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Digital Brands Group (DBGI) AI Stock Analysis
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Digital Brands Group
(NASDAQ:DBGI)
DBGI scores low primarily due to extremely weak financial performance (shrinking revenue, severe losses, and persistent cash burn) and poor technical trend (well below major moving averages with negative momentum). Positive corporate developments around contract-driven cash flow visibility and a go-private review provide some support, but do not outweigh the current operating and balance-sheet risks.
Digital Brands Group (DBGI) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $658.12K
- Dividend Yield
- ―
- Average Volume (3M)
- 820.63K
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- 1.51
- Revenue Growth
- -33.59%
- EPS Growth
- 94.24%
- Country
- US
- Employees
- 33
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Apparel - Retail
Digital Brands Group Business Overview & Revenue Model
Company Description
Digital Brands Group, Inc. (DBGI) functions as an apparel enterprise, distributing its diverse array of clothing labels both directly to consumers and via wholesale channels. Its brand portfolio includes DSTLD, which features denim garments, and ACE...
Digital Brands Group Earnings Call Summary
The earnings call presented a balanced view with significant achievements such as a successful partnership with VaynerCommerce and substantial debt reduction, contrasted by challenges like revenue decline and macroeconomic headwinds. The company's strategic shift towards growth and cost reductions are promising, but they are yet to fully offset the current revenue challenges.
Q3-2024 Updates
Positive Updates
Negative Updates
Company Guidance
In the Digital Brands Group Q3 2024 earnings call, significant guidance was provided regarding their strategic shift from debt reduction to growth initiatives. The company reported a 34% increase in daily digital revenues and a 7% rise in average order volume, attributed to their partnership with VaynerCommerce. They plan to launch several initiatives, including influencer campaigns and limited edition product capsules, as part of a broader growth strategy. Additionally, DBGI anticipates a $4.5 million increase in earnings for 2025 due to reduced amortized noncash expenses and interest, alongside an expected $500,000 annual boost to gross margins from a wholesale price increase at Sundry. Despite a decline in net revenues to $2.4 million from $3.3 million the previous year, the company's net loss improved to $3.5 million from $5.4 million, highlighting their focus on profitability over revenue growth.
Digital Brands Group Financial Statement Overview
Summary
Financials indicate very high risk: revenue is shrinking, profitability is severely negative (including negative TTM gross margin and very large net losses), and operating/free cash flow are consistently negative with accelerated cash burn in TTM. Balance sheet risk remains elevated with limited equity and high leverage (TTM debt-to-equity ~4.8x), despite debt reduction and equity improving from negative to slightly positive.
Income Statement
8Very NegativeBalance Sheet
22NegativeCash Flow
10Very Negative| Breakdown | TTM | Dec 2025 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.78M | 7.38M | 11.56M | 14.92M | 10.33M | 7.58M |
| Gross Profit | -453.14K | 1.05M | 3.64M | 6.54M | 3.54M | 1.87M |
| EBITDA | -40.98M | -25.65M | -7.78M | 449.72K | -15.93M | -28.57M |
| Net Income | -44.42M | -28.25M | -13.11M | -10.25M | -38.04M | -32.36M |
Balance Sheet | ||||||
| Total Assets | 46.67M | 44.49M | 19.89M | 25.34M | 33.74M | 36.49M |
| Cash, Cash Equivalents and Short-Term Investments | 1.39M | 1.93M | 164.43K | 20.77K | 1.28M | 528.39K |
| Total Debt | 21.62M | 6.12M | 6.55M | 8.67M | 13.80M | 18.62M |
| Total Liabilities | 46.13M | 35.72M | 21.22M | 23.73M | 41.19M | 43.58M |
| Stockholders Equity | 540.03K | 8.77M | -1.33M | 1.60M | -7.45M | -7.09M |
Cash Flow | ||||||
| Free Cash Flow | -20.18M | -15.88M | -6.15M | -6.04M | -10.58M | -14.26M |
| Operating Cash Flow | -20.10M | -15.88M | -6.15M | -6.01M | -10.57M | -14.22M |
| Investing Cash Flow | -223.64K | 0 | 0 | 88.82K | -7.31M | -6.01M |
| Financing Cash Flow | 21.16M | 23.39M | 6.30M | 4.66M | 18.64M | 20.18M |
Digital Brands Group Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DBGI, the sentiment is Negative. The current price of 0.70 is below the 20-day moving average (MA) of 2.56, below the 50-day MA of 4.25, and below the 200-day MA of 71.95, indicating a bearish trend. The MACD of -1.30 indicates Positive momentum. The RSI at 21.94 is Positive, neither overbought nor oversold. The STOCH value of 1.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DBGI.
