Digital Brands Group, Inc. (DBGI): Business Model Canvas [Dec-2025 Updated]

You're digging into the current mechanics of Digital Brands Group, Inc. (DBGI), and honestly, the picture shows a company executing a major strategic shift, moving away from its legacy luxury portfolio toward the high-octane collegiate apparel space with its AVO brand. As of late 2025, this pivot is backed by a recent capital infusion, netting them about $17.76 million from equity and warrants in Q3 2025, leaving them with $6.7 million in cash to fuel this new direction. This canvas lays out exactly how they plan to marry their existing Direct-to-Consumer (DTC) infrastructure with this new university-focused value proposition-it's a fascinating blueprint of risk and opportunity you need to see before making any calls.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Key Partnerships

You're looking at the essential external relationships Digital Brands Group, Inc. (DBGI) relies on to execute its strategy as of late 2025. These aren't just vendor contracts; they are foundational to accessing specific markets and securing necessary capital.

The partnership with Yea Alabama is the cornerstone for DBGI's push into the Name, Image, and Likeness (NIL) college apparel sector, a market segment estimated at $36.4 billion in 2024, projected to hit $49.0 billion by 2030. This is an exclusive three-year private label manufacturing agreement.

Under this deal, Digital Brands Group, Inc. exclusively designs, manufactures, and distributes collegiate apparel through University of Alabama channels. To be fair, the alignment of interests is clear:

• Yea Alabama earns a 20% royalty on all revenue from the AVO x Yea Alabama apparel collection.
• Digital Brands Group, Inc. is planning to release new capsule collections in October, November, and December 2025, building on the September product capsule.

For digital brand promotion, the relationship with LTK, one of the largest domestic full-service influencer platforms, is key to scaling consumer outreach. This performance-based platform is integral to the new digital strategy.

Here are some relevant scale metrics for the LTK network Digital Brands Group, Inc. is tapping into:

LTK Metric	Data Point (Late 2025 Context)
Annual Retail Sales Driven	Over $5 billion
Monthly Consumers on Shopping Platform	40 million
Retailers Partnering with LTK	Over 8,000
Annual Brand Collaborations Driven	More than 55,000

To enhance its eCommerce tools and protect its assets, Digital Brands Group, Inc. partnered with SECUR3D Inc, a leader in brand and intellectual property protection, announced on November 14, 2025. SECUR3D's flagship product, AssetSafe, uses AI to create a unique digital fingerprint to detect theft and infringement before it goes live across platforms worldwide.

The need for capital to support these growth initiatives is bridged by accredited investors through Private Investment in Public Equity (PIPE) financing. The Series D PIPE financing was recently amended to bring in additional funds, which is definitely a sign of near-term cash requirements, given the working capital deficit of $4.8M as of September 30, 2025.

The details of the additional investment round are concrete:

Financing Component	Amount/Term
Additional Investment Secured	$1,500,000
Additional Series D Preferred Shares Issued	1,875 shares
Stated Value of Additional Shares	$2,156,250
Conversion Price Basis	80% of the lowest closing price over five trading days prior to conversion
Resale Registration Statement Deadline	December 1, 2025

This financing activity contrasts with the Q3 2025 performance, where net revenues were $1.6M, though the company secured $7.8 million from warrant exercise to support obligations through mid-2026. Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Key Activities

You're looking at the core engine room of Digital Brands Group, Inc. (DBGI) as of late 2025. These are the specific actions the company focuses on to deliver value and generate revenue, grounded in their Q3 2025 performance data.

Acquiring and scaling digitally native consumer brands

Digital Brands Group, Inc. operates as a digital consumption platform centered on acquiring, operating, and scaling digitally native consumer brands across fashion, home & lifestyle, health & wellness, and consumer electronics categories. While the focus has shifted toward organic growth and optimizing the existing portfolio, the historical cost of this activity is visible in past results. The company has experienced an estimated negative $42.3 million in net income expenses and shareholder equity over the last three years associated with prior acquisitions.

The current operational focus supports scaling through shared services. For the nine months ended September 30, 2025, net cash used in operating activities was $11.15 million.

