OLAPLEX Reports First Quarter 2026 Results
Rhea-AI Summary
Olaplex (NASDAQ: OLPX) reported first quarter 2026 net sales of $99.4 million, up 2.5% year over year. Gross profit rose to $71.7 million with a 72.1% margin, while net loss was $5.3 million versus prior net income of $0.5 million.
Professional and direct-to-consumer channels grew double digits, partly offsetting specialty retail declines. Cash stood at $326.2 million and long-term debt at $352.5 million. Olaplex highlighted its pending $2.06 per share cash acquisition by Henkel, a roughly 55% stock price premium.
AI-generated analysis. Not financial advice.
Positive
- Net sales increased 2.5% year over year to $99.4 million
- Gross profit grew 6.4% to $71.7 million; margin improved to 72.1%
- Professional channel sales rose 12.3% to $38.8 million
- Direct-to-consumer sales increased 13.8% to $27.2 million
- Cash and cash equivalents increased to $326.2 million from $318.7 million
- Henkel cash acquisition at $2.06 per share, about 55% price premium
Negative
- Net result swung to a $5.3 million loss from $0.5 million income
- SG&A expenses rose 37.4% to $66.0 million
- Adjusted EBITDA declined 26.1% to $19.0 million; margin down to 19.1%
- Adjusted net income fell 19.1% to $10.6 million
- U.S. net sales declined 3.5% year over year
- Specialty retail channel sales decreased 13.3% to $33.4 million
Key Figures
Market Reality Check
Peers on Argus
OLPX slipped 0.25% while key peers like WOOF, BBW, SBH and ARKO gained roughly ~2%. With no peers in the momentum scanner and positive peer moves, today’s setup appears stock-specific and dominated by the pending Henkel acquisition rather than a sector-wide retail rotation.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 05 | Q4/FY25 earnings | Negative | -17.7% | Q4 and 2025 net losses with flat sales and margin compression. |
| Nov 06 | Q3 2025 earnings | Negative | +1.9% | Q3 sales decline and lower EBITDA but reaffirmed full-year guidance. |
| Aug 07 | Q2 2025 earnings | Neutral | +1.4% | Mixed Q2 results with higher sales, net loss and large debt repayment. |
| May 08 | Q1 2025 earnings | Negative | +3.0% | Q1 sales and net income declines despite strong cash and reiterated outlook. |
| Mar 04 | Q4/FY24 earnings | Negative | +21.7% | FY24 revenue contraction and mixed channel trends with improving cash and inventory. |
Earnings have often produced sharp, mixed reactions, with several instances of the stock rising on fundamentally negative or mixed results.
Over the last five earnings cycles, OLAPLEX has shown modest top-line shifts but significant margin and profitability pressure. Events on May 8, 2025 and Mar 5, 2026 highlighted declining or flat sales with net income turning to losses. Earlier reports on Aug 7, 2025 and Nov 6, 2025 combined channel volatility with shrinking EBITDA. Despite weaker fundamentals, price reactions ranged from -17.7% to +21.74%, underscoring a history of volatile, sometimes counterintuitive responses to earnings updates.
Historical Comparison
Across the last 5 earnings releases, OLPX moved an average of 2.07%, with individual reactions from -17.7% to +21.74%. Today’s -0.25% move sits well inside this historical volatility range for earnings news.
Recent earnings show modest revenue growth but persistent pressure on net income and EBITDA, alongside evolving channel mix and active balance sheet management, now framed by the pending Henkel buyout.
Market Pulse Summary
This announcement combines modest Q1 2026 revenue growth with a swing to a $5.3M net loss and lower adjusted EBITDA, while gross margins and cash remain solid. It arrives after the agreed Henkel acquisition at $2.06 per share, which effectively anchors valuation. Investors may track regulatory progress on the merger, ongoing channel mix shifts, and whether profitability stabilizes relative to recent earnings history marked by margin pressure and volatility.
