Xcel Brands stock drops 5%, losses continue despite cost-cutting measures

LootboxPhobia · 2026-04-08T15:10:51+00:00

Xcel Brands reports a fourth-quarter loss of -$0.32 per share, with revenue of $1.2 million, flat year-over-year but down 85% compared to fiscal year 2024. The company implemented cost-cutting measures, leading to an improvement in EBITDA loss. Revenue for fiscal year 2025 declined to $4.9 million, with a reduced adjusted EBITDA loss. Management is pleased with brand progress and expects new brands to be launched successively in 2026.

LootboxPhobia

2026-04-08 15:10:51

Abstract generation in progress

New York - Xcel Brands, Inc. (NASDAQ:XELB) reported a fourth-quarter adjusted loss per share of -$0.32 and revenue of $1.2 million. The media and consumer products company is still continuing its business transformation. Revenue was flat year over year, but declined 85% compared with the $8.3 million for the full 2024 fiscal year.

After the earnings release, the company’s stock price fell 5.48% in pre-market trading.

The company’s fourth-quarter adjusted EBITDA loss was -$610k, an improvement of 24% compared with the -$790k loss in the prior year period.

Direct operating costs decreased by $600k, a 22% decline, to $2.2 million, and management implemented cost-cutting measures to restructure its business model.

The company has reduced its direct operating expenses to a forecast annualized operating run rate of less than $9 million.

For the full 2025 fiscal year, revenue declined 42% to $4.9 million, mainly due to the June 2024 divestiture of the Lori Goldstein brand. However, adjusted EBITDA improved 35% year over year, with the loss narrowing from -$3.5 million in 2024 to -$2.3 million.

Chairman and Chief Executive Officer Robert W. D’Loren said: “I am pleased with the progress we have made across our traditional brands and all of our new influencer-led brands. These new influencer-led brands will be rolled out throughout 2026.”

As of December 31, 2025, the company’s balance sheet shows stockholders’ equity of $15.8 million and unrestricted cash of $1.2 million. Total term loan debt is $12.7 million, of which $3.3 million will mature within the next 12 months.

Management said the company is working to return to profitability as planned and expects to achieve its goal of 100 million followers for its brand portfolio across social media.

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