XELB

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the portfolio toward influencer-led brands to counter a fundamental shift in Google Search, where AI now prioritizes transactional and branded content over traditional editorial buying guides. The company believes the 'middle of the marketing funnel' has been eliminated, leaving top-of-funnel awareness and bottom-of-funnel retail search as the primary drivers of conversion. Influencer partnerships are strategically selected for their 'attributable authority,' as AI engines cite video content and credible experts more frequently than anonymous editorial sources. The portfolio's social media reach expanded from 5 million to over 46 million followers in less than one year, providing a built-in awareness base that reduces the need for paid marketing. Management highlighted a specific competitive advantage in reaching over 60 million U.S. Spanish speakers by building bilingual content from the start with influencers like Cesar Millan and Jenny Martinez. The business model remains capital-light, focusing on royalty income from licensees to avoid manufacturing capital, inventory carrying costs, and markdown exposure. Revenue decreases in the quarter were primarily attributed to the strategic divestiture of the Judith Ripka brand as the company cleanses its portfolio of legacy assets. Management expects the balance of its new influencer-led brands to launch this fall, with one final brand scheduled for a 2027 debut. The company is targeting $100 million in total brand portfolio value, supported by a pipeline of new influencer-led initiatives. Long-term projections suggest each of the eight existing brands has the potential to generate an average of $7 million in annual royalty income by the end of 2030. Product development cycles for new influencer agreements are estimated at 12-18 months from contract execution to first sale, depending on category and production location. Future liquidity is supported by a $15 million committed equity line facility intended for working capital and potential acquisitions through early 2028. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The Judith Ripka brand was sold at approximately six times gross royalty income, a multiple management views as a benchmark for the value of its remaining legacy assets. A majority of interest due under current debt is structured as 'paid in kind,' accruing without requiring cash payments until 2027 to preserve near-term liquidity. The company repaid $450,000 of senior notes during the quarter, primarily utilizing proceeds from the Ripka brand sale. Adjusted EBITDA showed a year-over-year improvement of $320,000 when excluding a non-recurring $500,000 employee retention credit refund from the prior year's 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.

NEW YORK, Aug. 11, 2026 (GLOBE NEWSWIRE) -- Xcel Brands, Inc. (NASDAQ: XELB) (“Xcel” or the “Company”), today announced that it will report its second quarter 2026 financial results on August 13, 2026. The Company will hold a conference call with the investment community on August 14, 2026, at 9:30 a.m. ET. A webcast of the conference call will be available live on the Investor Relations section of Xcel’s website at https://xcelbrands.co/pages/events-and-presentations or directly at https://edge.media-server.com/mmc/p/p3z3y7nz 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. For further information please contact: Seth Burroughs Xcel Brands [email protected]

This article first appeared on GuruFocus. Revenue: $1.1 million for Q1 2026, down from $1.3 million in Q1 2025. Adjusted EBITDA Loss: Approximately $700,000, flat from the prior year quarter. Net Income Loss: Approximately $2.5 million or minus $0.42 per share, compared to a net loss of $2.8 million or minus $1.18 per share in the prior year quarter. Non-GAAP Net Loss: Approximately $1.4 million or minus $0.24 per share, compared to a net loss of $1.1 million or minus $0.58 per share in the prior year quarter. Direct Operating Costs and Expenses: $2.1 million, down from $2.3 million in the prior year quarter. Interest and Finance Expense: Approximately $0.59 million, up from $0.56 million in the prior year quarter. Stockholders' Equity: Approximately $13 million as of March 31, 2026. Restricted Cash: $1.1 million as of March 31, 2026. Unrestricted Cash: Approximately $0.2 million as of March 31, 2026. Committed Equity Line Facility: Access to up to $15 million of funding over the next 2 years. Warning! GuruFocus has detected 7 Warning Signs with XELB. Is XELB fairly valued? Test your thesis with our free DCF calculator. Release Date: May 19, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Xcel Brands Inc (NASDAQ:XELB) successfully launched two influencer-led brands in Q1 2026 and plans to launch more throughout the year, indicating a strong pipeline. The company's influencer-led brands have significantly increased their social media following from 5 million to over 46 million, with a target of reaching 100 million. Xcel Brands Inc (NASDAQ:XELB) has entered the fast-growing influencer economy, which is projected to grow significantly, providing a promising market opportunity. The company has improved product quality for its C. Wonder and Christie Brinkley brands, which are popular on