OLAPLEX Reports Second Quarter 2025 Results
Olaplex (NASDAQ: OLPX) reported mixed Q2 2025 financial results, with net sales increasing 2.3% to $106.3 million. The company experienced varied performance across channels, with Professional and Direct-to-Consumer segments growing 12.1% and 12.8% respectively, while Specialty Retail declined 16.7%.
The company reported a net loss of $7.7 million compared to a net income of $5.8 million in Q2 2024, with diluted EPS declining to ($0.01) from $0.01. Notably, Olaplex voluntarily repaid $300 million of outstanding long-term debt using cash on hand. The company maintained its fiscal 2025 guidance, projecting net sales between $410-$431 million and adjusted EBITDA margin of 20-22%.
Olaplex (NASDAQ: OLPX) ha comunicato risultati finanziari del secondo trimestre 2025 contrastanti, con un aumento delle vendite nette del 2,3% a 106,3 milioni di dollari. L'azienda ha registrato performance differenziate tra i canali: i segmenti Professionale e Direct-to-Consumer sono cresciuti rispettivamente del 12,1% e del 12,8%, mentre il Retail Specializzato ha subito un calo del 16,7%.
La società ha riportato una perdita netta di 7,7 milioni di dollari rispetto a un utile netto di 5,8 milioni nel secondo trimestre 2024, con un utile per azione diluito in calo a (0,01$) da 0,01$. Da segnalare che Olaplex ha rimborsato volontariamente 300 milioni di dollari di debito a lungo termine utilizzando la liquidità disponibile. L’azienda ha confermato le previsioni per il 2025, prevedendo vendite nette tra 410 e 431 milioni di dollari e un margine EBITDA rettificato compreso tra il 20 e il 22%.
Olaplex (NASDAQ: OLPX) reportó resultados financieros mixtos en el segundo trimestre de 2025, con un aumento en las ventas netas del 2,3% hasta 106,3 millones de dólares. La compañía experimentó un desempeño variado en sus canales, con los segmentos Profesional y Directo al Consumidor creciendo un 12,1% y 12,8% respectivamente, mientras que el Retail Especializado disminuyó un 16,7%.
La empresa reportó una pérdida neta de 7,7 millones de dólares en comparación con una ganancia neta de 5,8 millones en el segundo trimestre de 2024, con una caída en las ganancias diluidas por acción a (0,01$) desde 0,01$. Cabe destacar que Olaplex pagó voluntariamente 300 millones de dólares de deuda a largo plazo utilizando efectivo disponible. La compañía mantuvo su guía para el año fiscal 2025, proyectando ventas netas entre 410 y 431 millones de dólares y un margen EBITDA ajustado del 20-22%.
Olaplex (NASDAQ: OLPX)는 2025년 2분기 재무 실적에서 혼조세를 보이며 순매출이 2.3% 증가한 1억 630만 달러를 기록했습니다. 회사는 채널별 실적이 엇갈렸는데, 전문직 및 직접 소비자 판매 부문은 각각 12.1%와 12.8% 성장한 반면, 전문 소매 부문은 16.7% 감소했습니다.
순손실은 770만 달러로, 2024년 2분기 순이익 580만 달러 대비 감소했으며, 희석 주당순이익(EPS)은 (0.01달러)로 0.01달러에서 하락했습니다. 특히 Olaplex는 보유 현금을 사용해 3억 달러의 장기 부채를 자발적으로 상환했습니다. 회사는 2025 회계연도 가이던스를 유지하며 순매출 4억 1,000만~4억 3,100만 달러, 조정 EBITDA 마진 20~22%를 예상하고 있습니다.
Olaplex (NASDAQ : OLPX) a publié des résultats financiers mitigés pour le deuxième trimestre 2025, avec une augmentation des ventes nettes de 2,3 % à 106,3 millions de dollars. L’entreprise a connu des performances variées selon les canaux, les segments Professionnel et Direct au Consommateur ayant progressé respectivement de 12,1 % et 12,8 %, tandis que le Commerce Spécialisé a reculé de 16,7 %.
