Xcel Brands, Inc. Announces Second Quarter 2026 Financial Results

• Net loss on a GAAP basis was $2.5 million for the current quarter compared with $4.0 million net loss for the prior year quarter.
• EBITDA for the current quarter was negative $0.48 million compared with negative$0.30 million EBITDA for the prior year quarter which is a 40% improvement when adjusted for a non-recurring expense reduction from an Employee Tax Credit received in Q2 last year and compared with negative $0.70 for the first quarter, a 32% improvement over Q1, 2026

NEW YORK, Aug. 13, 2026 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), a media and consumer products company with significant expertise in building influencer lead brands, live-steam shopping and social commerce, today announced its financial results for the quarter ended June 30, 2026.

Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented, “Our second quarter earnings on an Adjusted EBITDA basis were the best since June 2024, this was driven by the product launch of two of our new influencer led brands and additional reductions in operating expenses. I am very excited by the enormous potential of these brands going into the future. The recent changes in the search box since Google went to AI Mode, will make video content created by influencers that are authorities in their category part of the cited AI answer. I am excited to be managing a portfolio of brands that generate awareness through a combined existing audience of over 46 million people.”

Second Quarter 2026 Financial Results

Total revenue for the second quarter of 2026 was $1.1 million, representing a decrease of approximately $0.2 million (-14%) from the prior year quarter. This year-over-year decrease was primarily attributable to divestiture of the Judith Ripka brand.

Direct operating costs and expenses were essentially flat from the prior year quarter of approximately $1.9 million. It should be noted that the prior year quarter included an expense reduction of approximately $0.50 million from an employee retention credit refund. Excluding this prior year, non-recurring expense reduction, direct operating expenses decreased by approximately $0.50 million from the prior year quarter.

Net loss attributable to Xcel Brands stockholders for the quarter was approximately $2.5 million, or $(0.40) per share, compared with net loss of $4.0 million, or $(1.66) per share, for the prior year quarter.

After adjusting certain cash and non-cash items, current quarter results on a non-GAAP basis were a net loss of approximately $1.3 million, or $(0.21) per share and net loss of approximately $0.9 million, or $(0.37) per share, for the prior year quarter. Adjusted EBITDA was negative $0.48 million for the current quarter, compared with Adjusted EBITDA of negative $0.30 million for the prior year quarter. The second quarter EBITDA, when excluding the non-recurring expense reduction referenced above, Adjusted EBITDA improved by approximately $0.32 million.

Six Month 2026 Financial Results

Total revenue for the current six-month period was $2.3 million, representing a decrease of approximately $0.4 million (-14%) from the prior year period. This year-over-year decrease was primarily attributable to divestiture of the Judith Ripka brand.

Direct operating costs and expenses decreased approximately $0.2 million from the prior year six months to $4.0 million in the current six months. When factoring in the prior year period, non-recurring expense reduction, the decrease in direct operating expenses would have been approximately $0.7 million. Currently, the Company has reduced its direct operating expenses to an expected run rate of less than $8 million per annum.

Net loss attributable to Xcel Brands stockholders for the current six months was approximately $5.0 million, or $(0.82) per share, compared with net loss of $6.8 million, or $(2.84) per share, for the prior year period.

After adjusting certain cash and non-cash items, the current six month period results on a non-GAAP basis were a net loss of approximately $2.7 million, or $(0.44) per share and net loss of approximately $2.3 million, or $(0.95) per share, for the prior year period. Adjusted EBITDA was negative $1.2 million for the current six months, compared with Adjusted EBITDA of negative $1.0 million for the prior year period. The current six month EBITDA, when excluding the non-recurring expense reduction referenced above, Adjusted EBITDA improved by approximately $0.3 million.

Balance Sheet

The Company's balance sheet on June 30, 2026, reflected stockholders' equity of approximately $12 million, unrestricted cash and cash equivalents of approximately $0.4 million. The Company’s balance sheet on June 30, 2026, also reflected approximately $12 million of long-term debt.

The Company’s working capital on June 30, 2026 (exclusive of the current portion of lease obligations and deferred revenue was negative $1.3 million. On January 21, 2026, the Company entered into a common stock purchase agreement, pursuant to which the buyer has committed to purchase up to $15.0 million of the Company’s common stock. Under the terms and conditions of this agreement, the Company has the right, but not the obligation, to sell up to $15.0 million of the Company’s common stock. The actual amount and timing of any sales of Common Stock will be determined by the Company at its discretion.

