Breaking Down Wilhelmina International, Inc. (WHLM) Financial Health: Key Insights for Investors

If you are looking at Wilhelmina International, Inc. (WHLM), you're defintely grappling with a classic small-cap paradox: a tiny market capitalization of just over $14.76 million as of late 2025, but a price-to-earnings (P/E) ratio sitting high at 27.13. It's a tight, niche business, so the raw numbers look small, but the recent growth is hard to ignore. For instance, the Q1 2025 report showed net income surging by 72.5% year-over-year to $157,000, driven by $4.6 million in total revenue. That's a powerful internal trend, but then Q2 2025 revenue came in slightly lower at $4.55 million, which means the growth story isn't a straight line. Here's the quick math: the business is profitable and growing its bottom line faster than its top line, but the market is pricing in significant future expansion for a company that still operates on a razor-thin margin in a volatile industry. The question isn't just what they earned, but how they earned it, and whether that Q1 momentum can overcome the inherent instability of a talent-based agency model. We need to dissect the balance sheet to see if that cash-over-debt position is enough to fund the next wave of influencer-driven growth.

Revenue Analysis

The core takeaway for Wilhelmina International, Inc. (WHLM) is that its revenue engine is almost entirely dependent on talent representation, which showed a mixed but overall positive trend in the first half of 2025, with total year-to-date revenue reaching approximately $9.18 million.

You need to understand that this is defintely a talent-driven business. Wilhelmina International, Inc.'s revenue streams are cleanly split into two primary buckets: Service Revenues and the much smaller License Fees and Other Income. Service Revenues, which represent the bulk of the company's top line, come from model fees and service charges paid by clients for bookings, plus commissions from third-party agency bookings. This is where the real money is made.

The company's strategic move to represent a diverse talent pool, including fashion models, entertainers, athletes, and social media influencers, is the backbone of that Service Revenue. To be fair, this diversification helps against industry-specific downturns. For a deeper dive into the company's long-term strategy, check out the Mission Statement, Vision, & Core Values of Wilhelmina International, Inc. (WHLM).

Looking at the 2025 fiscal year so far, the revenue story is one of strong early momentum that cooled slightly in Q2. Here's the quick math on the first half of 2025 (H1 2025) compared to the prior year:

The primary revenue source, Service Revenues, drove the Q1 surge, increasing by 11.0%, thanks largely to higher commissions from core model bookings. That's a strong start. But then Q2 saw total revenue dip slightly by 0.83% year-over-year, suggesting the market for talent bookings softened a bit or competition intensified. Still, the H1 2025 total revenue is approximately $9.18 million, which is a solid base.

The contribution of different business segments is highly skewed. Service Revenues are the clear dominant segment, representing well over 99% of the total revenue, based on the 2024 fiscal year where Service Revenues were $17.58 million out of $17.61 million in total revenue. License Fees and Other Income, which includes franchise revenues from agencies using the Wilhelmina brand, is a tiny, stable piece of the pie, sitting at just $8,000 in Q1 2025. It's a non-growth area, but a steady one.

• Service Revenue is the sole growth driver.
• License fees are stable but immaterial to growth.

The significant change in the revenue stream over the last few years isn't a shift in the type of revenue, but an expansion of the source within the Service Revenue category, specifically the increasing representation of social media influencers and actors alongside traditional models. This move is critical for keeping up with the evolving media landscape. Your action here is to monitor Q3 and Q4 2025 reports to see if the Q2 revenue dip was a blip or the start of a trend. If Q3 revenue growth is negative, that's a red flag for the full 2025 fiscal year outlook.

Profitability Metrics

You're looking at Wilhelmina International, Inc. (WHLM) because you need to know if the recent operational improvements are translating into sustainable profit. The quick takeaway is that the company is showing a significant near-term jump in operating efficiency, with Q1 2025 operating income more than doubling year-over-year, but its final net profit margins remain razor-thin compared to industry benchmarks.

In the first quarter of 2025, Wilhelmina International, Inc. reported total revenues of $4.6 million, and the profitability story is one of tight cost management following top-line growth. The nature of the talent management business means their reported revenue is essentially their gross profit-the commission they earn after the model's fee is paid. Here's the quick math on their Q1 2025 performance, compared to the prior fiscal year (FY 2024) and the broader agency industry.

Gross and Operating Margin Trends

Wilhelmina International, Inc.'s gross profit margin sits near 100.0% on reported revenue because their financial model treats the model's compensation as a pass-through, not a Cost of Goods Sold (COGS). This is a structural advantage, but it means you must focus heavily on the operating profit margin to gauge true operational efficiency. The Q1 2025 operating income of $153,000 is a massive improvement, jumping 109.6% from the prior year's first quarter. This is defintely a win for cost management, showing that revenue growth is finally outpacing the rise in operating expenses, which is the core challenge for any high-gross-margin, service-based business.

