Digital Brands Group, Inc. (DBGI) AI Stock Analysis
DBGI AI stock analysis summary
AI ResearchDigital Brands Group, Inc. (DBGI) operates an apparel portfolio across direct-to-consumer and wholesale channels. In FY2025, revenue fell 36.1% to $7.4M alongside an operating margin of -323.3% and a net loss of -$28.3M. The company faces high leverage, carrying $21.6M in total debt against $1.4M in cash and short-term investments as of June 30, 2026.
- Market cap
- $2.2M
- Revenue (TTM)
- $5.8M
- P/E
- —
- 1Y return
- -99.3% S&P 500 16.8%
- Avg. target
- —
Bull case
- Digital Brands Group generated a 5-year revenue CAGR of 7.1% from FY2020 to FY2025.
- The stock trades at a price-to-sales ratio of 0.4x, below the US-listed Consumer Cyclical peer median of 0.7x.
- The company's EV-to-EBITDA multiple is 2.7x, compared to the peer median of 11.1x.
Bear case
- Revenue fell 36.1% to $7.4M in FY2025, followed by a 46.3% year-over-year revenue drop in the quarter ended June 30, 2026.
- Operating margin was -323.3% in FY2025, and trailing twelve-month operating margin deteriorated to -618.6%.
- Total debt of $21.6M significantly exceeds cash and short-term investments of $1.4M as of June 30, 2026.
What Digital Brands does
Digital Brands Group, Inc. specializes in providing a wide range of apparel under multiple brand names through direct-to-consumer and wholesale channels. Its product portfolio includes denims, men's suiting, women's dresses, tops, jumpsuits, bottoms, jackets, rompers, sweaters, skirts, shorts, athleisure wear, and accessory products. The company offers custom and made-to-measure suiting and sportswear under brand names including Bailey 44, DSTLD, Harper & Jones, Stateside, Sundry, and ACE Studios. It distributes products through its direct-to-consumer websites, wholesale distribution to specialty stores and select department stores, and through its own showrooms.
Growth and profitability
Revenue reached a peak of $14.9M in FY2023 with 44.3% growth, before falling 22.5% in FY2024 to $11.6M and declining 36.1% in FY2025 to $7.4M. Gross margin dropped from 43.9% in FY2023 to 14.3% in FY2025. Operating margins remained negative across all reported years, worsening from -76.3% in FY2024 to -323.3% in FY2025, which led to a net loss of -$28.3M. For the trailing twelve months ended June 30, 2026, revenue stood at $5.8M with an operating margin of -618.6% and an eps of -$88.99, as latest quarterly revenue declined 46.3% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Digital Brands Group held $1.4M in cash and short-term investments against total debt of $21.6M, resulting in net debt of $20.2M. Shareholders' equity was $540,031, reflecting a debt-to-equity ratio of 40.04 and a current ratio of 0.58. Operating cash flow in FY2025 was -$15.9M, matching a free cash flow of -$15.9M with capital expenditures of $2. The company's share count increased 660900.0% over five years.
Valuation and performance
DBGI traded at $2.38 on October 16, 2026, giving it a market capitalization of $2.2M and an enterprise value of $23.4M. The stock trades at a price-to-sales multiple of 0.4x, below the 0.7x median of its US-listed Consumer Cyclical peers, and an EV-to-EBITDA multiple of 2.7x compared to the peer median of 11.1x. Its price-to-book ratio is 5.9x. Over the past year, the stock fell 99.3%, compared to a 16.8% return for the S&P 500 (SPY).
What analysts expect
Digital Brands Group recorded 0 EPS beats over the last 4 quarters. The company's next earnings report is scheduled for November 13, 2026. Trailing twelve-month EPS stands at -$88.99, and the stock closed at $2.38 on October 16, 2026, down 97.7% from its 200-day moving average.
Key risks and what to watch
- A current ratio of 0.58 as of June 30, 2026, indicates near-term liquidity constraints.
- The 5-year share count increase of 660900.0% highlights severe historical equity dilution.
- Short interest stands at 20.1% of the float, pointing to elevated market skepticism.
- Free cash flow remained negative at -$15.9M in FY2025, contributing to ongoing cash burn.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this DBGI AI stock analysis
This page is an AI-written research summary of Digital Brands Group, Inc. (DBGI). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: DBGI income statement, DBGI balance sheet, DBGI key metrics, DBGI chart. See the DBGI stock overview for the latest quote and news.
DBGI AI stock analysis FAQ
What brands are part of Digital Brands Group, Inc.?
The company's brand portfolio includes Bailey 44, DSTLD, Harper & Jones, Stateside, Sundry, and ACE Studios.
What was Digital Brands Group's revenue in FY2025?
Digital Brands Group reported revenue of $7.4M in FY2025, representing a 36.1% decline from $11.6M in FY2024.
How much debt does DBGI have?
As of June 30, 2026, the company reported $21.6M in total debt and $1.4M in cash and short-term investments, resulting in net debt of $20.2M.
Does DBGI pay a dividend?
Digital Brands Group does not pay a dividend.
When is the next earnings date for DBGI?
The next earnings date for Digital Brands Group is scheduled for November 13, 2026.