a.k.a. Brands (AKA) investor relations material

Executive summary

• Q2 2026 net sales were $160.1 million, nearly flat year-over-year, with U.S. net sales up 2.1% and Rest of World up over 50%, offset by a 13% decline in Australia/New Zealand due to macro challenges.

• Adjusted EBITDA increased 16% to $8.7 million, with margin up to 5.5%, reflecting strong profit flow-through from structural improvements and operational discipline.

• Gross margin expanded to 61.1% from 57.5% year-over-year, driven by lower tariffs, improved full-price selling, and tariff refunds.

• Net loss narrowed to $0.2 million from $3.6 million in Q2 2025, with improved cash flow and ongoing deleveraging.

• Strategic focus on omni-channel expansion, new store openings, wholesale/marketplace partnerships, and leveraging AI for margin improvement and customer engagement.

Financial highlights

• Gross margin reached 61.1% in Q2 2026, up 360 basis points year-over-year.

• Adjusted EBITDA margin increased to 5.5%; net loss margin improved to (0.1)%.

• Inventory reduced by 13.6% to $79.9 million and debt down to $99.9 million; cash and equivalents at $21.1 million.

• Active customers rose 4.4% to 4.31 million; average order value steady at $78.

• Free cash flow for H1 2026 was $11.8 million, up from $2.1 million year-over-year.

Outlook and guidance

• Fiscal 2026 guidance reiterated: net sales $625–$635 million, Adjusted EBITDA $30–$32 million, CapEx $18–$20 million.

• Q3 2026 outlook: net sales $160–$164 million, Adjusted EBITDA $8–$8.5 million, gross margin ~59%.

• One-time $3 million charge expected in Q3 for distribution center relocation, excluded from Adjusted EBITDA.

• Management expresses confidence in high single-digit net sales growth and healthy margins for the second half.

• Sufficient liquidity for the next 12 months, supported by cash and access to credit facilities.