Playboy has joined the small-cap Russell 2000 Index and the broad-market Russell 3000 Index, effective as of the opening of U.S. equity markets on Monday, June 29, 2026. The inclusion follows five consecutive quarters of positive Adjusted EBITDA and renewed operating momentum. Membership in the Russell 3000 Index also results in automatic inclusion in the Russell 2000 Index, as well as the appropriate growth and value style indexes.

The June 2026 reconstitution of the Russell US Indexes captures up to the 4,000 largest U.S. stocks as of April 30, 2026, ranking them by total market capitalization. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. Playboy’s membership in the Russell 3000 Index remains in place for half a year beginning on June 29, 2026.

Ben Kohn, Chief Executive Officer of Playboy, said: "We are pleased to join the Russell 2000 and Russell 3000 indices, which we believe reflects the meaningful progress we have made in strengthening Playboy’s operating performance and balance sheet. With five consecutive quarters of positive adjusted EBITDA and a clear plan to drive growth across our four revenue lines, we believe our inclusion in these widely followed indices will increase our visibility within the institutional investment community, broaden our shareholder base and enhance trading liquidity as we continue to unlock the value of one of the most recognized brands in the world."

Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2025, approximately $12.2 trillion in assets were benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider.

Key Details

The reconstitution process ensures that the indexes reflect the current market landscape by including the largest U.S. stocks based on their market capitalization. Playboy’s addition to these indexes underscores its financial performance and market position.

Playboy has agreed to repurchase approximately 16.6 million shares of its common stock, representing the entire equity position held by funds managed by affiliates of Fortress Investment Group. The transaction, valued at approximately $17.4 million, was executed at a fixed price of $1.05 per share, a 28% discount to the current market value. This strategic move covers nearly 15% of the company's total outstanding shares and is designed to be immediately accretive to earnings per share.

Transaction Structure and Financing

Under the terms of the definitive agreement, Playboy funded an initial payment of $2.0 million at execution. The remaining consideration of approximately $15.4 million is scheduled to be paid in three installments through December 31, 2026. The company retains the discretion to accelerate these purchases at any time. During the term of the agreement, Fortress has agreed not to sell, transfer, or otherwise dispose of the shares subject to the agreement.

To ensure completion, the agreement is fully backstopped by an affiliate of Rizvi Traverse Management, LLC and The Million S.a.r.l., an affiliate of Byborg Enterprises SA. These entities have committed to purchasing the shares directly from Fortress, pro rata based on their current Playboy stockholdings, should Playboy fail to do so.

Strategic Rationale and Impact

Ben Kohn, CEO of Playboy, emphasized that the transaction capitalizes on the company's intrinsic value, which he considers significantly higher than the current trading price. The repurchase follows five consecutive quarters of positive adjusted EBITDA and recent operational milestones, including a licensing deal with Byborg and a joint venture in China. The negotiated structure provides Fortress with an efficient exit while eliminating the potential market impact of a large open-market sale.

Key Transaction Details