The operating profit margin for Q1 2025 was 3.3%. While this is a significant improvement from 1.8% a year earlier, it's still relatively low for an agency business. For context, larger, successful agencies (8-figure revenue) often maintain profit margins in the 25-32% range. Wilhelmina International, Inc.'s challenge isn't the cost of the talent; it's the cost of running the business-the salaries, office space, and marketing needed to book that talent. The operating leverage is still fragile.

• Q1 2025 Operating Income: $153,000.
• Operating Margin: 3.3% (Up from 1.8% in Q1 2024).
• Net Margin: 3.41% (Slightly better than the 3.49% annual net margin in FY 2024).

Net Profit and Industry Comparison

The net profit margin-the true bottom line-was 3.41% in Q1 2025, yielding $157,000 in net income. This is a modest margin, but it's a positive result, especially when you consider that the average net profit margin for the broader Advertising Agency industry is actually negative, at -1.9%. Wilhelmina International, Inc. is managing to stay in the black where many peers struggle, which speaks to a disciplined financial structure, even if the absolute profit is small.

What this estimate hides is the potential for volatility. The talent industry is cyclical, and a small margin means any unexpected increase in legal costs, a drop in key client bookings, or a dip in license fees can quickly push the company back to a net loss. The Q1 2025 results show a positive trend, but the company must continue to grow revenue faster than its Selling, General, and Administrative (SG&A) expenses to truly solidify this profitability. You can explore this further in our full analysis: Breaking Down Wilhelmina International, Inc. (WHLM) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

Wilhelmina International, Inc. (WHLM) operates with a remarkably conservative capital structure, choosing to fund its growth primarily through equity and retained earnings rather than debt. This is a critical insight: the company maintains an extremely low level of financial leverage (the use of borrowed money to finance assets), which significantly de-risks the balance sheet for investors.

As of the most recent data near the end of 2025, Wilhelmina International, Inc. reports total debt of approximately $3.19 million, which is minimal for a global operation. This debt is largely operational, not long-term structural borrowing, as evidenced by the fact that some reports indicate long-term debt is effectively $0.0. This cash-rich approach is a clear strategic choice, and it's a good one.

Here's the quick math on the company's capital structure:

The Debt-to-Equity (D/E) ratio is the clearest signal of this strategy. At just 0.13, Wilhelmina International, Inc. is far less leveraged than its industry peers. For context, the average D/E ratio for the broader Advertising Agencies industry-the closest proxy for talent management-is around 0.79, meaning the average peer uses about six times more debt relative to equity than Wilhelmina International, Inc. This low leverage is a powerful defense against economic downturns, plus it means less cash is diverted to interest payments.

The company's financing balance is heavily skewed toward equity funding, which is typical for service-based businesses that don't need massive capital expenditures (CapEx) for factories or heavy equipment. They simply don't have a need for large debt issuances or complex refinancing activities; the most notable recent corporate action was the Form 15-12G filing in September 2025, indicating a move to deregister with the SEC and cease reporting requirements, not a debt action. This is a business built on talent and brand, not on credit. You defintely want to see this kind of balance sheet strength when looking at non-capital-intensive firms.

The lack of a credit rating is a non-issue here; companies with this little debt simply don't bother getting one. Their low D/E ratio is the best credit rating you could ask for. If you are interested in who is providing that equity, you should read Exploring Wilhelmina International, Inc. (WHLM) Investor Profile: Who's Buying and Why?

• Debt is minimal at $3.19 million.
• D/E ratio of 0.13 signals low risk.
• Growth is self-funded, not credit-driven.

Liquidity and Solvency

Wilhelmina International, Inc. (WHLM) shows a healthy, though slightly strained, near-term liquidity position, primarily driven by strong current and quick ratios but pressured by cash usage in the first half of 2025. You should view the solid ratio numbers as a buffer, but the cash flow trend requires close attention.

Assessing Wilhelmina International, Inc.'s Liquidity

The company's liquidity ratios, which measure its ability to cover short-term debts, remain strong. As of the latest available data, the Current Ratio is approximately 1.74 and the Quick Ratio is approximately 1.72. Since these two ratios are nearly identical, it tells you Wilhelmina International, Inc. has very little inventory, which is expected for a talent management business. A ratio above 1.0 is generally good; a 1.7x ratio shows a solid cushion.

