PLBY Group Q3 Earnings Call Highlights

Key Points

• Q3 revenue rose 9% to $31.7 million, while net income increased to $1.9 million and adjusted EBITDA nearly doubled to $7.9 million, marking seven consecutive quarters of positive adjusted EBITDA.
• Growth was led by Honey Birdette, where revenue climbed 12% to $18.4 million and comparable sales rose 11%, and by China licensing, which increased nearly 40% year over year.
• Playboy plans to acquire the Miami Beach property housing the Freehand Hotel and develop it into a private members club, with partners investing alongside the company. The venture is intended to anchor a longer-term strategy of licensing clubs internationally.

PLBY Group NASDAQ: PLBY reported a 9% increase in third-quarter revenue and nearly doubled its adjusted EBITDA, as growth at lingerie brand Honey Birdette and in China licensing helped lift results.

The company, referred to as Playboy Inc. on its earnings call, also outlined plans to acquire a Miami Beach hotel property and develop it into a private members club, marking a move into hospitality.

Revenue rose to $31.7 million from $29 million a year earlier. Net income increased to $1.9 million, or $0.02 per share, from $0.5 million. Adjusted EBITDA rose to $7.9 million from $4.1 million, marking the company’s seventh consecutive quarter of positive adjusted EBITDA.

“The foundation we laid for revenue growth is starting to take hold,” Chief Executive Officer Ben Kohn said on the call.

Miami Club to Anchor Hospitality Strategy

Playboy signed an agreement to acquire the property housing the Freehand Hotel in Miami Beach and expects to close by year-end, Kohn said. The approximately one-acre property includes five buildings around a courtyard and pool.

The company has committed approximately $5 million in cash and expects to recover that investment through membership sales. Kohn said the opportunity was a better short-term use of cash than a share repurchase the company had been considering.

Playboy also signed a term sheet with Think Hospitality to operate the club and Infinity Collective to develop the real estate. Both partners will invest alongside the company, Kohn said. The hotel will continue operating while plans for its rehabilitation are developed, and the timing of membership sales has yet to be determined.

Kohn said the long-term goal is to license additional clubs around the world. Chief Financial Officer and Chief Operating Officer Marc Crossman said the initial venture will be consolidated, while the company also expects licensing revenue and other payments from the project.

China Licensing Grows; Wider Recovery Expected

Licensing revenue increased 5% to $12.6 million. China licensing revenue rose nearly 40% year over year after partner UTG signed three agreements with a combined contract value of roughly $15 million, executives said.

Crossman said the agreements included an expansion of an existing contract, a replacement licensee in an existing category and a deal in a new category. He expects China licensing to maintain its recent growth rate through the rest of 2026 and into the first half of 2027.

Outside China, licensing revenue was flat after excluding more than $500,000 in one-time audit settlements from the prior-year quarter. Crossman said he expects the rest-of-world licensing business to grow in 2027 but did not provide a growth-rate forecast.

After the quarter ended, Playboy signed a five-year agreement with its largest apparel licensee, with minimum guarantees 10 times higher than under the previous agreement. Crossman said the larger guarantee will shift more revenue from the partner toward later quarters of each contract year because royalties above the minimum are recognized only after sales earn out the guarantee.

Honey Birdette Sales and Media Efforts Advance

Honey Birdette revenue rose 12% to $18.4 million, while comparable sales increased 11%. Store comparable sales grew 9%, and online comparable sales rose 13%. Crossman said the U.S. led comparable growth, with the Playboy by Honey Birdette collaboration also providing a lift in September.

The brand ended the quarter with 48 stores, down from 51 a year earlier, and plans two additional closures. Its adjusted operating income doubled to $2.4 million. Crossman said comparable sales continued to grow in October.

Kohn said Honey Birdette plans three more Playboy collections next year and is expanding into swimwear and activewear. He said the company hopes to launch the swim line in spring 2027.

In media, paid subscriptions on playboy.com have grown every month since its relaunch, Kohn said. A Playboy by Honey Birdette model search generated more than $1 million in gross revenue, although the company recognizes only its net profit under the deal structure. Kohn also said Playboy signed its first sponsorship campaign, a six-figure deal, after sponsorships took longer to secure than expected.

Debt Reduction Remains a Priority

Playboy ended the quarter with $34.9 million in total cash, including restricted cash, and $144.9 million in debt. Net debt was approximately $115 million after accounting for unrestricted cash, Crossman said.

The company has earmarked another $37 million for debt repayment by January 2028, which Crossman said would reduce total debt to approximately $108 million. Kohn said the company still has work to do to scale sponsorships, grow subscriptions and retire debt.

About PLBY Group (NASDAQ:PLBY)

PLBY Group, Inc was a global media and lifestyle company associated with the Playboy brand. Its business focused on developing, licensing and marketing Playboy-branded products and experiences across categories including apparel, accessories, consumer products, digital media and sexual wellness.

The company's operations were built around the Playboy intellectual property, which includes the Playboy name, rabbit-head logo, editorial archive and related creative assets. PLBY Group generated business through brand licensing, direct-to-consumer commerce, digital content and partnerships with manufacturers, retailers and other commercial operators.

Playboy was founded by Hugh Hefner in 1953 as a men's lifestyle magazine and later expanded into television, publishing, hospitality, merchandise and licensing.

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