Good afternoon. Thank you for standing by. Welcome to Playboy Inc's second quarter 2026 earnings conference call. During today's presentation, all parties will be in a listen only mode. Following the presentation, the conference will be open for questions. This conference is being recorded today, Monday, August 10, 2026, and the earnings press release in Form 10Q, from which information may be referenced during this conference call, were issued after the market closed today. On our call today are Playboy Inc's Chief Executive Officer, Ben Cohn, and Chief Financial Officer, and Chief Operating Officer, Mark Crossman. I'd like to remind you that the information discussed today is qualified in its entirety by the Form 8-K and Form 10-Q filed today by Playboy, Inc., which may be accessed on the SEC's website and on Playboy, Inc.'s website. Please note that statements made during this call, financial projections, and other statements that are not historical in nature may constitute forward-looking statements. Such statements are made on the basis of Playboy Inc.'s reviews and assumptions regarding future events and business performance at the time they are made, and we do not undertake any obligation to update them. Forward-looking statements are subject to risk, which could cause the company's actual results to differ from its historical results and forecasts, including those that are set forth in the SEC filings. And you should refer to and carefully consider those for more information. This cautionary statement applies to all forward-looking statements made during this call. Do not place undue reliance on any forward-looking statements. In addition, throughout today's call, the company may refer to adjusted EBITDA, a non-GAAP financial measure, which it believes provides helpful information to investors about the performance of the business on an ongoing basis. Reconciliation of adjusted EBITDA to its most directly comparable GAAP financial measure is included in today's earnings release, which is available on Playboy Inc. Investor Relations website. At this time, I would like to turn the call over to Playboy Chief Executive Officer, Ben Cohn. Ben, the floor is yours.