La société a enregistré une perte nette de 7,7 millions de dollars contre un bénéfice net de 5,8 millions au deuxième trimestre 2024, avec un BPA dilué en baisse à (0,01 $) contre 0,01 $. Notamment, Olaplex a remboursé volontairement 300 millions de dollars de dette à long terme en utilisant sa trésorerie disponible. L’entreprise a maintenu ses prévisions pour l’exercice 2025, prévoyant des ventes nettes comprises entre 410 et 431 millions de dollars et une marge EBITDA ajustée de 20 à 22 %.
Olaplex (NASDAQ: OLPX) meldete gemischte Finanzergebnisse für das zweite Quartal 2025, wobei der Nettoumsatz um 2,3 % auf 106,3 Millionen US-Dollar stieg. Das Unternehmen verzeichnete unterschiedliche Entwicklungen in den Vertriebskanälen: Die Segmente Professional und Direct-to-Consumer wuchsen jeweils um 12,1 % bzw. 12,8 %, während der Fachhandel um 16,7 % zurückging.
Das Unternehmen meldete einen Nettoverlust von 7,7 Millionen US-Dollar im Vergleich zu einem Nettogewinn von 5,8 Millionen im zweiten Quartal 2024, wobei das verwässerte Ergebnis je Aktie auf (0,01 US-Dollar) von 0,01 US-Dollar sank. Bemerkenswert ist, dass Olaplex freiwillig 300 Millionen US-Dollar langfristige Verbindlichkeiten mit verfügbaren Barmitteln zurückzahlte. Das Unternehmen bestätigte seine Prognose für das Geschäftsjahr 2025 und erwartet einen Nettoumsatz zwischen 410 und 431 Millionen US-Dollar sowie eine bereinigte EBITDA-Marge von 20-22 %.
- Net sales increased 2.3% to $106.3 million year-over-year
- Professional channel grew 12.1% to $37.4 million
- Direct-to-Consumer channel increased 12.8% to $38.5 million
- Voluntary debt repayment of $300 million without penalties
- Gross profit margin improved to 71.2% from 69.7% year-over-year
- Net loss of $7.7 million compared to $5.8 million profit in Q2 2024
- Specialty Retail channel decreased 16.7% to $30.4 million
- SG&A expenses increased significantly by 45.1%
- Adjusted EBITDA declined 23.4% to $24.5 million
- Adjusted EBITDA margin decreased to 23.1% from 30.8%
- Expects high single-digit sales decline in Q3 2025
Insights
OLAPLEX reported mixed Q2 results with slight revenue growth but swing to loss, while maintaining full-year guidance despite rising costs.
OLAPLEX delivered a 2.3% revenue increase to
The channel performance reveals significant shifts in their business model: Professional sales grew 12.1% to
A concerning trend is the 45.1% surge in SG&A expenses to
The company made a significant balance sheet move by voluntarily repaying
For full-year 2025, management maintained guidance of
NEW YORK, Aug. 07, 2025 (GLOBE NEWSWIRE) -- Olaplex Holdings, Inc. (NASDAQ: OLPX) ("OLAPLEX" or the "Company") today announced financial results for the second quarter ended June 30, 2025.
Amanda Baldwin, OLAPLEX’s Chief Executive Officer, commented: "We delivered a solid first half of 2025. We remain in the midst of a multi-pronged transformation and are encouraged by the progress realized thus far. We are optimistic for the future as we continue to execute on our Bonds and Beyond strategy."
For the second quarter of 2025 compared to the second quarter of 2024:
- Net sales increased
2.3% to$106.3 million ;- By channel:
- Specialty Retail decreased
16.7% to$30.4 million ; - Professional increased
12.1% to$37.4 million ; - Direct-To-Consumer increased
12.8% to$38.5 million ;
- Specialty Retail decreased
- Net sales increased
2.5% in the United States and increased1.9% internationally;
- By channel:
- Net loss was
$7.7 million , as compared to net income of$5.8 million for the second quarter of 2024; - Diluted EPS was (
$0.01) , as compared to$0.01 for the second quarter of 2024.
