Playboy (PLBY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 11% year-over-year to $31.2 million, driven by Honey Birdette and licensing, with first-half revenue at $61.5 million, up 8% year-over-year.

• Achieved sixth consecutive quarter of positive adjusted EBITDA, reaching $7.0 million, nearly double a year ago, and returned to profitability with Q2 net income of $0.2 million versus a $7.7 million loss last year.

• Operating income for Q2 was $3.0 million, a significant turnaround from a $5.9 million loss in Q2 2025.

• Continued deleveraging, reducing total debt from $218 million to $145 million, with a clear path to $108 million by January 2028.

• Executed a significant share repurchase, buying back 16.6 million shares (about 14–15% of outstanding) at a discount, supported by a backstop agreement.

Financial highlights

• Direct-to-consumer segment revenue grew 18.2% year-over-year to $19.5 million, led by Honey Birdette's strong U.S. and Australian sales.

• Licensing revenue increased 2.2% to $11.2 million in Q2, supported by contractual guarantees and collaborations.

• Gross margin improved to 73% in Q2 (from 65%), reflecting higher full-price sales and lower licensing commissions.

• Adjusted EBITDA margin reached 22% for Q2, with trailing 12-month adjusted EBITDA at $28 million excluding litigation expenses.

• Total cash, including restricted cash, was $37.1 million at June 30, 2026; total debt at quarter end was $144.9 million, down from $159.9 million at year-end 2025.

Outlook and guidance

• Management expects capital expenditures and working capital requirements in 2026 to remain consistent with 2025.

• Clear path to further debt reduction, with $37 million of forthcoming UTG proceeds earmarked for additional debt reduction.

• Anticipate further growth from media and experiences, with new revenue streams from subscriptions, sponsorships, and paid voting.

• Honey Birdette plans selective brick-and-mortar expansion, focusing on maintaining margin profile.

• Licensing revenue remains highly predictable, with 91% of FY26 licensing revenue contractually guaranteed.