PLAY has excessive debt relative to revenue and requires significant operational restructuring to survive; current fundamentals are weak.

Playboy seems interesting. Very low market cap going in the right direction. Growing revenue 11% year-over-year positive net income last quarter forgotten iconic brand.

Okay, I had to do it. Let's uh let's see. The 13-year-old in me wants to see what this has to do. All right, let's pull it up. Let's take a look at some cash flow.

Wasn't Let's see. Playboy stock. What do we got? Ouch. $40 a share peak down to a$122 a share. Oh my god. Ebida enterprise market cap $136 million.

Well, first of all, I mean, if you're less than a dollar a share, you could be delisted. So, if you're buying this company, uh there's there's a serious potential that you could not if it's delisted, it's going to be much more harder to get your money out of that company should you want it.

Um so, they need to do a massive reverse split to get their stock price up. Reverse splits are never looked favorably upon in the market.

Revenue not going I mean up 4% last year. Okay. Margins decent margin 70% gross profit margin on the 120 million. But did they keep any of that? So they made $85 million gross profit selling and general administration 91.

It cost them $91 million to run a business that makesund 12 million. You guys see this? So they gener I'll make this a bit I can't make it bigger but I can shrink this so it's easier for you to see.

So they made 120 million of revenue with a staff of 91 million. That means like revenue per employee is like a$125.

Um, Ebida -2. Let's see. Issuing shares. That's how they're covering the free cash flow miss. I bet they're new balance sheet first, but then they're probably so missing cash flow.

Uh, only 40 million in cash on hand. inventory. A r fine property. Is that the mansion? Let me know in the comments. Is this $22 million asset the Playboy Mansion in LA?

Here's a thought. How much is the real estate value of that Playboy Mansion? And what's the market cap of the stock? Could you buy the stock, shut down the business, sell the real estate and make money? Probably not, but just fun mental exercise.

Um, payables not growing. Good. I'd be concerned that payables are growing. Long-term debt. Current port capital lease. 63 million of current liability. Ooh, long-term debt. Oh man, the bank's going to take this sucker.

Long-term debt is is greater than revenue. 172 million of debt. That's just bank debt. Not not to mention the 15 million in capital leases or 23 million of others for a total of a quarter of a billion of debt.

Here's a problem. Most of their assets are intangible. See this? That's probably from the original acquisition when they bought it from Hefner. I'm assuming they if I remember

terms of hard assets it looks like you got a property I'm assuming that's the property there's not much here but you have a lot a lot debt let's see cash flow statement.

So, stockbased comp, nothing. Great. Good to see. Cash operations is zero.

Let's get some more history here. It was positive, then it went negative hard, and that's kind of break even. So, you're right, commenter. You're right. They are kind of like turning the ship around a little bit.

Okay. Capex, nothing. They've got no cash to do anything with that.

It's tough to tough to like, man. They have way too much debt. Um, and I'm I'm not seeing with with that kind of revenue, they need to run a much cleaner operation to see if they can, you know, jin up enough cash to pay off the debt.

How do you pay 700 million of debt when your revenue is 120 million, right? Is that the liability? Long-term liability assets longterm 100 I'm sorry I misspoke 172 not 700 172 million in debt.

Um they've got to they got to really work hard to uh to trim down costs. So, they got $35 million sitting in the cogs for a for a business that makes content online and then they're really paying their their executive staff 91 million.

You got to cut all that stuff out. I think you go after SGNA here and you got to lay a ton of people off at HQ. focus on being super lean and scrappy and see if you can't try to keep a lot more of the 120 million of revenue to the bottom line.

Then use that to pay down your debt and maybe 3 to 5 years from now you kind of ek out a business that is debtree then you can start growing it. Uh but they've got they've got a lot of a lot of way to go here.