a.k.a. Brands 2025 Q2 Earnings Worse Losses Despite Revenue Growth

a.k.a. Brands (AKA) reported its fiscal 2025 Q2 earnings on Aug 7, 2025. The company posted a 7.8% revenue increase but saw losses widen. The CEO highlighted strong U.S. sales growth and strategic progress, while the stock has risen in the short term. The earnings report fell short on profitability, raising concerns for capital growth-oriented investors. The company raised its full-year revenue guidance slightly and expects continued expansion.

Revenue
a.k.a. Brands posted a 7.8% year-over-year revenue increase to $160.52 million in Q2 2025, driven by strong U.S. performance with 13.7% growth. This outpaced growth in the Australia/New Zealand market, which remained flat, and contrasted sharply with a 19.4% decline in the rest of the world. The 9.5% rise in orders, primarily from the U.S., contributed to the revenue gain.

Earnings/Net Income
The company’s losses worsened significantly. Net loss expanded to $3.63 million, or $0.34 per share, compared to $2.26 million, or $0.22 per share, in the prior year, reflecting a 54.5% increase in per-share losses. Adjusted EBITDA was $7.5 million, slightly below the $8.0 million recorded in Q2 2024. Despite the revenue growth, the widening losses underscore ongoing profitability challenges.

Price Action
a.k.a. Brands’ stock edged up 2.59% in the latest trading day and rose 3.92% for the week, with a 6.44% gain month-to-date.

Post Earnings Price Action Review
Investing in AKA after its earnings report proved unprofitable. A 30-day post-earnings strategy yielded a -47.39% return, underperforming the benchmark by 52.40%. The negative Sharpe ratio of -0.93 highlights poor risk-adjusted performance. While the maximum drawdown was 0%, the strategy failed to generate gains, offering stability but little upside for growth-oriented investors.

CEO Commentary
Ciaran Long, CEO, noted a “strong second quarter” with net sales of $161 million and five consecutive quarters of growth. U.S. momentum was described as robust, with 14% sales growth. Progress in Australia/New Zealand and $7.5 million in adjusted EBITDA were key highlights. The CEO emphasized omnichannel expansion, supply chain diversification, and a “test and repeat” merchandising strategy at Culture Kings, expressing confidence in future growth.

Guidance
The company updated its FY 2025 net sales guidance to $608–$612 million from $600–$610 million, with adjusted EBITDA expected to range from $24.5–$27.5 million. For Q3 2025, net sales are projected at $154–$158 million with adjusted EBITDA of $7.3–$7.7 million.

Additional News
a.k.a. Brands announced plans to open 8 to 10 new Princess Polly stores in 2026, expanding its retail footprint. Culture Kings’ in-house brands saw double-digit growth, and the Nordstrom partnership for Princess Polly and Petal & Pup was highlighted as a key driver for brand awareness. Supply chain diversification initiatives are on track, with new vendors already contributing to product deliveries. The company remains confident in its ability to scale operations and improve profitability.