XCel Brands (XELB) AI Stock Analysis

• Market Cap: $5.71M
• Dividend Yield: N/A
• Average Volume (3M): 1.11M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -42.62%
• EPS Growth: -7.75%
• Country: US
• Employees: 34
• Sector: Consumer Cyclical
• Sector Strength: 66
• Industry: Apparel - Manufacturers
• EPS (TTM): -0.37
• Shares Outstanding: 4,762,360
• 10 Day Avg. Volume: 264,192
• 30 Day Avg. Volume: 1,110,024
• 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: 3.46
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 2.84
• Enterprise Value/Ebitda: -1.29
• 1Y Price Target: $5.00
• Price Target Upside: 281.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 39 Underperform
• Price Target: $1.00 ▼(-23.66% Downside)

XCel Brands' overall stock score is primarily impacted by its poor financial performance, with significant revenue declines, persistent losses, and cash flow issues. Technical analysis also indicates a bearish trend, further weighing down the score. Valuation metrics are unfavorable due to negative earnings and lack of dividends. Despite some positive developments in the earnings call, the overall outlook remains negative.

XCel Brands Business Overview & Revenue Model

Company Description

Xcel Brands, Inc., together with its subsidiaries, operates as a media and consumer products company in the United States. The company designs, produces, markets, wholesales, and sells branded apparel, footwear, accessories, jewelry, home goods, and other consumer products; and acquires consumer lifestyle brands, including the Isaac Mizrahi, the LOGO by Lori Goldstein, the Judith Ripka, the Halston Brand, the C Wonder, and other brands, as well as manages the Longaberger brand. It licenses its brands to third parties; and designs, produces, markets, and distributes through an omni-channel retail sales strategy, which include distribution through interactive television, digital live-stream shopping, brick-and-mortar retail, wholesale, and e-commerce channels. The company also offers live streaming, social media and other marketing, and public relations support for its brands. In addition, it markets the Mizrahi brand through www.isaacmizrahi.com; the Halston brand through www.halston.com; the Judith Ripka fine jewelry brand through www.judithripka.com; the C Wonder brand through www.cwonder.com; the Logo Lori Goldstein brand through www.lorigoldstein.com; and the Longaberger brand through www.longaberger.com. The company was founded in 2011 and is headquartered in New York, New York.

How the Company Makes Money

XCel Brands generates revenue through a multifaceted business model that includes brand licensing, product sales, and e-commerce initiatives. The primary revenue stream comes from licensing agreements with retailers who sell XCel's branded products. This involves receiving royalties based on sales of the products, which allows the company to benefit from the retail sales without the overhead of manufacturing. Additionally, XCel Brands engages in direct-to-consumer sales through its e-commerce platforms, further enhancing its revenue. Strategic partnerships with major retailers and collaborations with designers also contribute to its earnings, as these relationships expand the distribution of XCel's products and enhance brand visibility in the marketplace.

XCel Brands Financial Statement Overview

Summary

XCel Brands faces significant financial challenges with declining revenues, persistent losses, and cash flow issues. The balance sheet reflects increased leverage and reduced equity, posing risks to financial stability. The company needs to address these issues to improve its financial health and sustainability.

Income Statement

XCel Brands has experienced a significant decline in revenue over the past few years, with a notable drop from $41.7M in 2019 to $8.3M in 2024. The company has been operating at a loss, with negative net income and EBIT margins. Gross profit margin remains relatively high, indicating some cost control, but overall profitability is severely lacking.

Balance Sheet

The company's balance sheet shows a concerning trend with declining stockholders' equity and increasing debt levels. The debt-to-equity ratio has worsened, indicating higher leverage. The equity ratio has decreased, reflecting reduced financial stability. These factors suggest potential risks in financial health.

