Xcel Brands (NASDAQ:XELB) executives used the company’s fourth-quarter 2025 earnings call to outline an influencer-led growth strategy aimed at rebuilding after several years of operational disruptions, while also detailing lower year-over-year revenue and improved adjusted EBITDA results.
Management highlights influencer-led brand strategy and 2026 launch schedule
Chairman and CEO Robert D’Loren said 2025 was focused on “getting back to basics and laying the foundations of growth for the future,” following three years of setbacks tied to COVID and the Lord & Taylor bankruptcy, which he said “alone cost us over $3 million in related losses.”
On timing, D’Loren said the first wave of influencer-led brands would begin shipping through licensees in early 2026, with on-air programming on QVC and HSN beginning in the second quarter. In response to analyst questions, he added that Cesar Millan, Gemma Stafford, and Jenny Martinez are set to launch in the current Q2 period on QVC and HSN, with additional brick-and-mortar retail and Amazon distribution expected later in 2026. He said Coco Rocha is the newest brand and is expected to launch later in the year due to typical development timelines.
D’Loren also described plans to build brand-specific Amazon storefronts, starting with Cesar Millan. “We’re building an Amazon store that will be the first of its kind in the pet category, where Xcel will control what the store looks like and oversee how each of the licensees market,” he said.
Legacy brand updates: HSN momentum and JTV growth
D’Loren said C. Wonder and Christie Brinkley remain “some of the fastest-growing brands on HSN,” and that a new licensee is designing and selling apparel for those brands. He also said Judith Ripka continues operating “on plan” on JTV.
He noted that revenues from JTV were up 23% from the prior year and said the company expects 2026 growth in product sales and related royalties to exceed 2025’s results.
Looking further out, D’Loren said the Longaberger brand is expected to launch in spring 2027 with products co-created with Shannon Doherty.
Q4 and full-year results: revenue decline, cost reductions, and improved EBITDA
CFO Jim Haran reported fourth-quarter revenue of $1.17 million, compared with $1.21 million in the year-ago period. He attributed the decline primarily to a transition to a new supplier for the company’s HSN business, which caused “a gap in wholesale shipments.”
For the full year, revenue was $4.94 million, down from $8.26 million in 2024. Haran said the decrease was primarily driven by the June 2024 divestiture of the Lori Goldstein brand and the loss of related licensing revenue. He also said approximately $350,000 of the decline reflected revenue recognized in the prior year from the final sale of residual product inventory, with no comparable amounts in 2025.
Direct operating costs and expenses were $2.2 million in Q4, down 22% year over year. Full-year direct operating costs were $8.57 million, down 33%, which Haran attributed mainly to business transformation and cost reductions over the past two years, along with cost eliminations associated with the Lori Goldstein divestiture.
Haran said the company has reduced payroll, operating, and overhead costs to a run rate of approximately $8 million “on an ongoing forward basis.”
Adjusted EBITDA showed improvement. D’Loren cited an adjusted EBITDA loss of approximately $600,000 in Q4 and a $2.3 million loss for the full year 2025, which he said represented a $187,000 improvement over the prior-year quarter and a $1.2 million improvement over full-year 2024. Haran reported adjusted EBITDA loss of approximately $600,000 in Q4 compared with a $792,000 loss in the prior-year quarter, calling it a 24% year-over-year improvement. For the full year, he reported EBITDA of negative $2.3 million, improving from negative $3.5 million in 2024.
D’Loren said the company’s results improved year over year but were “less than our expectations,” citing two main factors: the transition to a new apparel supplier for C. Wonder and Tower Hill by Christie Brinkley, and Halston results that “did not materialize as expected” for the full year. Still, he said Halston had a strong second half of 2025 and that management is “optimistic about Halston’s potential in 2026.”
Net loss, debt-related costs, and Isaac Mizrahi write-down
Haran reported a fourth-quarter net loss of approximately $2.8 million, or -$0.55 per share, compared with a net loss of $7.1 million, or -$3 per share, in the prior-year quarter. On a non-GAAP basis, he reported a net loss of approximately $1.6 million, or $0.32 per share, compared with a non-GAAP net loss of $1.6 million, or -$0.69 per share, a year earlier.
For the full year, Haran reported a GAAP net loss of approximately $17.5 million, or -$5.08 per share, compared with a net loss of $22.4 million, or -$9.84 per share, in 2024. He said 2025 results included a $6 million loss tied to the divestiture of equity investee IM Topco and a $1.9 million loss on early extinguishment of debt tied to the April 2025 term-loan financing. Haran said the company has “fully written down our investment in the Isaac Mizrahi brand to zero” and divested its remaining equity interest, and he said it “therefore will not incur any such charges and losses going forward.”
Interest and finance expense increased to $800,000 in Q4 from $500,000 a year earlier. For the full year, interest and finance expense rose to $4.3 million from $900,000, which Haran attributed to higher interest rates and higher average debt balances, in addition to the debt extinguishment loss. He also noted that under the term loan, “a majority of the interest due under our current debt will be payable in kind,” accruing without requiring cash payments until starting in 2027.
Liquidity actions and near-term macro caution
On capital structure, Haran said the company closed a private investment in public equity (PIPE) transaction in December 2025 with net proceeds of approximately $1.8 million. He added that in January 2026 the company entered into a committed equity line facility providing up to $15 million of potential funding over two years for working capital and possible acquisitions.
As of Dec. 31, 2025, Haran reported stockholders’ equity of approximately $16 million, unrestricted cash of approximately $1.2 million, restricted cash of $1.7 million, and long-term debt of $12.7 million.
While D’Loren said management believes “the worst is now behind us,” he added that the company remains cautious in the near term due to macroeconomic conditions in 2026, citing “lingering inflation, the full impact of trade tariffs, the war in Ukraine, and to some extent, the bifurcated consumer spending.”
About Xcel Brands (NASDAQ:XELB)
Xcel Brands, Inc (NASDAQ: XELB) is a lifestyle brand management company that acquires, develops and markets consumer product brands spanning fashion, entertainment and home categories. The company works with designers, celebrities and entertainment properties to create branded apparel, accessories, jewelry and home décor collections. Its portfolio includes licensed and proprietary brands such as Judith Ripka, Isaac Mizrahi and Simple Joys by Carter’s, among others.
The company’s business model centers on sourcing creative talent and intellectual property, then leveraging an in-house product development team to design collections that are manufactured by third-party partners.
