A.K.A. BRANDS HOLDING CORP.

Multi-brand next-gen fashion portfolio with strong gross margins but persistent net losses and stretched liquidity.

Strengths

• High gross margin (57%, 86.4th pct) and positive adjusted EBITDA ($19.7M); net loss narrowed sharply from 2023
• Growing US net sales (+7%) and active customers; data-driven test-repeat-clear model

Risks

• Still loss-making: net margin -5.2%, ROE -32% (27.3rd pct), ROA -7.9%, FCF slightly negative
• Weak quick ratio (0.41, 24th pct) and debt/equity 1.07 with covenant exposure
• Heavy China sourcing concentration and NYSE listing-compliance risk

Notable findings

• Net lossNet loss (net margin -5.2%)
• Cash burnNegative free cash flow (-0.6M)
• Customer concentration~70% of revenue from one customer/distributor — The brand targets female customers typically in their twenties or thirties, with more than 70% of customers between the ages of 25 and 34
• Buying back stockNet buyback — share count -36%/yr over 4y
• Revenue declineRevenue -19.2% YoY