Quarterly ResultMay 20, 2026, 04:24 PM
Digital Brands Group Q1 Net Loss $(11.39)M; Revenue Down 30%
AI Summary
Digital Brands Group, Inc. reported a significant increase in net loss for the first quarter of 2026, reaching $(11.39) million, compared to $(2.09) million in the prior year. Net revenues declined by nearly 30% to $1.32 million, and the company recorded a substantial working capital deficit of $7.50 million. To address liquidity concerns, the company entered into an At-the-Market Issuance Sales Agreement to potentially raise up to $100.0 million through common stock sales.
Key Highlights
- Net loss for Q1 2026 increased to $(11.39) million from $(2.09) million in Q1 2025.
- Net revenues decreased by 29.7% to $1.32 million in Q1 2026 from $1.87 million in Q1 2025.
- Gross profit fell by 94.8% to $45,381 in Q1 2026 compared to $872,455 in Q1 2025.
- Loss from operations widened to $(7.42) million in Q1 2026 from $(2.00) million in Q1 2025.
- Net loss per common share was $(1.06) in Q1 2026, up from $(0.92) in Q1 2025.
- Working capital deficit stood at $7.50 million as of March 31, 2026.
- Entered an At-the-Market Sales Agreement to sell up to $100.0 million of common stock.
- Cash and cash equivalents were $5.12 million as of March 31, 2026.
Price Impact
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