Conference Call and Webcast

The Company will host a conference call with members of the executive management team to discuss these results with additional comments and details at 9:00 a.m. Eastern Time on August 14, 2026. A webcast of the conference call will be available live on the Investor Relations section of Xcel's website at www.xcelbrands.com. Interested parties unable to access the conference call via the webcast may dial 800-715-9871 or 646-307-1963 and use the conference ID 4300396. A replay of the webcast will be available on Xcel’s website.

About Xcel Brands

Xcel Brands, Inc. (NASDAQ: XELB) is a media and consumer products company engaged in the design, licensing, marketing, live streaming, and social commerce sales of branded apparel, footwear, accessories, fine jewelry, home goods and other consumer products, and the acquisition of dynamic consumer lifestyle brands. Xcel was founded in 2011 with a vision to reimagine shopping, entertainment, and social media as social commerce. Xcel owns the Halston and C. Wonder brands, as well as the co-branded collaboration brands Tower Hill by Christie Brinkley, Trust. Respect. Love by Cesar Millan, GemmaMade by Gemma Stafford and Off/Duty by Coco Rocha brand and holds noncontrolling interests or long-term license agreement in Mesa Mia by Jenny Martinez. Xcel also owns and manages the Longaberger by Shannon Doherty brand through its controlling interest in Longaberger Licensing, LLC. Xcel is pioneering a modern consumer products sales strategy which includes the promotion and sale of products under its brands through interactive television, digital live-stream shopping, social commerce, brick-and-mortar retailers, and e-commerce channels to be everywhere its customer’s shop. The company’s previously owned and current brands have generated more than $5 billion in retail sales via livestreaming in interactive television and digital channels alone and has over 20,000 hours of content production time in live-stream and social commerce. The brand portfolio reaches more than 46 million social media followers with broadcast reaching 200 million households. Headquartered in New York City, Xcel Brands is led by an executive team with significant live streaming, production, merchandising, design, marketing, retailing, and licensing experience, and a proven track record of success in elevating branded consumer products companies. For more information, visit www.xcelbrands.com.

Forward Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical fact contained in this press release, including statements regarding future events, our future financial performance, business strategy and plans and objectives of management for future operations, are forward-looking statements. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "ongoing," "could," "estimates," "expects," "intends," "may," "appears," "suggests," "future," "likely," "goal," "plans," "potential," "projects," "predicts," "seeks," "should," "would," "guidance," "confident" or "will" or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements regarding our anticipated revenue, expenses, profitability, strategic plans and capital needs. These statements are based on information available to us on the date hereof and our current expectations, estimates and projections and are not guarantees of future performance. Forward-looking statements involve known and unknown risks, uncertainties, assumptions and other factors, including, without limitation, the risks discussed in the "Risk Factors" section and elsewhere in the Company's Annual Report on form 10-K for the year ended December 31, 2024 and its other filings with the SEC, which may cause our or our industry's actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by these forward-looking statements. Moreover, we operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors, nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause our actual results to differ materially from those contained in any forward-looking statements. You should not place undue reliance on any forward-looking statements. Except as expressly required by the federal securities laws, we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.

For further information please contact:
Seth Burroughs
Xcel Brands
[email protected]

Non-GAAP net income and non-GAAP diluted EPS are non-GAAP unaudited terms. We define non-GAAP net income as net income (loss) attributable to Xcel Brands, Inc. stockholders, exclusive of amortization of trademarks, income (loss) from equity method investments, stock-based compensation and cost of licensee warrants, asset impairment charges, loss on extinguishment of debt and income taxes. Non-GAAP net income (loss) and non-GAAP diluted EPS measures do not include the tax effect of the aforementioned adjusting items, due to the nature of these items and the Company’s tax strategy.

Adjusted EBITDA is a non-GAAP unaudited measure, which we define as net income (loss) attributable to Xcel Brands, Inc. stockholders before interest and finance expenses, accretion of lease liability for exited leases, income taxes, other state and local franchise taxes, depreciation and amortization, income (loss) from equity method investments, asset impairment charges, stock-based compensation and cost of licensee warrants, and costs associated with restructuring of operations. Costs associated with restructuring of operations include operating losses generated by certain of our businesses that have been restructured or discontinued (i.e., wholesale apparel and fine jewelry), as well as non-cash charges associated with the restructuring of certain contractual arrangements.

Management uses non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis and to identify business trends relating to our results of operations. Management believes non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA are also useful because these measures adjust for certain costs and other events that management believes are not representative of our core business operating results, and thus these non-GAAP measures provide supplemental information to assist investors in evaluating our financial results.