Key Terms
non-gaap financial measures financial
adjusted ebitda financial
cash and cash equivalents financial
volume weighted average price financial
definitive agreement regulatory
merger consideration regulatory
AI-generated analysis. Not financial advice.
NEW YORK, NY, May 11, 2026 (GLOBE NEWSWIRE) -- Olaplex Holdings, Inc. (NASDAQ: OLPX) ("OLAPLEX" or the "Company") today announced financial results for the first quarter ended March 31, 2026.
Amanda Baldwin, OLAPLEX’s Chief Executive Officer, commented: "We delivered a solid start to the year with positive quarterly sell-through led by the successful launch of No. 3 PLUS. Through the disciplined operational execution of our transformation priorities, our higher sales translated to a strong quarter. I want to again thank the entire Olaplex team for their continued dedication and commitment to our transformation."
For the first quarter of 2026 compared to the first quarter of 2025:
- Net sales increased
2.5% to$99.4 million ;- By channel:
- Specialty Retail decreased
13.3% to$33.4 million ; - Professional increased
12.3% to$38.8 million ; - Direct-To-Consumer increased
13.8% to$27.2 million ;
- Specialty Retail decreased
- Net sales decreased
3.5% in the United States and increased8.6% internationally;
- By channel:
- Net loss was
$5.3 million , as compared to net income of$0.5 million for the first quarter of 2025; - Diluted net loss per share was
$(0.01) , as compared to$0.00 for the first quarter of 2025.
Three Months Ended March 31, 2026 Results
| (Amounts in thousands, except per share and share data) | ||||||||||
| Three Months Ended March 31, | ||||||||||
| 2026 | 2025 | % Change | ||||||||
| Net Sales | $ | 99,369 | $ | 96,978 | ||||||
| Gross Profit | $ | 71,660 | $ | 67,356 | ||||||
| Gross Profit Margin | 72.1 | % | 69.5 | % | ||||||
| Adjusted Gross Profit | $ | 74,076 | $ | 69,748 | ||||||
| Adjusted Gross Profit Margin | 74.5 | % | 71.9 | % | ||||||
| SG&A | $ | 65,951 | $ | 47,987 | ||||||
| Adjusted SG&A | $ | 55,038 | $ | 44,349 | ||||||
| Net (Loss) Income | $ | (5,287 | ) | $ | 465 | (1,237.0)% | ||||
| Adjusted Net Income | $ | 10,648 | $ | 13,161 | (19.1)% | |||||
| Adjusted EBITDA | $ | 18,978 | $ | 25,664 | (26.1)% | |||||
| Adjusted EBITDA Margin | 19.1 | % | 26.5 | % | ||||||
| Diluted Net Loss Per Share | $ | (0.01 | ) | $ | 0.00 | —% | ||||
| Adjusted Diluted Net Income Per Share | $ | 0.02 | $ | 0.02 | —% | |||||
Adjusted gross profit, adjusted gross profit margin, adjusted SG&A, adjusted net income, adjusted EBITDA, adjusted EBITDA margin and adjusted diluted net income per share are measures that are not calculated or presented in accordance with generally accepted accounting principles in the United States of America ("GAAP"). For more information about how we use these non-GAAP financial measures in our business, the limitations of these measures, and a reconciliation of these measures to the most directly comparable GAAP measures, please see "Disclosure Regarding Non-GAAP Financial Measures" and the reconciliation tables that accompany this release.
Balance Sheet
As of March 31, 2026, the Company had
Fiscal Year 2026 Guidance, Webcast and Conference Call Information
On March 26, 2026, OLAPLEX announced that it had entered into a definitive agreement to be acquired by Henkel AG & Co. KGaA (“Henkel”), a leading global manufacturer of well-known consumer and industrial brands, for
In light of the transaction, OLAPLEX will not host a conference call to discuss its first quarter 2026 results and will not be providing or updating previously issued financial guidance.
