AKA Q2 2026 - Preliminary Earnings Alert
Event: Quartr Q2 2026 event Retrieved: 2026-08-05T21:15:00Z Comparison mode: maximal Scorecard contract: v1 Source status: release=available (earnings release plus Form 10-Q) | financials=earnings release and 10-Q only | transcript=not available (call scheduled 2026-08-05 20:30Z)
Consensus scorecard
| Metric / basis | Quartr actual | API Ninjas consensus | Beat/Miss | Beat/Miss % |
|---|---|---|---|---|
| Revenue / net sales | $160.068m | $162.618m | Miss −$2.550m | −1.6% |
| EPS / GAAP basic and diluted | $(0.01) | $(0.41) | Beat +$0.40 | +97.6% |
Reported results and guidance
| Metric (GAAP unless noted) | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales | $160.068m | $160.524m | −0.3% |
| Cost of sales | $62.224m | $68.180m | −8.7% |
| Gross profit | $97.844m | $92.344m | +6.0% |
| Gross margin | 61.1% | 57.5% | +3.6 pts |
| Selling expenses | $47.821m | $45.399m | +5.3% |
| Selling, % of net sales | 29.9% | 28.3% | +1.6 pts |
| Marketing expenses | $21.352m | $19.918m | +7.2% |
| Marketing, % of net sales | 13.3% | 12.4% | +0.9 pts |
| General and administrative | $27.505m | $27.518m | −0.05% |
| G&A, % of net sales | 17.2% | 17.1% | +0.1 pts |
| Total operating expenses | $96.678m | $92.835m | +4.1% |
| Income (loss) from operations | $1.166m | $(0.491)m | to a profit |
| Interest expense | $(2.201)m | $(2.500)m | −12.0% |
| Other income (expense) | $0.775m | $(0.624)m | to income |
| Total other expense | $(1.426)m | $(3.124)m | −54.4% |
| Loss before income taxes | $(0.260)m | $(3.615)m | −92.8% |
| Benefit from (provision for) income taxes | $0.099m | $(0.010)m | to a benefit |
| Net loss | $(0.161)m | $(3.625)m | −95.6% |
| Basic and diluted EPS | $(0.01) | $(0.34) | −97.1% |
| Adjusted EBITDA (non-GAAP) | $8.7m | $7.5m | +16% |
| Adjusted EBITDA margin (non-GAAP) | 5.5% | 4.7% | +0.8 pts |
| Basic and diluted weighted-average shares | 10,906,511 | 10,711,466 | +1.8% |
| Six-month item (GAAP) | 6M 2026 | 6M 2025 | Change |
|---|---|---|---|
| Net sales | $292.532m | $289.181m | +1.2% |
| Cost of sales | $111.059m | $123.181m | −9.8% |
| Gross profit | $181.473m | $166.000m | +9.3% |
| Gross margin | 62.0% | 57.4% | +4.6 pts |
| Total operating expenses | $184.411m | $171.874m | +7.3% |
| Loss from operations | $(2.938)m | $(5.874)m | −50.0% |
| Interest expense | $(4.379)m | $(5.163)m | −15.2% |
| Loss before income taxes | $(7.184)m | $(11.956)m | −39.9% |
| Net loss | $(7.295)m | $(11.975)m | −39.1% |
| Basic and diluted EPS | $(0.67) | $(1.13) | −40.7% |
| Net cash provided by operating activities | $18.7m | $10.0m | +87% |
| Balance-sheet item | 30 June 2026 | 31 December 2025 | Change |
|---|---|---|---|
| Cash and cash equivalents | $21.050m | $20.273m | +3.8% |
| Accounts receivable, net | $9.633m | $10.650m | −9.5% |
| Inventory | $79.908m | $86.177m | −7.3% |
| Total current assets | $124.136m | $129.471m | −4.1% |
| Property and equipment, net | $41.400m | $39.315m | +5.3% |
| Operating lease right-of-use assets | $101.932m | $88.624m | +15.0% |
| Intangible assets, net | $39.022m | $43.470m | −10.2% |
| Goodwill | $95.648m | $93.695m | +2.1% |
| Total assets | $405.038m | $397.382m | +1.9% |
| Accounts payable | $42.414m | $31.248m | +35.7% |
| Accrued liabilities | $27.966m | $33.532m | −16.6% |
| Total current liabilities | $111.767m | $105.046m | +6.4% |
| Long-term debt | $93.491m | $104.695m | −10.7% |
| Current portion of long-term debt | $6.375m | $6.375m | unchanged |
| Operating lease liabilities, noncurrent | $102.156m | $87.668m | +16.5% |
| Total liabilities | $309.469m | $299.611m | +3.3% |
| Accumulated deficit | $(332.132)m | $(324.837)m | −2.2% |
| Total stockholders' equity | $95.569m | $97.771m | −2.3% |
| Guidance item | Disclosed | Prior | Prior-year actual |
|---|---|---|---|
| Full year 2026 outlook | reiterated | reiterated, unchanged | not stated in this release |
| Full year 2026 metrics guided | net sales, adjusted EBITDA, weighted-average diluted share count, capital expenditures | — | — |
| Third quarter 2026 metrics guided | net sales, adjusted EBITDA, weighted-average diluted share count | — | — |
| Numeric guidance ranges | not reproduced here — see source limitations | — | — |
- Scorecard recap: net sales of $160.1m missed consensus by 1.6% while GAAP basic and diluted EPS of $(0.01) beat the $(0.41) estimate by 97.6%.