Cash Flow

XCel Brands has consistently reported negative operating and free cash flows, indicating challenges in generating cash from operations. The free cash flow to net income ratio is negative, highlighting cash flow issues. Financing activities have been a source of cash, but this is not sustainable long-term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.41M	8.26M	17.75M	25.78M	37.93M	29.45M
Gross Profit	6.96M	7.81M	10.84M	17.80M	27.27M	23.99M
EBITDA	-15.33M	-16.75M	-13.69M	2.68M	-7.24M	-10.91M
Net Income	-18.90M	-22.39M	-21.05M	-5.36M	-13.03M	-13.09M
Balance Sheet
Total Assets	52.49M	53.76M	71.66M	88.94M	125.78M	123.05M
Cash, Cash Equivalents and Short-Term Investments	298.00K	1.25M	3.00M	4.61M	4.48M	4.96M
Total Debt	15.27M	13.38M	10.00M	7.21M	36.49M	27.21M
Total Liabilities	26.78M	25.36M	23.49M	18.80M	50.84M	36.80M
Stockholders Equity	27.74M	30.42M	50.03M	70.81M	74.28M	85.75M
Cash Flow
Free Cash Flow	-3.67M	-4.83M	-6.64M	-14.45M	-7.69M	2.44M
Operating Cash Flow	-3.54M	-4.72M	-6.54M	-14.18M	-6.56M	3.19M
Investing Cash Flow	-126.00K	-112.00K	209.00K	44.52M	-4.79M	-702.00K
Financing Cash Flow	3.91M	3.82M	4.73M	-30.95M	10.51M	-2.17M

XCel Brands Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For XELB, the sentiment is Neutral. The current price of 1.31 is above the 20-day moving average (MA) of 1.21, below the 50-day MA of 1.52, and below the 200-day MA of 3.41, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 49.94 is Neutral, neither overbought nor oversold. The STOCH value of 93.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for XELB.

XCel Brands Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$17.16B	12.39	-5.32%	3.05%	1.51%	-15.30%
LAKE	55 Neutral	$142.15M	―	-17.61%	0.79%	34.28%	-495.11%
JRSH	52 Neutral	$42.67M	51.77	1.30%	5.94%	17.12%	―
VNCE	47 Neutral	$18.50M	6.22	-63.56%	―	1.46%	-191.66%
CULP	45 Neutral	$50.61M	―	-28.56%	―	-5.37%	-37.39%
UFI	42 Neutral	$80.79M	―	-7.94%	―	-1.87%	57.41%
XELB	39 Underperform	$5.71M	―	-65.44%	―	-42.62%	-7.75%

XCel Brands Corporate Events

XCel Brands Announces Public Offering of Shares

On August 1, 2025, Xcel Brands announced a public offering of 2,181,818 shares of common stock at $1.10 per share, alongside a private placement of 145,147 unregistered shares to company insiders at $1.36 per share. The offering, led by Maxim Group LLC, is expected to close on August 4, 2025, with combined gross proceeds of approximately $2.6 million. The proceeds will be used for brand development, working capital, and general corporate purposes. The offering includes customary lock-up agreements and indemnification provisions, with directors and executive officers prohibited from selling shares for 90 days post-closing.

XCel Brands Approves Key Stockholder Proposals

On June 17, 2025, Xcel Brands, Inc. held a Special Meeting where stockholders voted on key proposals. The stockholders approved two significant proposals: the Warrant Exercise Proposal, allowing the issuance of common stock in excess of 19.99% of the company’s outstanding shares, and the Reverse Split Proposal, enabling a reverse stock split at a ratio determined by the Board of Directors. These approvals are expected to impact the company’s capital structure and compliance with Nasdaq Listing Rules.

XCel Brands Receives Nasdaq Delinquency Notification

On May 22, 2025, Xcel Brands received a delinquency notification from Nasdaq due to not filing its Form 10-Q for March 31, 2025, and being late with its Form 10-K for December 31, 2024. Although this notice does not immediately affect the company’s stock listing, Xcel has until June 30, 2025, to submit a compliance plan. The company filed the Form 10-K on May 28, 2025, and plans to file the Form 10-Q by June 30, 2025, to meet Nasdaq’s requirements and avoid the need for a compliance plan.