Centralized supply chain and inventory management

This activity involves providing shared services, including supply chain management, to portfolio companies for rapid scaling of online sales channels. The efficiency of this centralized model directly impacts gross margin. For the third quarter ended September 30, 2025, the gross margin stood at 42.7%, a decrease from 46.0% a year ago. Gross profit for Q3 2025 was $0.7 million on net revenues of $1.65 million.

The fixed costs associated with this function are significant, including:

• Warehouse rent and labor expenses
• Pattern makers and sewers expenses
• Some design members expenses

Here's a quick look at the Q3 2025 operational expenses related to running the platform:

Expense Category	Q3 2025 Amount	Year-Ago Comparison
Sales & Marketing expenses	$1.60 million	Rose ~144%
G&A expenses	$2.2 million	Decreased $0.2 million

Designing, manufacturing, and distributing collegiate apparel (AVO)

The AVO collegiate brand is a key growth driver, focusing on designing, manufacturing, and distributing apparel. This segment showed significant momentum in Q3 2025, overshadowing softer legacy wholesale revenue. Management noted that this growth was achieved with only one university as of the reporting date, with expectations for meaningful increases in university partnerships over the following months.

The market opportunity is substantial, as the global licensed sports merchandise market was estimated at $36.4 billion in 2024 and is projected to increase to $49.0 billion by 2030, according to Grand View Research. The company is aiming to leverage this by expanding its product offering and influencer/sorority marketing programs.

The company cited higher bookings for its Spring 2026 wholesale orders versus the same period last year, and its largest national account is doubling the number of stores for its Sundry brand from 50 to 100.

Data-driven digital marketing and customer acquisition

Digital Brands Group, Inc. provides direct-to-consumer marketing services to enable rapid scaling of online sales channels. This is executed through targeted social media campaigns, search marketing, and influencer partnerships. The investment in this area saw a sharp increase in Q3 2025, with Sales & Marketing expenses reaching $1.60 million, which is a ~144% rise compared to the prior year's quarter.

Historically, these initiatives have shown strong returns; prior marketing initiatives yielded a 224% increase in daily digital revenues. The current strategy involves leveraging increased cash reserves, bolstered by approximately $17.76 million raised through private offerings and warrant exercises, to fund operations and these growth marketing initiatives.

For you, the key takeaway here is the spend: Q3 2025 S&M spend was $1.60 million, nearly matching the total Q3 2025 net revenue of $1.65 million. Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Key Resources

You're looking at the core assets Digital Brands Group, Inc. (DBGI) is relying on to execute its omnichannel strategy. These aren't just inventory; they are the foundational elements supporting the entire business structure as of late 2025.

The most tangible assets are the portfolio of luxury lifestyle brands. This collection is what drives top-line revenue and consumer interaction. Honestly, the brand equity here is what the entire shared services model is built to support and scale. You need to know exactly what's in that stable.

• Bailey 44
• DSTLD
• Harper & Jones
• Stateside
• Sundry

Financially speaking, liquidity is a key resource, especially given the operational burn. As of the third quarter ending September 30, 2025, Digital Brands Group, Inc. reported cash and equivalents of $6.7 million. That figure is critical because it reflects a significant bolstering of the balance sheet, driven by financings like the Series D proceeds, compared to only $164,431 at the end of 2024. Still, you have to weigh that against the operational reality of the period; Q3 2025 net revenues were $1.65 million, and the net loss was $3.45 million. Here's a quick look at the context surrounding that cash position:

Metric	Value (Q3 2025 or MRQ)	Context
Cash & Equivalents (MRQ)	$6.70 million	Up from $164,431 at 12/31/2024
Q3 2025 Net Revenues	$1.65 million	Down from $2.44 million year-ago
Q3 2025 Net Loss	$3.45 million	Slight improvement from $3.54 million same period last year
Gross Profit Margin (Q3 2025)	42.7%	Down from 46.0% a year ago
Total Debt / Equity (MRQ)	40.00%	A measure of leverage

Next, you have the technology stack. Digital Brands Group, Inc. is positioning itself as a technology-enabled apparel group, not just a retailer. This includes proprietary assets, such as the technology gained from the Open Daily acquisition, which management emphasizes includes growth technologies like AI-powered IP protection and advanced data security tools. This tech is meant to streamline brand discovery and ensure authenticity, which is a key differentiator from pure-play digital brands that struggle with customer acquisition costs.

