Xcel Brands, Inc. (NASDAQ:XELB) reported a fourth-quarter adjusted loss of $0.32 per share on revenue of $1.2 million as the media and consumer products company continues restructuring its business model. Revenue was unchanged from the same quarter a year earlier and sharply lower than the $8.3 million reported for the full year 2024.
The results weighed on investor sentiment, with the company’s shares falling about 5.48% in pre-market trading.
For the quarter, Xcel posted an adjusted EBITDA loss of $0.61 million, narrowing from a loss of $0.79 million in the comparable period last year, representing a 24% improvement.
Direct operating expenses declined by $0.6 million, or roughly 22%, to $2.2 million as the company implemented cost-cutting measures as part of its ongoing transformation strategy.
Management said these actions have reduced direct operating costs to an anticipated annual run rate of under $9 million.
For the full year 2025, revenue fell 42% to $4.9 million, largely reflecting the divestiture of the Lori Goldstein brand in June 2024. Despite the drop in sales, adjusted EBITDA improved 35% year over year to a loss of $2.3 million, compared with a loss of $3.5 million in 2024.
“I am pleased with the progress we are making with our legacy brands and all of our new influencer led brands. These new influencer led brands will be launching throughout 2026,” said Robert W. D’Loren, Chairman and Chief Executive Officer.
As of December 31, 2025, the company reported shareholders’ equity of $15.8 million and unrestricted cash of $1.2 million. Outstanding term loan debt totaled $12.7 million, with $3.3 million due within the next 12 months.
Management said it remains focused on restoring profitability and aims to reach a combined total of 100 million social media followers across its brand portfolio.