Here's the quick math on what that means: for every dollar of current liabilities (short-term bills), the company holds $1.74 in current assets (cash, receivables, etc.). That's defintely a good sign for solvency.

The working capital trend, however, is where the risk lies. The company's cash balance dropped significantly from $8.5 million at the end of 2024 to $5.5 million as of March 31, 2025. This $3.0 million decline signals that cash is being consumed faster than it is being generated, which is the definition of a working capital strain. This was exacerbated by an increase in Accounts Receivable (AR) of about $1.7 million in the first half of 2025, meaning clients are taking longer to pay, tying up cash that could be used for operations.

The cash flow statement overview for the first quarter of 2025 highlights the pressure points:

• Operating Cash Flow: Net cash used was $2.2 million. This is the most critical number, showing the core business burned cash to operate.
• Investing Cash Flow: Net cash used was a minimal $2,000. The company is not making significant capital expenditures (CapEx).
• Financing Cash Flow: Cash used was $0.9 million, primarily for a share repurchase in Q1 2025, which is a discretionary use of cash.

What this estimate hides is the underlying cause. The cash burn is not due to massive investment, but rather operational costs outpacing collections and a deliberate capital return to shareholders. Management has stated that liquidity is sufficient for the next 12 months, but that hinges on their ability to reverse the negative operating cash flow trend and collect those rising receivables.

For a deeper dive into who is betting on this turnaround, you should read Exploring Wilhelmina International, Inc. (WHLM) Investor Profile: Who's Buying and Why?

To summarize the liquidity position, here are the key 2025 metrics:

Valuation Analysis

You want to know if Wilhelmina International, Inc. (WHLM) is a good buy right now, and the answer, honestly, is that its valuation metrics send mixed signals. While the stock's price-to-book ratio screams 'undervalued,' its price-to-earnings ratio suggests the market is pricing in significant future growth that hasn't materialized yet. This duality is common for smaller, illiquid stocks.

As of late 2025, the market is giving Wilhelmina International, Inc. a split grade. One analysis suggests the company is an attractive investment, citing a shift in its valuation grade as of October 31, 2025. But when you look closely at the numbers, you need to be careful about which metric you prioritize.

Key Valuation Multiples (FY 2025 TTM)

To cut through the noise, we look at three core ratios. The Trailing Twelve Months (TTM) Price-to-Earnings (P/E) ratio is high, but the Price-to-Book (P/B) and Enterprise Value-to-EBITDA (EV/EBITDA) ratios look compellingly low. Here's the quick math on the most recent figures:

A P/B ratio of just 0.76x means the stock is trading for less than the value of its net assets, which is defintely a classic sign of being undervalued. However, the P/E of 35.09x is quite high, suggesting that the company's current earnings are relatively low compared to its stock price, or that the market expects a sharp rebound in future profits.

Stock Price Volatility and Trajectory

The stock price trend over the last year shows significant volatility, which you should expect from a small-cap stock. Over the 52 weeks leading up to November 2025, the share price has ranged dramatically from a low of $0.40 to a high of $5.00. This is a massive swing, and it highlights the risk-reward profile here.

In terms of overall performance, the stock has underperformed the broader market. Over the last 52 weeks, Wilhelmina International, Inc.'s price has decreased by about -9.09%. The year-to-date return as of October 31, 2025, was even worse, sitting at -15.49%, while the S&P 500 returned 16.30%. This is a classic underperformer.

Dividend Policy and Analyst View

If you are looking for income, Wilhelmina International, Inc. is not the place to find it. The company does not currently pay a dividend, meaning its dividend yield is 0.00% and a payout ratio is not applicable.

The lack of a formal analyst consensus is also a key risk factor. Wilhelmina International, Inc. is covered by 0 analysts, so you won't find a widely accepted 'Buy,' 'Hold,' or 'Sell' rating from major firms. Instead, algorithmic assessments generally categorize it as a 'hold candidate' or suggest it is trading slightly above its intrinsic fair value estimate of around $2.75. You're flying solo on this one.

• The consensus is effectively a 'Hold' due to insufficient data.
• The low P/B ratio is the strongest argument for an undervalued position.
• The 52-week price volatility is extreme, from $0.40 to $5.00.

Risk Factors

You're looking at Wilhelmina International, Inc. (WHLM) and seeing a strong brand, but the financial health of any talent agency is tied to a volatile industry. The near-term risks, especially those highlighted in the Q2 2025 filings, are less about the brand's strength and more about cost control and cash flow management. You need to focus on where the money is leaking, not just where the revenue is growing.

