PLBY Group (NASDAQ:PLBY) achieved a significant financial turnaround in the second quarter of 2025, posting a return to operating profitability, positive cash flow, and an 10.9% revenue increase to $31.2 million compared to the same period last year.
Financial Performance and Operational Turnaround
The company reported a successful second quarter, with revenue climbing to $31.2 million from $28.1 million in Q2 2025. Adjusted EBITDA surged to $7 million, up from $3.5 million the previous year, resulting in a 22% margin—the sixth consecutive quarter of positive adjusted EBITDA for the firm.
Operating income hit approximately $3 million, a stark contrast to the $5.9 million operating loss reported in the prior-year period. Net income reached $200,000, effectively breaking even on a per-share basis, compared to a net loss of $7.7 million ($0.08 per share) a year ago. Additionally, the company generated roughly $2 million in positive operating cash flow.
Honey Birdette: The Engine of Growth
The lingerie brand Honey Birdette continues to be a primary growth driver, with revenue rising 18% year-over-year to $19.5 million. The brand recorded 15% total comparable sales growth, fueled by a 13% increase in retail and a 16% jump in online sales. According to CFO and COO Marc Crossman, every region contributed to these positive results.
Crossman noted that the business benefited from full-price selling strategies and improved product margins. This marks seven consecutive quarters of double-digit brick-and-mortar growth for the brand. Looking forward, CEO Ben Kohn emphasized that while the company is scouting for new store locations, it remains highly selective due to high rent costs, favoring e-commerce as a capital-efficient expansion channel.
Licensing Strategy and Digital Media
Licensing revenue saw a modest 2% uptick to $11.2 million. While results were impacted by a transition in China with partner UTG, the brand saw success through its sold-out Supreme collaboration and an expanding partnership with Missguided. The Byborg strategic partnership also contributed $5 million in digital licensing revenue.
PLBY currently holds over $320 million in contracted, yet-to-be-recognized licensing revenue. Kohn indicated that future growth will target “white space” in categories like gaming. Furthermore, the company has secured its first sponsorship agreements for short-form video content, with revenue expected to reflect in Q3 results.
Contests and Brand Visibility
The company’s second paid-voting contest, featuring a model search with Honey Birdette, attracted nearly 50,000 contestants and generated 2.5 times the revenue of the inaugural event. Because voting concluded after the quarter ended, this revenue will be recognized in the third quarter. Plans for the “Great Playmate Search” are already underway for the end of the year, supported by high-profile brand appearances from stars like Karol G and Cara Delevingne.
Debt Management and Corporate Governance
PLBY concluded the quarter with $37.1 million in total cash and $144.9 million in debt. This debt level is a reduction from the $159.9 million recorded at the end of 2025, aided by a $15 million repayment. Management expects gross debt to drop to approximately $108 million by January 2028 as additional UTG proceeds are applied.
In a move to consolidate equity, the company agreed to repurchase 16.6 million shares—nearly 15% of its outstanding stock—for $17 million in total. The firm also continues to pursue a new flagship Playboy Club in Miami using a capital-light structure and has bolstered its leadership by appointing Jennifer Cabalquinto, former CFO of 2K and the Golden State Warriors, to its board of directors.