- Net sales fell 0.3% year over year and 5.3% on a constant-currency basis; the decline was driven by a 0.5% decrease in the number of orders.
- By region, management reported U.S. net sales up 2% and Rest of World up more than 50%, while ANZ was pressured by macro conditions and a tough prior-year comparison from clearance of non-go-forward goods.
- Gross margin rose to 61.1% from 57.5%, which the release attributes to lower tariff rates and improved full-price selling in the streetwear brands.
- CEO Ciaran Long said quarter-to-date momentum has accelerated in all regions, with overall net sales growth in the high single digits.
- Debt at quarter end was $99.9m against $111.1m at fiscal year end 2025 and $108.7m at the end of Q2 2025; the company describes this as its strongest balance sheet since becoming a public company.
- Princess Polly is on track for four new U.S. stores by year end and up to ten more in 2027, with a stated long-term opportunity of at least 100 U.S. stores; its Grove pop-up exceeded expectations and a new U.K. distribution center is supporting U.K. growth.
- Culture Kings signed a Puerto Rico store lease and is nearing agreement on a store in a major U.S. market — its first U.S. store since 2022 — and its shift toward a full-price, test-and-repeat model is credited with expanding group margins.
Key bullish aspects
- GAAP EPS of $(0.01) beat consensus by 97.6% and the net loss narrowed 95.6% to $(0.161)m from $(3.625)m.
- Gross margin expanded 3.6 percentage points to 61.1% as cost of sales fell 8.7% on flat sales, and the six-month gross margin gain is even larger at 4.6 points to 62.0%.
- The company reached operating profitability: income from operations of $1.166m against a $(0.491)m loss a year ago, and the six-month operating loss halved to $(2.938)m.
- Adjusted EBITDA rose 16% to $8.7m with margin up 0.8 points to 5.5%, on essentially flat sales.
- Debt fell to $99.9m from $111.1m at year end and $108.7m a year ago; long-term debt on the balance sheet is down 10.7% since year end and interest expense fell 12.0% in the quarter.
- Six-month operating cash flow of $18.7m nearly doubled from $10.0m.
- Inventory fell 7.3% since year end to $79.9m and is down from $92.5m a year ago, so the margin gain is not being funded by inventory build.
- Rest of World net sales grew more than 50% and U.S. net sales grew 2%, so two of three regions grew despite the flat consolidated line.
- Management states quarter-to-date momentum has accelerated in all regions with high-single-digit net sales growth and healthy margins, and reiterated the full-year outlook.
- The physical retail and wholesale expansion is progressing on specifics rather than intent: a Grove pop-up that exceeded expectations, four Princess Polly U.S. stores committed for this year, a signed Culture Kings lease in Puerto Rico, and a new U.K. distribution center in operation.
Key bearish aspects
- Net sales missed consensus by 1.6% and fell 0.3% year over year — and 5.3% in constant currency, so the reported line was flattered by currency.
- Order count fell 0.5%, so the flat topline is not being supported by transaction growth.
- ANZ, the group's original core market, was pressured by macro conditions and a tough comparison; the release does not quantify the decline.
- Operating expenses rose 4.1% against a 0.3% sales decline: selling expenses rose 5.3% to 29.9% of sales (from 28.3%) as the retail footprint expands, and marketing rose 7.2% to 13.3% of sales (from 12.4%).
- The company is still loss-making: a $(0.161)m net loss in the quarter and $(7.295)m for six months, with an accumulated deficit of $(332.1)m.