Finally, the operational backbone is the centralized shared services platform. This is how the company aims to drive margin expansion. By owning the entire margin stack-controlling pricing, promotions, and profitability across the portfolio-they leverage operating costs. This model is designed to create a scalable flywheel, using data and personalized customer cohorts to fuel loyalty and LTV (Lifetime Value). It's the mechanism intended to make the collection of brands more than the sum of their parts.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Value Propositions

You're looking at the core differentiators Digital Brands Group, Inc. (DBGI) is pushing to drive value in late 2025. It's a mix of curated luxury heritage and aggressive new channel growth, particularly in the collegiate space.

Curated collection of luxury and lifestyle apparel for men and women

Digital Brands Group, Inc. positions itself as a platform for a curated collection of luxury lifestyle, digital-first brands. The portfolio includes established names, such as Bailey 44, DSTLD, and Harper & Jones, which form the foundation of this luxury offering. The company's overall scale, based on recent performance, shows that for the third quarter ended September 30, 2025, net revenues were $1.7 million. For the first nine months of 2025, net revenues totaled $5.8 million.

Quality and value leadership in the collegiate apparel market (AVO)

The AVO collegiate brand is a major focus, with the CEO stating a belief that Digital Brands Group, Inc. is the quality and value leader in this segment. This push is anchored by an exclusive three-year private label manufacturing agreement with Yea Alabama, the official NIL program of the University of Alabama. The growth in this channel is significant, even though the Q3 2025 results reflected revenue from only one university. The company sees a massive opportunity, noting the global licensed sports merchandise market was estimated at $36.4 billion in 2024. The company is actively in discussions to expand this model to additional universities.

Enhanced digital retail experience via virtual shopping and AI tools

To enhance the digital experience, Digital Brands Group, Inc. acquired the assets of Open Daily Technologies Inc. on April 1, 2025, for 344,827 shares of common stock, valued at approximately $3 million. This acquisition brought in proprietary assets like the Outfit Virtual Shopping platform and the Outfit Voice AI intelligent shopping assistant. While specific internal adoption rates for Digital Brands Group, Inc.'s new tools aren't public, the broader industry context shows the potential ROI for such investments:

AI/Virtual Tool Metric	Reported Industry Data Point (2025)
AI-powered chat boost in conversion	4 times increase over non-AI interaction
Conversion rate increase from AI-enhanced GTM	15% to 30%
Revenue increase from personalized touchpoints	5% to 8%
Global AI in eCommerce Market Valuation	$8.65 billion

The company is clearly moving to leverage these technologies to improve engagement and sales conversion, which is a defintely smart move.

Streamlined operations and rapid scaling for acquired brands

A core part of the value proposition is the centralized operating model that enables rapid scaling and operational efficiency for portfolio companies. This streamlining has already shown financial results through debt reduction and cost control:

• Expected annual interest expense reduction from an estimated $3.1 million in fiscal year 2024 to approximately $420,000 in fiscal year 2025.
• This interest expense reduction provides a net benefit to net income and cash flow of about $2.7 million in fiscal year 2025.
• General and administrative (G&A) expenses saw a reduction of approximately $500,000 in Q3 2024 versus Q2 2024.
• The company bolstered its cash position by raising $17.76 million through private offerings and warrant exercises.

The Q3 2025 gross margin was 42.7%, down from 46.0% a year prior, but management anticipates margins will expand with a higher mix of e-commerce and higher-margin wholesale accounts.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Relationships

You're looking at how Digital Brands Group, Inc. (DBGI) connects with the people buying their apparel as of late 2025. It's a mix of direct digital sales, data-driven personalization, and targeted, high-profile brand activations.

Direct-to-Consumer (DTC) engagement via owned websites

Digital Brands Group, Inc. operates its portfolio of brands on both a direct-to-consumer and wholesale basis, but the digital-first model centers on owned websites to reach consumers directly. You see the pressure this puts on marketing spend; for the third quarter of 2025, Sales & marketing expense rose approximately $\text{144\%}$ to $\text{\$1.60M}$. This heavy investment supports the DTC channel, which contributes to the overall Q3 2025 net revenues of $\text{\$1.65M}$.

Personalized content and targeted marketing based on purchase history

The core philosophy here is owning the customer's "closet share." This means Digital Brands Group, Inc. focuses on leveraging customer data and purchase history to create content and looks that are specifically targeted to that individual cohort. This data-driven approach is meant to optimize customer acquisition costs and improve lifetime value across their digital channels.

