Xcel Brands (XELB) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was $1.14 million, down 14% from $1.33 million in Q1 2025, mainly due to a supplier transition impacting licensing and inventory.

• Net loss attributable to stockholders narrowed to $2.49 million from $2.80 million in the prior year quarter.

• Adjusted EBITDA remained negative at $(0.70) million, unchanged from the prior year quarter.

• Direct operating costs and expenses decreased to $2.07 million from $2.28 million year-over-year.

• The Judith Ripka brand was sold in April 2026 for $2.3 million cash plus potential earn-out, with a $0.06 million impairment charge recognized in Q1.

Financial highlights

• Net licensing revenue was $1.14 million, with Halston Master License contributing 56% of total revenue.

• Non-GAAP net loss was $1.39 million, or $(0.24) per diluted share, similar to the prior year quarter.

• Basic and diluted loss per share improved to $(0.42) from $(1.18) year-over-year.

• Unrestricted cash and equivalents were $0.18 million at quarter-end, with $1.08 million in restricted cash.

• Stockholders' equity stood at $13.2 million as of March 31, 2026.

Outlook and guidance

• Management continues to focus on cost reductions, new influencer-led brand launches, and strategic financing to improve liquidity.

• Direct operating expenses expected to run at less than $8 million per annum.

• Substantial doubt remains about the ability to meet financial obligations over the next twelve months despite recent asset sales and refinancing.