Digital Brands Group Risk Analysis
Digital Brands Group disclosed 40 risk factors in its most recent earnings report. Digital Brands Group reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
0 New RisksDigital Brands Group Peers Comparison
Overall Rating
DLTH67Neutral
TLYS52Neutral
LVLU48Neutral
RENT46Neutral
BIRD43Neutral- DBGI42Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| DLTH | 67Neutral | $166.84M | 27.44 | 3.54% | ― | -8.63% | ― |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| TLYS | 52Neutral | $128.77M | 59.30 | 2.37% | ― | 6.07% | ― |
| LVLU | 48Neutral | $32.76M | -3.88 | -903.25% | ― | -10.40% | 83.52% |
| RENT | 46Neutral | $81.56M | 0.19 | -91.16% | ― | 21.17% | ― |
| BIRD | 43Neutral | $23.03M | -0.22 | -243.20% | 16.16% | -38.03% | 18.52% |
| DBGI | 42Neutral | $658.12K | -0.00 | -615.34% | ― | -33.59% | 94.24% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| DBGI | Digital Brands Group, Inc. | 0.70 | -306.10 | -99.77% | |
| TLYS | Tilly's | 4.21 | 2.72 | 182.55% | |
| DLTH | Duluth Holdings Inc. | 4.39 | 1.59 | 56.79% | |
| RENT | Rent The Runway, Inc. | 2.42 | -1.56 | -39.32% | |
| BIRD | Smartbird Inc. | 1.95 | -5.57 | -74.07% | |
| LVLU | Lulu's Fashion Lounge Holdings, Inc. | 11.41 | 6.34 | 125.05% |
Digital Brands Group Corporate Events
Digital Brands Group Maintains Public Status After Strategic Review
PositiveOn October 26, 2026, Digital Brands Group said it will remain a public company for now after a strategic review, citing compounding growth drivers including the strong August digital relaunch of its AVO brand, faster execution under a two‑year,...
Digital Brands Group Updates U.S. Program, Explores Go-Private
PositiveOn September 10, 2026, Digital Brands Group issued an investor update detailing its previously announced two‑year, $165 million U.S. Program contract to supply apparel, footwear and toiletries to 771,481 U.S. residents re‑entering the wor...
Digital Brands Group Secures $3.3 Million Guaranteed Cash Flow
PositiveOn September 1, 2026, Digital Brands Group announced it had executed a binding contract securing $3.3 million in guaranteed cash flow for its U.S. Program from September 1 through December 31, 2026. The guaranteed cash is generated solely from the fi...
Digital Brands Group Signals Imminent Financial Turnaround
PositiveOn August 12, 2026, Digital Brands Group announced it had achieved a major financial turnaround, highlighting that its collegiate program is the principal driver of this improvement. The company said it expects to begin generating positive cash flow...
Digital Brands Group Receives Premium Take-Private Acquisition Offer
PositiveOn August 3, 2026, Digital Brands Group announced it had retained Roth Capital Partners to formally explore take-private options aimed at maximizing shareholder value. The move signaled the company’s willingness to consider strategic shifts in...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 29, 2026