HSN, and expects significant growth in these brands. Xcel Brands Inc (NASDAQ:XELB) has secured a committed equity line facility of up to $15 million for future funding, enhancing its financial flexibility for working capital and acquisitions. Xcel Brands Inc (NASDAQ:XELB) reported a decrease in revenue for Q1 2026 compared to the previous year, primarily due to a transition in apparel suppliers for key brands. The company experienced an adjusted EBITDA loss of approximately $700,000 in Q1 2026, consistent with the prior year, indicating ongoing financial challenges. Xcel Brands Inc (NASDAQ:XELB) incurred a net income loss of approximately $2.5 million for the current quarter, reflecting continued financial pressure. The transition to a new apparel supplier caused a temporary gap in wholesale shipments, negatively impacting sales and licensing revenues. Interest and finance expenses increased slightly in Q1 2026, adding to the company's financial burdens. Q: Bob, can you talk about your current thoughts on your influencer pipeline? And then remind us on how long it typically takes from the initial conversation to revenue generation? A: Generally, from the date we sign with an influencer, it's a 12-month process to get them on air with platforms like QVC or doing live streams. This period involves product design and development. Influencers signed last year are beginning to launch, with the first five launching throughout this year. Q: Can you talk about your current cost structure and how we should think about the flow-through of incremental revenue dollars to the bottom line? A: We aim to run the company tightly, targeting operating costs around $7.5 million. As we ramp up, talent costs, which are variable, will increase as a percentage of the revenue generated by influencers. Q: Can you give us an update on the early performance of EMEA by Jenny Martinez on HSN, including sell-through trends and consumer engagement metrics? A: Both Jenny and Gemma are scheduled throughout the year. There's a discovery period for media and product. Initial shows were good, and we'll adjust the product mix, focusing more on food products due to stronger responses. Q: Do you have an update on when Cesar Millan products will be launched, and will this be a step rollout or a significant number of products introduced at once? A: For Cesar, we expect many categories this year. Licensees are currently selling for the fall. We plan to launch Cesar's Amazon store in the next 60 days, starting with EcoStrong cleaning products, shampoos, conditioners, and dog accessories. Q: Can you talk about the retail expansion currently planned beyond QVC and HSN for some of your other brands? A: Brands are planned for distribution in brick-and-mortar, e-commerce retailers, and livestream platforms. We believe in being present wherever people shop and will roll out all brands across these retail categories. Q: Has the disruption from QVC restructuring normalized now? A: There was minimal disruption from their restructure. Management did a brilliant job, and they are paying vendors on time. They are in a good place to move forward into streaming. Q: Any additional color on the pipeline for future acquisitions or strategic partnerships? A: We are working on a big strategic partnership, hopeful to announce by the end of the second quarter. We evaluate many transactions monthly, and any transformative acquisition would aid our distribution efforts. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, May 19, 2026 at 5 p.m. ET Chairman and Chief Executive Officer — Robert D'Loren Chief Financial Officer — James Haran Vice President, Corporate Development and Investor Relations — Seth Burroughs Need a quote from a Motley Fool analyst? Email [email protected] Seth Burroughs: Good afternoon, everyone, and thank you for joining us. Welcome to the Xcel Brands First Quarter of 2026 Earnings Call. We greatly appreciate your participation and interest. With us on the call today are Chairman and Chief Executive Officer, Robert D'Loren; and Chief Financial Officer, Jim Haran. By now, everyone should have had access to the earnings release for the quarter ended March 31, 2026. In addition, we filed our quarterly report on Form 10-Q with the Securities and Exchange Commission last Thursday. The release and quarterly report will be available on the company's website at www.xcelbrands.com. This call is being webcast, and a replay will be available on the company's Investor Relations website. Before we begin, please keep in mind that this call will contain forward-looking statements. All forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from certain expectations discussed here today. These risk factors are explained in detail in the company's most recent annual report filed with the SEC. Xcel does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The dynamic nature of the current macroeconomic environment means that what is said on this call could change materially at any time. Finally, please note that on today's call, management will refer to certain non-GAAP financial measures, including non-GAAP net income, non-GAAP diluted EPS and adjusted EBITDA. Our management uses these non-GAAP metrics 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 the company's results of