--- title: "Digital Brands | 10-Q: FY2026 Q1 Revenue: USD 1.316 M" type: "News" locale: "en" url: "https://longbridge.com/en/news/287113542.md" datetime: "2026-05-20T20:18:17.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287113542.md) - [en](https://longbridge.com/en/news/287113542.md) - [zh-HK](https://longbridge.com/zh-HK/news/287113542.md) --- # Digital Brands | 10-Q: FY2026 Q1 Revenue: USD 1.316 M Revenue: As of FY2026 Q1, the actual value is USD 1.316 M. EPS: As of FY2026 Q1, the actual value is USD -1.06. EBIT: As of FY2026 Q1, the actual value is USD -7.295 M. Digital Brands Group, Inc. operates as a single reportable segment, encompassing direct-to-consumer (DTC) fashion brands . #### Revenue Net revenues decreased to $1,315,984 for the three months ended March 31, 2026, from $1,871,701 for the corresponding period in 2025, primarily due to lower wholesale activity, partially offset by investment in the direct-to-consumer brand portfolio . #### Gross Profit and Margin Gross profit decreased by $0.8 million to $45,381 for the three months ended March 31, 2026, compared to $872,455 in the prior year period . The gross margin was approximately 3% for the three months ended March 31, 2026, a significant drop from 47% for the same period in 2025 . #### Operating Expenses Total operating expenses increased to $7,464,513 for the three months ended March 31, 2026, from $2,869,015 in the prior year, driven mainly by higher sales and marketing expenses . General and administrative expenses were $2,572,284 in 2026 vs. $1,973,803 in 2025 . Sales and marketing expenses were $4,752,255 in 2026 vs. $828,788 in 2025 . Distribution expenses were $139,974 in 2026 vs. $66,424 in 2025 . #### Operating Loss Loss from operations increased to -$7,419,132 for the three months ended March 31, 2026, from -$1,996,560 for the corresponding period in 2025 . #### Other Income (Expense) Total other income (expense), net, was -$3,972,901 for the three months ended March 31, 2026, compared to -$93,350 for the same period in 2025, primarily due to a -$3,871,454 non-cash charge for the change in fair value of the share-based payment liability . Interest expense was approximately -$123,826 in 2026 compared to -$134,923 in 2025 . #### Net Loss Net loss increased to -$11,392,033 for the three months ended March 31, 2026, compared to -$2,089,910 for the three months ended March 31, 2025 . #### Cash Flow - Net cash used in operating activities was -$4,711,070 for the three months ended March 31, 2026, compared to -$4,507,347 for the same period in 2025 . - Net cash used in investing activities was -$260,475 for the three months ended March 31, 2026, primarily for vehicle purchase and a security deposit for a Texas lease, compared to $0 in 2025 . - Net cash provided by financing activities was $2,412,911 for the three months ended March 31, 2026, mainly from warrant exercises, compared to $6,587,057 in 2025 . - Net change in cash was -$2,558,634 for the three months ended March 31, 2026, compared to $2,079,710 in 2025 . #### Balance Sheet Highlights As of March 31, 2026, total assets were $47,319,165, and total liabilities were $43,740,608 . The company reported a working capital deficit of $7,496,399 . Prepaid marketing expenses amounted to $13,273,867, and share-based payment liability was $12,462,887 . Outstanding debt was approximately $6.4 million, including a $3,500,000 promissory note that matured on December 8, 2025, and remains in default . #### Future Outlook and Strategy Digital Brands Group, Inc. anticipates revenue growth in subsequent periods through expanded Name, Image, and Likeness (NIL) and licensing partnerships, such as the Penn State NIL agreement and Sundry / TJX licensing arrangement . The company expects gross margins to recover and expand with increased revenues, leveraging fixed costs, a higher mix of e-commerce revenue, and an improved wholesale account mix . To support operations for the next twelve months, the company plans to rely on funds from equity offerings, including at-the-market equity financings, warrant exercises, and operational improvements from new marketing efforts and cost-cutting measures . ### Related Stocks - [DBGI.US](https://longbridge.com/en/quote/DBGI.US.md) ## Related News & Research - [Advance Auto Parts Reports First Quarter 2026 Results; Reaffirms Full Year 2026 Guidance | AAP Stock News](https://longbridge.com/en/news/287202242.md) - [The Home Depot Announces First Quarter Fiscal 2026 Results; Reaffirms Fiscal 2026 Guidance | HD Stock News](https://longbridge.com/en/news/286890512.md) - [ONWARD Medical to Announce First Quarter 2026 Results on May 26, 2026 | ONWRY Stock News](https://longbridge.com/en/news/286858298.md) - [Correction: NextNRG to Host First Quarter 2026 Financial Results Conference Call on May 18, 2026 at 9:00 a.m. ET | NXXT Stock News](https://longbridge.com/en/news/286673001.md) - [Hafnia’s Q1 2026 Financial Results Presentation to Be Held on 27 May 2026 | HAFN Stock News](https://longbridge.com/en/news/287014236.md)