- Xcel Brands (XELB, Financial) reports Q4 2024 net loss of $7.1 million, a slight increase from Q4 2023.
- Q4 non-GAAP net loss improves by 53% to $1.6 million, highlighting restructuring progress.
- Significant growth in social media following, expanding from 5 million to 45 million followers.
Xcel Brands, Inc. (XELB), a media and consumer products company, released its fourth-quarter and full-year 2024 financial results, presenting both challenges and progress. The company recorded a net loss of $7.1 million ($3.00 per share) in Q4 2024, a slight increase from the $6.8 million loss in the same period last year. However, non-GAAP financials indicate a more optimistic outlook, with a 53% improvement in non-GAAP net loss to $1.6 million.
For the full year, Xcel Brands encountered a 53% decline in revenue to $8.3 million, largely due to the planned cessation of its wholesale businesses under the "Project Fundamentals" restructuring initiative. Nonetheless, adjusted EBITDA showcased a 40% reduction in losses year-over-year, signaling the positive impact of the restructuring efforts.
The company strategically divested the Lori Goldstein brand and reported remarkable growth in its social media presence, with followers surging from 5 million to 45 million. This expansion aligns with Xcel's pivot towards leveraging digital engagement as a key growth avenue.
Financially, Xcel Brands' balance sheet displays $28 million in stockholders' equity, with a recent debt refinancing in April 2025 enhancing liquidity by $3.0 million. Despite these advancements, the company continues to face a significant debt burden, amounting to $6.6 million in long-term debt.
