PLBY Group Shares Plunge 2.50% Amid Q1 2025 Earnings

PLBY Group(PLBY) shares fell 2.50% on Wednesday, marking the second consecutive day of decline, with a total drop of 3.31% over the past two days.

The strategy of buying PLBY shares after they reached a recent peak and holding for 1 week yielded moderate returns over the past 5 years, with a 7.48% annualized gain. However, the overall performance was slightly underpar compared to a passive strategy of simply holding the stock, which delivered a 9.42% annualized gain over the same period. The backtested results suggest that while the strategy captured some short-term fluctuations, it missed out on longer-term gains that would have been achievable by holding onto the stock.

PLBY Group reported its first quarter 2025 financial results, revealing a revenue of $28.9 million and a net loss of $9.0 million. This net loss represents an improvement of $7.4 million compared to previous figures. Additionally, the company achieved an adjusted EBITDA of $2.4 million, marking its first positive EBITDA since 2023.

The company's quarterly loss of $0.10 per share was in line with the consensus estimate, showing an improvement from the previous year's quarterly loss of $0.23 per share. The revenue for the quarter ended March 2025 was $28.88 million, surpassing the consensus estimate by 8.15%.

PLBY Group has been transitioning to an asset-light model, which has contributed to the improved financial results. This strategic shift is part of the company's broader business plan aimed at enhancing operational efficiency and profitability.