Neutral	$52.72M	-1.39	-16.36%	―	-1.05%	-10.28%
AKA	41 Neutral	$117.71M	-4.53	-21.29%	―	5.44%	14.75%
QVCGA	41 Neutral	$89.09M	-0.02	―	―	-7.21%	-1200.27%

aka Brands Holding Corp Corporate Events

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.