Thank you, Operator. Good afternoon, everyone. I appreciate you joining us. Two years ago, we articulated a clear strategy. Make the Playboy brand culturally relevant, build a profitable asset-light business model with significant growth potential around three verticals, licensing, median experiences, and hospitality, alongside Honey Burdett, all by deleveraging the balance sheet. Two years on, we are executing, and the balance sheet is dramatically stronger. The second quarter is the clearest evidence yet that the strategy is working. We are culturally relevant. We are profitable. We have set the stage for significant growth, testing, measuring what actually converts, leaning into what works, and being fiscally responsible with every dollar. Let me take the pieces one at a time. starting with the results, because they are the truest test of any strategy. Revenue grew to approximately $31.2 million, up roughly 11% year-over-year. Adjusted EBITDA was approximately $7 million, including more than $700,000 of litigation expenses, nearly double a year ago, and our sixth consecutive quarter of positive adjusted EBITDA. Adjustment of EBITDA on a trailing 12-month basis is now $23.2 million and would have been approximately $28 million, excluding litigation expenses. Just as important, we swung to positive operating income of probably $3 million compared with an operating loss a year ago, and we reached essentially break-even at the bottom line, a swing of nearly $8 million from the net loss we reported in the same quarter last year. And it is turning into cash. We generated positive operating cash flow in the quarter, and with the UTG transaction and the deal cost that came with it now behind us, that cash flow is beginning to reflect the ongoing business we have built, rather than the two years of transactions and repositioning it took to get there. The headline is that the trajectory for growth is unmistakable. That turnaround is what lets us be aggressive about creating value. We have taken total debt down from the peak of $218 million to roughly $145 million today, and we have a clear path to $108 million of gross debt by January of 2028, as the remaining $36.7 million of UTG proceeds are applied. We ended the quarter with approximately $37.1 million in total cash, including restricted cash, bringing our net debt down to $108 million, and with our trailing 12-month adjusted to EBITDA of $28 million, excluding litigation expenses, bringing us to just under four terms of leverage. And we expect we will be under three terms of leverage once we have received the remaining UTP proceeds, a very manageable place moving forward. This quarter, we added a lever that we have not used at this scale before, a meaningful share repurchase. And here is why it matters. The shares we are buying back are essentially the same block we issued last year to convert debt into equity at a conversion price of roughly $1.75 a share. We agreed to repurchase approximately 16.6 million of them, nearly 15% of the total shares outstanding for the company, at a fixed price of $1.05, below where we issued them and below where the stock trades today. And we are doing the installments backstopped by significant long-term stockholders, so it never competes with the cash we need to run and delever the business. We were also added to the Russell 2000 and the Russell 3000 in late June, which should broaden our ownership over time. Retiring debt over time and shrinking the share count at a discount are two of the most direct ways we can reward the shareholders who stay with us. Now the brand itself. We said we should put Playboy back at the center of culture, and the proof is on the newsstands and in our feet. Our spring issue with Carol G sold out at newsstands and generated more than 5 billion media impressions and over 70 million video views around this launch. Our summer issue arrived with Cara Delevingne on the cover, two consecutive covers with talent that Kindly would not have taken her calls a couple of years ago. And we already have two more major covers lined up for the back half of the year. Across our own platforms, we generated more than a billion engagements and views in the quarter, and we are leaning hard into the franchises our audience tell us they want most, the Playboy interview, 20 questions, and above all, more content built around our Playmates, where features like Miss June are crossing a million organic views on their own. Our editorial voice is the sharpest it has been in years. Our audience is growing at home and abroad, and our content calendar for the back half is the strongest we have had in a long time. Talent, press, and partners want to be associated with Playboy again, and that pulls the raw material for everything else we do. We also said that attention is worth little unless we own it and can monetize it directly. And this is a quarter that stopped being a slide and became a business we are actively building and testing in real time. Our site through roughly 2 million unique visitors in a quarter, and the subscription we launched on Playboy.com live for its first full quarter is converting. We are turning that traffic into paying memberships, and July was our strongest month yet. We are testing different price points, different content, and different conversion funnels. We are being disciplined about it. As we continue to refine this, we will begin to spend to grow faster, and the early signs are exactly what we hoped for. An anonymous audience becoming a known addressable one that we can market to directly. Here is why we are investing behind this. We are building the median experiences business over time into a high-margin, recurring, asset-like business. A meaningful driver of top-line growth with several revenue streams today generated from the same audience. Subscriptions, sponsorships, paid voting, and more. On the sponsorship side, we already have sponsors lined up for our short-term video content across social and editorial, and that revenue will begin to show in our third-quarter results. And each piece feeds next. The magazine and our platforms create relevance. Relevance builds an audience we own. That audience subscribes, pays to vote, and attracts sponsors. And the scale and data behind the audience make our brand more valuable to every licensing partner we sit across from. That is what we mean when we call this a platform, not a slogan, but a set of businesses that compound one another. Paid voting is another proof point. Our first contest drew roughly 17,000 contestants. Our second, the model search we ran with Honey Burdett, drew nearly 50,000 and generated about two and a half times the revenue of the first. Because voting closed just after the quarter ended, none of those economics are in today's numbers. Those will land in the third quarter. And we are funneling that engaged audience straight into our digital subscription, exactly the self-reinforcing cycle we are building. This is not a promotion. It is a franchise. We have one more major contest planned before year-end, our great playmate search. And we hope to deliver even stronger results from what is a more compelling offer. We find by what we have learned each time. And the economics do not stop at voting. The Honeywell Debt collaboration tied to the contest launches in September, adding a product revenue stream on top. On licensing, we said we would trade a long tail of small deals for fewer, bigger, better partners. In this quarter, that discipline is showing up in the quality of our partnerships. To lead that effort, we brought in Crystal Bach as our Vice President of Global Licensing and Partnerships. She joins us from Authentic Brands Group and brings a track record across Coach, Victoria's Secret, and Juicy Couture. The clearest example of this strategy is an apparel. We dramatically scaled back our largest apparel licensee, a major t-shirt and hoodie partner, and that decision opened the category for Missguided, one of our strongest partners to expand. Because we pulled back that other licensee, Missguided can invest behind the market without the two cannibalizing each other. And we are now working with them to grow it into additional categories. Our supreme collaboration, which sold out, was another standout. In China, our new partner at UTG is off to a good start, transitioning the business to an owner-operator strategy. Because of this transition, the small new deals that we historically signed were largely absent in the first and second quarters, a modest reduction of a couple hundred thousand dollars a quarter while the transition sets in. And across the segment, more than $320 million of contracted, not-yet-recognized future licensing revenue gives this business both durability and runway. And Honey Brunette isn't doing exactly what we said it would, include double digits again with every region comping up. And this quarter's double-digit retail comp came on top of the double-digit comp a year ago. The engine is full-price selling and tight product discipline, carrying the right assortment in the right quantities, relying on markdowns far less than we used to. Our mid-year sale is an event we run every year. The difference now is that pent-up demand and full-price discipline lets us run shallower discounts and control the promotional narrative rather than the ad hoc discounting we leaned on when comps were declining. Paired with a loyalty program that keeps deepening, how often our best customers come back. June was the brand's strongest month ever. This is not a brand searching for a model. It is a brand compounding. Two more markers of where we are headed. In hospitality, we continue to make progress on our first new flagship Playboy Club in Miami, the franchise we intend to grow without risking our own capital. And we strengthen our board, adding Jennifer Cabo-Quinto, former chief financial officer of QK and the Golden State Warriors, as an independent director, adding public company financial and operating depth as we scale. And with that, let me turn it over to Mark to take you through the numbers.

