Key Highlights

  • Net sales were USD 161.34 million against an estimate of USD 161.51 million and USD 147.08 million a year earlier.
  • Net loss per share was USD 0.70 against an estimate of a USD 0.66 loss and USD 0.46 last year.
  • Gross Margin was 60% and adjusted EBITDA was USD 8.19 million, against USD 7.02 million a year earlier.
  • Cash and cash equivalents were USD 15.6 million, and total Debt stood at USD 101.86 million at September 30, 2026.

a.k.a. Brands Holding Corp. (NYSE:AKA), the owner of Princess Polly, Petal & Pup, Culture Kings and mnml, reported third quarter net sales of USD 161.34 million, up 10% from USD 147.08 million. The net loss was USD 7.73 million, or USD 0.70 per share, against a net loss of USD 4.96 million, or USD 0.46, in the prior-year quarter.

Revenue and Customer Metrics

Net sales rose 10%, which the company tied to a 13% increase in the number of orders, partly offset by a 3% decrease in average order value. On a constant currency basis, net sales increased 8% and average order value decreased 5%. Orders totaled 2.12 million against 1.88 million, and average order value was USD 76 against USD 78. Active customers were 4.43 million against 4.07 million.

For nine months, net sales were USD 453.87 million against USD 436.26 million.

Profit and Margins

Gross profit was USD 96.94 million against USD 86.98 million, and gross margin was 60% against 59%. Management attributed the increase to improved full-price selling on its streetwear brands, partly offset by higher inbound freight costs. Selling expenses were USD 52.28 million against USD 43.22 million, including USD 5.3 million of costs for relocating a distribution center to Ohio. Marketing expenses were USD 21.12 million against USD 18.50 million, and general and administrative expenses were USD 27.66 million against USD 26.69 million, with higher software subscription and cloud hosting costs tied to artificial intelligence initiatives.

The loss from operations was USD 4.12 million against USD 1.43 million. Other expense included a loss on the sale of IEEPA Tariff refund receivables. Adjusted EBITDA was USD 8.19 million, with a margin of 5%, against USD 7.02 million and 5% a year earlier.

Over nine months, gross margin was 61% against 58%. The company cited a USD 16.5 million benefit from tariff refunds related to prior periods, offset in part by a USD 12.0 million write-off of streetwear inventory as it fully transitions to a test-and-repeat model.

Cash and Balance Sheet

Cash and cash equivalents were USD 15.55 million at September 30, against USD 20.27 million at year end 2025. Inventory was USD 95.42 million against USD 86.18 million. Net cash provided by Operating Activities over nine months was USD 16.2 million against USD 14.75 million, and free Cash Flow was USD 4.38 million against USD 2.41 million.

Total debt was USD 101.86 million, including USD 23.9 million drawn on the revolving facility, against total debt of USD 111.07 million at December 31, 2025. The amended Credit agreement, signed October 14, 2025, provides revolving commitments of USD 35.3 million and term loans of USD 85.0 million, both maturing October 14, 2028. Term Loan principal payments over the next twelve months total USD 6.4 million. After quarter end, the company borrowed USD 1.0 million on the revolver on October 2 at 7.84% and another USD 1.0 million on October 23 at 7.70%.

Benchmarks Ahead

Net sales of USD 161.34 million sit alongside adjusted EBITDA of USD 8.19 million, a net loss of USD 7.73 million and cash of USD 15.6 million. The company named several reference points: the distribution center move to Ohio, which cost USD 5.3 million in the quarter and USD 6.0 million over nine months, the October 14, 2028 Maturity of its credit facilities, and quarterly term loan amortization of 1.875% of original principal through December 31, 2027, stepping to 2.50% from the quarter ending March 31, 2028.