Xcel Brands, Inc. (XELB) Reports Second Quarter 2025 Financial Earnings Results

Xcel Brands, Inc. (XELB) today announced its financial results for the most recent quarter, revealing a disappointing performance. The company reported a diluted earnings per share (EPS) of -$1.66, significantly missing analysts’ expectations of -$0.75 by a margin of $0.91. This marks a challenging period for Xcel as it navigates through various market pressures.

Key Highlights:

• Social media following in Xcel’s brand portfolio surged from 5 million to 43 million in Q2 2025.
• Revenue for Q2 2025 was $1.3 million, flat compared to Q1 2025, but down 55% year-over-year due to the divestiture of the Lori Goldstein brand.
• The company reported a net loss of $4.0 million for Q2 2025, with a year-to-date net loss of $6.8 million.
• Year-to-date Adjusted EBITDA improved to negative $1.0 million, a 38% improvement from the same period in 2024, with expectations to approach break-even by the end of 2025.
• Xcel’s balance sheet showed stockholders’ equity of approximately $22.5 million and $1.0 million in unrestricted cash as of June 30, 2025.

Xcel Brands, Inc. reported its financial results for the second quarter of 2025, highlighting a significant increase in its social media following, which rose from 5 million to 43 million. This growth is attributed to the introduction of new influencer brands during the quarter. Despite a revenue of $1.3 million, which remained flat compared to the previous quarter, the company experienced a notable year-over-year decline due to the divestiture of the Lori Goldstein brand. CEO Robert W. D’Loren emphasized the stability of revenue streams and the company’s working-capital-light operating model, stating, “Our current quarter results reflect the stability of our current revenue streams and working-capital-light operating model.”

The financial results also indicated a net loss of $4.0 million for the quarter, alongside a year-to-date loss of $6.8 million. However, the company reported a 38% improvement in Adjusted EBITDA, projecting to approach break-even by the end of 2025. The balance sheet reflects a solid position with stockholders’ equity of approximately $22.5 million and a recent equity offering that bolstered liquidity. D’Loren noted that recent financing transactions have strengthened the balance sheet, facilitating the development of new creator/influencer brands planned for launch later this year and in 2026.

Xcel Brands, Inc. (XELB) has experienced a dramatic decline in its stock price, plummeting 84.71% over the past year, with a staggering 68.64% drop in the last six months alone. This downward trend is underscored by a one-month decrease of 33.13% and a shocking 21.28% fall in just the past week. The company’s financial fundamentals paint a troubling picture, with a negative price-to-earnings ratio of -0.096, indicating that it is currently unprofitable. Additionally, Xcel’s revenue has contracted at a compound annual growth rate (CAGR) of -43.19% over the past two years, reflecting significant challenges in generating sales. The net profit margin stands at a concerning -3.18%, suggesting that the company is not only struggling to grow but is also losing money on its operations. Furthermore, the return on invested capital is alarmingly low at -44.03%, raising questions about the effectiveness of its capital allocation. As Xcel Brands navigates these turbulent waters, investors will be keenly watching for any signs of recovery or strategic shifts that could reverse its fortunes.

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.