Thank you, Ben. Consolidated revenue in the second quarter grew to $31.2 million compared to $28.1 million in the second quarter of 2025, an increase of approximately $3.1 million, or 10.9% year-over-year. The increase was led by continued double-digit growth at Honey Burdette, with licensing also returning to year-over-year growth. Honey Burdett net revenue grew to $19.5 million, up 18% year-over-year from $16.5 million in the prior quarter. On a like-to-like basis, total comparable stores grew 15%, with retail comps up 13% and online up 16% and every region positive. With the second quarter, Honey Burdett has now delivered its seventh consecutive quarter of double-digit brick-and-mortar comparable sales stores growth and its fifth consecutive quarter of combined brick-and-mortar and online comparable store sales growth. Full-price selling continued to drive the mix, and product margin increased year-over-year, led by full-price sales and higher average selling prices. Licensing revenue was $11.2 million in the second quarter, up approximately 2% from $10.9 million in the prior quarter, and would have been higher, but for a modest step-down of a couple hundred thousand dollars a quarter in China as our JV partner transitions the business. Growth in our rest-of-world business was led by our Supreme Collaboration, which sold out, and by our misguided partnership, which has been successful enough that we are now working to expand it into additional categories. Our BiBorg strategic partnership contributed $5 million of digital licensing revenue in the quarter, consistent with the contractual minimum guarantee. Total selling and administrative expenses were $19.8 million in the quarter, down $2.6 million or 12% from $22.4 million in the prior year quarter. Put simply, we grew revenue 11% while reducing total operating costs, all while continuing to invest in content and media and experiences. As Ben noted, we view that brand spend is investment, not overhead. In this quarter, it began to show a return. Operating income was $3 million in the quarter compared with an operating loss of $5.9 million a year ago, a swing of nearly $9 million driven by higher revenue on lower cost base. I just walked through. Below the operating line, net income was approximately $200,000 or break even on a per share basis compared with a net loss of $7.7 million or or eight cents per share in the second quarter of 2025. Weighted average shares outstanding were 114.7 million. Adjusted EBITDA for the second quarter was $7 million, an increase of 3.5 million versus adjusted EBITDA of $3.5 million in the prior quarter, effectively doubling for an adjusted EBITDA margin of 22%. This represents our sixth consecutive quarter of positive adjusted EBITDA. Turning to cash flow, we generated positive operating cash flow of approximately $2 million in the quarter. With the UTG transaction executed and its one-time cost now behind us, this figure reflects the ongoing operations of the business, a clean baseline for our cash generation going On the balance sheet, we ended the quarter with $37.1 million in total cash, including restricted cash. Total debt was $144.9 million at quarter end, consistent with the end of the first quarter and down from $159.9 million at year-end 2025, reflecting the $15 million paydown from the initial UTG proceeds earlier this year. Let me put the share repurchase in numbers. The block we agreed to repurchase is essentially the same stock we issued last year to convert debt into equity at a conversion price of roughly $1.75 per share. We are buying back approximately 16.6 million shares, nearly 15% of shares outstanding, at a fixed price of $1.05, or roughly $17 million in total, below where we issued it and below where the stock trades today. The repurchase is paid in installments. We paid $2 million on the effective date, and we plan on paying the next installment of $3 million on number four, August 31st, with cash from our balance sheet. Beyond the repurchase, nearly $37 million of forthcoming UTG proceeds remain earmarked for further debt reduction, which would bring our net debt well below $100 million. Between the shares we are retiring and the debt we intend to pay down, we are using a stronger balance sheet and a more profitable business to compound value on a per-share basis. That concludes my prepared remarks when we turn the call back to Ben.

Thank you, Mark. but I'll keep my closing brief because the financial results speak for themselves. None of this work is finished. Now that we have established a solid, profitable base, we are focusing on growth. We have a media platform still in its early stages, a subscription business we are testing and refining, a licensing pipeline to convert, a Playboy Club to open, and debt still to retire. But we have shown you this quarter that when we set out to do something, it shows up in the results, that we will build the newer businesses with the same discipline, test, lean into what works, and stay fiscally responsible. That is the standard we hold ourselves to, and it is how we intend to keep creating value for our fellow shareholders. With that, operator, let us open the line for questions.

