Wilhelmina International Reports Mixed Financial Results for Q2 2025

Wilhelmina International, Inc. reported its financial results for the second quarter of 2025, revealing a slight decline in total revenues compared to the same period in 2024. For the three months ended June 30, 2025, the company generated total revenues of $4.553 million, a decrease of 0.8% from $4.591 million in the prior year. However, for the six-month period, revenues increased by 4.8% to $9.180 million, up from $8.762 million. The company's net income for the second quarter was $111,000, down 55.1% from $247,000 in the same quarter last year, while net income for the first half of 2025 was $268,000, a 20.7% decrease from $338,000 in 2024.

The financial performance reflects a mixed picture, with service revenues slightly declining by 0.9% in the second quarter but increasing by 4.8% for the first half of the year. The company attributed the decrease in quarterly service revenues to higher model costs, despite an increase in commissions from core model bookings. License fees and other income saw a notable increase, rising by 28.6% in the second quarter and 6.7% in the first half, primarily due to the expansion of an existing licensing agreement.

Operationally, Wilhelmina's total operating expenses increased by 6.2% to $4.452 million in the second quarter, driven by higher salaries and service costs, which rose by 7.1% year-over-year. The company also reported a decrease in corporate overhead expenses, which fell by 15.5% in the second quarter, contributing to a decline in operating income to $101,000, down from $397,000 in the prior year. The operating margin also decreased significantly to 2.2% from 8.6% in the same quarter of 2024.

In terms of strategic developments, Wilhelmina has been focusing on expanding its geographic reach and enhancing its brand awareness among advertisers and potential talent. The company is also investing in technology and infrastructure to better connect with clients and talent. As of June 30, 2025, the company had cash and cash equivalents of $6.711 million, down from $8.525 million at the end of 2024, reflecting net cash used in operating activities of $2.060 million during the first half of the year.

Looking ahead, Wilhelmina's management remains optimistic about the company's ability to navigate the challenges posed by changing market conditions and client spending patterns. The company plans to continue its efforts to increase market share and expand its operations, particularly in the digital and social media sectors. However, management acknowledges the uncertainties surrounding global economic conditions and their potential impact on client spending and overall business performance.