PLBY Group Reports $28.9 Million Revenue in Q1 2025, Implements Licensing Agreement

PLBY Group, Inc. reported a net revenue of $28.9 million for the first quarter of 2025, reflecting a 2% increase from $28.3 million in the same period of 2024. The company's operating loss improved to $6.3 million, down from $8.9 million year-over-year, while the net loss decreased significantly to $9.0 million from $16.4 million. This reduction in losses was attributed to a decrease in costs of sales, which fell by 28% to $9.1 million, and a reduction in total costs and expenses by 6% to $35.1 million.

The company underwent a strategic shift with the implementation of a License & Management Agreement (LMA) with Byborg Enterprises, effective January 1, 2025. This agreement transitioned PLBY's digital subscriptions and content operations into a licensing model, resulting in the establishment of two reportable segments: Direct-to-Consumer and Licensing. The Licensing segment generated $11.4 million in revenue, a substantial increase from $4.1 million in the prior year, primarily due to $5.0 million in minimum guaranteed royalties from Byborg.

Operationally, PLBY Group reported a decrease in direct-to-consumer revenues, which fell to $16.3 million from $18.7 million, largely due to a lack of a significant sale that occurred in March 2024. The company also noted a geographic expansion, with licensing revenues from China increasing to 11% of total revenues, up from 5% in the previous year. As of March 31, 2025, PLBY had 51 Honey Birdette stores across three countries, contributing to its direct-to-consumer segment.

The company’s cash and cash equivalents stood at $23.7 million, down from $30.9 million at the end of 2024. PLBY Group reported a net cash used in operating activities of $7.6 million, an improvement from $9.8 million in the prior year. The company remains in compliance with its debt covenants and anticipates that its existing liquidity will be sufficient to meet obligations for at least the next year. However, it acknowledged potential risks from ongoing macroeconomic uncertainties that could impact future performance.

Looking ahead, PLBY Group aims to continue its focus on a capital-light business model, leveraging its brand through strategic partnerships and licensing agreements. The company plans to enhance its marketing efforts and expand its licensing business into new categories and territories, while also managing costs associated with its transition to a licensing model.