Playboy shares rose 4.0% after the company reported 9% revenue growth, nearly doubled adjusted EBITDA, and improved profitability. Licensing momentum in China and the expanding Honey Birdette collaboration were notable positives, though the rest-of-world licensing business is not expected to return to growth until 2027.
- Third-quarter revenue increased 9% to $31.7 million; operating income nearly tripled to $4 million, and net income was $1.9 million, or $0.02 per share.
- Adjusted EBITDA nearly doubled year over year to $7.9 million, the company’s seventh consecutive profitable quarter on that measure; adjusted EBITDA margin rose from 14% to 25%.
- China licensing revenue grew nearly 40% year over year, and the new partner signed three agreements with roughly $15 million in combined contract value. Management expects the broader rest-of-world licensing business to return to growth in 2027.
- Honey Birdette revenue rose 12%; operating income increased by nearly $1 million, and adjusted operating income roughly doubled.
- Playboy committed approximately $5 million of balance-sheet cash toward acquiring a Miami Beach property for a planned private members club, choosing that use of cash over a contemplated share repurchase.
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