Digital Brands projects steep revenue climb on collegiate licensing expansion

Digital Brands Group (NASDAQ:DBGI) issued a bullish financial forecast today, projecting a dramatic acceleration in sales and cash flow through 2027 as its collegiate and apparel licensing programs reach critical mass.

The Austin-based company, which operates a portfolio of direct-to-consumer fashion brands, expects full-year 2026 revenue to land between $55 million and $65 million, with positive free cash flow of $2.5 million to $3.5 million.

The guidance marks a significant pivot for the firm, which has spent the last year aggressively expanding its Name, Image, and Likeness (NIL) partnerships.

Management also provided a forward-looking 12-month forecast for the period of July 1, 2026, through June 30, 2027, projecting revenue between $100 million and $115 million and free cash flow of $10 million to $12 million.

The anticipated surge is anchored by the company’s collegiate licensing program, which has grown from just two partner universities in December 2025 to sixteen as of April 2026.

Digital Brands plans to cap the program at thirty schools to maintain "deep level NIL integration."

The company expects a major revenue catalyst in August 2026, coinciding with the "TikTok Rush" phenomenon—a period of intense social media engagement around university sorority recruitment.

Further bolstering the outlook is a recently executed apparel licensing agreement with Global Combat Collective (GCC).

The partnership supports existing U.S. program deliveries with a potential aggregate contract value of up to $125 million, providing a scalable wholesale channel alongside the company's core e-commerce business.