How did DXLG's revenue and expenses trend in Q4 2025?

**Destination XL Group Inc. (DXLG) experienced a decline in revenue and a increase in expenses in Q4 2025 compared to the same period in the previous year.**

1. **Revenue Trend**:
- DXLG's revenue in Q4 2024 was $119.2 million.
- In Q4 2025, the revenue was $122.43 million, which was slightly higher than the previous year's revenue.
- However, if we compare the full year's revenue, DXLG's revenue for 2024 was $467 million, which was a decrease from the $521.8 million in 2023.

|code|Ticker|Name|Date|Business Composition|Revenue By Business|market_code|
|---|---|---|---|---|---|---|
|DXLG|DXLG.O|Destination XL Group|20250101-2025|Retail|4.67015E8|185|
|DXLG|DXLG.O|Destination XL Group|20250101-2025|Retail|3.47812E8|185|
|DXLG|DXLG.O|Destination XL Group|20250101-2025|Retail|2.40309E8|185|
|DXLG|DXLG.O|Destination XL Group|20250101-2025|Retail|1.15489E8|185|

|code|Ticker|Name|Date|Net Income YoY|Net Income|market_code|
|---|---|---|---|---|---|---|
|DXLG|DXLG.O|Destination XL Group|2025 Q1|-45.55762882158748|3793000|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q2|-79.51517235450872|2383000|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q3|-144.90049751243782|-1805000|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q4|-125.14329384791748|-1316000|185|

|code|Ticker|Name|Date|Gross Profit Margin|Gross Profit Margin YoY|market_code|
|---|---|---|---|---|---|---|
|DXLG|DXLG.O|Destination XL Group|2025 Q1|48.2141|-0.7145637145781321|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q2|48.21|-2.5170458681462624|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q3|47.2359|-3.300633390790239|185|
|DXLG|DXLG.O|Destination XL Group|2025 Q4|46.5071|-3.8589070943361934|185|

2. **Expense Trend**:
- DXLG's SG&A expenses were 41.7% of sales in Q4 2024, compared to 38.5% in the prior year.
- The company's net loss for Q4 2024 was $1.3 million, which was a significant decrease from the $5.2 million net income in Q4 2023.
- Adjusted EBITDA for Q4 2024 was $4.2 million, which was a substantial decrease from the $11.7 million in Q4 2023.
3. **Profitability Analysis**:
- DXLG's gross margin decreased by 260 basis points due to deleveraging of occupancy costs as a percentage of sales.
- The company's net income per diluted share was -$0.02 in Q4 2024, compared to $0.08 in Q4 2023.
- Adjusted net income per diluted share was $0.02 in Q4 2024, which was a significant decrease from $0.10 in Q4 2023.
4. **Strategic Initiatives**:
- Despite the decline in revenue and expenses, DXLG focused on strategic growth through new store openings, e-commerce enhancements, and a robust rewards program.
- The company's SG&A expenses increased as a percentage of sales, indicating higher operational costs.

In conclusion, DXLG faced challenges in Q4 2025 with a decline in revenue and an increase in expenses compared to the previous year. The company's strategic initiatives aimed at growth may take time to show results, and the decline in gross margin highlights the need for efficient cost management.