Digital Brands Group forecasts profitable quarter, citing university and government deals

DBGI (Digital Brands Group) is guiding for Q3 2026 revenue of 8.5 million to 11 million dollars, expecting to hit breakeven or positive net income. The announcement is a big deal for a company that lost 3.5 million dollars in Q3 2025, claiming a 500 to 650 percent YoY revenue jump.

The Texas-based company, which operates eCommerce apparel brands such as Bailey 44, Stateside, and AVO, among others, credits its growth to collegiate expansion and a landmark government contract for the first scale deployment program across three cities.

"Our shift toward collegiate licensing and government contracts is scaling rapidly and profitably. This transition proves our new high-margin model is the right strategy to drive sustainable growth and creating both short and long-term shareholder value," said Hil Davis, CEO of Digital Brands Group, in a statement.

DBGI first announced a manufacturing agreement with Yea Alabama, the NIL programme of the University of Alabama, in December 2025, acquiring the rights to exclusively design, manufacture, and distribute collegiate apparel under private label for the university’s bookstores and online storefront. The company later expanded its range in the college apparel sector, jumping from 1 to 18 university deals, including agreements with the University of Colorado, Vanderbilt University and University of Mississippi.

In April, DBGI also announced an apparel licensing deal through Global Combat Collective (GCC), a premier boxing organization, supporting existing U.S. program deliveries up to 125 million dollars in potential aggregate contract value, subject to delivery orders, program requirements and customary conditions.

The latest Q3 forecast does not include 8 million to 9 million dollars in revenue and 3 million dollars net income contributions from the seven additional cities designated for the initial scale deployment program, which were affected by the government shutdown earlier this year.