Non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA should not be considered in isolation or as alternatives to net income, earnings per share, or any other measure of financial performance calculated and presented in accordance with GAAP. Given that non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA are financial measures not deemed to be in accordance with GAAP and are susceptible to varying calculations, our non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA may not be comparable to similarly titled measures of other companies, including companies in our industry, because other companies may calculate these measures in a different manner than we do. In evaluating non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA, you should be aware that in the future we may or may not incur expenses similar to some of the adjustments in this document. Our presentation of non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA does not imply that our future results will be unaffected by these expenses or any unusual or non-recurring items. When evaluating our performance, you should consider non-GAAP net income, non-GAAP diluted EPS, and Adjusted EBITDA alongside other financial performance measures, including our net income and other GAAP results, and not rely on any single financial measure.

 Xcel Brands, Inc. and Subsidiaries
Unaudited Consolidated Statements of Operations
(in thousands, except share and per share data)
               For the Three Months Ended For the Six Months Ended  June 30, June 30,  2026  2025  2026  2025 Revenues            Net licensing revenue $1,121  $1,321  $2,265  $2,653              Direct operating costs and expenses            Salaries, benefits and employment taxes  842   984   1,714   2,070 Other selling, general and administrative expenses  1,016   912   2,218   2,109 Total direct operating costs and expenses  1,858   1,896   3,932   4,179              Operating loss before other operating costs and expenses  (737)  (575)  (1,667)  (1,526)             Other operating costs and expenses            Depreciation and amortization  813   899   1,706   1,799 Charges related to the sale of the Judith Ripka brand  35   -   96   - Loss from equity investments  -   180   -   516              Operating loss  (1,585)  (1,654)  (3,469)  (3,841)             Interest and finance expense (income)            Interest expense  640   457   1,202   930 Other finance charges (income), net  81   30   112   117 Loss on early extinguishment of debt  151   1,850   151   1,850 Interest and finance expense (income), net  872   2,337   1,465   2,897              Loss before income taxes  (2,457)  (3,991)  (4,934)  (6,738)             Income tax provision (benefit)  19   -   31   50              Net loss  (2,476)  (3,991)  (4,965)  (6,788)Net loss attributable to noncontrolling interest  -   (3)  -   (3)Net loss attributable to Xcel Brands, Inc. stockholders $(2,476) $(3,988) $(4,965) $(6,785)             Loss per common share attributed to Xcel Brands, Inc. stockholders:            Basic and diluted net loss per share $(0.40) $(1.66) $(0.82) $(2.84)Weighted average number of common shares outstanding:            Basic and diluted weighted average common shares outstanding  6,159,232   2,403,639   6,032,122   2,388,694              

Xcel Brands, Inc. and SubsidiariesUnaudited Consolidated Balance Sheets(in thousands, except share and per share data)         June 30, 2026 December 31, 2025     Assets      Current Assets:      Cash and cash equivalents $399  $1,150 Accounts receivable, net  623   956 Prepaid expenses and other current assets  502   1,564 Total current assets  1,524   3,670 Non-Current Assets:      Property and equipment, net  103   130 Operating lease right-of-use assets  2,609   3,005 Trademarks and other intangibles, net  26,946   31,229 Other assets  1,291   912 Total non-current assets  30,949   35,276 Total Assets $32,473  $38,946        Liabilities and Stockholders' Equity      Current Liabilities:      Accounts payable $532  $621 Accrued expenses and other current liabilities  404   600 Deferred revenue  976   1,330 Current portion of operating lease obligation  1,760   1,687 Current portion of long-term debt  1,865   3,250 Total current liabilities  5,537   7,488 Long-Term Liabilities:      Deferred revenue  1,333   1,778 Long-term portion of operating lease obligation  2,777   3,678 Long-term debt, net, less current portion  10,227   9,456 Other long-term liabilities  877   722 Total long-term liabilities  15,214   15,634 Total Liabilities  20,751   23,122        Commitments and Contingencies             Stockholders' Equity:      Preferred stock, $.001 par value, 1,000,000 shares authorized, none issued and outstanding  -   - Common stock, $.001 par value, 50,000,000 shares authorized, and 6,475,182 and 5,880,757 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively  6   6 Paid-in capital  112,523   111,660 Accumulated deficit  (98,670)  (93,705)Total Xcel Brands, Inc. stockholders' equity  13,859   17,961 Noncontrolling interest  (2,137)  (2,137)Total Stockholders' Equity  11,722   15,824        Total Liabilities and Stockholders' Equity $32,473  $38,946        