operations. Our management believes these financial performance measurements 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, they provide supplemental information to assist investors in evaluating the company's financial results. These non-GAAP measures 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. You may refer to the attachment to the company's earnings release or the Form 10-Q for a reconciliation of non-GAAP measures. And now I'm pleased to introduce Robert D'Loren, Chief Executive Officer. Bob, please go ahead. Robert D'Loren: Thank you, Seth. Good afternoon, everyone, and thank you for joining us today. I would like to start today's call with a brief update on recent developments since the recent filing of our annual Form 10-K and our outlook moving forward. After that, our CFO, Jim Haran, will discuss our financial results for the quarter in more detail. We continue to work hard with all our licensee production partners, powerful influencers, and strategic retail partners to drive our business. We launched 2 of our influencer or creator-led brands towards the end of the first quarter, and we expect to launch 2 more in the fall and another in spring '27. As we previously mentioned, we announced our influencer-led brands with Cesar Millan, Gemma Stafford, Jenny Martinez, Coco Rocha and Shannon Doherty. These influencer-led brands grew the social media following in our brand portfolio from 5 million to over 46 million. Based upon our pipeline of new influencer-led brands, we are on track to reach 100 million followers across our brand portfolio. We began wholesale shipments with our licensees for 2 of our influencer-led brands during the first quarter and on-air programming commenced for them on QVC and HSN in the second quarter. As I mentioned, the other influencer-led brands will be shipping and launching throughout the rest of 2026 on interactive TV and at bricks and e-commerce retailers. We are very pleased and optimistic given early results and demand for these brands. I should add that our TV and streaming content reaches well over 100 million households and generates tens of millions of media impressions per month. Many of our investors and licensing partners have asked, why we are so excited by the influencer-led brand opportunity? Please allow me to illuminate this a little. According to a recent report issued by Goldman Sachs, the influencer or creator economy generated $254 billion of sales in 2025 and is expected to grow to over $2 trillion by 2035. Why is this happening? Marketing dollars are shifting to influencers and influencer-led brands given the relatively high return on ad spend according to statistics from Shopify Influencer Marketing Hub. Industry surveys note that 67% of consumers trust influencer recommendations over legacy brand ads. We believe we have fully entered the fast-growing market and we'll continue to penetrate it over the coming years. We continue to explore opportunities to sell certain of our legacy brands and closed the sale of our Judith Ripka brand at approximately 6x gross royalty income in Q2. This is consistent with the sale multiple of our formerly owned brand, Isaac Mizrahi and is further confirmation of the value of our brands. I should note that recent analyst reports report that ascending influencer-led brands are trading at revenue multiples as high as 15x revenue. We generated an adjusted EBITDA loss of approximately $700,000 in Q1, flat from the prior year quarter, which we expected. During the quarter, we had approximately $100,000 in nonrecurring expenses and lower HSN sales in Q1 caused by a change in the apparel supplier for our C. Wonder and Tower Hill by Christie Brinkley brand. Well, this change disrupted inventory availability in Q1, we have significantly improved product quality, which should drive sales going forward. C. Wonder and Christie Brinkley remain 2 of the most popular brands on HSN. And the new licensee that supplied product on HSN began shipping during this quarter. With the supplier transition behind us, we expect significant growth in these brands compared to the past 2 quarters. The Longaberger brand is scheduled to launch in spring of 2027 with new products co-created by Shannon Doherty. Shannon has 3 million followers and is perfect for Longaberger. We are pleased with the progress of our brand portfolio, and we believe revenue growth is now in front of us. With that, I'd like to turn the call over to our CFO, Jim Haran, to cover our financial results for the quarter. Jim? James Haran: Thanks, Bob, and good afternoon, everyone. I will now briefly discuss our financial results for the quarter ended March 31, 2026. Revenue for the first quarter of 2026 was $1.1 million compared with $1.3 million for the first quarter of 2025. The decrease from prior year was primarily attributable to HSN's transition to a new apparel supplier for our C. Wonder and Christie Brinkley brands in the fourth quarter of 2025, which caused a temporary gap in wholesale shipments and negatively impacted sales for these brands and our associated licensing revenues during the current quarter. Direct operating cost and expenses were $2.1 million for the current quarter, down from $2.3 million in the prior year quarter. This decrease from prior year was primarily