Here's a quick look at the financial context surrounding these marketing efforts as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Net Revenues	$\text{\$1.65M}$	Down $\sim32\%$ from $\text{\$2.44M}$ year-ago.
Sales & Marketing Expense	$\text{\$1.60M}$	Rose $\sim144\%$ year-over-year.
Gross Margin	$\text{42.7\%}$	Down from $\text{46.0\%}$ a year prior.
Projected FY 2025 Interest Expense	$\text{\$420,000}$	Down from an estimated $\text{\$3.1M}$ in FY 2024.

The significant reduction in annual interest expense, projected from $\text{\$3.1M}$ in fiscal year 2024 down to approximately $\text{\$420,000}$ in fiscal year 2025, frees up capital that can be redirected toward these customer-facing initiatives, representing a net benefit of about $\text{\$2.7M}$ to net income and cash flow for the year.

Influencer and sorority marketing programs for the AVO brand

The AVO collegiate business is a key growth driver, showing significant month-over-month revenue growth throughout Q3 2025. This segment leans heavily into targeted, real-world engagement, like the inaugural event partnership with the Alabama Crimson Tide basketball team on Wednesday, December 3rd, 2025. This activation included distributing an exclusive Crimson Out tee and hosting a pop-up event featuring influencer and University of Alabama alumna, Sydney Thomas.

The focus on this channel reflects broader industry trends where brands are moving toward more authentic, measurable engagement:

• The AVO collegiate channel reported significant month-over-month revenue growth in Q3 2025.
• The Alabama event involved an influencer presence (Sydney Thomas) at a pre-game pop-up.
• The overall influencer marketing industry spend is surging, projected to reach $\text{\$32.55B}$ globally in 2025.
• $\text{73\%}$ of brands prefer working with micro and mid-tier creators for the strongest engagement-to-cost ratio.

Virtual shopping assistant (Outfit Voice AI) for customer defintely support

Digital Brands Group, Inc. bolstered its interactive commerce capabilities by acquiring the assets of Open Daily Technologies on April 2, 2025. This acquisition brought in the Outfit Voice AI, which is described as a multilingual, intelligent shopping assistant chat service designed to enhance customer support and personalized shopping. The transaction involved issuing $\text{344,827}$ shares of common stock.

The key technology components integrated include:

• Outfit Voice AI: A multilingual, intelligent shopping assistant chat service.
• Outfit Virtual Shopping: A live shopping platform replicating in-store experiences.
• Outfit ND-AI: A developing neuroscience-driven AI platform for consumer insights.

While the general market shows that $\text{67\%}$ of organizations consider voice AI core to their business strategy in 2025, the specific adoption rate or customer interaction volume for Digital Brands Group, Inc.'s Outfit Voice AI is not publicly detailed in the latest reports.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Channels

The Channels block for Digital Brands Group, Inc. (DBGI) reflects a multi-pronged approach, blending legacy wholesale relationships with significant investment in digital-first and collegiate-focused direct channels as of late 2025.

The overall financial performance for the third quarter ended September 30, 2025, provides context for the channel mix:

Metric	Q3 2025 Value	Year Ago Value
Net Revenues	$1.65 million	$2.44 million
Gross Profit	$706,609	$1.12 million
Gross Margin	42.7%	46.0%

Management noted that the Q3 2025 revenue decline was associated with softer legacy wholesale revenue, while anticipating gross margins to expand as revenues increase with a higher mix of e-commerce.

Owned e-commerce websites (Direct-to-Consumer)

• Management expects gross margins to expand with a higher mix of e-commerce.
• The company provides shared services including brand development and direct-to-consumer marketing to enable rapid scaling of online sales channels.

Wholesale distribution to national retail accounts (e.g., Sundry)

The wholesale channel, exemplified by the Sundry brand, showed signs of future strength despite current softness:

• The largest national account for Sundry is doubling the number of stores from 50 to 100 for Spring 2026 orders.
• A wholesale price increase of 20% for Sundry was implemented, expected to add more than $500,000 annually to gross margins compared to fiscal year 2024.
• Wholesale revenue was cited as the biggest factor in the Q3 2025 net revenue decline of approximately 32% year-over-year.