Thank you, sir. We will now begin the question and answer session. If you have a question, please press the star followed by the one on your touch tone phone. If you'd like to withdraw your question, please press the star followed by the two. If you're using speaker equipment, you will need to lift your handset before making your selection. We'll now pause as we assemble the queue. Our first question is from JP Wallen with Roth Capital Partners. Please proceed with your question.

Great. Hi, guys. I appreciate you taking my question today. A couple for you here. So maybe if we could start in terms of the licensing business, and it sounds like, you know, there's some nice movement with Misguided and kind of opening up the runway there for them. But, you know, as we think about all the different areas, I guess, are there anywhere else that you are thinking in the near term is sort of ripe for further licensing consolidation? And there are some big opportunities to, you know, hand it over to other partners like Misguided that are showing some early signs. And just as you think about kind of the next 12 months and sort of the P&L, like, are the biggest kind of growth engines and maybe changes there going to come from some more of this licensing consolidation? Or is it really going to be sort of the other media business that's driving some growth there? Hey, JP, it's Ben.

Look, we're very happy with where the licensing business is, and especially the pipeline that we have moving forward. You know, the P&L growth has become from two things, right? Obviously, as we've talked about historically, we have a lot of white space, both from a geographical perspective and a category perspective, you know, starting to get some real traction on the gaming side right now. And so that doesn't compete with existing licensees. You know, there's certain markets that over time, and, again, it's sort of a puzzle you're putting together because you have contractual obligations that you have to meet, you know, both from the category perspective and the timing perspective, and that is coupled with a larger strategy, you know, specifically bringing in, like, Crystal and the new team that we are bringing in to help us with that. That will just happen over time. And we also want to be very sensitive that we are not taking down, you know, revenue or EBITDA from licensing business. We want to make sure that we're doing it in a very physically responsible way. You know, as far as growth moving forward in business, you know, we think over time the median experience of this business can be as large as licensing business with a very similar profile. You know, we are starting to see traction. You know, I look at, for example, Miss July, and I look at that conversion funnel from social media posts to paying subscribers on our website or members, and we're starting to get better at that. You know, we just brought in Radhika, who joined us two weeks ago, to really lead that effort on the digital side, and we're continuing to hire more people now that we've actually proven it out, right? So, again, you know, we have limited resources. We want to be really fiscally responsible. We tested something, we're seeing that it's worked, and now we're going to build a team to actually accelerate that growth moving forward. So I think growth will come from licensing. Again, licensing is more of a step function. I think on the digital side, it's a recurring revenue base, right? We're bringing people in, you bill them next year, and there's a lot of upside to that. And then on top of that, we sign our first sponsorship deals for content. You know, paid voting was up roughly 2.5x from a revenue perspective. versus the first contest, we have another one. And so it's multiple different revenue streams coming off, you know, really the same investment, which is the content side of it, which we have to do from a brand perspective, irrespective.

That makes a lot of sense. Switching over maybe on Honey Burdett, I don't think you had touched on it. You provided some good detail on just kind of some of the strength there, but I know we've talked in the past about deploying capital for some additional units. So could you just share any updates there? You know, how are you thinking about timing? I think maybe around five units was kind of what you guys were thinking in the past. But could you just provide us any update in terms of additional brick-and-mortar at Honey Burdett?

Yeah, look, the business is doing great. The product is speaking to the consumer. You know, we are actively looking for other brick-and-mortars, but there's multiple different ways to grow, including e-commerce, which doesn't require the CapEx. that brick-and-mortar does. You know, in the ideal world, we would open five more stores. We just want to make sure that those stores maintain the same margin profile that our existing stores do in the United States. You know, rents are expensive right now, and so we're being very, very selective in where we go, making sure it's the right market, you know, coupled with the right economics. We don't want to open a store to decrease our margin profile moving forward. So, you know, in the interim, we will focus on e-commerce, and the business, you know, continues to perform really well.

And then just the last one for me, a little bit more in terms of a capital allocation question. Mark provided the update in terms of the second payment of the share repurchase for August. But, you know, as we think about kind of the remaining, I think that would put it at about $5 of the $17 million. So just as we think about kind of that remaining $12 million, you know, So how aggressive do you want to be with that entire repurchase versus sort of balancing, you know, where debt sits today and understanding that the repurchase is kind of backstopped by some of your strong partners? But how aggressive or, you know, sort of how optimistic, I guess, are you that you will take down the sort of entirety of that share repurchase?

