--- title: "aka Brands | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 132.46 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/286149907.md" datetime: "2026-05-12T20:11:16.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286149907.md) - [en](https://longbridge.com/en/news/286149907.md) - [zh-HK](https://longbridge.com/zh-HK/news/286149907.md) --- # aka Brands | 8-K: FY2026 Q1 Revenue Beats Estimate at USD 132.46 M Revenue: As of FY2026 Q1, the actual value is USD 132.46 M, beating the estimate of USD 131.17 M. EPS: As of FY2026 Q1, the actual value is USD -0.66, beating the estimate of USD -1.0025. EBIT: As of FY2026 Q1, the actual value is USD -1.926 M. #### Net Sales a.k.a. Brands Holding Corp. reported net sales of $132.5 million for the first quarter of 2026, an increase of 3.0% compared to $128.7 million in the first quarter of 2025 . On a constant currency basis, net sales increased by 1.2% . This growth was driven by a 4.2% increase in the number of orders, partially offset by a 1.3% decrease in average order value . #### Profitability Net loss for the first quarter of 2026 was - $7.134 million, or - $0.66 per share, an improvement from a net loss of - $8.350 million, or - $0.78 per share, in the first quarter of 2025 . The net loss margin was -5.4% in the first quarter of 2026, compared to -6.5% in the prior year period . Gross margin was 63.1%, up from 57.2% in the first quarter of 2025 . Adjusted Gross Margin expanded by 180 basis points to 59.0%, compared to 57.2% in the first quarter of 2025, primarily due to an improved inventory position, more full-price selling, and the benefit of the IEEPA tariff adjustment, partially offset by a $12.0 million write-off of streetwear inventory and other tariff-related charges . Adjusted EBITDA was $5.148 million in the first quarter of 2026, significantly higher than $2.665 million in the first quarter of 2025 . Adjusted EBITDA margin was 3.9% of net sales, compared to 2.1% of net sales in the first quarter of 2025 . Loss from operations improved to - $4.104 million, compared to - $5.383 million in the first quarter of 2025 . #### Operating Expenses Selling expenses were $40.956 million, or 30.9% of net sales, in the first quarter of 2026, compared to $38.184 million, or 29.7% of net sales, in the first quarter of 2025 . Marketing expenses were $16.751 million, or 12.6% of net sales, compared to $15.173 million, or 11.8% of net sales, in the first quarter of 2025 . General and administrative (G&A) expenses amounted to $30.026 million, or 22.7% of net sales, compared to $25.682 million, or 20.0% of net sales, in the first quarter of 2025 . #### Balance Sheet Cash and cash equivalents totaled $12.862 million at the end of the first quarter of 2026, down from $20.273 million at the end of fiscal year 2025 . Inventory was $67.690 million at the end of the first quarter of 2026, compared to $86.177 million at the end of fiscal year 2025 and $94.4 million at the end of the first quarter of 2025 . Debt totaled $109.6 million at the end of the first quarter of 2026, compared to $111.1 million at the end of fiscal year 2025 and $119.9 million at the end of the first quarter of 2025 . Total assets were $397.687 million as of March 31, 2026, compared to $397.382 million as of December 31, 2025 . Total liabilities were $303.269 million as of March 31, 2026, compared to $299.611 million as of December 31, 2025 . Total stockholders’ equity was $94.418 million as of March 31, 2026, compared to $97.771 million as of December 31, 2025 . #### Cash Flow Cash flow used in operations for the three months ended March 31, 2026, was - $3.828 million, compared to - $1.875 million for the same period in 2025 . Net cash used in investing activities was - $2.582 million for the three months ended March 31, 2026, compared to - $3.436 million for the same period in 2025 . Net cash used in financing activities was - $1.815 million for the three months ended March 31, 2026, compared to $7.595 million provided by financing activities for the same period in 2025 . #### Operational Metrics Active customers grew by 3.1% to 4.26 million on a trailing twelve-month basis, up from 4.13 million in the first quarter of 2025 . The average order value was $77, a decrease of 1.3% from $78 in the first quarter of 2025 . The number of orders increased by 4.2% to 1.73 million, up from 1.66 million in the first quarter of 2025 . #### Sales by Region U.S. sales were $90.849 million, an increase of 3.2% compared to $88.054 million in the first quarter of 2025 . Australia & New Zealand sales were $36.932 million, an increase of 3.8% compared to $35.593 million in the first quarter of 2025 . Rest of world sales were $4.683 million, a decrease of -6.5% compared to $5.010 million in the first quarter of 2025 . #### Unique Metrics a.k.a. Brands Holding Corp. recognized a receivable of $25.8 million in prepaid expenses and other current assets as of March 2026, representing probable recovery of IEEPA tariffs previously paid . Of this amount, $18.6 million was recognized in cost of goods sold and $7.2 million is capitalized as inventory . The company also recognized approximately $2.0 million of charges related to the reversal of duty drawback benefits and other anticipated charges . #### Outlook For the full year ending December 31, 2026, a.k.a. Brands Holding Corp. reiterates its net sales guidance of $625 million to $635 million and updates its Adjusted EBITDA guidance to $30 million to $32 million, an increase from the prior guidance of $27 million to $29 million . Capital expenditures for the full year are expected to be $18 million to $20 million . For the second quarter ending June 30, 2026, the company anticipates net sales between $160 million and $164 million, and Adjusted EBITDA between $8.5 million and $9 million . ### Related Stocks - [AKA.US](https://longbridge.com/en/quote/AKA.US.md) ## Related News & Research - [aka Brands boosts Q1 margins and raises 2026 guidance](https://longbridge.com/en/news/286158379.md) - [AKA Brands Q1 adjusted EBITDA beats estimates, raises FY outlook](https://longbridge.com/en/news/286151888.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [GDEV announces results for the first quarter of 2026 | GDEV Stock News](https://longbridge.com/en/news/286909689.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md)