University bookstores and official NIL online storefronts (AVO)

This is a key growth area, with significant momentum reported:

• The company is experiencing significant revenue growth in its AVO collegiate brand.
• This growth was reported with one university as of the Q3 2025 report date.
• The global licensed sports merchandise market was estimated at $36.4 billion in 2024.
• This market is projected to increase to $49.0 billion by 2030.

Key third-party marketplaces for broader reach

Digital Brands Group, Inc. capitalizes on global online shopping trends by using key third-party marketplaces alongside owned websites.

• The company's digital-first approach allows portfolio brands to reach consumers directly via owned websites and key third-party marketplaces.
• The company has made use of influencer platforms, with over 200 influencer requests per brand on the LTK platform following product launches.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Customer Segments

You're looking at the customer base for Digital Brands Group, Inc. (DBGI) as of late 2025. The company's revenue picture in Q3 2025, at $1.6 million, shows a mix of legacy business performance and emerging growth areas, which directly relates to how they segment their buyers.

The core customer groups Digital Brands Group, Inc. targets are distinct, spanning high-end retail to the collegiate market, plus the capital providers essential for operation.

Here is a snapshot of the financial context surrounding these segments as of the third quarter ended September 30, 2025:

Metric	Value (as of Q3 2025)	Context
Q3 2025 Net Revenues	$1.6 million	Reflects performance before expected 2026 wholesale/collegiate ramp.
Cash and Cash Equivalents	$6.7 million	Bolstered by recent capital raises.
Capital Raised (Recent)	$17.76 million	From private offerings and warrant exercises.
Market Capitalization	$41.13 million	Reflects market valuation as of early December 2025.
Debt-to-Equity Ratio	0.4	Indicates a moderate level of leverage.

The customer segments are:

• Affluent consumers seeking luxury and elevated basics apparel, primarily served through brands like Bailey 44, DSTLD, Stateside, and Sundry.
• College students, alumni, and university sports fans (AVO), which is the high-growth focus area.
• Wholesale retail partners (national accounts) who carry established brands like Sundry.
• Institutional and accredited investors for capital raises, crucial for funding operations and regulatory milestones.

Focusing on the apparel consumers, you see a clear split in strategy. The legacy brands target the affluent buyer, while the newer AVO collegiate brand targets a highly engaged, younger demographic.

The AVO collegiate segment is positioned to capture a piece of a large market. The global licensed sports merchandise market was estimated at $36.4 billion in 2024, and projections put it at $49.0 billion by 2030.

The current penetration in the AVO segment is narrow but deep; the company noted significant growth is currently only with one university as of the Q3 2025 report.

For the wholesale channel, which the company stated is reflected more heavily in the Q3 2025 results than the collegiate growth, there are concrete expansion metrics:

• The largest national account is planning to double the number of stores from 50 to 100 carrying the Sundry brand.
• Management expects wholesale revenues to bottom out and see higher bookings for Spring 2026 orders.
• The company is aiming for higher-margin wholesale accounts to help expand gross margins.

Finally, the institutional and accredited investors are a segment that has recently provided necessary liquidity. The $17.76 million raised through private offerings and warrant exercises directly supports the balance sheet, which had a Current Ratio of 0.81 as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Cost Structure

You're looking at the core expenses Digital Brands Group, Inc. (DBGI) is managing as it pivots hard toward digital growth, especially with the collegiate line. Honestly, the cost structure is showing the strain of fixed overhead against lower revenue quarters, but there are clear wins on the debt side.

For apparel manufacturing and inventory, the cost of goods sold (COGS) is directly tied to the gross profit margin. In the third quarter ending September 30, 2025, the gross profit margin stood at $42.7\%$. This compares to $46.0\%$ in Q3 2024. The gross profit dollars for Q3 2025 were reported as $\$0.7$ million or specifically $\$706,609$. Management noted that the biggest factor impacting the margin decline is the fixed costs associated with gross margins, which includes warehouse rent, labor expenses for pattern makers, sewers, and some design members.

Digital marketing and customer acquisition expenses show a significant increase in the latest reported quarter. Sales and Marketing expenses for Q3 2025 were $\$1.6$ million, which is up from the $\$655,000$ reported in Q3 2024. This higher spend reflects the strategic shift to focus on top-line growth, particularly through the AVO collegiate brand and partnerships like the one with VAYNERCOMMERCE.

