Honey Birdette has grown revenue 12.1 per cent to US$18.4 million (~A$26.5 million) for the third quarter of 2026, as full-price sales and US eCommerce drove another lift for parent company Playboy.
The lingerie brand’s growth over the three months to September 30 was led by strong full-price sales, particularly through eCommerce in the United States and retail stores in Australia, Playboy reported.
Direct-to-consumer gross margin expanded about 140 basis points to 62.2 per cent, up from 60.8 per cent in the prior corresponding period, which the group put down to higher levels of operating leverage.
The brand also fronted the Playboy by Honey Birdette model search during the quarter, which drew about 48,000 contestants and more than 200,000 paying voters. That was roughly three times the number of contestants in the previous contest, and revenue passed US$1 million, more than double Playboy’s prior contest.
Under the deal structure, Playboy recognised net profit from the contest rather than total revenue.
Across the group, Playboy’s total revenue rose 9.4 per cent to US$31.7 million, with Honey Birdette, higher licensing royalties from China and stronger magazine and paid-voting revenue all contributing. Net income climbed 305 per cent to US$1.9 million, while adjusted EBITDA rose 95 per cent to US$7.9 million, the group’s seventh consecutive quarter of positive adjusted EBITDA.
“Our third quarter results not only showed our revenue growth potential, with revenue growing 9.4 per cent, but also our operating leverage inherent to our asset-light model, with operating income increasing to $4.0 million from $1.4 million a year ago,” Playboy CEO Ben Kohn said.
Operating income gains reflected higher gross profit, lower legal expenses and the release of a US sales tax reserve, while operating expenses held steady at US$27.7 million.
Licensing revenue grew 5.3 per cent to US$12.6 million. China royalties rose US$1.2 million, or almost 40 per cent, on the back of three new licensing agreements with a combined contract value of about US$15 million. Licensing segment operating income increased 41.1 per cent to US$10.9 million.
“Each of our core businesses contributed to our positive results,” Kohn said. “Licensing growth accelerated, led by three new licensing agreements in China with a total value of $15.0 million, and the business remains anchored by $324.0 million of contractual minimum guarantees.”
Playboy has also signed an agreement to acquire a property in Miami Beach, currently operated as the Freehand Hotel, to develop into a private members club. The group expects to commit about US$5 million in cash to the project, which it aims to recoup through future membership sales.
Playboy finished the quarter with US$34.9 million in total cash, including US$5.2 million of restricted cash.