Playboy, Inc. Q1 FY2025 earnings call

• Honey Birdette: Lapping discounting from last year's quarters starting in Q2, with near-term gross margin affected by Chinese tariffs; implemented 10% price increases and changed shipping thresholds for free shipping to combat tariff impact.
• Byborg: Working on new product development including live cams, has a $20 million a year minimum guarantee, and a $20 million payment scheduled for July 1; equity investment vote moved to the annual meeting on June 16.
• Licensing business: 175% year-over-year growth, with Byborg and China licensing contributing; focused on pipeline in gaming and hospitality/LBE areas, saw strong magazine sell-through, plans for additional magazine issues, anticipates paid voting in the back half of the year, and sees ancillary revenue streams from content, with media and content strategy being refined.

Honey Birdette: Lapping easy comps starting in the second quarter, with the company already ahead of plan in Q2. Licensing: Up 175% year-over-year, with Byborg contributing and China licensing showing improvement. Byborg: Has a $20 million a year minimum guarantee, and a $20 million payment is scheduled for July 1, including $5 million for the last two quarters of the year and a $10 million security deposit.

• Honey Birdette: Q2 comps are easy, with the company ahead of plan; near-term gross margin affected by tariffs but levers like price increases and shipping changes in place.
• Byborg: $20 million payment scheduled for July 1, expecting growth from pipeline in the back half of the year.
• Licensing: Anticipates benefits from pipeline in Q3 and Q4, with content licensing opportunities for future periods.

• Tariffs: Approximately $1 million impact in the third and fourth quarters if tariffs remain, but price increases and shipping changes implemented to combat this.

Q: Expectations for Honey Birdette growth, comps, and near-term gross margin, and impact of Chinese tariffs A: Lapping easy comps in Q2, ahead of plan; near-term gross margin affected by tariffs, with about $1 million impact in 3Q and 4Q if tariffs stay, but price increases and shipping changes implemented Q: Byborg new product development timeline and equity investment vote status A: Working on new products including live cams, $20 million payment scheduled for July 1; equity investment vote moved to the annual meeting on June 16 Q: Potential for other licensing business in the back half of the year A: Gaming and hospitality/LBE opportunities, paid voting in the back half, magazine calendar in November, with sponsorship revenue expected to grow