📊 DBGI Key Takeaways
Investment Thesis
Digital Brands Group exhibits severe operational distress with accelerating losses, negative free cash flow of -11.2M, and declining revenues despite maintaining a reasonable gross margin of 39.7%. The company is burning cash rapidly with operating cash flow of -11.2M while maintaining minimal debt, indicating the equity base is the primary funding source for continued losses.
DBGI Strengths
- Reasonable gross margin of 39.7% indicates core product margins remain viable
- Zero long-term debt provides some financial flexibility without leverage constraints
- Positive cash balance of 5.7M provides short-term runway, though depleting rapidly
DBGI Risks
- Revenue decline of 22.5% YoY signals severe market headwinds or operational failure in core business
- Operating losses of -7.3M with operating margin of -126.6% indicate inability to control costs relative to revenue
- Negative operating cash flow of -11.2M and free cash flow of -11.2M unsustainable; cash runway approximately 6 months at current burn rate
- Current ratio of 0.81x indicates potential near-term liquidity crisis and inability to meet current obligations
- Return on equity of -47.9% and ROA of -18.6% demonstrate severe capital inefficiency and shareholder value destruction
Key Metrics to Watch
- Monthly cash burn rate and projected runway until liquidity crisis
- Revenue stabilization or continued YoY decline trajectory
- Operating margin improvement toward breakeven or path to profitability
- Working capital management and accounts payable aging
- Potential asset sales, restructuring, or going concern status
DBGI Financial Metrics
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
DBGI Profitability Ratios
DBGI vs Consumer Sector
How Digital Brands Group, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
DBGI Balance Sheet & Liquidity
DBGI 5-Year Financial Trend
5-Year Trend Summary: Digital Brands Group, Inc.'s revenue has grown significantly by 97% over the 5-year period, indicating strong business expansion. The most recent EPS of $-457.78 indicates the company is currently unprofitable.
DBGI Growth Metrics (YoY)
DBGI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $1.7M | -$683.7K | $-1.18 |
| Q2 2025 | $2.3M | -$683.7K | $-0.81 |
| Q1 2025 | $1.9M | -$683.7K | $-0.92 |
| Q3 2024 | $2.4M | -$683.7K | $-1.63 |
| Q2 2024 | $3.4M | -$683.7K | $0.02 |
| Q1 2024 | $3.6M | -$683.7K | N/A |
| Q3 2023 | $2.7M | -$4.9M | N/A |
| Q2 2023 | $2.6M | -$1.1M | $-0.18 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
DBGI Capital Allocation
DBGI SEC Filings
Access official SEC EDGAR filings for Digital Brands Group, Inc. (CIK: 0001668010)
📋 Recent SEC Filings
❓ Frequently Asked Questions about DBGI
What is the AI rating for DBGI?
Digital Brands Group, Inc. (DBGI) has an AI rating of STRONG SELL with 95% confidence, based on fundamental analysis of SEC EDGAR filings.
What are DBGI's key strengths?
Reasonable gross margin of 39.7% indicates core product margins remain viable. Zero long-term debt provides some financial flexibility without leverage constraints.
What are the risks of investing in DBGI?
Revenue decline of 22.5% YoY signals severe market headwinds or operational failure in core business. Operating losses of -7.3M with operating margin of -126.6% indicate inability to control costs relative to revenue.
What is DBGI's revenue and growth?
Digital Brands Group, Inc. reported revenue of $5.8M.
Does DBGI pay dividends?
Digital Brands Group, Inc. does not currently pay dividends.
Where can I find DBGI SEC filings?
Official SEC filings for Digital Brands Group, Inc. (CIK: 0001668010) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is DBGI's EPS?
Digital Brands Group, Inc. has a diluted EPS of $-2.05.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.