General and Administrative (G&A) overhead has seen targeted reductions, though the latest reported G&A for Q3 2025 was $\$2.2$ million, down from $\$2.4$ million in Q3 2024. You specifically noted the benchmark reduction: G&A expenses did decrease by $\$1.3$ million year-over-year in Q3 2024, and the sequential reduction from Q2 2024 to Q3 2024 was confirmed to be over $\$500,000$. This cost discipline signaled a move toward operational efficiencies.

The most significant positive change in the cost structure relates to financing costs. Interest expense is projected to be reduced substantially for Fiscal Year 2025. The projection is a decline from an estimated $\$3.1$ million in FY 2024 to an estimated $\$420,000$ in FY 2025. This reduction is expected to provide a net benefit of approximately $\$2.7$ million to net income and cash flow in FY 2025. Furthermore, the quarterly interest expense is expected to decline to approximately $\$105,000$ starting in Q1 2025, following the completion of amortization of interest expense debt at year-end 2024.

Here's a quick look at the key cost components we have the latest figures for:

Cost Component	Latest Reported Period Figure	Context/Projection
Gross Profit Margin (Apparel/Inventory)	$42.7\%$	Q3 2025
Sales & Marketing Expenses	$\$1.6$ million	Q3 2025
G&A Overhead (Sequential Reduction)	$>\$500,000$	Q3 2024 vs Q2 2024 sequential reduction
G&A Overhead (Latest Reported)	$\$2.2$ million	Q3 2025
Interest Expense (FY Projection)	$\$420,000$	Projected for FY 2025
Interest Expense (Quarterly Projection)	$\$105,000$	Projected quarterly starting Q1 2025

The shift in the cost structure is clearly visible when you look at the quarterly comparison, especially the marketing spend ramping up while G&A is being actively managed down from prior year levels. The real game-changer, though, is the interest expense falling off a cliff, which directly boosts the bottom line without needing a single extra sale.

• Fixed costs in gross margins include warehouse rent and associated labor.
• Q3 2024 Sales & Marketing expense ratio was $26.9\%$.
• The company anticipates an earnings benefit of over $\$4.5$ million in 2025 from concluding amortized non-cash expenses and interest savings.

Finance: draft 13-week cash view by Friday.

Digital Brands Group, Inc. (DBGI) - Canvas Business Model: Revenue Streams

You're looking at the core ways Digital Brands Group, Inc. (DBGI) is bringing in cash as of late 2025. The revenue picture is clearly bifurcated right now, with legacy channels facing headwinds while newer, high-growth areas start to contribute.

Total net revenues for the third quarter ended September 30, 2025, landed at $1.65 million, a notable drop from the $2.44 million reported in the same quarter last year. For the nine months ending September 30, 2025, net revenues totaled $5.8 million, down from $9.4 million in the prior year period. Still, the company secured significant non-operating capital through financing activities.

Here's a quick look at the key financial context around these revenue periods:

Metric	Q3 2025 Amount	Nine Months Ended Sept 30, 2025 Amount
Net Revenues	$1.65 million	$5.8 million
Gross Profit	$0.71 million	Not explicitly stated in the same context
Gross Margin	42.7%	40% (Nine-month figure)
Cash Provided by Financing Activities (9 Months)	Not specified for Q3 only	$23.4 million

The revenue streams are driven by several distinct activities:

• Direct-to-Consumer (DTC) sales from brand websites, supported by expertise in e-commerce and digital marketing to scale online sales channels.
• Wholesale revenue from legacy brands, which saw softer performance in Q3 2025, but management noted higher bookings for Spring 2026 wholesale orders compared to the same period last year.
• Collegiate apparel sales through the AVO brand and university partnerships, which management cited as experiencing significant month-over-month revenue growth in Q3 2025, currently active with one university.
• Proceeds from equity and warrant exercises, which provided a material cash boost; the company successfully raised $17.76 million through private offerings and warrant exercises during the period ending September 30, 2025.

To be fair, the Q3 results were overshadowed by the legacy wholesale segment, but the $17.76 million in financing proceeds, which included a specific $7.8 million warrant exercise, significantly bolstered the cash position to $6.7 million in cash as of September 30, 2025, providing runway for operations.