About OLAPLEX
OLAPLEX is a foundational health and beauty company powered by breakthrough innovation and the professional hairstylist. Born in the lab and brought to the chair, our products are designed to enable Pros and their clients to achieve their best results and to provide consumers with a holistic healthy hair regimen. Founded in 2014, OLAPLEX revolutionized prestige hair care with its category creating Complete Bond Technology™, which works by protecting, strengthening and relinking all three bonds during and after hair services. Since then, OLAPLEX has expanded into a full suite of hair health formulas. OLAPLEX’s award-winning products are sold globally through an omnichannel model serving the professional, specialty retail, and direct-to-consumer channels.
Cautionary Note Regarding Forward-Looking Statements
This press release includes certain forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by, and information currently available to, the Company. These forward-looking statements include, but are not limited to, statements about: the proposed transaction (the “Merger”) with Henkel; the Company’s business transformation plans; and other statements contained in this press release that are not historical or current facts. When used in this press release, words such as "may," "will," “could," "should," "intend," "potential," "continue," "anticipate," "believe," "estimate," "expect," "plan," "target," "predict," "project," "forecast," "seek" and similar expressions as they relate to the Company are intended to identify forward-looking statements.
The forward-looking statements in this press release reflect the Company’s current expectations and projections about future events and financial trends that management believes may affect the Company’s business, financial condition and results of operations. These statements are predictions based upon assumptions that may not prove to be accurate, and they are not guarantees of future performance. As such, you should not place significant reliance on the Company’s forward-looking statements. Neither the Company nor any other person assumes responsibility for the accuracy and completeness of the forward-looking statements, including any such statements taken from third party industry and market reports.
Forward-looking statements involve known and unknown risks, inherent uncertainties and other factors that are difficult to predict which may cause the Company’s actual results, performance, time frames or achievements to be materially different from any future results, performance, time frames or achievements expressed or implied by the forward-looking statements, including, without limitation: uncertainties as to the timing or completion of the Merger, including the occurrence of any event, change or other circumstance that could give rise to the termination of the merger agreement with Henkel (the “Merger Agreement”) and circumstances requiring the Company to pay a termination fee or damages under the Merger Agreement; the effects of the proposed Merger (or the announcement or pendency thereof) on relationships with associates, customers, manufacturers, suppliers, employees (including the risks relating to the ability to retain or hire key personnel), other business partners or governmental entities; the risk that the proposed Merger will divert management's attention from the Company's ongoing business operations or otherwise disrupt the Company's ongoing business operations; risks associated with litigation relating to the proposed Merger; the Company’s dependence on the success of its business transformation plan; competition in the beauty industry; the Company’s ability to effectively maintain and promote a positive brand image, expand its brand awareness and maintain consumer confidence in the quality, safety and efficacy of its products; the Company’s ability to anticipate and respond to market trends and changes in consumer preferences and execute on its growth strategies and expansion opportunities, including with respect to new product introductions; the Company’s ability to develop, manufacture and effectively and profitably market and sell future products; the Company’s ability to attract new customers and consumers and encourage consumer spending across its product portfolio; the Company’s ability to successfully implement new or additional marketing efforts; the Company’s relationships with and the capabilities and performance of its suppliers, manufacturers, distributors and retailers and the Company’s ability to manage its supply chain, including sourcing, manufacturing and quality control; the Company's dependence on a limited number of customers for a large portion of its net sales; the Company’s ability to limit the illegal distribution and sale by third parties of counterfeit versions of its products or the unauthorized diversion by third parties of its products; the Company’s ability to accurately forecast customer and consumer demand for its products; impacts on the Company’s business from political, regulatory, economic, trade and other risks associated with operating internationally; the Company’s ability to attract and retain senior management and other qualified personnel; the Company’s reliance on its and its third-party service providers’ information technology; the Company’s ability to maintain the security of confidential information; the Company’s ability to establish and maintain intellectual property protection for its products, as well as the Company’s ability to operate its business without infringing, misappropriating or otherwise violating the intellectual property rights of others; the outcome of litigation and regulatory proceedings; the impact of changes in federal, state and international laws, regulations and administrative policy, tariffs and other trade policies; the Company’s existing and any future indebtedness, including the Company’s ability to comply with affirmative and negative covenants under its credit agreement; the Company’s ability to service its existing indebtedness and obtain additional capital to finance operations and its growth opportunities; volatility of the Company’s stock price; the Company’s “controlled company” status and the influence of investment funds affiliated with Advent International, L.P. over the Company; the impact of general economic conditions, disruptions in business conditions, and the financial strength of the Company’s consumers and customers on the Company’s business; fluctuations in the Company’s quarterly results of operations; changes in the Company’s tax rates and the Company’s exposure to tax liability; the Company's ability to integrate or realize the intended benefits of its acquisitions or strategic investments; and the other factors identified under the heading “Risk Factors” in the Company’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (the "SEC") and in the other documents that the Company files with the SEC from time to time.
