AKA earnings analysis
What we found in AKA's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
a.k.a. Brands reported Q1 2026 net sales of $132.5 million, marking a 3% growth year-over-year and exceeding estimates of $131.2 million. Gross margin improved significantly to 63%, up from 57%, while the diluted EPS loss narrowed to $0.66 vs. the anticipated loss of $0.97. Management raised its full-year Adjusted EBITDA guidance to $30-$32 million, reflecting operational improvements despite inflationary pressures.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth
- Revenues increased by $3.8 million, or 3%, to $132.5 million, surpassing the estimate of $131.2 million.
- Improved Gross Margin
- Gross margin rose to 63%, up from 57%, highlighting efficiency and better pricing strategies.
- Narrowed EPS Loss
- Diluted EPS loss decreased to $0.66 from $0.78 in the previous year, compared to an expectation of $0.97.
- Increased Adjusted EBITDA
- Adjusted EBITDA reached $5.1 million, a notable increase from $2.7 million a year prior.
- Tariff Refund Benefit
- A $16.5 million benefit was derived from tariff refunds related to past tariffs, aiding profit margins.
- Active Customer Growth
- Active customers increased by 3.1% year-over-year, signaling enhanced brand engagement.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Inventory Write-Offs
- The company incurred a $12 million write-off of streetwear inventory during this transition period.
- Increased Operating Cash Flow
- Net cash used in operating activities rose to $3.8 million from $1.9 million in Q1 2025, reflecting payment timing issues.
- Cybersecurity Risks
- Material risks associated with data security threats increase potential vulnerability of sensitive information.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.66
- Gross margin
- 63%
What they said about what is next.
Management maintains revenue guidance of $625 million to $635 million and raised Adjusted EBITDA guidance to $30-$32 million.
The filing reads better than the one before it.
What came before.
- 10-K · March 5, 2026
- a.k.a. Brands reported FY2025 net sales of $600.2 million, up 4% year-over-year, with U.S. net sales of $394.3 million (up 7%) and a modest gross margin expansion of 30 basis points. The company is accelerating…
- 10-Q · August 6, 2025
- a.k.a. Brands reported a strong Q2 2025 with revenues increasing to $161 million, up 8% from the prior year, while gross margin remained stable at 57.5%. Despite this growth, the company continued to experience a loss…
- 10-K · March 6, 2025
- a.k.a. Brands reported FY2024 net sales of $574.7 million, up 5% year-over-year, driven by U.S. net sales growth to $368.8 million (up 17%). Gross margin expanded 200 basis points to 57% and Adjusted EBITDA increased to…
- 10-Q · August 7, 2024
- a.k.a. Brands reported Q2 net sales of $148,931 and a GAAP net loss per share of $(0.22), reflecting sequential and year-over-year revenue growth and a return to positive operating income of $636. Gross profit rose to…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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