attributable to cost reduction actions taken by management during 2025, which reduced payroll and benefit costs. Looking at our other operating costs and expenses, which were all noncash in nature, during the current quarter, we recognized a small impairment charge of $61,000 to write down the value of the Judith Ripka trademarks, which we then subsequently sold in April for $2.3 million in cash plus future earn-out consideration. Our depreciation and amortization expense for the current quarter was essentially flat from the first quarter of last year at approximately $0.9 million. Also on the prior year quarter notably included approximately $0.3 million of equity method losses and other related charges and adjustments for equity investment on IM Topco, which we were to dispose of in the fourth quarter of last year. Interest and finance expense was approximately $0.59 million in the current quarter, up slightly from $0.56 million in the first quarter of last year. As you may recall, However, under our term loan agreement, a majority of the interest due under our current debt will be paid in kind, meaning that it will accrue and not require cash payments until starting 2027. Overall, we had a net income loss for the current quarter of approximately $2.5 million or minus $0.42 per share compared with a net loss of $2.8 million or minus $1.18 per share in the prior year quarter. After adjusting for certain cash and noncash items, results on a non-GAAP basis were a net loss of approximately $1.4 million or minus $0.24 per share for the current quarter and a net loss of approximately $1.4 million or minus $0.58 per share for the prior year quarter. Adjusted EBITDA loss for the current quarter was approximately $700,000, essentially flat from the prior year. Once again, as a reminder, our earnings press release and Form 10-Q present a full reconciliation of our non-GAAP measures of the most directly comparable GAAP measures. Now turning to our balance sheet and liquidity. As of March 31, 2026, the company's balance sheet reflected stockholders' equity of approximately $13 million, restricted cash of $1.1 million and unrestricted cash of approximately $0.2 million. I would also like to note that we have significant financing activity during the first quarter of 2026, extending into the month of April. In January 2026, we entered into a committed equity line facility given us access up to $15 million of funding over the next 2 years for working capital and potential acquisition opportunities at our discretion. To date, we have not utilized any funding under this facility. In February and March of this year, we executed certain amendments to our term loan debt, which set the stage for a significant debt financing transaction in April. In April, we paid a portion of our variable interest rate term loan debt and entered into $3 million of senior secured notes at a fixed interest rate. And with that, I'd like to turn the call back over to Bob. Bob? Robert D'Loren: Thank you, Jim. Ladies and gentlemen, this concludes our prepared remarks. Operator? Operator: [Operator Instructions] Your first question comes from the line of Thomas Forte with Maxim Group. Thomas Forte: So Bob and Jim, congrats on the progress. I have one question and one follow-up question. So Bob, can you talk about your current thoughts on your influencer pipeline? And then remind us on how long it typically takes from the initial conversation to revenue generation? Robert D'Loren: Yes. That's a good question, Tom. So generally speaking, from the date we signed with an influencer, it's a 12-month process to either get that influencer on-air with QVC or doing live streams on any one of the platforms that are out there today: TikTok, Amazon or any of the others. It all relates to product design and development. That's generally the period that it takes. And that's why you're seeing now many of the influencers that we signed last year are beginning to launch. And we will be launching the first 5 that we executed with last year through the balance of this year. So Gemma Stafford, Jenny Martinez recently launched, next will be Cesar and then Coco Rocha, and then that will be followed by Shannon Doherty for the Longaberger brand. Thomas Forte: Excellent. And then can you talk about your current cost structure and how we should think about the flow-through of incremental revenue dollars to the bottom line? Robert D'Loren: So we've been working hard to run the company as tight as we can. We were able to find some additional savings. We think that we will be able to continue to run at a lower operating cost. The goal is to get it down to around $7.5 million. And then as we ramp up because there's talent cost, which is all variable, expenses will increase as a percentage of the revenue generated by the influencers. Operator: The next question comes from the line of Michael Kupinski with NOBLE Capital Markets. Michael Kupinski: It looks like an exciting year is building for you guys. Just a couple of things. I was wondering if you -- Bob, if you can give us an update on maybe some additional detail on the early performance of Mesa Mia by Jenny Martinez on HSN, including maybe sell-through trends, reorder activity, consumer engagement metrics, things like that. Robert D'Loren: Sure. Both Jenny and Gemma are scheduled throughout this year. And there's always a discovery period, Michael. Part is media discovery, which dayparts work best for a particular influencer or on-air guest. And then there's product discovery. We all do the best to design products that we think the customer wants. But sometimes, you just don't get it right regardless of market research analysis that we do. And then we adjust. But the first shows I thought were good and as expected. We will make some tweaks to the product mix we found that for both Gemma and Jenny, there was a much stronger response to food products as opposed to hard kitchen products. So for the balance of this year, we'll lean more into food. The good news about food is we don't have long lead times on developing that product. All of that product is made in the United States. Michael Kupinski: Got you. And then I noticed that social media has kind of stepped up towards Cesar Millan recently. I was just wondering, do you have an update when Cesar Millan products will be launched. I know that you indicated in the fall maybe, but I was wondering if you have a specific date around that? And then will this be a step rollout? Or will there be a significant number of products introduced all at one time? I'm just kind of curious on how the rollout is going to look like. Robert D'Loren: So typically, there's a cadence, Michael, to product categories when you build a licensing portfolio for any brand. But for Cesar, we expect there will be many more categories this year. In fact, our licensees are in the market selling as we speak for the fall into brick-and-mortar and e-commerce retailers like Amazon. We do expect to launch Cesars Amazon store in the next 60 days and the first products on the Amazon store will be EcoStrong cleaning products and shampoos and conditioners and collars, leashes and dog apparel and other dog accessories. Michael Kupinski: And then I know that I was just wondering if you could just talk a little bit about the retail expansion currently planned beyond QVC and HSN for some of your other brands as well. Robert D'Loren: So all of the brands are planned for distribution in brick-and-mortar and e-commerce retailers as well as on livestream platforms, including QVC and HSN. Today, we believe and we have always believed you have to be everywhere where people are shopping, and you can't exclude any of those distribution points. And we will roll out all the brands across all of those retail categories. Michael Kupinski: Got you. And then has the disruption from QVC restructuring normalized now? Have you seen any further impact on launch timing, vendor relationships or future distribution plans related to the QVC? Robert D'Loren: No, there was actually a little disruption from their restructure. I think it was a brilliant job that management did at QVC. They are paying all vendors on time as usual. And I believe that they are in a very, very good place at the moment to move forward into streaming. Michael Kupinski: Got you. And I know in the past -- I'm sorry, if I can sneak one more question in. I know in the past, you talked a little bit about the potential for acquisitions. Any additional color on the pipeline for future acquisitions, whether or strategic partnerships? Robert D'Loren: Well, there is -- there is a big strategic partnership that we've been working on for the last year, and we're hopeful that we'll be able to announce that before the end of the second quarter. And then in terms of acquisitions, we look at many transactions every month, whether they're brand transactions or operating company acquisitions that would help with our distribution efforts. And certainly, if something were to come up along those lines, it would be transformative. Operator: There are no further questions at this time. So I will now turn the call back to Robert D'Loren for closing remarks. Robert D'Loren: Thank you, operator. Ladies and gentlemen, thank you all for your time this afternoon. We greatly appreciate your continued interest and support in Xcel Brands. As always, stay fit, eat well and be healthy. Operator: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. Before you buy stock in Xcel Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Xcel Brands wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $481,750!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,352,457!* Now, it’s worth noting Stock Advisor’s total average return is 990% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Xcel Brands (XELB) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Net loss on a GAAP basis was $2.5 million for the current quarter compared with $2.8 million net loss for the prior year quarter. Year-to-Date Adjusted EBITDA for 2026 was approximately negative $0.7 million for both the current and prior year quarters. NEW YORK, May 14, 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 March 31, 2026. Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented "I am very pleased with the progress we are making with all of our new influencer led brands”. First Quarter 2025 Financial Results Total revenue for the first 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 a transition to a new supplier for our interactive television business, impacting inventory availability during the early part of the quarter. Total revenue for the current quarter was consistent with total revenue for the fourth quarter of 2025. Direct operating costs and expenses decreased approximately $0.2 million (-9%) from the prior year quarter to $2.1 million in the current quarter. Currently, the Company has reduced its direct operating expenses to an expected run rate of less than $8 million per annum. During the quarter, the Company recognized a $0.06 million impairment charge related to the subsequent sale of the Judith Ripka brand in April, whereby the Company reclassified the Judith Ripka brand intangible assets to a current asset, assets held for sale. Net loss attributable to Xcel Brands stockholders for the quarter was approximately $2.5 million, or $(0.42) per share, compared with net loss of $2.8 million, or $(1.18) 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 $1.4 million, or $(0.24) per share and a similar net loss of approximately $1.4 million, or $(0.58) per share, for the prior year quarter. Adjusted EBITDA was negative $0.7 million for both the current and prior year quarters. Balance Sheet The Company's balance sheet on March 31, 2026, reflected stockholders' equity of approximately $13.2 million, unrestricted cash and cash equivalents of approximately $0.2 million. On April 27, 2026, the Company netted $2 million of cash from the sale of the Judith Ripka Brand, as previously disclosed. The Company’s balance sheet on March 31, 2026, also reflected $12.6 million of long-term debt. The Company’s working capital on March 31, 2026 (exclusive of the current portion of lease obligations, deferred revenue, and contingent obligations payable in shares or via other non-cash means and adjusted for the April debt refinancing) was break-even. 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, 2025. 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 7958649. 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, 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.

NEW YORK, May 14, 2026 (GLOBE NEWSWIRE) -- In a release issued earlier today by Xcel Brands, Inc (NASDAQ: XELB) please note that the "Conference Call and Webcast" section contained outdated information. The corrected release follows Net loss on a GAAP basis was $2.5 million for the current quarter compared with $2.8 million net loss for the prior year quarter.  Year-to-Date Adjusted EBITDA for 2026 was approximately negative $0.7 million for both the current and prior year quarters.: 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 March 31, 2026. Robert W. D'Loren, Chairman and Chief Executive Officer of Xcel commented "I am very pleased with the progress we are making with all of our new influencer led brands”. First Quarter 2025 Financial Results Total revenue for the first 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 a transition to a new supplier for our interactive television business, impacting inventory availability during the early part of the quarter. Total revenue for the current quarter was consistent with total revenue for the fourth quarter of 2025. Direct operating costs and expenses decreased approximately $0.2 million (-9%) from the prior year quarter to $2.1 million in the current quarter. Currently, the Company has reduced its direct operating expenses to an expected run rate of less than $8 million per annum. During the quarter, the Company recognized a $0.06 million impairment charge related to the subsequent sale of the Judith Ripka brand in April, whereby the Company reclassified the Judith Ripka brand intangible assets to a current asset, assets held for sale. Net loss attributable to Xcel Brands stockholders for the quarter was approximately $2.5 million, or $(0.42) per share, compared with net loss of $2.8 million, or $(1.18) 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 $1.4 million, or $(0.24) per share and a similar net loss of approximately $1.4 million, or $(0.58) per share, for the prior year quarter. Adjusted EBITDA was negative $0.7 million for both the current and prior year quarters. Balance Sheet The Company's balance sheet on March 31, 2026, reflected stockholders' equity of approximately $13.2 million, unrestricted cash and cash equivalents of approximately $0.2 million. On April 27, 2026, the Company netted $2 million of cash from the sale of the Judith Ripka Brand, as previously disclosed. The Company’s balance sheet on March 31, 2026, also reflected $12.6 million of long-term debt. The Company’s working capital on March 31, 2026 (exclusive of the current portion of lease obligations, deferred revenue, and contingent obligations payable in shares or via other non-cash means and adjusted for the April debt refinancing) was break-even. 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 hold a conference call with the investment community on May 19, 2026, at 5:00 p.m. ET. A webcast of the conference call will be available live on the Investor Relations section of Xcel’s website at https://xcelbrands.co/pages/events-and-presentations or directly at https://edge.media-server.com/mmc/p/dk3zkyjv. 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 7958649. 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, 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.