- Operating lease right-of-use assets rose 15.0% and noncurrent operating lease liabilities rose 16.5% since year end as stores are added, so the fixed-cost base is rising ahead of the sales it is meant to generate.
- Accounts payable rose 35.7% since year end to $42.4m while accrued liabilities fell 16.6%; cash rose only $0.8m over six months despite $18.7m of operating cash flow.
- Total stockholders' equity fell 2.3% since year end to $95.6m, and intangible assets fell 10.2% to $39.0m.
- Gross margin benefited from lower tariff rates, an external factor the company does not control and does not quantify.
- Net debt is approximately $78.8m against $8.7m of quarterly adjusted EBITDA, so leverage remains meaningful for a company at breakeven.
- The share count rose 1.8% year over year, and the equity statement shows no share repurchases in either quarter of 2026 against buybacks in both quarters of 2025.
Key uncertainties
- The numeric guidance ranges in the release's outlook tables could not be reliably read from the document's text layer, so the specific full-year and third-quarter net sales, adjusted EBITDA, share count and capital expenditure figures are not stated here; the headline confirms the full-year outlook was reiterated.
- Regional net sales are given only as percentage changes in management commentary (U.S. +2%, Rest of World +50%+, ANZ "pressured"); no regional revenue table appears in this release, so the ANZ decline cannot be sized.
- The release attributes gross margin expansion to "lower tariff rates" and "improved full price selling" without quantifying either, so the durability of the 3.6-point gain is not assessable.
- "Quarter to date momentum has accelerated in all regions, with overall net sales growth in the high-single-digits" is management's characterization of a partial third quarter and is not a guided figure.
- The company has not provided a quantitative reconciliation of its adjusted EBITDA outlook to a GAAP net income outlook, citing the unreasonable-efforts exception.
- The prior-year quarter included clearance of non-go-forward goods in ANZ; the release does not size that clearance, so the underlying ANZ comparison is unclear.
- Princess Polly's target of at least 100 U.S. stores is described as a long-term opportunity with no timeline, capital requirement, or unit economics disclosed.
- Culture Kings' second U.S. store is described only as "nears agreement on new store in major U.S. market," with no location, timing, or cost.
- The new U.K. distribution center is credited with accelerating U.K. growth but its cost, capacity, and margin effect are not disclosed.
- The 4:30 p.m. ET call had not occurred at the time of this report; management's account of the ANZ decline, the tariff benefit, and the store expansion economics is not assessed at this stage.
- The 51-page Form 10-Q was read only for the balance sheet, income statement and statement of changes in stockholders' equity; segment notes, debt covenant detail, and contingencies were not reviewed for this preliminary.
Market context
- API Ninjas snapshot: AKA $11.31 on NYSE, volume 5,740, quote timestamped 2026-08-05T20:12:38Z, retrieved 2026-08-05T20:33:00Z. The release was published after the U.S. close on 2026-08-05; this is a single quote of unstated session basis on very thin volume captured minutes after the close, not a measured reaction to the release.
Source limitations
- The income statement, balance sheet, and equity statement figures above come from the Quartr Q2 2026 Form 10-Q (3688675). The narrative, adjusted EBITDA, regional commentary, debt totals, operating cash flow, and outlook references come from the Quartr Q2 2026 earnings release (3688674). Quartr standardized financials for this event are not yet populated.
- The earnings release document's extracted text systematically omits certain characters, which corrupts several numbers in that document. Every figure taken from the release above was cross-checked against the 10-Q or against a percentage the release states in words. The outlook tables could not be cross-checked that way, so their numeric ranges are deliberately not reproduced; a later cycle or the call transcript is the appropriate place to recover them.
- API Ninjas supplied no actual or difference fields for this event, so each beat/miss is calculated locally as Quartr actual minus API Ninjas estimate. The API row carried no fiscal year or quarter, so the exact ticker-and-event-date match path was used.
- a.k.a. Brands reports no adjusted EPS, so the GAAP basic and diluted figure is the EPS used in the scorecard; the company reports a single basic-and-diluted number because it is loss-making.
- Percentage changes, margin percentages, and net debt not printed in the source documents are calculated from their own columns.
- The balance-sheet change column compares 30 June 2026 to 31 December 2025, not to the prior-year quarter.
- The condensed consolidated statements are unaudited.
- Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures as defined by the company; the reconciliation tables at the end of the release were not read for this preliminary.
- The release contains no segment or brand-level revenue table; Princess Polly, Culture Kings, Petal & Pup and mnml are discussed qualitatively only.