Playboy, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue increased 9.4% year-over-year to $31.7 million, compared to $29.0 million in Q3 2025.
• Net income rose 305% to $1.9 million ($0.02 per share), compared to $0.5 million (less than a cent per share) in Q3 2025.
• Adjusted EBITDA increased 95% to $7.9 million, compared to $4.1 million in Q3 2025, marking the seventh consecutive quarter of positive adjusted EBITDA.
• Operating income increased 193% to $4.0 million, compared to $1.4 million in Q3 2025.
• Operating expenses remained essentially unchanged at $27.7 million, compared to $27.6 million in Q3 2025.
• Direct-to-consumer revenue grew 12.1% to $18.4 million, with gross margin expanding 140 basis points to 62.2%.
• Licensing revenue grew 5.3% to $12.6 million, driven by $1.2 million in higher royalties from China.
• As of September 30, 2026, the Company held $34.9 million in total cash, including $5.2 million in restricted cash.

Guidance and Future Outlook:

• Management expects to recoup the approximately $5.0 million investment in the new Miami Beach members club through future membership sales.
• The Company continues to pursue its asset-light business model, leveraging the Playboy brand across licensing, media, and hospitality.
• The 2026 Great Playmate Search was launched in October, following the success of the previous model search.

Business Segments and Product Lines:

• Licensing: Operating income increased 41.1% to $10.9 million. China licensing revenue grew nearly 40% year-over-year, driven by three new agreements with a combined contract value of approximately $15.0 million. The segment remains anchored by $324.0 million of contractual minimum guarantees.
• Honey Birdette: Revenue grew 12.1% year-over-year, led by full-price sales and U.S. e-commerce.
• Magazine: The relaunch continued with the summer 2026 issue featuring Cara Delevingne and the fall 2026 issue featuring Charli XCX.
• Fan Engagement: The Playboy by Honey Birdette model search generated roughly 48,000 contestants and over 200,000 paying voters, with revenue surpassing $1 million.

Market and Competitive Landscape:

• The Company highlighted strong performance in U.S. e-commerce and retail sales in Australia as key drivers for Honey Birdette growth.
• The new Miami Beach property acquisition is positioned as a foundational piece of the Company's hospitality strategy.

Risks and Challenges:

• Forward-looking statements note risks including the inability to maintain Nasdaq listing, disruption from proposed transactions, and failure to recognize anticipated benefits from corporate transactions.
• Risks include high concentration of licensing revenue from a small number of licensees, potential supply chain delays, inflation, interest rates, and foreign currency exchange rates.
• Potential risks involve changes in laws, global hostilities, and the ability to comply with indebtedness terms.

Management Commentary and Tone:

• CEO Ben Kohn emphasized the Company's revenue growth potential and operating leverage inherent to its asset-light model.
• Management expressed confidence in the Licensing segment's acceleration and Honey Birdette's margin expansion.
• Kohn noted the new Miami Beach club as a foundational step in the hospitality strategy while maintaining the asset-light approach.

Other Key Points:

• Share Repurchases: Through September 30, 2026, the Company repurchased 4.8 million shares for $5.0 million (first two of four installments).
• Affiliate Purchase: Subsequent to quarter-end, The Million S.a.r.l. purchased 4.8 million shares (third installment) at $1.05 per share.
• Miami Beach Acquisition: The Company signed an agreement to acquire the Freehand Hotel property in Miami Beach to develop a private members club, with two partners investing alongside the Company.
• Conference Call: Management hosted an investor conference call on November 5, 2026, at 5:00 p.m. Eastern time to discuss results.