Many of these factors are macroeconomic in nature and are, therefore, beyond the Company’s control. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, the Company’s actual results, performance or achievements may vary materially from those described in this press release as anticipated, believed, estimated, expected, intended, planned or projected. The forward-looking statements in this press release represent management’s views as of the date hereof. Unless required by law, the Company neither intends nor assumes any obligation to update these forward-looking statements for any reason after the date hereof to conform these statements to actual results or to changes in the Company’s expectations or otherwise.
Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with GAAP, the Company has included certain non-GAAP financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross profit margin, adjusted SG&A, adjusted net income and adjusted basic and diluted net income per share. Management believes these non-GAAP financial measures, when taken together with the Company’s financial results presented in accordance with GAAP, provide meaningful supplemental information regarding the Company’s operating performance and facilitate internal comparisons of its historical operating performance on a more consistent basis by excluding certain items that may not be indicative of its business, results of operations or outlook. In particular, management believes that the use of these non-GAAP measures may be helpful to investors as they are measures used by management in assessing the health of the Company’s business, determining incentive compensation and evaluating its operating performance, as well as for internal planning and forecasting purposes.
The Company calculates adjusted EBITDA as net income (loss), adjusted to exclude: (1) interest expense, net; (2) income tax (benefit) provision; (3) depreciation and amortization; (4) share-based compensation expense; (5) certain litigation-related expenses and (6) Merger transaction-related costs. The Company calculates adjusted EBITDA margin by dividing adjusted EBITDA by net sales. The Company calculates adjusted gross profit as gross profit, adjusted to exclude amortization of patented formulations. The Company calculates adjusted gross profit margin by dividing adjusted gross profit by net sales. The Company calculates adjusted SG&A as SG&A, adjusted to exclude: (1) share-based compensation expense, (2) certain litigation-related expenses and (3) Merger transaction-related costs. The Company calculates adjusted net income as net income (loss), adjusted to exclude: (1) amortization of intangible assets (excluding software); (2) share-based compensation expense; (3) certain litigation-related expenses; (4) Merger transaction-related costs; and (5) tax effect of non-GAAP adjustments. The Company calculates adjusted basic and diluted net income per share as adjusted net income divided by weighted average basic and diluted shares outstanding, respectively. Please refer to "Reconciliation of Non-GAAP Financial Measures to GAAP Equivalents" located in the financial supplement in this release for further information regarding these adjustments for the periods presented.
