Earnings Releases·Nov 4, 2026, 4:06 PM ET

a.k.a. Brands Holding Corp. — Third Quarter 2026 Earnings Summary

Net sales rose 9.7% year-over-year to $161.3 million driven by a 12.8% increase in order volume, while adjusted EBITDA expanded 17.1% to $8.2 million (5.1% margin), marking the third consecutive quarter of double-digit growth; however, net loss widened to $7.7 million ($0.70/share) from $5.0 million ($0.46/share) in Q3 2025.
Full-year 2026 guidance was adjusted downward, with net sales lowered to $626–$632 million and adjusted EBITDA reduced to $29–$30 million, while capital expenditure guidance was cut to $16–$17 million; fourth quarter 2026 net sales are projected at $172–$178 million with adjusted EBITDA of $7–$8 million.
Total debt decreased 8.5% year-over-year to $101.9 million, and operating cash flow for the first nine months reached $16.2 million, though cash on hand declined to $15.6 million and inventory increased to $95.4 million.
Strategic expansion continues with U.S. net sales growing 14% and Rest of World sales surging 79%, alongside plans to open at least six new U.S. locations for Princess Polly in 2027 and an immersive retail experience for Culture Kings in Puerto Rico.
Financial results included $5.3 million in one-time distribution center relocation costs, contributing to higher selling expenses, while gross margin expanded approximately 100 basis points to 60.1% despite elevated inbound freight costs.