The core challenge for Wilhelmina International, Inc. is translating solid top-line activity-like the 10.1% year-to-date growth in gross billings-into sustainable profit and cash. Honestly, the Q2 2025 results show a clear profitability squeeze. Operating income for the quarter plummeted 74.6% year-over-year, dropping to just $101k. That's a huge compression.

Here's the quick math on the financial and operational risks:

• Margin Erosion: The operating margin fell sharply to 2.2% in Q2 2025, down from 8.6% in the prior year quarter. This is driven by rising operating expenses.
• Cost Inflation: Salaries and service costs rose 7.1% in Q2, and office and general expenses climbed 8.6%. This is a classic operating leverage problem: costs are outpacing revenue growth.
• Cash Burn from Working Capital: The company used $(2,060)k in cash from operating activities in the first six months of 2025. This cash drain is partly due to accounts receivable (AR) increasing by $1.7M compared to December 31, 2024. They're doing the work, but they're waiting longer to get paid.

External and Strategic Headwinds

Beyond the internal financial metrics, Wilhelmina International, Inc. faces significant external pressures common to the talent management sector. The industry is rapidly shifting, and traditional retail clients in fashion and beauty are increasingly diverting their budgets away from conventional model bookings toward digital, social, and new media platforms. This means competition from smaller, more agile firms is intense.

Also, the company is managing an unresolved, ongoing class litigation. While management expects to defend the case vigorously, legal exposure is a real risk that could result in an unquantifiable potential loss. You can look at the company's strategic focus in our Mission Statement, Vision, & Core Values of Wilhelmina International, Inc. (WHLM). for their long-term view.

Mitigation Strategies and Clear Actions

The good news is management isn't sitting still. They are executing clear mitigation strategies to stabilize the business and drive future growth. These actions are crucial for an investor to monitor:

They have sufficient liquidity for the next 12 months, which is a defintely a positive buffer against the operating cash burn. The key action for you is to watch the Q3 2025 report for signs of margin recovery and a reversal in the negative operating cash flow trend. If the operating margin stabilizes above the 5% mark, the risk profile improves significantly.

Growth Opportunities

You're looking at Wilhelmina International, Inc. (WHLM) and wondering where the next dollar of growth comes from. The short answer is: digital expansion and premium talent. The company is successfully pivoting its core model management business while aggressively capturing the high-margin social media influencer market, which is why year-to-date gross billings were up 10.1% through Q2 2025.

The core strategy isn't about chasing volume; it's about increasing commission yield on high-value bookings. For the first quarter of 2025, total revenues hit $4.627 million, a solid 10.9% increase over the prior year, driven primarily by commissions from core model bookings. That's a clear signal that their focus on premium talent is paying off. They're getting more for the talent they already have, and that's a very efficient growth engine.

Here's the quick math on profitability: Q1 2025 operating income was $0.153 million, which represents a massive 109.6% jump year-over-year. This huge margin expansion comes from revenue growth outpacing the rise in operating expenses, plus a conscious effort to cut corporate overhead, which declined 15.5% in Q2 year-over-year.

• Expand women's high-end fashion board.
• Grow Aperture division (commercials, film, TV).
• Increase social media influencer representation.
• Enhance brand awareness globally.

The company's strategic moves are designed to diversify revenue streams beyond traditional runway and print. Growing the Aperture division-their talent representation in commercials, film, and television-is a smart move because those contracts often carry higher, more stable fees. Also, expanding their social media influencer representation taps directly into the massive shift in advertising spend toward digital platforms.

A key move on the international front was the acquisition of London-based Union Models, which now operates as Wilhelmina London. This instantly strengthens their European footprint with a team recognized for its highly curated style and international reputation, which should provide resilience against regional economic swings. This kind of tactical acquisition is how you build a competitive moat (a sustainable competitive advantage) in a fragmented industry.

Their competitive advantage is rooted in their global footprint-New York, Los Angeles, Miami, and London-and a diverse, well-established talent roster. This geographical reach and brand reputation are difficult for smaller agencies to replicate. Still, the industry is always evolving, so their continued focus on digital and high-end bookings is defintely crucial. For a deeper dive into the company's balance sheet health, you should read our full analysis at Breaking Down Wilhelmina International, Inc. (WHLM) Financial Health: Key Insights for Investors.

To summarize the near-term financial picture, the growth is real, but it's concentrated in the top line and margin management. Here are the key 2025 year-to-date numbers to watch:

The next action is to monitor Q3 2025 results for continued operating leverage (revenue growth outpacing expense growth) and any updates on their social media influencer strategy, as that is the highest-potential growth area.