So the first $2 million, you know, we funded. The second $3 million, we'll fund from cash on our balance sheet, as Mark stated. We have $37 million, you know, of cash, of total cash and restricted cash on our balance sheet today. You know, the great thing about the way we structured the deal is we have a backstop from our two largest partners. Obviously, in the ideal world for the rest of the shareholders, you reduce the full share count to $16.6 million, and we turn those shares to Treasury. And that's what we plan on doing today. Obviously, you know, we can't predict the future, but that is our plan today. You know, as far as debt, you know, we have approximately $145 million today, right? We have $36.7 million of future earmarked UDG payments that will take our debt down to $108. So, you take $108, you take off $37 of cash and cash equivalents, right? And the balance sheet's in a really good place from a net debt perspective. And so, you know, we'll continue to monitor what's the best return for our shareholders moving forward and, you know, do everything we can to try to create shareholder value.

Great. I'll pass it along. Best of luck, guys. Thanks, JP.

Our next question is from James Heaney with Jefferies LLC. Please proceed for your question.

Perfect. Thank you guys for having me on. Just kind of looking at the direct-to-consumer segment, and I think this was actually 18%. I think that's the fastest growth rate we've seen in the segment since 2022. So obviously a big breakthrough there. Maybe just talk about where you saw kind of the most strength, like what was the primary reason for that reacceleration, and then just try to help us understand the sustainability of growth in that segment and maybe if there's any kind of near to medium term sort of growth expectations would be helpful. Thank you. And then I have one more.

Okay. Hey, it's Mark. I appreciate that question. On the Honey Burdett side, yeah, we had another strong, you know, comp on comp, you know, comp at the retail business. Really what we're seeing, though, is a strength in the online business, and that's where, you know, it's been the last piece to turn, and we're seeing that turn predominantly in the U.S. market, but across all markets. So it's really online, as Bennett touched on, that's reigniting growth. And I think that's where, obviously, comps become a little more difficult on retail as you start triple comping. But online, there is plenty of room for us to continue to grow in comps.

Great. And then my second one was just around, I mean, you've made a lot of key leadership hires, even in the last month, but just broadly over the last year across licensing, consumer goods, off to the media and brand side. I'm just hoping you could talk about the significance of these hires and kind of what the key growth areas are for each of these leaders and just if there's going to be any other kind of changes to the organization as they kind of implement their strategies. Thank you.

Thanks, James. Yeah, look, we're only as good as our weakest link, And, you know, when we did this restructuring a few years ago with a clear business plan that, you know, we've been executing on, now that we're in a place that we can actually reinvest in the business, we're bringing in the right talent to actually grow those businesses and monetize them, right? So David Miller joined us, who had built the digital business and the licensing business for Nat Geo, you know, great Disney experience before that AOL. You know, he's come in, and I think he's done a great job, and is now hiring the team underneath him with Crystal, with Radhika, with Phillips and more to actually execute on those businesses. You know, look, if we do it right, then over time, you know, as I said, the media and experiences business should be as large, if not larger, from a revenue perspective compared to our licensing business. And, you know, based on how we have it set up, it can be extremely profitable as well. You know, we will continue to add talent based on making sure, one, you stay really disciplined with hiring the right people, and, two, that the business from a growth perspective warrants the cost of bringing on additional talent. So as we sort of said in the prepared remarks, you know, we're testing, we're iterating, and we're leaning more into what works and abandoning what doesn't work. And so we'll continue to take that fiscal discipline moving forward as we build out the team. You know, the other area that we've highlighted is the hospitality side, and, you know, we're making progress on bringing that Playboy Mansion to life. And we'll have more to talk about that in the future as things continue to progress on that. Obviously, you know, to the extent we do get that off the ground, we'll need to bring in someone to help us on the hospitality side as well. But the way we're setting up that deal is really is a licensing deal, so we're not taking capital risk ourselves.

Great. Appreciate the insight. Thank you, guys.

Thanks, James.

We have reached the end of the question and answer session. We'd like to turn the floor back over to Ben Cohen for closing comments.

Thank you, Operator. I just want to thank everyone who listened for joining today for our Q2 results and look forward to talking to you in the fall when we report our Q3 results. Thank you.

This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.