<span item_type="fundamental" item_id="153f42e3d4408112dfb9e7c4970313f6" counter_id="ST/US/DBGI" env="prod"></span><span item_type="announcement" item_id="650550864903866753" env="prod"></span><p>Revenue: As of FY2026 Q1, the actual value is USD 1.316 M.</p><p>EPS: As of FY2026 Q1, the actual value is USD -1.06.</p><p>EBIT: As of FY2026 Q1, the actual value is USD -7.295 M.</p><p></p><p>Digital Brands Group, Inc. operates as a single reportable segment, encompassing direct-to-consumer (DTC) fashion brands <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Revenue</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Gross Profit and Margin</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. 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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Operating Expenses</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. General and administrative expenses were $2,572,284 in 2026 vs. $1,973,803 in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. Sales and marketing expenses were $4,752,255 in 2026 vs. $828,788 in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. Distribution expenses were $139,974 in 2026 vs. $66,424 in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Operating Loss</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Other Income (Expense)</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. Interest expense was approximately -$123,826 in 2026 compared to -$134,923 in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Net Loss</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Cash Flow</h4><ul><li>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</li><li>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</li><li>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</li><li>Net change in cash was -$2,558,634 for the three months ended March 31, 2026, compared to $2,079,710 in 2025 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</li></ul><h4>Balance Sheet Highlights</h4><p>As of March 31, 2026, total assets were $47,319,165, and total liabilities were $43,740,608 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. The company reported a working capital deficit of $7,496,399 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. Prepaid marketing expenses amounted to $13,273,867, and share-based payment liability was $12,462,887 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. Outstanding debt was approximately $6.4 million, including a $3,500,000 promissory note that matured on December 8, 2025, and remains in default <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p><h4>Future Outlook and Strategy</h4><p>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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. 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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>. 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 <span class="superscript" item_id="0" item_type="announcement_file" value="1" url="https://www.sec.gov/Archives/edgar/data/1668010/000149315226024610/form10-q.htm"></span>.</p>

Digital Brands | 10-Q: FY2026 Q1 Revenue: USD 1.316 M