Xcel Brands, Inc. and SubsidiariesUnaudited Consolidated Statements of Cash Flows(in thousands)         For the Six Months Ended  June 31,  2026  2025      Cash flows from operating activities      Net loss $(4,965) $(6,788)Adjustments to reconcile net loss to net cash used in operating activities:      Depreciation and amortization expense  1,706   1,799 Asset impairment and other charges related to sale of Judith Ripka brand  96   - Paid in-kind interest expense  515   192 Amortization of deferred finance costs and other non-cash interest expense  491   176 Stock-based compensation and cost of licensee warrants  327   238 Loss from equity investments  -   516 Loss on early extinguishment of debt  -   1,850 Changes in operating assets and liabilities:      Accounts receivable  333   446 Prepaid expenses and other current and non-current assets  167   104 Deferred revenue  (799)  (497)Accounts payable, accrued expenses, accrued income taxes payable, and other current liabilities  (171)  (1,560)Lease-related assets and liabilities  (432)  (282)Other long-term liabilities  -   8 Net cash used in operating activities  (2,732)  (3,798)       Cash flows from investing activities      Cash consideration received from sale of Judith Ripka brand assets, net  2,000   - Purchase of property and equipment  -   (10)Net cash provided by (used in) investing activities  2,000   (10)       Cash flows from financing activities      Proceeds from issuance of shares through equity line facility, net of transaction costs  415   - Proceeds from long-term debt  3,006   5,670 Payment of deferred finance costs  (350)  (530)Shares repurchased including vested restricted stock in exchange for withholding taxes  (102)  (116)Payment of long-term debt  (4,110)  (500)Net cash (used in) provided by financing activities  (1,141)  4,524        Net (decrease) increase in cash and cash equivalents  (1,873)  716        Cash, cash equivalents, and restricted cash at beginning of period  2,889   1,993        Cash, cash equivalents, and restricted cash at end of period $1,016  $2,709        Reconciliation to amounts on consolidated balance sheets:      Cash and cash equivalents  399   970 Restricted cash (reported in other non-current assets)  617   1,739 Total cash, cash equivalents, and restricted cash $1,016  $2,709               Supplemental disclosure of cash flow information:      Cash paid during the period for interest $196  $476 Cash paid during the year for income taxes $50  $-        

($ in thousands)Three Months Ended Six Months EndedJune 30, June 30, June 30, June 30,2026  2025  2026  2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net loss attributable to Xcel Brands, Inc. stockholders$(2,476) $(3,988) $(4,965) $(6,785)Amortization of trademarks 801   876   1,677   1,751 Loss from equity investments -   180   -   516 Stock-based compensation and cost of licensee warrants 182   186   332   352 Loss on early extinguishment of debt 151   1,850   151   1,850 Charges related to the sale of the Judith Ripka brand 35   -   96   - Income tax provision (benefit) 19   -   31   50  $(1,288) $(896) $(2,678) $(2,266)                         Three Months Ended Six Months EndedJune 30, June 30, June 30, June 30,2026  2025  2026  2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Diluted loss per share$(0.40) $(1.66) $(0.82) $(2.84)Amortization of trademarks 0.13   0.36   0.28   0.73 Loss from equity investments -   0.08   -   0.22 Stock-based compensation and cost of licensee warrants 0.03   0.08   0.06   0.15 Loss on early extinguishment of debt 0.02   0.77   0.03   0.77 Charges related to the sale of the Judith Ripka brand 0.01   -   0.01   - Income tax provision 0.00   -   0.00   0.02 Non-GAAP diluted EPS$(0.21) $(0.37) $(0.44) $(0.95)Non-GAAP weighted average diluted shares 6,159,232   2,403,639   6,032,122   2,388,694                         ($ in thousands)Three Months Ended Six Months EndedJune 30, June 30, June 30, June 30,2026  2025  2026  2025 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net loss attributable to Xcel Brands, Inc. stockholders$(2,476) $(3,988) $(4,965) $(6,785)Interest and finance expense 872   2,337   1,465   2,897 Accretion of lease liability for exited lease 35   59   75   120 Income tax provision (benefit) 19   -   31   50 State and local franchise taxes 24   6   60   14 Depreciation and amortization 813   899   1,706   1,799 Loss from equity investments -   180   -   516 Charges related to the sale of the Judith Ripka brand 35   -   96   - Stock-based compensation and cost of licensee warrants 182   186   332   352 Costs associated with restructuring of operations 17   22   17   39 Adjusted EBITDA$(479) $(299) $(1,183) $(998)