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, marking the seventh consecutive quarter of positive adjusted EBITDA, compared to $4.1 million in Q3 2025.
• Operating income surged 193% to $4.0 million, compared to $1.4 million in Q3 2025.
• Direct-to-consumer revenue grew 12.1% to $18.4 million, driven by full-price sales and U.S. e-commerce.
• Direct-to-consumer gross margin expanded approximately 140 basis points to 62.2%, up from 60.8% in the prior-year quarter.
• Licensing revenue increased 5.3% to $12.6 million, driven by $1.2 million in higher royalties from China.
• Operating expenses remained essentially unchanged at $27.7 million compared to $27.6 million in Q3 2025.
• 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

• The Company expects to recoup the approximately $5.0 million investment in the new Miami Beach members club through future membership sales.
• Management highlighted an asset-light business model where the brand serves as the foundation for 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: Revenue grew 5.3% year-over-year, with China licensing revenue increasing nearly 40% due to three new agreements with a combined contract value of approximately $15.0 million. The segment's operating income increased 41.1% to $10.9 million. The business is anchored by $324.0 million of contractual minimum guarantees.
• Honey Birdette: Revenue grew 12.1% year-over-year to $18.4 million, 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, which reached newsstands on September 29, 2026.
• Fan Engagement: The Playboy by Honey Birdette model search generated roughly 48,000 contestants and over 200,000 paying voters (three times the prior contest), with revenue surpassing $1 million. The Company recognized net profit from this contest rather than total revenue.

Market and Competitive Landscape

• The Company noted continued strong performance in U.S. e-commerce and retail sales in Australia for Honey Birdette.
• China licensing growth was driven by new agreements, indicating strong demand in that specific market.

Risks and Challenges

• The press release lists standard forward-looking statement risks, including the inability to maintain Nasdaq listing, disruption from transactions, and failure to recognize anticipated benefits of corporate transactions.
• Specific risks include high concentration of licensing revenue from a small number of licensees, potential supply chain delays, inflation, interest rates, tariffs, and foreign currency exchange rates.
• Risks also include the inability of licensees or suppliers to fulfill obligations and changes in demand or shopping patterns.

Management Commentary and Tone

• CEO Ben Kohn expressed confidence in the Company's revenue growth potential and operating leverage inherent in the asset-light model.
• Management emphasized that each core business contributed to positive results, citing accelerated licensing growth, Honey Birdette margin expansion, and a strong content engine.
• Kohn described the Miami Beach property acquisition as a "foundational piece" of the hospitality strategy.

Other Key Points

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