Please refer to "Reconciliation of Non-GAAP Financial Measures to GAAP Equivalents" located in the financial supplement in this release for a reconciliation of these non-GAAP metrics to their most directly comparable financial measure stated in accordance with GAAP.
| CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share and share data) (Unaudited) | |||||||
| March 31, 2026 | December 31, 2025 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 326,169 | $ | 318,731 | |||
| Accounts receivable, net of allowances of | 37,501 | 29,013 | |||||
| Inventory | 66,364 | 60,215 | |||||
| Prepaid expenses and other current assets | 16,227 | 62,387 | |||||
| Total current assets | 446,261 | 470,346 | |||||
| Property and equipment, net | 1,516 | 1,422 | |||||
| Intangible assets, net | 834,864 | 847,821 | |||||
| Goodwill | 168,300 | 168,300 | |||||
| Deferred tax assets | — | 46 | |||||
| Other assets | 9,253 | 9,552 | |||||
| Total assets | $ | 1,460,194 | $ | 1,497,487 | |||
| Liabilities and stockholders’ equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 29,184 | $ | 8,117 | |||
| Accrued expenses and other current liabilities | 32,758 | 85,304 | |||||
| Current portion of Related Party payable pursuant to Tax Receivable Agreement | 9,206 | 9,206 | |||||
| Total current liabilities | 71,148 | 102,627 | |||||
| Long-term debt | 352,484 | 352,290 | |||||
| Deferred tax liabilities | 929 | 5,283 | |||||
| Related Party payable pursuant to Tax Receivable Agreement | 155,858 | 155,858 | |||||
| Other liabilities | 1,789 | 2,039 | |||||
| Total liabilities | 582,208 | 618,097 | |||||
| Commitments and Contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, | 672 | 669 | |||||
| Preferred stock, | — | — | |||||
| Additional paid-in capital | 346,086 | 342,345 | |||||
| Accumulated other comprehensive loss | (198 | ) | (337 | ) | |||
| Retained earnings | 531,426 | 536,713 | |||||
| Total stockholders’ equity | 877,986 | 879,390 | |||||
| Total liabilities and stockholders’ equity | $ | 1,460,194 | $ | 1,497,487 | |||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (amounts in thousands, except per share and share data) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Net sales | $ | 99,369 | $ | 96,978 | |||
| Cost of sales: | |||||||
| Cost of product (excluding amortization) | 25,293 | 27,230 | |||||
| Amortization of patented formulations | 2,416 | 2,392 | |||||
| Total cost of sales | 27,709 | 29,622 | |||||
| Gross profit | 71,660 | 67,356 | |||||
| Operating expenses: | |||||||
| Selling, general, and administrative | 65,951 | 47,987 | |||||
| Amortization of other intangible assets | 10,820 | 10,893 | |||||
| Total operating expenses | 76,771 | 58,880 | |||||
| Operating (loss) income | (5,111 | ) | 8,476 | ||||
| Interest expense | 7,132 | 13,725 | |||||
| Interest income | (2,702 | ) | (5,952 | ) | |||
| Other expense (income), net | 142 | (178 | ) | ||||
| (Loss) Income before provision for income taxes | (9,683 | ) | 881 | ||||
| Income tax (benefit) provision | (4,396 | ) | 416 | ||||
| Net (loss) income | $ | (5,287 | ) | $ | 465 | ||
| Net (loss) income per share: | |||||||
| Basic | $ | (0.01 | ) | $ | 0.00 | ||
| Diluted | $ | (0.01 | ) | $ | 0.00 | ||
| Weighted average common shares outstanding: | |||||||
| Basic | 669,942,446 | 664,685,462 | |||||
| Diluted | 669,942,446 | 666,460,714 | |||||
| Other comprehensive income: | |||||||
| Unrealized gain on derivatives, net of income tax effect | $ | 139 | $ | 17 | |||
| Total other comprehensive income | 139 | 17 | |||||
| Comprehensive (loss) income | $ | (5,148 | ) | $ | 482 | ||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (Unaudited) | |||||||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Cash flows from operating activities | |||||||
| Net (loss) income | $ | (5,287 | ) | $ | 465 | ||
| Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities | 12,786 | (3,382 | ) | ||||
| Net cash provided by (used in) operating activities | 7,499 | (2,917 | ) | ||||
| Net cash used in investing activities | (288 | ) | (996 | ) | |||
| Net cash provided by (used in) financing activities | 227 | (1,161 | ) | ||||
| Net increase (decrease) in cash and cash equivalents | 7,438 | (5,074 | ) | ||||
| Cash and cash equivalents - beginning of year | 318,731 | 585,967 | |||||
| Cash and cash equivalents - end of period | $ | 326,169 | $ | 580,893 | |||
| Reconciliation of Non-GAAP Financial Measures to GAAP Equivalents (amounts in thousands, except per share and share data) (Unaudited) |
The following tables present a reconciliation of net (loss) income, gross profit and SG&A, as the most directly comparable financial measure stated in accordance with U.S. GAAP, to adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross profit margin, adjusted SG&A, adjusted net income and adjusted net income per share for each of the periods presented.
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||
| Net (loss) income | $ | (5,287 | ) | $ | 465 | ||
| Depreciation and amortization of intangible assets | 13,318 | 13,372 | |||||
| Interest expense, net | 4,430 | 7,773 | |||||
| Income tax (benefit) provision | (4,396 | ) | 416 | ||||
| Share-based compensation expense | 3,517 | 2,918 | |||||
| Certain litigation-related expenses(1) | — | 720 | |||||
| Merger transaction-related costs(2) | 7,396 | — | |||||
| Adjusted EBITDA | $ | 18,978 | $ | 25,664 | |||
| Adjusted EBITDA margin | 19.1 | % | 26.5 | % | |||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit | |||||||
| Gross profit | $ | 71,660 | $ | 67,356 | |||
| Amortization of patented formulations | 2,416 | 2,392 | |||||
| Adjusted gross profit | $ | 74,076 | $ | 69,748 | |||
| Adjusted gross profit margin | 74.5 | % | 71.9 | % | |||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Reconciliation of SG&A to Adjusted SG&A | |||||||
| SG&A | $ | 65,951 | $ | 47,987 | |||
| Share-based compensation expense | (3,517 | ) | (2,918 | ) | |||
| Certain litigation-related expenses(1) | — | (720 | ) | ||||
| Merger transaction-related costs(2) | (7,396 | ) | — | ||||
| Adjusted SG&A | $ | 55,038 | $ | 44,349 | |||
| Three Months Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Reconciliation of Net (Loss) Income to Adjusted Net Income | |||||||
| Net (loss) income | $ | (5,287 | ) | $ | 465 | ||
| Amortization of intangible assets (excluding software) | 12,599 | 12,574 | |||||
| Share-based compensation expense | 3,517 | 2,918 | |||||
| Certain litigation-related expenses(1) | — | 720 | |||||
| Merger transaction-related costs(2) | 7,396 | — | |||||
| Tax effect of adjustments | (7,577 | ) | (3,516 | ) | |||
| Adjusted net income | $ | 10,648 | $ | 13,161 | |||
| Adjusted net income per share: | |||||||
| Basic | $ | 0.02 | $ | 0.02 | |||
| Diluted | $ | 0.02 | $ | 0.02 | |||
| Weighted average diluted shares outstanding(3) | 674,802,028 | 666,460,714 | |||||
| (1) | Represented litigation costs related to the Lilien securities class action. The Company considers litigation costs related to the Lilien securities class action, as described in Note 12 to the Company's Quarterly Report on Form 10-Q for the period ended March 31, 2026, to be non-recurring and non-ordinary. The Company believes adjusting for such costs provides investors with meaningful information regarding the Company’s core operating performance. |
| (2) | Represents non-recurring and non-ordinary costs related to the definitive agreement to be acquired by Henkel. |
| (3) | Weighted average diluted shares outstanding for the three months ended March 31, 2026 differ from the GAAP presentation on the Company's Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income due to the Company being in a loss position on an unadjusted basis. |
Contacts:
Investors:
Michael Oriolo
Vice President, Investor Relations
michael.oriolo@olaplex.com
Financial Media:
Lisa Bobroff
Vice President, Global Communications & Consumer Engagement
lisa.bobroff@olaplex.com
