• Digital Brands Group posted a net loss of USD 11.39 million, widening from USD 2.09 million a year earlier.
• Net revenues fell 29.7% to USD 1.32 million, while gross margin slid 44 percentage points to about 3%.
• Operating loss widened to USD 7.42 million as operating expenses climbed to USD 7.46 million, driven by higher sales and marketing expense tied to amortization of prepaid marketing assets from collegiate NIL agreements and the MavDB Consulting agreement.
• Other expense rose to USD 3.97 million on a USD 3.9 million non-cash charge from a change in fair value of a share-based payment liability linked to make-whole provisions in collegiate NIL agreements.
• Management cited expected revenue growth in subsequent periods from expanded NIL and licensing partnerships, including a Penn State NIL agreement and a Sundry/TJX licensing arrangement, while noting ongoing gross-margin pressure from costs to support these programs and wholesale relationships.

Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Digital Brands Group Inc. published the original content used to generate this news brief via EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system operated by the U.S. Securities and Exchange Commission (Ref. ID: 0001493152-26-024610), on May 20, 2026, and is solely responsible for the information contained therein.