Second Quarter Revenue of $31.2 Million, an Increase of 11%; Net Income of $0.2 Million, an Improvement of $7.9 Million; and Adjusted EBITDA of $7.0 Million, an Increase of 100% and Inclusive of $0.7 Million of Litigation Expenses in the Quarter

Los Angeles, CA — Playboy Inc. released Q2 financial and operational results.

Financial Summary

Second Quarter 2026 & Recent Operational Highlights

• Playboy licensing revenue remains highly predictable and recurring, with approximately 91% of fiscal year 2026 licensing revenue supported by contractual guarantees and more than $320 million in unrecognized future revenue.
• Honey Birdette delivered 18.2% year-over-year sales growth in the second quarter of 2026, with gross margin of 65.1%. Comparable store sales grew 15%, with positive comparable store sales growth in all regions and through all channels.
• The Company grew total cash, including restricted cash, by approximately $2.5 million during the second quarter reflecting ongoing operations of the business, in contrast to the first quarter, which included significant one-time closing costs incurred in connection with the new China JV transaction.
• Opened fan voting in the Company’s global model search collaboration between Playboy and Honey Birdette that attracted nearly 50,000, or three times the number of contestants, and approximately two and a half times the revenue as the Company’s prior contest. The latest contest’s economics are not included in the second quarter results because the contest did not end until August.
• Announced agreement to repurchase 16.6 million shares of common stock, representing nearly 14% of the Company’s outstanding shares, at a fixed price of $1.05 per share, a 28% discount to market value at the time of transaction, and supported by a backstop agreement with two significant stockholders.
• Playboy joined the small-cap Russell 2000® Index and the broad-market Russell 3000® Index in connection with the conclusion of the 2026 Russell indexes reconstitution, which the Company believes may increase its visibility within the institutional investment community, broaden its shareholder base and enhance trading liquidity.

Management Commentary

Ben Kohn, Chief Executive Officer of Playboy, commented, “The second quarter demonstrated that the platform we have built is compounding, with continued revenue growth, our sixth consecutive quarter of positive adjusted EBITDA, and decisive steps to create shareholder value. Our agreement to repurchase Fortress’s entire 16.6 million-share position, nearly 14% of our shares outstanding, at a 28% discount to market value at the time of the transaction is immediately accretive to stockholders, and we structured the payments to preserve balance sheet flexibility that supports our deleveraging plan.

“Our brand engine continues to gain momentum. Following our sold-out Spring 2026 issue starring Karol G, we revealed Cara Delevingne as our Summer 2026 cover star, and another paid-voting contest, in collaboration with Honey Birdette, attracted nearly 50,000 contestants, nearly three times our prior contest. Our licensing foundation remains highly predictable, anchored by contractual guarantees and more than $320 million in unrecognized future licensing revenue, while Honey Birdette continues to grow with strong gross margins.

“Joining the Russell 2000 and Russell 3000 indexes at the end of June reflects the meaningful progress we have made in strengthening Playboy’s operating performance and balance sheet. With a clear path to further debt reduction and a content engine that keeps Playboy at the center of culture, we are executing from a position of strength as we work to deliver sustainable, long-term value for my fellow stockholders,” concluded Kohn.

Second Quarter 2026 Financial Results

Total revenue grew 11% to $31.2 million, compared to $28.1 million in the second quarter of 2025. The increase in revenue was primarily due to continued strong performance of Honey Birdette.

Direct-to-consumer revenue was $19.5 million, up 18.2% from the $16.5 million in the second quarter of 2025. The increase was driven by stronger than expected growth both online and in stores, with higher gross margins.

Licensing revenue was $11.2 million, compared to $10.9 million in the second quarter of 2025, reflecting a year-over-year increase of $0.2 million, or 2.2%. The change was primarily due to the Company’s continued repositioning of its licensing business around fewer, larger partners.

Operating expenses were $28.2 million, a decrease of 17.0% from $34.0 million in the second quarter of 2025. The decrease is due largely to the prior year comparative period having a $2.4 million non-recurring settlement with a licensing agent, $1.5 million in impairment charges related to right-of-use assets, and lower personnel and legal expenses in the second quarter of 2026.

Net income was $0.2 million, or less than a cent per share, compared to a net loss of $7.7 million, or $(0.08) per share, in the second quarter of 2025. The improvement is due to continued revenue growth and a focus on operating efficiencies.

Adjusted EBITDA was $7.0 million, an increase of 100% from adjusted EBITDA of $3.5 million in the second quarter of 2025. Excluding litigation expenses, adjusted EBITDA would have been $7.7 million.

As of June 30, 2026, the Company had $37.1 million in total cash.

Adjusted EBITDA Reconciliation

This press release presents the financial measure earnings (net income or loss) before interest, income tax expense or benefit, and depreciation and amortization (“EBITDA”). “Adjusted EBITDA” is defined as EBITDA adjusted for stock-based compensation and other special items determined by management. Adjusted EBITDA is intended as a supplemental measure of the Company’s performance that is neither required by, nor presented in accordance with, GAAP. The Company believes that the use of EBITDA and Adjusted EBITDA provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with those of comparable companies, which may present similar non-GAAP financial measures to investors. However, investors should be aware that when evaluating EBITDA and Adjusted EBITDA, the Company may incur future expenses similar to those excluded when calculating these measures. In addition, the Company’s presentation of these measures should not be construed as an inference that its future results will be unaffected by unusual or nonrecurring items. The Company’s computation of Adjusted EBITDA may not be comparable to other similarly titled measures computed by other companies, because not all companies calculate Adjusted EBITDA in the same fashion.

In addition to adjusting for non-cash stock-based compensation, non-cash charges for the fair value remeasurements of certain liabilities, non-recurring non-cash impairments and asset write-downs, the Company typically adjusts for non-operating expenses and income, such as nonrecurring special projects, including related consulting expenses, transition expenses, settlements, nonrecurring gain or loss on the sale of assets, expenses associated with financing activities, and reorganization and severance expenses that result from the elimination or rightsizing of specific business activities or operations.

Because of these limitations, EBITDA and Adjusted EBITDA should not be considered in isolation or as a substitute for performance measures calculated in accordance with GAAP. The Company compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA on a supplemental basis. Investors should review the reconciliation of net loss to EBITDA and Adjusted EBITDA below and not rely on any single financial measure to evaluate the Company’s business.

The following table reconciles the Company’s net income (loss) to EBITDA and Adjusted EBITDA: