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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 
 As a “smaller reporting company,” as defined in Item 10 of Regulation S-K, we are not required to provide this information. 
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 ITEM 8. CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 
 a.k.a. BRANDS HOLDING CORP. 
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 
 
 Page 
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PricewaterhouseCoopers LLP, New York, New York, Auditor Firm ID: 238 ) 
 71 
 
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM (PricewaterhouseCoopers, Melbourne, Australia, Auditor Firm ID: 1379) 
 72 
 
 CONSOLIDATED BALANCE SHEETS 
 73 
 
 CONSOLIDATED STATEMENTS OF INCOME 
 74 
 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
 75 
 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
 76 
 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 77 
 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 79 
 
 Note 1 
 Organization and Description of Business 
 79 
 
 Note 2 
 Significant Accounting Policies 
 79 
 
 Note 3 
 Prepaid Expenses and Other Current Assets 
 86 
 
 Note 4 
 Property and Equipment, Net 
 86 
 
 Note 5 
 Goodwill 
 87 
 
 Note 6 
 Intangible Assets 
 87 
 
 Note 7 
 Debt 
 88 
 
 Note 8 
 Leases 
 90 
 
 Note 9 
 Income Taxes 
 91 
 
 Note 10 
 Accrued Liabilities 
 94 
 
 Note 11 
 Deferred Revenue 
 95 
 
 Note 12 
 Equity-based Compensation 
 95 
 
 Note 13 
 Stockholders’ Equity 
 98 
 
 Note 14 
 Net Loss Per Share 
 99 
 
 Note 15 
 Commitments and Contingencies 
 100 
 
 Note 16 
 Segment Information 
 100 
 
 Note 17 
 Subsequent Events 
 100 
 

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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the Board of Directors and Stockholders of a.k.a. Brands Holding Corp. 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated balance sheets of a.k.a. Brands Holding Corp. and its subsidiaries (the "Company") as of December 31, 2025 and 2024, and the related consolidated statements of income, of comprehensive income, of stockholders’ equity and of cash flows for the years then ended, including the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2025 and 2024, and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. 
 Basis for Opinion 
 These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. 
 Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 /s/ PricewaterhouseCoopers LLP 
 Los Angeles, California 
 March 5, 2026 
 We have served as the Company’s auditor since 2024. 
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 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM 
 To the Board of Directors and Stockholders of a.k.a. Brands Holding Corp. 
 Opinion on the Financial Statements 
 We have audited the consolidated balance sheet of a.k.a. Brands Holding Corp. and its subsidiaries (the “Company”) as of December 31, 2023, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for each of the two years in the period ended December 31, 2023, including the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2023 and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2023 in conformity with accounting principles generally accepted in the United States of America. 
 Basis for Opinion 
 These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits of these consolidated financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. 
 Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 /s/ PricewaterhouseCoopers 
 Melbourne, Australia 
 March 7, 2024 
 We served as the Company’s auditor from 2021 through 2024. 
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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED BALANCE SHEETS 
 (in thousands, except share and per share amounts) 
 
 December 31, 
 2025 2024 
 Assets 
 Current assets: 
 
 Cash and cash equivalents 
 $ 20,273 $ 24,192 
 Accounts receivable, net 
 10,650 8,107 
 Inventory 
 86,177 95,750 
 
 Prepaid expenses and other current assets 
 12,371 16,720 
 Total current assets 
 129,471 144,769 
 Property and equipment, net 
 39,315 31,262 
 Operating lease right-of-use assets 
 88,624 65,382 
 Intangible assets, net 
 43,470 52,354 
 Goodwill 
 93,695 89,254 
 Deferred tax assets 8 47 
 Other assets 2,799 2,136 
 Total assets 
 $ 397,382 $ 385,204 
 Liabilities and stockholders’ equity 
 
 Current liabilities: 
 
 Accounts payable 
 $ 31,248 $ 30,299 
 Accrued liabilities 
 33,532 31,216 
 Sales returns reserve 
 7,889 7,587 
 Deferred revenue 
 12,707 12,215 
 Income taxes payable 243 1,039 
 Operating lease liabilities, current 
 13,052 8,382 
 Current portion of long-term debt 
 6,375 6,300 
 Total current liabilities 
 105,046 97,038 
 Long-term debt 
 104,695 105,411 
 Operating lease liabilities 
 87,668 63,496 
 Other long-term liabilities 
 2,202 1,625 
 
 Total liabilities 
 299,611 267,570 
 Commitments and contingencies (Note 15) 
 
 Stockholders’ equity: 
 
 Preferred stock, $ 0.001 par value; 50,000,000 shares authorized; zero shares issued or outstanding as of December 31, 2025 and 2024, respectively 
 — — 
 Common stock, $ 0.001 par value; 500,000,000 shares authorized; 10,770,721 and 10,669,649 shares issued and outstanding as of December 31, 2025 and 2024, respectively 
 128 128 
 Additional paid-in capital 
 476,124 471,758 
 Accumulated other comprehensive loss 
 ( 53,644 ) ( 60,849 ) 
 Accumulated deficit 
 ( 324,837 ) ( 293,403 ) 
 
 Total stockholders’ equity 
 97,771 117,634 
 Total liabilities and stockholders’ equity 
 $ 397,382 $ 385,204 

 
 
 The accompanying notes are an integral part of these consolidated financial statements 
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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED STATEMENTS OF INCOME 
 (in thousands, except share and per share amounts) 
 
 Year Ended December 31, 
 2025 2024 2023 
 Net sales 
 $ 600,208 $ 574,697 $ 546,258 
 Cost of sales 
 256,149 247,192 245,978 
 Gross profit 
 344,059 327,505 300,280 
 Operating expenses: 
 
 Selling 
 177,822 161,852 149,307 
 Marketing 
 74,125 74,710 68,907 
 General and administrative 
 110,161 101,264 96,951 
 Goodwill impairment — — 68,524 
 Total operating expenses 
 362,108 337,826 383,689 
 Loss from operations 
 ( 18,049 ) ( 10,321 ) ( 83,409 ) 
 Other expense, net: 
 Interest expense ( 9,975 ) ( 10,296 ) ( 11,165 ) 
 
 Other expense ( 1,291 ) ( 1,044 ) ( 2,391 ) 
 Total other expense, net ( 11,266 ) ( 11,340 ) ( 13,556 ) 
 Loss before income taxes 
 ( 29,315 ) ( 21,661 ) ( 96,965 ) 
 Provision for income tax 
 ( 2,119 ) ( 4,329 ) ( 1,921 ) 
 Net loss 
 $ ( 31,434 ) $ ( 25,990 ) $ ( 98,886 ) 
 
 
 
 Net loss per share, basic and diluted 
 $ ( 2.93 ) $ ( 2.46 ) $ ( 9.24 ) 
 
 
 Weighted average shares outstanding, basic and diluted 
 10,725,607 10,567,656 10,707,024 
 

 The accompanying notes are an integral part of these consolidated financial statements 
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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
 (in thousands) 
 
 Year Ended December 31, 
 2025 2024 2023 
 Net loss 
 $ ( 31,434 ) $ ( 25,990 ) $ ( 98,886 ) 
 Other comprehensive income (loss): 
 
 Currency translation 
 7,205 ( 10,580 ) ( 5,084 ) 
 Total comprehensive loss 
 $ ( 24,229 ) $ ( 36,570 ) $ ( 103,970 ) 
 
 

 The accompanying notes are an integral part of these consolidated financial statements 
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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 
 (in thousands, except share and unit data) 
 
 Common Stock Additional Paid-In Capital 
 
 Accumulated Other Comprehensive Loss 
 Retained Earnings (Accumulated Deficit) Total Equity 
 Shares 
 Amount 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Balance as of December 31, 2022 10,750,586 $ 129 $ 460,660 $ ( 45,185 ) $ ( 168,527 ) $ 247,077 
 Equity-based compensation — — 7,640 — — 7,640 
 Issuance of common stock under employee equity plans, net of shares withheld 137,801 — ( 28 ) — — ( 28 ) 
 Repurchase of shares ( 320,506 ) ( 1 ) ( 2,100 ) — — ( 2,101 ) 
 Cumulative translation adjustment — — — ( 5,084 ) — ( 5,084 ) 
 Net loss — — — — ( 98,886 ) ( 98,886 ) 
 Balance as of December 31, 2023 10,567,881 128 466,172 ( 50,269 ) ( 267,413 ) 148,618 
 Equity-based compensation — — 7,980 — — 7,980 
 Issuance of common stock under employee equity plans, net of shares withheld 232,805 — ( 879 ) — — ( 879 ) 
 Repurchase of shares ( 131,037 ) — ( 1,515 ) — — ( 1,515 ) 
 Cumulative translation adjustment — — — ( 10,580 ) — ( 10,580 ) 
 Net loss — — — — ( 25,990 ) ( 25,990 ) 
 Balance as of December 31, 2024 
 10,669,649 128 471,758 ( 60,849 ) ( 293,403 ) 117,634 
 Equity-based compensation — — 7,049 — — 7,049 
 Issuance of common stock under employee equity plans, net of shares withheld 288,278 — ( 707 ) — — ( 707 ) 
 Repurchase of shares ( 187,206 ) — ( 1,976 ) — — ( 1,976 ) 
 Cumulative translation adjustment — — — 7,205 — 7,205 
 Net loss — — — — ( 31,434 ) ( 31,434 ) 
 Balance as of December 31, 2025 
 10,770,721 $ 128 $ 476,124 $ ( 53,644 ) $ ( 324,837 ) $ 97,771 

 
 
 The accompanying notes are an integral part of these consolidated financial statements 
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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (in thousands) 
 
 Year Ended December 31, 
 2025 2024 2023 
 Cash flows from operating activities: 
 Net loss 
 $ ( 31,434 ) $ ( 25,990 ) $ ( 98,886 ) 
 Adjustments to reconcile net loss to net cash provided by operating activities: 
 
 Depreciation expense 8,332 6,550 7,605 
 Amortization expense 9,426 11,047 11,536 
 
 Amortization of debt issuance costs 761 597 624 
 
 
 Lease incentives 3,621 — 1,596 
 Loss on disposal of businesses 
 600 673 1,533 
 Non-cash operating lease expense 13,615 8,979 7,766 
 Equity-based compensation 7,049 7,980 7,640 
 Deferred income taxes, net 41 1,508 ( 745 ) 
 Goodwill impairment — — 68,524 
 Changes in operating assets and liabilities, net of effects of acquisitions: 
 Accounts receivable, net 
 ( 2,331 ) ( 3,294 ) ( 1,283 ) 
 Inventory 
 12,070 ( 10,657 ) 32,149 
 Prepaid expenses and other current assets 4,273 1,539 ( 2,789 ) 
 Accounts payable 811 2,442 7,512 
 Income taxes payable ( 802 ) 778 6,214 
 Accrued liabilities 1,781 7,138 ( 13,982 ) 
 Sales returns reserve 
 220 ( 1,849 ) 5,566 
 Deferred revenue 202 856 522 
 Lease liabilities ( 11,799 ) ( 7,628 ) ( 7,676 ) 
 
 Net cash provided by operating activities 
 16,436 669 33,426 
 Cash flows from investing activities: 
 
 
 
 
 Purchases of intangible assets 
 — ( 2 ) ( 61 ) 
 Purchases of property and equipment ( 17,069 ) ( 11,592 ) ( 5,970 ) 
 Net cash used in investing activities 
 ( 17,069 ) ( 11,594 ) ( 6,031 ) 
 Cash flows from financing activities: 
 
 
 Payments of debt issuance costs 
 ( 1,406 ) — — 
 Proceeds from line of credit 
 40,900 49,500 11,500 
 Repayment of line of credit ( 35,600 ) ( 26,200 ) ( 51,500 ) 
 Proceeds from issuance of debt, net of issuance costs 13,773 — — 
 Repayment of debt ( 19,417 ) ( 5,400 ) ( 10,700 ) 
 Taxes paid related to net share settlement of equity awards ( 944 ) ( 1,103 ) ( 191 ) 
 Proceeds from issuances under equity-based compensation plans 237 224 162 
 
 Repurchase of shares 
 ( 1,976 ) ( 1,515 ) ( 2,100 ) 
 Net cash (used in) provided by financing activities 
 ( 4,433 ) 15,506 ( 52,829 ) 
 Effect of exchange rate changes on cash, cash equivalents and restricted cash 
 1,101 ( 2,131 ) 1,090 
 Net change in cash, cash equivalents and restricted cash 
 ( 3,965 ) 2,450 ( 24,344 ) 
 Cash, cash equivalents and restricted cash at beginning of year 
 26,479 24,029 48,373 
 Cash, cash equivalents and restricted cash at end of year 
 $ 22,514 $ 26,479 $ 24,029 

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 a.k.a. BRANDS HOLDING CORP. 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (in thousands) 
 
 Year Ended December 31, 
 2025 2024 2023 
 Reconciliation of cash, cash equivalents and restricted cash: 
 
 Cash and cash equivalents 
 $ 20,273 $ 24,192 $ 21,859 
 Restricted cash, included in prepaid expenses and other current assets 
 232 577 2,170 
 Restricted cash, included in other assets 
 2,009 1,710 — 
 Total cash, cash equivalents and restricted cash $ 22,514 $ 26,479 $ 24,029 
 Supplemental disclosure of cash flow information: 
 
 Interest paid 
 $ 7,798 $ 9,770 $ 10,515 
 Income tax paid (refund received), net 
 2,554 2,056 ( 4,039 ) 
 Supplemental disclosure of non-cash activities: 
 
 Right-of-use asset additions under operating leases $ 30,362 $ 38,534 $ 8,447 
 Property and equipment expenditures included in accounts payable and accrued liabilities 
 239 773 70 

 The accompanying notes are an integral part of these consolidated financial statements 
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 a.k.a. BRANDS HOLDING CORP. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 (tabular amounts in thousands, except share, per share data, unit, per unit data, ratios, or as noted) 
 
 Note 1. Organization and Description of Business 
 a.k.a. Brands Holding Corp. (together with its wholly owned subsidiaries, collectively, the “Company”), which operates under the name “a.k.a. Brands” or “a.k.a.,” is a portfolio of next-generation fashion brands for the next generation of consumers. The Company seeks to leverage its industry expertise and operational synergies to accelerate its brands so they can grow faster, reach broader audiences, achieve greater scale and enhance their profitability. 
 The Company is headquartered in San Francisco, California, with buying, studio, marketing, fulfillment and administrative functions primarily in Australia and the United States. 
 
 Note 2. Significant Accounting Policies 
 Principles of Consolidation and Basis of Presentation 
 The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying consolidated financial statements include the balances of the Company and all of its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. 
 Use of Estimates 
 The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities in the consolidated financial statements and accompanying notes. Actual results could materially differ from those estimates. On an ongoing basis, the Company evaluates items subject to significant estimates and assumptions. 
 Certain Risks and Concentrations 
 The Company is subject to certain risks, including credit risk, dependence on third-party technology providers and hosting services for website servers, exposure to risks associated with online commerce security, credit card fraud, as well as the interpretation of state and local laws and regulations in regard to the collection and remittance of sales and use taxes. The Company does not have significant customer or vendor concentrations. 
 Financial instruments that subject the Company to credit risk consist of cash and cash equivalents, restricted cash and accounts receivable. Although the Company’s deposits held with banks may exceed the amount of federal insurance provided on such deposits, the Company has not experienced any losses in such accounts. The Company is exposed to credit risk in the event of a default by the financial institutions holding its cash and cash equivalents for the amounts reflected on the consolidated balance sheets. 
 As of December 31, 2025 and 2024, the Company had $ 10.2 million and $ 13.5 million, respectively, on deposit in banks outside of the United States. 
 Cash and Cash Equivalents 
 The Company considers all highly liquid investments purchased with an original maturity (at date of purchase) of three months or less to be cash equivalents. Cash and cash equivalents consist primarily of demand deposits and receivables from third-party credit card processors. Cash equivalents are carried at cost, which approximates fair value. 
 Accounts Receivable 
 Accounts receivable consists of trade accounts receivable that are reported net of an allowance for doubtful accounts. The Company had $ 0.1 million in allowance for doubtful accounts at each of December 31, 2025 and 2024. 
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 Inventory 
 Inventories are accounted for using an average cost method and are valued at the lower of cost or net realizable value. Cost of inventory includes import duties and other taxes and transport and handling costs. The Company records a provision for excess and obsolete inventory to adjust the carrying value of inventory based on assumptions regarding future demand for the Company’s products. 
 Lower of cost or net realizable value is evaluated by considering obsolescence, excess levels of inventory, deterioration and other factors. The Company analyzes the quantity of inventory on hand, the quantity sold in the past year, the anticipated sales volume, the expected sales price and the cost of making the sale when evaluating the net realizable value of its inventory. If the sales volume or sales price of specific products declines, additional write-downs may be required. Excess and obsolete inventory is charged to cost of goods sold in the period the write-down is estimated. 
 Prepaid Expenses and Other Current Assets 
 Prepaid expenses and other current assets consist primarily of advance payments on inventory to be delivered from vendors, security deposits, prepaid packaging and insurance. 
 Property and Equipment, Net 
 Property and equipment are recorded at cost, net of accumulated depreciation. Repair and maintenance costs are expensed as incurred. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, which range from three to ten years . 
 
 Estimated useful life (years) 
 Furniture and fixtures 5 - 10 years 
 
 Machinery and equipment 5 - 10 years 
 
 Computer equipment and capitalized software 3 - 5 years 
 
 Buildings and leasehold improvements Shorter of the lease term or the estimated life of the assets 

 Upon the sale or disposal of property and equipment, the cost and related accumulated depreciation and amortization are removed from the consolidated balance sheets and the resulting gain or loss is reflected in general and administrative expense in the consolidated statements of income. 
 The Company incurs costs related to the development of the Company’s websites and capitalizes these website development costs incurred during the website development stage. Capitalized website costs include salary and benefit costs for Company employees and contractors that develop the website. When the development phase is substantially complete and the website is ready for its intended purpose, capitalized costs are depreciated using the straight-line method over the useful life. 
 Goodwill and Intangible Assets 
 Assets acquired and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of the purchase price over the fair value of the net assets acquired, including the amount assigned to identifiable intangible assets. The primary drivers that generate goodwill are the value of synergies between the acquired entities and the Company and the acquired assembled workforce, neither of which qualifies as a separately identifiable intangible asset. As of December 31, 2025 and 2024, the Company had goodwill of $ 93.7 million and $ 89.3 million, respectively. 
 Intangible assets, other than goodwill, acquired by the Company include brand names, customer relationships and trademarks. Intangible assets that are fully depreciated as of the last day of a fiscal year are written off during the first quarter of the following year. None of the Company’s intangible assets, other than goodwill, are indefinite lived. 
 Impairment of Long-Lived Assets and Goodwill 
 The Company’s long-lived assets consist of intangible assets and property and equipment. The Company’s goodwill has an indefinite useful life. 
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 Goodwill is tested for impairment at least annually, in the fourth quarter and whenever changes in circumstances indicate an impairment may exist. The goodwill impairment test is performed at the reporting unit level, which is generally at the level of or one level below an operating segment. Generally, a qualitative assessment is first performed to determine whether a quantitative goodwill impairment test is necessary. If management determines, after performing an assessment based on the qualitative factors, that the fair value of the reporting unit is more likely than not less than the carrying amount, or that a fair value of the reporting unit substantially in the excess of the carrying amount cannot be assured, then a quantitative goodwill impairment test would be required. The quantitative test for goodwill impairment is performed by determining the fair value of the related reporting units. Fair value is measured based on the discounted cash flow method and relative market-based approaches. An impairment charge is recorded equal to any shortfall between the fair value of a reporting unit and its carrying value. 
 No goodwill impairment was required for the year ended December 31, 2025 . In June 2025, due to a continued period of uncertain trade policy and the impact of increased tariffs and duties between countries, the Company revised its forecasts for each of its reporting units. These revisions and a continued decrease in the Company’s stock price were identified as triggering events and a subsequent quantitative test concluded that the fair value of each of the Company’s reporting units exceeded their carrying values as of June 30, 2025. As of the testing date, the estimated fair value of the mnml reporting unit exceeded the carrying value by 4.6 % and the carrying value of the related goodwill was $ 30.0 million. In 2023, the Company concluded that the carrying value of the Culture Kings and Petal & Pup reporting units exceeded their fair values as of August 31, 2023. As a result, the Company recorded a non-cash goodwill impairment charge of $ 68.5 million during the third quarter of 2023. Refer to Note 5, “Goodwill,” for further information. 
 The Company reviews finite-lived intangible assets and property and equipment for possible impairment whenever events or changes in circumstances indicate the carrying amount may not be recoverable. This determination includes evaluation of factors such as future asset utilization and future net undiscounted cash flows expected to result from the use of the assets. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent that the carrying amount exceeds its fair value. 
 The Company’s identifiable intangible assets are typically comprised of customer relationships and brand names. The cost of identifiable assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives, which range from four to ten years . 
 No impairment losses related to finite-lived intangible assets or property and equipment were recognized during the years ended December 31, 2025, 2024 and 2023. 
 Leases 
 The Company generally leases office space, warehouse facilities and stores under non-cancellable agreements. Upon each agreement’s commencement date, the Company determines if the agreement is part of an arrangement that is or that contains a lease, determines the lease classification and recognizes right-of-use assets and lease liabilities for all leases with the exception of leases with terms of 12 months or less. The Company accounts for lease and non-lease components as a single lease component. Operating lease right-of-use assets are classified as long-term assets in the consolidated balance sheets. Operating lease liabilities are classified as current lease liabilities and long-term lease liabilities based on when lease payments are due. The Company’s lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common area maintenance and administrative services. As of December 31, 2025 and 2024, the Company did not have material finance lease arrangements. 
 Lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected term of the lease commencement date. As most of the Company’s leases do not provide an implicit rate, the Company uses an estimated incremental borrowing rate (“IBR”) based on the information available at the commencement date of the respective lease to determine the present value of future payments. The determination of the IBR requires judgment and is primarily based on the Company’s uncollateralized borrowing rate, adjusted for the impact of collateralization, the lease term and other specific terms included in each lease arrangement. The IBR is determined at the lease commencement and is subsequently reassessed upon a modification to the lease arrangement. The right-of-use asset also includes any lease payments made prior to the commencement date and excludes lease incentives and initial direct costs incurred. 
 Lease expense for minimum lease payments on operating leases is recognized on a straight-line basis over the lease term. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. 
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 The Company reviews right-of-use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of the right-of-use asset may not be recoverable. When such events occur, the Company compares the carrying amount of the right-of-use asset to the undiscounted expected future cash flows related to the right-of-use asset. If the comparison indicates that an impairment exists, the amount of the impairment is calculated as the difference between the excess of the carrying amount over the fair value of the right-of-use asset. If a readily determinable market price does not exist, fair value is estimated using discounted expected cash flows attributable to the right-of-use asset. 
 Income Taxes 
 Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and are recorded net on the balance sheet. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. 
 Deferred tax assets are recognized to the extent it is believed that these assets are more likely than not to be realized. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities (including the impact of available carry back and carry forward periods), projected future taxable income and tax planning strategies in making this assessment. Based upon the level of historical taxable income and projections for future taxable income over the periods in which the deferred tax assets are deductible, management believes it is more likely than not that the Company will realize the benefits of these deductible differences, net of the valuation allowance. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. 
 The Company classifies interest and penalties, if applicable, related to income tax liabilities as a component of income tax expense. 
 The Company uses a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals and litigation processes, if any. The second step is to measure the largest amount of tax benefit as the largest amount that is more likely than not to be realized upon settlement. 
 Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. 
 Equity-based Compensation 
 Restricted Stock Units and Stock Options 
 The Company has granted equity-based awards in the form of restricted stock units and stock options to employees. Equity-based compensation expense related to these equity-based awards is recognized based on the fair value of the awards granted. The Company estimates the fair value of restricted stock unit awards granted based upon the closing price of the Company’s common stock on the grant date. The Company estimates the fair value of stock option awards granted using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying shares of the Company’s common stock, the risk-free interest rate, the expected volatility of the price of the Company’s common stock, the expected dividend yield of the Company’s common stock and the expected term of the equity award. The assumptions used to determine the fair value of the equity awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The related equity-based compensation expense is recognized on a straight-line basis over the requisite service period of the awards, which is generally three or four years . The Company accounts for forfeitures as they occur. 
 These assumptions and estimates are as follows: 
 • Risk-Free Interest Rate . The risk-free interest rate for the expected term of the equity award is based on the U.S. Treasury yield curve in effect at the time of the grant. 
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 • Expected Volatility . Until the Company has sufficient trading history for its common stock, the expected volatility is estimated by taking the average historic stock price volatility for industry peers, consisting of several public companies in the Company’s industry which are either similar in size, stage of life cycle or financial leverage, over a period equivalent to the expected term of the awards. 
 • Expected Dividend Yield . The Company has never declared or paid any cash dividends and does not currently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent is used. 
 • Expected Term . For stock options, the expected term represents the period that a stock option award is expected to be outstanding. The Company has limited historical exercise data from which to derive expected term input assumptions. Consequently, the Company calculates expected term using the Securities and Exchange Commission’s simplified method whereby the expected term of a stock option award is equal to the average of the award's contractual term and vesting term. 
 The Company will continue to use judgment in evaluating the assumptions related to its equity-based compensation on a prospective basis. 
 Foreign Currencies 
 The functional currency for the Company and its United States and Cayman subsidiaries is the United States dollar, while the functional currency for the Company’s Australian subsidiaries is the Australian dollar. For those subsidiaries, the assets and liabilities are translated into U.S. dollars at the exchange rates in effect at the balance sheet date for assets and liabilities and an average rate for each period for revenues and expenses. Translation adjustments are recorded as a component of accumulated other comprehensive income (loss) in the consolidated statements of stockholders’ equity. 
 Transactions denominated in a currency other than the functional currency of the entity involved give rise to foreign currency remeasurement gains and losses, which are included in other expense on the consolidated statements of income. Foreign currency transaction losses were $ 0.7 million, $ 0.4 million and $ 0.8 million for the years ended December 31, 2025, 2024 and 2023, respectively. 
 Comprehensive Income (Loss) 
 Comprehensive income (loss) is composed of two components: net income (loss) and other comprehensive income (loss). Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under GAAP are recorded as an element of stockholders’ equity but are excluded from net income. The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency. The Company has disclosed other comprehensive income (loss) as a component of stockholders’ equity. 
 Revenue Recognition 
 Revenue is primarily derived from the sale of apparel merchandise through the Company’s online websites, stores, third-party marketplaces, wholesale partnerships and, when applicable, shipping revenue. 
 Revenue is recognized in an amount that reflects the consideration expected to be received in exchange for products. To determine revenue recognition for contracts with customers in accordance with Revenue from Contracts with Customers (Topic 606) , the Company recognizes revenue from the commercial sales of products and contracts by applying the following five steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, the Company satisfies its performance obligation. A contract is created with the customer at the time the order is placed by the customer, which creates a single performance obligation. The Company recognizes revenue for its single performance obligation at the time control of the product passes to the customer, which is when the goods are transferred to a third-party common carrier, for purchases through the Company’s online websites, or at point of sale, for purchases in its stores. In addition, the Company has elected to treat shipping and handling as fulfillment activities and not a separate performance obligation. 
 Net sales from product sales includes shipping charged to the customer and is recorded net of taxes collected from customers, which are recorded in accrued liabilities and are remitted to governmental authorities. Cash discounts earned by the customers at the time of purchase and estimates for sales return allowances are deducted from gross revenue in determining net sales. 
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 The Company generally provides refunds for goods returned within 30 to 45 days from the original purchase date. A returns reserve is recorded by the Company based on historical refund experience with a corresponding reduction of sales and cost of sales. The sales return reserve was $ 7.9 million and $ 7.6 million as of December 31, 2025 and 2024, respectively. 
 The following table presents a summary of the Company’s sales return reserve: 
 
 December 31, 
 2025 2024 
 Beginning balance $ 7,587 $ 9,610 
 Returns ( 134,081 ) ( 123,436 ) 
 Allowance 134,383 121,413 
 Ending balance $ 7,889 $ 7,587 

 
 The Company also sells gift cards and issues online credits in lieu of cash refunds or exchanges. Proceeds from the issuance of gift cards and online credits issued are recorded as deferred revenue and recognized as revenue when the gift cards or online credit are redeemed or upon inclusion in gift card and online credit breakage estimates. Breakage estimates are determined based on prior historical experience. 
 Revenue recognized in net sales on breakage of gift cards and online credit for the years ended December 31, 2025, 2024 and 2023 was $ 1.8 million, $ 2.6 million and $ 1.6 million, respectively. 
 The following table presents the disaggregation of the Company’s net sales by geography, based on customer address: 
 
 Year Ended December 31, 
 2025 2024 2023 
 United States $ 394,288 $ 368,799 $ 315,496 
 Australia/New Zealand 
 185,638 180,328 202,777 
 Rest of world 20,282 25,570 27,985 
 Total $ 600,208 $ 574,697 $ 546,258 

 Cost of Sales 
 Cost of sales consists of the purchase price of merchandise sold to customers and includes import duties and other taxes, freight-in, defective merchandise returned from customers, inventory write-offs, royalties and other miscellaneous shrinkage. 
 Selling Expenses 
 Selling expenses consist of costs incurred in operating and staffing the fulfillment centers and stores, costs attributable to inspecting and warehousing inventory, picking, packaging and preparing customer orders for shipment, customer service, shipping and other transportation costs incurred in delivering merchandise to customers and customers returning merchandise, merchant processing fees and shipping supplies. The amount of shipping and handling costs included in selling expenses, inclusive of outbound shipping and returned freight costs, was $ 68.5 million, $ 72.2 million and $ 69.3 million for the years ended December 31, 2025, 2024 and 2023, respectively. 
 Marketing 
 Marketing expenses are expensed as incurred and consist primarily of targeted online performance marketing costs, such as display advertising, retargeting, paid search/product listing ads, affiliate marketing, paid social, search engine optimization, personalized email marketing, social media advertising and mobile “push” communications through the Company’s apps. Marketing expenses also include the Company’s spend on brand marketing channels, including cash compensation to influencers, events and other forms of online and offline marketing. Marketing expenses are primarily related to growing and retaining the customer base. Advertising costs are expensed as incurred. 
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 General and Administrative 
 General and administrative expenses consist primarily of payroll and related benefit costs and equity-based compensation expense for employees involved in general corporate functions, including merchandising, marketing and technology; costs associated with the use by those functions of facilities and equipment, including depreciation, rent and other occupancy expenses; professional services; and amortization associated with the Company’s intangible assets, including acquired brand names, customer relationships and trademarks. 
 Net Income (Loss) Per Share 
 Basic net income (loss) per share is calculated using net income attributable to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted net income (loss) per share reflects the dilutive effects of stock options and restricted stock units outstanding during the period, to the extent such securities would not be anti-dilutive, and is determined using the treasury stock method. 
 Fair Value Measurements 
 The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible. The Company determines fair value based on assumptions that market participants would use in pricing an asset or liability in the principal or most advantageous market. The carrying amounts for the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate fair value due to their short-term maturities. Using level 2 inputs, the fair value of the Company’s borrowings under its term debt and revolving line of credit were below fair value. Refer to Note 7, “Debt,” for further information. 
 When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: 
 • Level 1 Inputs: Unadjusted quoted prices in active markets for identical assets or liabilities. 
 • Level 2 Inputs: Other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full-term of the asset or liability. 
 • Level 3 Inputs: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at measurement date. 
 The Company considers all highly liquid investments purchased with a maturity of three months or less to be cash equivalents. 
 Commitments and Contingencies 
 The Company records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. The Company also discloses material contingencies when it believes a loss is not probable but reasonably possible. Accounting for contingencies requires the Company to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although the Company cannot predict with assurance the outcome of any litigation or tax matters, it does not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on the Company’s operating results, financial position or cash flows. Legal costs incurred in connection with loss contingencies are expensed as incurred. 
 In the ordinary course of business, the Company may provide indemnifications of varying scope and terms to vendors, directors, officers and other parties with respect to certain matters. The Company has not incurred any material costs as a result of such indemnifications and has not accrued any liabilities related to such obligations in the consolidated financial statements. 
 Segment Information 
 Operating segments are defined as components of an entity for which separate financial information is available and is regularly reviewed by the Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. The Company has determined that its four brands are each an operating segment. The Company has aggregated its operating segments into one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. 
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 Recent Accounting Pronouncements 
 In December 2023, FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which will require incremental income tax disclosures on an annual basis for all public entities. The amendments require that public business entities disclose specific categories in the rate reconciliation and provide additional information for reconciling items meeting a quantitative threshold. The amendments also require disclosure of income taxes paid to be disaggregated by jurisdiction, and disclosure of income tax expense disaggregated by federal, state and foreign. ASU 2023-09 is effective for annual reporting beginning with the fiscal year ending December 31, 2025. Refer to “Note 9 to the Consolidated Financial Statements - Income Taxes” for additional information regarding the Company’s income taxes. 
 In November 2024, FASB issued ASU 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”) and in January 2025, FASB issued ASU 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date, which clarified the effective date of ASU 2024-03. ASU 2024-03 will require the Company to disclose the amounts of purchases of inventory, employee compensation, depreciation and intangible asset amortization, as applicable, included in certain expense captions in the Company’s consolidated statements of income, as well as qualitatively describe remaining amounts included in those captions. The Company intends to adopt ASU 2024-03 for the Company’s fiscal year ended December 31, 2027 using a prospective transition method. 
 
 Note 3. Prepaid Expenses and Other Current Assets 
 Prepaid expenses and other current assets are comprised of the following: 
 
 December 31, 
 2025 2024 
 
 Inventory prepayments $ 2,641 $ 6,693 
 Other 9,730 10,027 
 Total prepaid expenses and other current assets $ 12,371 $ 16,720 

 
 Note 4. Property and Equipment, Net 
 Property and equipment, net is comprised of the following: 
 
 December 31, 
 2025 2024 
 Furniture and fixtures 
 $ 9,099 $ 5,608 
 Machinery and equipment 
 3,920 4,686 
 Computer equipment and capitalized software 
 7,482 7,444 
 Leasehold improvements 
 40,776 31,230 
 Total property and equipment 
 61,277 48,968 
 Less: accumulated depreciation 
 ( 21,962 ) ( 17,706 ) 
 Total property and equipment, net 
 $ 39,315 $ 31,262 

 Depreciation expense consisted of the following: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Selling expenses 
 $ 7,121 $ 5,478 $ 5,264 
 General and administrative expenses 
 1,211 1,072 2,341 
 Total depreciation expense 
 $ 8,332 $ 6,550 $ 7,605 

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 Note 5. Goodwill 
 The carrying value of goodwill, as of December 31, 2025 and 2024, was $ 93.7 million and $ 89.3 million, respectively. There was no goodwill impairment recorded for the year ended December 31, 2025. In June 2025, due to a continued period of uncertain trade policy and the impact of increased tariffs and duties between countries, the Company revised its forecasts for each of its reporting units. These revisions and a continued decrease in the Company’s stock price were identified as triggering events and a subsequent quantitative test concluded that the fair value of each of the Company’s reporting units exceeded their carrying values as of June 30, 2025. As of the testing date, the estimated fair value of the mnml reporting unit exceeded the carrying value by 4.6 % and the carrying value of the related goodwill was $ 30.0 million. 
 The goodwill of acquired companies is primarily related to expected improvements in technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. The goodwill of acquired companies is generally not deductible for tax purposes. 
 2023 Impairment 
 In August 2023, due to elevated interest rates and unfavorable demand in Australia, the Company reduced its forecasts and expectations for the Culture Kings and Petal & Pup reporting units. This reduction was identified as a triggering event and a subsequent quantitative test concluded that the carrying value of the Culture Kings and Petal & Pup reporting units exceeded their fair values as of August 31, 2023. As a result, the Company recorded a non-cash goodwill impairment charge of $ 68.5 million during the third quarter of 2023. As of December 31, 2023, $ 11.3 million of goodwill related to Petal & Pup remained on the consolidated balance sheet, while the goodwill related to Culture Kings was fully impaired. 
 Goodwill Activity 
 The following table summarizes goodwill activity: 
 
 Balance as of December 31, 2023 
 $ 94,898 
 
 Changes in foreign currency translation 
 ( 5,644 ) 
 Balance as of December 31, 2024 
 89,254 
 
 
 Changes in foreign currency translation 
 4,441 
 Balance as of December 31, 2025 
 $ 93,695 

 
 Note 6. Intangible Assets 
 The gross amounts and accumulated amortization of acquired identifiable intangible assets with finite useful lives as of December 31, 2025 and 2024, included in intangible assets, net in the accompanying consolidated balance sheets, are as follows: 
 
 December 31, 
 Useful life 
 Weighted 
 Average 
 Amortization 
 Period 2025 
 2025 Weighted 
 Average 
 Amortization 
 Period 2024 
 2024 
 Customer relationships 
 4 years 0.0 years $ 2,543 0.3 years $ 7,360 
 Brands 
 10 years 5.0 years 85,537 6.0 years 83,612 
 Trademarks 
 5 years 0.0 years 105 0.3 years 98 
 Total intangible assets 
 88,185 91,070 
 Less: accumulated amortization 
 ( 44,715 ) ( 38,716 ) 
 Total intangible assets, net 
 $ 43,470 $ 52,354 

 Amortization of acquired intangible assets with finite useful lives is included in general and administrative expenses and was $ 9.4 million, $ 11.0 million and $ 11.5 million for the years ended December 31, 2025, 2024 and 2023, respectively. 
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 Future estimated amortization expense for acquired identifiable intangible assets is as follows: 
 
 Year ending December 31: 
 
 2026 $ 9,212 
 2027 9,212 
 2028 8,358 
 2029 7,216 
 2030 6,934 
 Thereafter 2,538 
 Total amortization expense $ 43,470 

 
 Note 7. Debt 
 Senior Secured Credit Facility 
 On September 24, 2021, certain subsidiaries of the Company entered into a senior secured credit facility comprised of a $ 100.0 million term loan and a $ 50.0 million revolving line of credit, as well as an option for additional term loan of up to $ 50.0 million through an accordion feature. The senior secured credit facility also allows for the issuance of one or more letters of credit from time to time by syndicate lenders. Effective April 4, 2023, the Company modified its senior secured credit facility under existing contractual provisions to yield interest from interest rates based on Term SOFR, as defined in the credit agreement for the senior secured credit facility (the “Credit Agreement”). Key terms and conditions of each facility were as follows: 
 • The $ 100.0 million term loan matures five years after closing (September 2026) and requires the Company to make amortized annual payments of 5.0 % during the first and second years, 7.5 % during the third and fourth years and 10.0 % during the fifth year with the balance of the loan due at maturity. Borrowings under the term loan accrue interest at Term SOFR plus an applicable margin dependent upon the Company’s net leverage ratio, as defined in the Credit Agreement. The highest interest rate under the agreement occurs at a net leverage ratio of greater than 2.75 x, yielding an interest rate of Term SOFR plus 3.25 %. 
 • The $ 50.0 million revolving line of credit, which matures five years after closing (September 2026), accrues interest at Term SOFR plus an applicable margin dependent upon the Company’s net leverage ratio. The highest interest rate under the Credit Agreement occurs at a net leverage ratio of greater than 2.75 x, yielding an interest rate of Term SOFR plus 3.25 %. Additionally, a margin fee of 25 - 35 basis points is assessed on unused amounts under the revolving line of credit, subject to adjustment based on the Company’s net leverage ratio. 
 • The $ 50.0 million accordion feature allows the Company to enter into additional term loan borrowings at terms to be agreed upon at the time of issuance, but on substantially the same basis as the original term loan, which includes the requirement to make amortized annual payments at the same cadence as that of the original term loan. 
 Amended and Restated Credit Agreement 
 On October 14, 2025, the Company entered into an Amended and Restated Syndicated Facility Agreement (the “Amended and Restated Credit Agreement”), which amends and restates in its entirety the Senior Secured Credit Facility. The Amended and Restated Credit Agreement amends and restates the Senior Secured Credit Facility to, among other things, (i) establish revolving credit facility commitments in an aggregate principal amount of $ 35.3 million , (ii) establish term loans in an aggregate principal amount of $ 85.0 million , (iii) adjust the pricing stepdowns related to the interest rate and (iv) resize baskets within certain negative covenants based on a Consolidated EBITDA (as defined in the Amended and Restated Credit Agreement) of $ 35.2 million. 
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 The Amended and Restated Credit Agreement extends the maturity date of the revolving credit facility commitments and the term loans to October 14, 2028. The Company is required to make mandatory amortization payments in respect of the term loans in an amount equal to (a) commencing with the fiscal quarter ending on December 31, 2025 and until the fiscal quarter ending on December 31, 2027, a principal amount of term loans equal to the aggregate outstanding principal amount of term loans made on the date of the execution of the Amended and Restated Credit Agreement, multiplied by 1.875 % and (b) commencing with the fiscal quarter ending on March 31, 2028, a principal amount of term loans equal to the aggregate outstanding principal amount of term loans made on the date of the execution of the Amended and Restated Credit Agreement, multiplied by 2.50 % . Borrowings under the Amended and Restated Credit Agreement accrue interest at Term SOFR plus an applicable margin dependent upon the Company’s net leverage ratio, as defined in the Amended and Restated Credit Agreement. The highest interest rate under the agreement occurs at a net leverage ratio of greater than 2.75 x, yielding an interest rate of Term SOFR plus 3.75 % . 
 The Amended and Restated Credit Agreement includes certain financial covenants requiring the Company to maintain a maximum total net leverage ratio and a minimum fixed charge coverage ratio, each tested as of the last day of every fiscal quarter. Specifically, the Company must maintain a maximum total net leverage ratio of 3.50 to 1.00 and a minimum fixed charge coverage ratio of 1.35 to 1.00 for 2025 and 2026, 3.25 to 1.00 and 1.50 to 1.00 for 2027, and 3.00 to 1.00 and 1.75 to 1.00 for 2028, respectively. The agreement also includes a capital expenditure covenant limiting growth-related capital expenditures for new store development to $ 17.5 million for the period from October 14, 2025, through the first anniversary of that date, with annual limits of $ 20.0 million and $ 22.5 million in subsequent years. If the Company does not comply with these financial covenants, it may, subject to certain conditions and limitations, make direct or indirect equity contributions to cure such non-compliance. Additionally, the Company is required to make a mandatory prepayment of a portion of excess cash flow, as defined in the Credit Agreement, based on its net leverage ratio. A prepayment of 50 % of excess cash flow is required if the net leverage ratio exceeds 2.0 x, which is reduced to 25 % if the ratio is less than or equal to 2.0 x, and no prepayment is required if the ratio is less than or equal to 1.0 x. As of December 31, 2025 , the Company was in compliance with all financial debt covenants. 
 The Company incurred $ 1.4 million of debt issuance costs in relation to the Amended and Restated Credit Agreement. Of this, $ 0.5 million related to the revolving credit facility and was capitalized and included in prepaid and other current assets as deferred financing costs to be amortized over the life of the facility, or 3 years. The remaining $ 0.9 million of debt issuance costs related to the term loan and is presented net of outstanding debt in long term debt on the balance sheet. Debt issuance costs are amortized over the life of the outstanding debt, using the effective interest rate method. In connection with the replacement of certain lenders in the loan syndication as part of the amendment, the Company received gross proceeds of $ 13.8 million from new lenders and disbursed $ 13.6 million to exiting lenders. 
 During 2025, the Company borrowed $ 40.9 million under its revolving line of credit and voluntarily repaid $ 35.6 million of the amounts outstanding under its revolving line of credit. 
 As of December 31, 2025, the all-in rate (Term SOFR plus the applicable margin) for the Company’s term loan and borrowings under the revolving line of credit was 7.35 %. 
 Total Debt and Interest 
 Outstanding debt consisted of the following: 
 
 December 31, 
 2025 2024 
 
 Term loan 
 $ 83,406 $ 89,050 
 Revolving credit facility 
 28,600 23,300 
 Capitalized debt issuance costs 
 ( 936 ) ( 639 ) 
 Total debt 111,070 111,711 
 Less: current portion 
 ( 6,375 ) ( 6,300 ) 
 Total long-term debt 
 $ 104,695 $ 105,411 

 Interest expense, which included the amortization of debt issuance costs, totaled $ 10.0 million, $ 10.3 million and $ 11.2 million for the years ended December 31, 2025, 2024 and 2023, respectively. Additionally, as of December 31, 2025 , the Company had $ 6.6 million of outstanding letters of credit. As of December 31, 2025, the carrying value of the Company’s total debt approximated its fair value. 
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 As of December 31, 2025, the maturities of principal amounts of our total debt obligations were as follows: 
 
 2026 $ 6,375 
 2027 6,375 
 2028 99,256 
 Total 
 $ 112,006 

 
 Note 8. Leases 
 The Company leases office locations, warehouse facilities and stores under various non-cancellable operating lease agreements. The Company’s leases have remaining lease terms of approximately 1 year to 10 years, which represent the non-cancellable periods of the leases and include extension options that the Company determined are reasonably certain to be exercised. The Company excludes from the lease terms any extension options that are not reasonably certain to be exercised, ranging from approximately 6 months to 3 years. Lease payments consist primarily of fixed rental payments for the right to use the underlying leased assets over the lease terms as well as payments for common area maintenance and administrative services. The Company often receives customary incentives from landlords, such as reimbursements for tenant improvements and rent abatement periods, which effectively reduce the total lease payments owed for these leases. Leases are classified as operating or financing at commencement. The Company does not have any material financing leases. 
 Operating lease right-of-use assets and liabilities on the consolidated balance sheets represent the present value of the remaining lease payments over the remaining lease terms. The Company uses its incremental borrowing rate to calculate the present value of the lease payments, as the implicit rates in the leases are not readily determinable. Operating lease costs consist primarily of the fixed lease payments included in the operating lease liabilities and are recorded on a straight-line basis over the lease terms. 
 The Company’s operating lease costs were as follows: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Operating lease costs $ 19,069 $ 12,845 $ 10,005 
 Variable lease costs 1,970 1,252 944 
 Short-term lease costs 430 488 385 
 Total lease costs $ 21,469 $ 14,585 $ 11,334 

 The Company does not have any sublease income and the Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants. 
 Supplemental cash flow information relating to the Company’s operating leases was as follows: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Cash paid for operating lease liabilities $ 14,013 $ 11,367 $ 8,421 
 Operating lease right-of-use assets obtained in exchange for new operating lease liabilities 30,362 38,534 8,447 

 Other information relating to the Company’s operating leases was as follows: 
 
 As of December 31, 
 2025 2024 
 Weighted-average remaining lease term 
 6.6 years 6.7 years 
 Weighted-average discount rate 
 7.4 % 6.9 % 

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 As of December 31, 2025, the maturities of operating lease liabilities were as follows: 
 
 2026 $ 18,167 
 2027 19,743 
 2028 19,249 
 2029 19,420 
 2030 16,785 
 Thereafter 
 36,515 
 Total remaining lease payments 
 129,879 
 Less: imputed interest 
 29,159 
 Total operating lease liabilities 
 100,720 
 Less: current portion 
 ( 13,052 ) 
 Long-term operating lease liabilities 
 $ 87,668 

 As of December 31, 2025, the Company had obligations under several lease agreements with expected commencement dates ranging from the first half of 2026 through early 2027 and terms of between ten and eleven years . The Company expects to classify these leases as operating leases and recognize lease obligations totaling $ 34.0 million over the terms of the leases. 
 
 Note 9. Income Taxes 
 Loss before income taxes consisted of the following: 
 
 Year Ended December 31, 
 2025 2024 2023 
 United States 
 $ ( 22,090 ) $ ( 5,016 ) $ ( 8,904 ) 
 Foreign 
 ( 7,225 ) ( 16,645 ) ( 88,061 ) 
 Loss before income taxes 
 $ ( 29,315 ) $ ( 21,661 ) $ ( 96,965 ) 

 The components of the provision for income taxes consisted of the following: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Current: 
 
 Federal 
 $ 1,261 $ 1,588 $ 1,496 
 State 
 702 826 649 
 Foreign 
 116 424 465 
 Total 
 2,079 2,838 2,610 
 Deferred: 
 Federal 
 — 1,654 ( 2,305 ) 
 State 
 — ( 115 ) 467 
 Foreign 
 40 ( 48 ) 1,149 
 Total 40 1,491 ( 689 ) 
 Provision for income taxes 
 $ 2,119 $ 4,329 $ 1,921 

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 A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before taxes for years prior to the adoption of ASU 2023-09 is as follows: 
 
 Year Ended December 31, 
 2024 2023 
 Benefit from income taxes at U.S. statutory rate 
 $ ( 4,549 ) $ ( 20,363 ) 
 State income taxes, net of federal income tax benefit 
 558 512 
 Permanent differences 
 618 555 
 Foreign tax rate differential 
 ( 1,532 ) ( 8,220 ) 
 
 Equity-based compensation 
 240 1,082 
 Goodwill impairment 
 — 21,444 
 Change in valuation allowance 
 9,186 6,987 
 
 
 Other 
 ( 192 ) ( 76 ) 
 Provision for (benefit from) income taxes 
 $ 4,329 $ 1,921 

 The foreign tax rate differential relates to differences between the income tax rates in effect in the foreign countries in which the Company operates, in particular Australia where the corporate tax rate is 30%. 
 A reconciliation of the provision for income taxes to the amount computed by applying the 21% statutory U.S. federal income tax rate to income before income taxes after the adoption of ASU 2023-09 is as follows: 
 
 Year Ended December 31, 
 2025 
 Amount 
 Percent 
 
 Benefit from income taxes at U.S. federal statutory rate 
 $ ( 6,256 ) 21 % 
 State and local income tax, net of federal income tax effect 1 
 419 ( 1 ) % 
 Foreign tax effects: 
 
 Australia 
 Rate differential 
 ( 707 ) 2 % 
 Changes in Valuation Allowance 
 4,032 ( 14 ) % 
 Nontaxable or nondeductible items 
 ( 1,564 ) 5 % 
 Other foreign jurisdiction 
 12 — % 
 Effect of cross border tax laws 
 Subpart F income inclusion 
 1,125 ( 4 ) % 
 Changes in valuation allowance 
 4,344 ( 15 ) % 
 Nontaxable or nondeductible items 
 542 ( 2 ) % 
 Changes in unrecognized tax benefits 
 172 ( 1 ) % 
 Provision for income taxes 
 $ 2,119 ( 7 ) % 

 1 The states and local jurisdictions that contribute to the majority (greater than 50%) of the effect in this category include California and New York. 
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 The components of net deferred tax assets were as follows: 
 
 Year Ended December 31, 
 2025 2024 
 Deferred tax assets: 
 Transaction costs $ 4 $ 341 
 
 Accruals and reserves 4,894 6,175 
 Lease liabilities 26,207 18,742 
 
 
 Inventory 
 2,593 3,462 
 Foreign exchange gains / losses 2,635 653 
 Interest limitation 
 5,557 2,811 
 Loss carryforwards 
 14,994 9,949 
 Other 
 1,294 679 
 Subtotal 58,178 42,812 
 Less: Valuation allowance ( 29,135 ) ( 18,777 ) 
 Total deferred tax assets 29,043 24,035 
 Deferred tax liabilities: 
 Property and equipment 
 ( 4,282 ) ( 754 ) 
 Intangible assets ( 41 ) ( 5,069 ) 
 Right-of-use assets 
 ( 24,475 ) ( 18,066 ) 
 
 Other 
 ( 128 ) — 
 Asset retirement obligations 
 ( 109 ) ( 99 ) 
 Total deferred tax liabilities ( 29,035 ) ( 23,988 ) 
 Net deferred tax assets 
 $ 8 $ 47 

 The amount of income taxes paid (net of refunds received) were as follows: 
 
 Year Ended December 31, 
 2025 
 Federal 
 $ 1,125 
 State and local 
 
 California 
 315 
 New York State 
 279 
 New York City 
 152 
 Texas 
 150 
 Other 
 139 
 New Zealand 
 394 
 Total income taxes paid (net of refunds received) 
 $ 2,554 

 The Company had gross deferred tax assets of $ 58.2 million and $ 42.8 million and gross deferred tax liabilities of $ 29.0 million and $ 24.0 million at December 31, 2025 and 2024, respectively. Management assesses the available positive and negative evidence to estimate whether sufficient future taxable income will be generated to permit use of the existing deferred tax assets. When weighing all available evidence associated with the realizability of its deferred tax assets, in particular, uncertainties related to the future generation of taxable income, the Company determined that it was not “more likely than not” that it would be able to realize the tax benefits associated with certain of its net deferred tax assets. Based on this evaluation, a full valuation allowance of $ 29.1 million has been recorded on the net deferred tax assets in the Company’s United States and Australian businesses. For the year ended December 31, 2025 , the valuation allowance increased by $ 10.4 million, primarily due to increased net operating losses. 
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 As of December 31, 2025, the Company had a $ 23.6 million Australian net operating loss carryforward and a $ 15.4 million Australian capital loss carryforward, as well as a U.S. capital loss carryforward of $ 1.0 million on the sale of Rebdolls. As of December 31, 2024 , the Company had a $ 18.0 million Australian net operating loss carryforward and a $ 14.3 million Australian capital loss carryforward, as well as a U.S. capital loss carryforward of $ 1.0 million on the sale of Rebdolls. The net operating losses and the Australian capital loss carryforwards have no expiration. The U.S. capital loss carryforward will expire in 2028. 
 The Company has not provided deferred taxes on unremitted earnings attributable to foreign subsidiaries that have been considered permanently reinvested. As of December 31, 2025, there are no unremitted earnings from these operations. 
 As of December 31, 2025 the Company has recorded unrecognized tax benefits related to certain state income tax returns that have not yet been filed for prior tax years. These unrecognized tax benefits primarily relate to the uncertainty associated with the Company’s filing positions and nexus determinations in various state jurisdictions. Management has evaluated these positions under the more-likely-than-not recognition threshold prescribed by ASC 740 and has concluded that certain tax benefits do not meet the recognition criteria. Accordingly, the Company has recorded a liability for unrecognized tax benefits within other noncurrent liabilities on the consolidated balance sheets as of December 31, 2025. Because certain state income tax returns have not been filed, the applicable tax years remain open and subject to examination until the statute of limitations expires following the filing of such returns. In general, the Company’s major state tax jurisdictions remain open for examination in jurisdictions where returns have not been filed beginning in tax year 2021. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. As of December 31, 2024, the Company had no uncertain tax positions. 
 The following table summarizes the Company’s uncertain tax positions: 
 
 Year Ended December 31, 
 2025 
 Gross unrecognized tax benefits at the beginning of the year $ — 
 Increases related to tax positions taken during the current periods 
 24 
 Increases related to tax positions taken during the prior periods 
 194 
 
 
 
 
 Gross unrecognized tax benefits at the end of the year $ 218 

 The Company is subject to taxation in the United States, Cayman Islands and Australia. For U.S. federal income tax purposes, 2022 and later tax years remain open for examination by the tax authorities under the normal three-year statute of limitations. For major U.S. states, 2021 and later tax years remain open for examination by the tax authorities under a four-year statute of limitations. For Australia, 2021 and subsequent tax years remain subject to examination. 
 Tax Contingencies 
 The Company is subject to income taxes in the United States and Australia. Significant judgment is required in evaluating the Company’s tax positions and determining the provision for income taxes. During the ordinary course of business, the Company considers tax positions for which the ultimate tax determination is uncertain for the purpose of determining whether a reserve is required, despite the Company’s belief that the tax positions are fully supportable. To date the Company has not established a reserve provision because the Company believes that all tax positions are highly certain. 
 
 Note 10. Accrued Liabilities 
 Accrued liabilities consisted of the following: 
 
 December 31, 
 2025 2024 
 Accrued salaries and other benefits 
 $ 10,888 $ 10,504 
 Accrued freight costs 
 4,165 4,551 
 Sales tax payable 
 3,786 3,132 
 Accrued marketing costs 
 5,736 5,800 
 Accrued professional services 
 3,896 1,160 
 Other accrued liabilities 
 5,061 6,069 
 Total accrued liabilities 
 $ 33,532 $ 31,216 

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 Note 11. Deferred Revenue 
 Deferred revenue consisted of the following: 
 
 December 31, 
 2025 2024 
 Gift cards 
 $ 12,214 $ 11,473 
 Other 
 493 742 
 Total deferred revenue 
 $ 12,707 $ 12,215 

 
 Note 12. Equity-based Compensation 
 Incentive Plans 
 2021 Omnibus Incentive Plan 
 In September 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Omnibus Incentive Plan (the “2021 Plan”) which became effective in connection with the Company’s initial public offering of common stock (the “IPO”). The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock units and other forms of equity and cash compensation. A total of 408,355 shares of the Company’s common stock, as adjusted for the Reverse Stock Split (refer to Note 13, “Stockholders’ Equity”), were initially reserved for issuance under the 2021 Plan. The number of shares of common stock reserved and available for issuance under the 2021 Plan increases on January 1 of each year by 1 % of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the compensation committee of the Company’s board of directors. On May 30, 2023, the Company’s stockholders approved an amendment to the 2021 Plan to increase the number of shares available for issuance under the 2021 Plan by 833,333 shares of the Company’s common stock, as adjusted for the Reverse Stock Split. On May 22, 2024, the Company’s stockholders approved an amendment to the 2021 Plan to increase the number of shares available for issuance under the 2021 Plan by 1,100,000 shares of the Company’s common stock. As of December 31, 2025, there were 2,768,771 shares reserved for issuance of awards under the 2021 Plan. 
 2021 Employee Stock Purchase Plan 
 In September 2021, the Company’s board of directors adopted, and its stockholders approved, the 2021 Employee Stock Purchase Plan (the “ESPP”) which became effective in connection with the IPO. A total of 102,088 shares of the Company’s common stock, as adjusted for the Reverse Stock Split, were initially reserved for issuance under the ESPP. The number of shares reserved and available for issuance under the ESPP automatically increases on January 1 of each year by 1 % of the number of shares of the Company’s common stock outstanding on the immediately preceding December 31, or such lesser number of shares as determined by the compensation committee of the Company’s board of directors. As of December 31, 2025, there were 422,475 shares reserved for issuance under the ESPP. 
 The offering periods of the ESPP are six months long and are anticipated to be offered twice per year. The price at which common stock is purchased under the ESPP is equal to 85 % of the fair market value of a share of the Company’s common stock on the first or last day of the offering period, whichever is lower. The fair value of the discount and the look-back period will be estimated using the Black-Scholes option pricing model. 
 2018 Stock and Incentive Compensation Plan 
 Prior to the IPO, the 2018 Stock and Incentive Compensation Plan, as amended (the “2018 Plan”), provided for the issuance of time-based incentive units and performance-based incentive units issued by Excelerate, L.P. (the predecessor entity of a.k.a. Brands Holding Corp.). In connection with the reorganization transactions and the IPO, all of the equity interests in Excelerate, L.P., including outstanding incentive units issued as equity-based compensation under the 2018 Plan, were transferred to New Excelerate, L.P. The incentive units issued under the 2018 Plan participate in distributions from New Excelerate, L.P., but only after investors receive their return of capital plus a specified threshold amount per unit. The total incentive pool size under the 2018 Plan was 16,475,735 units. The 2018 Plan was terminated in September 2021 in connection with the IPO but continues to govern the terms of outstanding incentive units that were granted prior to the IPO. No further incentive units will be granted under the 2018 Plan. 
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 Grant Activity 
 Stock Options 
 The 2021 Plan provides for the issuance of incentive and nonqualified stock options. Under the 2021 Plan, the exercise price of a stock option shall not be less than the fair market value of one share of the Company’s common stock on the date of grant. Stock options have a contractual term, the period during which they are exercisable, not to exceed ten years from the date of grant, and generally vest over time, based on performance or based on the achievement of a market condition. 
 In September 2023, an award, including 416,667 performance-based stock options (the “Bryett Award”), was issued to Wesley Bryett, a member of the Company’s board of directors and co-founder of Princess Polly. This award expires after ten years , or upon the termination of Mr. Bryett’s service to the Company, and includes four tranches of stock options that will vest and become exercisable based upon the achievement of various common stock price targets. The weighted average exercise price for the options in the Bryett Award is $ 109.27 . Each tranche of stock options has a different derived service period, the average of which is approximately 5.5 years. As of December 31, 2025, no options issued as part of the Bryett Award had vested, the options held no intrinsic value, and total unrecognized compensation cost related to the Bryett Award was $ 0.7 million which is expected to be recognized over 3.2 years. 
 In connection with the appointment of Ciaran Long as the Chief Executive Officer in January 2025, Mr. Long was granted a performance-based stock option, representing a contingent right to purchase 100,000 shares of common stock at a specified price, upon vesting of the option (the “Long Award”). The Long Award expires after ten years , or upon the termination of Mr. Long’s service to the Company, and includes four tranches that will vest and become exercisable based upon the achievement of various common stock price targets. The weighted average exercise price for the option in the Long Award is $ 120.00 . Each tranche has a different derived service period, the average of which is approximately 4.2 years. As of December 31, 2025 , no tranche of the Long Award had vested, the option held no intrinsic value, and total unrecognized compensation cost related to the Long Award was $ 0.8 million, which is expected to be recognized over 3.1 years. 
 A summary of the Company's time-based stock option activity under the 2021 Plan for the years ended December 31, 2025 and 2024, is as follows: 
 
 Number of Options 
 Weighted Average Exercise Price 
 Weighted Average Remaining Contractual Term 
 Aggregate Intrinsic Value 
 
 Balance as of December 31, 2023 
 39,820 $ 81.47 8.06 $ — 
 Granted 
 — — 
 Exercised 
 — — 
 Forfeited/Repurchased 
 — — 
 Balance as of December 31, 2024 
 39,820 81.47 7.06 — 
 Granted 
 — — 
 Exercised 
 — — 
 Forfeited/Repurchased 
 — — 
 
 
 Balance as of December 31, 2025 
 39,820 81.47 4.99 — 
 Vested as of December 31, 2025 
 39,820 $ 81.47 4.99 $ — 

 As of December 31, 2025, there was no unrecognized compensation cost related to unvested time-based stock options issued under the 2021 Plan. 
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 Restricted Stock Units 
 The 2021 Plan provides for the issuance of restricted stock units (“RSUs”). Time-based RSUs issued prior to March 31, 2022, vest over four years while all time-based RSUs issued after that date vest over three years . 
 In May 2024, an award (the “Interim CEO Award”) of 150,000 performance-based RSUs (“PSUs”) was issued to Ciaran Long, Interim Chief Executive Officer and Chief Financial Officer of the Company. The Interim CEO Award expires after five years , or upon the termination of Mr. Long’s service to the Company, and includes ten tranches of PSUs that will vest based upon the achievement of various common stock price targets. If any common stock price target is achieved for one or more tranches of PSUs prior to April 1, 2025, the vesting date for the applicable tranche(s) will be April 1, 2025. At time of grant, each PSU had a fair value of $ 29.50 . Each tranche of PSUs has a different derived service period, the average of which is approximately 2.9 years. As of December 31, 2025, the common stock price target for two tranches of PSUs issued as part of the Interim CEO Award had been achieved, and the total unrecognized compensation cost related to the Interim CEO Award was $ 0.1 million, which is expected to be recognized over a weighted average period of 1.5 years. 
 A summary of the Company's time-based RSU activity under the 2021 Plan for the years ended December 31, 2025 and 2024, is as follows: 
 
 Number of Shares 
 Weighted Average 
 Grant Date 
 Fair Value 
 
 Balance as of December 31, 2023 
 578,913 $ 15.67 
 Granted 
 403,458 14.86 
 Vested 
 ( 274,201 ) 16.37 
 Forfeited/Repurchased 
 ( 56,883 ) 14.39 
 Balance as of December 31, 2024 
 651,287 14.93 
 Granted 
 457,460 12.75 
 Vested 
 ( 347,145 ) 15.93 
 Forfeited/Repurchased 
 ( 105,080 ) 13.77 
 Balance as of December 31, 2025 
 656,522 $ 12.95 

 As of December 31, 2025, there was $ 6.7 million of total unrecognized compensation cost related to unvested time-based RSUs issued under the 2021 Plan, which is expected to be recognized over a weighted average period of 1.9 years. 
 Incentive Units 
 The 2018 Plan provided for the issuance of time-based incentive units and performance-based incentive units. Time-based incentive units generally vest over four years . Performance-based incentive units vested upon the satisfaction of the performance condition as described further below. 
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 Time-Based Incentive Partnership Units 
 The following table summarizes time-based incentive unit activity under the 2018 Plan for the years ended December 31, 2025 and 2024 : 
 
 Number of Units 
 Weighted Average 
 Grant Date 
 Fair value 
 Weighted Average Participation Threshold 
 Aggregate Intrinsic Value 
 
 
 
 
 
 Balance as of December 31, 2023 
 1,360,067 $ 1.50 $ 20.01 $ — 
 Granted 
 — — — 
 Vested 
 ( 1,185,981 ) 1.52 19.62 
 Forfeited/Repurchased 
 ( 30,083 ) 1.34 22.68 
 Balance as of December 31, 2024 
 144,003 1.40 22.68 — 
 Granted 
 — — — 
 Vested 
 ( 144,003 ) 1.40 22.68 
 Forfeited/Repurchased 
 — — — 
 
 
 Balance as of December 31, 2025 
 — $ — $ — $ — 
 Vested as of December 31, 2025 
 9,191,205 

 As of December 31, 2025, there was no unrecognized compensation cost related to unvested time-based incentive units issued under the 2018 Plan. 
 ESPP Purchase Rights 
 A summary of the Company's ESPP activity under the 2021 Plan for the years ended December 31, 2025, 2024 and 2023, was as follows: 
 
 Year Ended December 31, 
 
 2025 2024 2023 
 Shares purchased using ESPP purchase rights 
 22,423 20,937 39,050 
 Weighted average purchase price 
 $ 10.57 $ 10.89 $ 4.14 

 Equity-Based Compensation Expense 
 The Company recognizes compensation expense in general and administrative expenses within operating expenses for stock options, RSUs, ESPP purchase rights and time-based incentive units granted prior to the IPO by amortizing the grant date fair value on a straight-line basis over the expected vesting period to the extent the vesting of the grant is considered probable. The Company recognizes equity-based award forfeitures in the period such forfeitures occur. 
 The following table summarizes the Company’s equity-based compensation expense by award type for all Plans: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Stock options $ 696 $ 722 $ 572 
 RSUs 6,076 5,601 4,256 
 ESPP purchase rights 134 100 148 
 Time-based incentive units 143 1,557 2,664 
 
 Total $ 7,049 $ 7,980 $ 7,640 

 
 Note 13. Stockholders’ Equity 
 Preferred Stock 
 In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 50,000,000 shares of undesignated preferred stock with a par value of $ 0.001 per share with rights and preferences, including voting rights, designated from time to time by the Company’s board of directors. There were no shares of preferred stock issued and outstanding as of December 31, 2025. 
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 Common Stock 
 The Company has one class of common stock. In connection with the IPO, the Company’s amended and restated certificate of incorporation became effective, which authorized the issuance of 500,000,000 shares of common stock with a par value of $ 0.001 per share, with one vote per share. Holders of common stock are entitled to receive any dividends as may be declared from time to time by the Company’s board of directors. 
 On September 29, 2023, the Company effected a one-for-12 reverse stock split of its common stock (the “Reverse Stock Split”). No fractional shares were issued in connection with the Reverse Stock Split and all holders of such fractional interests received cash equal to such fraction multiplied by the average of the closing sales prices of the Company’s common stock during the regular trading hours for the five consecutive trading days immediately preceding the effective date of the Reverse Stock Split, with such average closing sales prices being adjusted to give effect to the Reverse Stock Split. All references in these financial statements to the Company’s outstanding common stock, including per share information, prior to the Reverse Stock Split have been retrospectively adjusted to reflect the Reverse Stock Split. 
 Share Repurchase Program & Share Forfeitures 
 On May 25, 2023, the Company's board of directors approved a share repurchase program (the “Share Repurchase Program”). Pursuant to the Share Repurchase Program, the Company was initially authorized to repurchase up to $ 2.0 million of shares of the Company’s common stock. Subsequently, in 2023, the Company’s board of directors approved an additional repurchase capacity under the Share Repurchase Program of $ 3.0 million of shares of the Company’s common stock. The timing of any repurchases by the Company and the actual number of shares repurchased are at the Company’s discretion, and, in deciding when to repurchase shares and the amount of shares to repurchase, the Company will consider available liquidity, general market and economic conditions, alternate uses for the capital and other factors. Share repurchases may be made from time to time through a Rule 10b5-1 trading plan, open market transactions, block trades or in private transactions in accordance with applicable securities laws and regulations and other legal requirements. The Share Repurchase Program may be suspended or discontinued at any time and has no expiration date. 
 Additionally, from time to time, the Company’s employees may surrender shares of the Company’s common stock to satisfy their statutory minimum federal and state tax obligations associated with the vesting of restricted shares of common stock issued under the 2021 Plan. With respect to these surrendered shares, the price paid per share is based on the fair value at the time of surrender. 
 In July 2025 the Company repurchased 159,201 shares of its common stock from a former employee for cash and other consideration totaling $ 1.6 million, at an average price of $ 10.10 per share. This was a one-time transaction authorized by the board of directors that was not conducted pursuant to the Company’s Share Repurchase Program. 
 During the year ended December 31, 2025, inclusive of repurchases under the Share Repurchase Program and shares surrendered by employees to satisfy tax obligations, the Company repurchased 108,778 shares of its common stock for $ 1.3 million, at an average price of $ 12.02 per share. 
 
 Note 14. Net Loss Per Share 
 The following table sets forth the computation of basic and diluted net loss per share and a reconciliation of the weighted average number of shares outstanding: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Numerator: 
 Net loss 
 $ ( 31,434 ) $ ( 25,990 ) $ ( 98,886 ) 
 Denominator: 
 Weighted-average common shares outstanding, basic and diluted 
 10,725,607 10,567,656 10,707,024 
 
 
 
 
 Net loss per share: 
 
 Net loss per share, basic and diluted 
 $ ( 2.93 ) $ ( 2.46 ) $ ( 9.24 ) 
 

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 Basic net income (loss) per share is calculated by dividing net income (loss) for the period by the weighted-average number of shares of common stock outstanding for the period. Diluted net income (loss) per share has been calculated in a manner consistent with that of basic net income (loss) per share while giving effect to shares issuable upon exercise and/or vesting of potentially dilutive stock option and RSU grants, as well as ESPP purchase rights, outstanding during the period, if applicable. Due to the net loss for all periods shown, no potentially dilutive securities had an impact on diluted loss per share for any period. For the years ended December 31, 2025 , 2024 and 2023 , 540,099 , 402,873 and 333,327 shares, respectively, were excluded from the calculation of weighted-average diluted common shares outstanding as they had an anti-dilutive effect. 
 
 Note 15. Commitments and Contingencies 
 Legal Proceeding 
 In April 2024, the Company received a cease and desist letter alleging copyright infringement and related claims, and, in 2024, the Company accrued $ 2.0 million to general and administrative expenses for estimated losses in connection with these claims. On July 23, 2025, the Company entered into a final settlement agreement for this matter, wherein it agreed to pay, or have its insurers pay to the claimant on its behalf, a total of $ 16.5 million to the claimant in settlement costs. As part of the final settlement agreement, the Company paid $ 1.1 million and subsequently released the remaining $ 0.9 million previously accrued for this matter. 
 
 Note 16. Segment Information 
 The Company has determined that its four brands are each an operating segment and has aggregated its operating segments into one reportable segment based on the similar nature of products sold, production, merchandising and distribution processes involved, target customers and economic characteristics. The Chief Executive Officer of the Company is the Chief Operating Decision Maker (the “CODM”). The CODM uses both gross margin and Adjusted EBITDA as measures of profit or loss to evaluate performance and allocate resources. Gross margin is disclosed below as the segment profit measure as it is most consistent with the amounts included in the Company’s consolidated financial statements. 
 The following table sets forth gross margin for the periods shown: 
 
 Year Ended December 31, 
 2025 2024 2023 
 Net sales 
 $ 600,208 $ 574,697 $ 546,258 
 Cost of sales 
 256,149 247,192 245,978 
 Gross profit 
 $ 344,059 $ 327,505 $ 300,280 
 Gross margin 
 57 % 57 % 55 % 

 
 Note 17. Subsequent Events 
 The Company has evaluated subsequent events occurring through the date that these financial statements were issued, and determined the following subsequent event occurred that would require disclosure in these financial statements. 
 Changes to U.S. Trade Policy 
 On February 20, 2026, the U.S. Supreme Court issued a ruling striking down certain tariffs previously imposed under IEEPA. The ultimate availability, timing and amount of any potential refunds of such tariffs remain highly uncertain and are subject to further legal, regulatory and administrative developments. Following the Supreme Court’s decision, the Trump Administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels and whether further additional tariffs or other retaliatory actions may be imposed, modified or suspended, and the impacts of such actions on the Company's business. The Company continues to monitor and evaluate these developments and assess their potential impact on the Company’s business, financial condition and results of operations. 
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 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 
 None.
A.K.A. BRANDS HOLDING CORP. 10-K

Item 7A. Quantitative and Qualitative Disclosures About Market Risk