Three Months Ended June 30, 2025 Results
| (Amounts in thousands, except per share and share data) | ||||||||||
| Three Months Ended June 30, | ||||||||||
| 2025 | 2024 | % Change | ||||||||
| Net Sales | $ | 106,284 | $ | 103,943 | ||||||
| Gross Profit | $ | 75,635 | $ | 72,437 | ||||||
| Gross Profit Margin | 71.2 | % | 69.7 | % | ||||||
| Adjusted Gross Profit | $ | 77,819 | $ | 74,739 | ||||||
| Adjusted Gross Profit Margin | 73.2 | % | 71.9 | % | ||||||
| SG&A | $ | 65,909 | $ | 45,423 | ||||||
| Adjusted SG&A | $ | 54,348 | $ | 42,555 | ||||||
| Net (loss) income | $ | (7,742 | ) | $ | 5,779 | (234.0)% | ||||
| Adjusted EBITDA | $ | 24,550 | $ | 32,054 | (23.4)% | |||||
| Adjusted EBITDA Margin | 23.1 | % | 30.8 | % | ||||||
| Diluted EPS | $ | (0.01 | ) | $ | 0.01 | (200.0)% | ||||
| Weighted Average Diluted Shares Outstanding | 665,953,788 | 663,545,258 | ||||||||
Six Months Ended June 30, 2025 Results
| (Amounts in thousands, except per share and share data) | ||||||||||
| Six Months Ended June 30, | ||||||||||
| 2025 | 2024 | % Change | ||||||||
| Net Sales | $ | 203,262 | $ | 202,849 | ||||||
| Gross Profit | $ | 142,991 | $ | 143,780 | (0.5)% | |||||
| Gross Profit Margin | 70.3 | % | 70.9 | % | ||||||
| Adjusted Gross Profit | $ | 147,567 | $ | 148,269 | (0.5)% | |||||
| Adjusted Gross Profit Margin | 72.6 | % | 73.1 | % | ||||||
| SG&A | $ | 113,896 | $ | 85,860 | ||||||
| Adjusted SG&A | $ | 98,697 | $ | 79,804 | ||||||
| Net (loss) income | $ | (7,277 | ) | $ | 13,525 | (153.8)% | ||||
| Adjusted EBITDA | $ | 50,214 | $ | 67,538 | (25.7)% | |||||
| Adjusted EBITDA Margin | 24.7 | % | 33.3 | % | ||||||
| Diluted EPS | $ | (0.01 | ) | $ | 0.02 | (150.0)% | ||||
| Weighted Average Diluted Shares Outstanding | 665,323,129 | 663,516,699 | ||||||||
Adjusted gross profit, adjusted gross profit margin, adjusted SG&A, adjusted EBITDA and adjusted EBITDA margin 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 June 30, 2025, the Company had
On May 1, 2025, the Company voluntarily repaid
Fiscal Year 2025 Guidance
The Company is reiterating guidance for net sales, adjusted gross profit margin and adjusted EBITDA margin for fiscal year 2025, as initially disclosed by the Company on March 4, 2025. The Company's fiscal year 2025 guidance outlined below incorporates management's expectations regarding the Company’s investments and actions aimed at generating demand, increasing its innovation pipeline and strengthening its execution capabilities, including continued investment in research and development, marketing and talent. The Company’s fiscal year 2025 guidance also incorporates the current consumer spending environment and assumes no material impact from tariffs. As it relates to the second half of the fiscal year, management currently expects the Company’s net sales to include a high single digit decline in the third quarter and a high single digit increase in the fourth quarter, in each case as compared to the corresponding period in the prior year. This expected variation in net sales performance by quarter reflects management’s expectations with respect to the timing of shipments related to innovation and replenishment, as well as the anticipated impact of promotional events on consumer demand. The Company does not undertake to provide quarterly guidance in the future.
| For Fiscal 2025 | ||||
| (Dollars in millions) | 2025 | 2024 Actual | ||
| Net Sales | ||||
| Adjusted Gross Profit Margin* | ||||
| Adjusted EBITDA Margin* | ||||
*Adjusted gross profit margin and adjusted EBITDA margin are non-GAAP measures. See “Disclosure Regarding Non-GAAP Financial Measures” for additional information.
Webcast and Conference Call Information
The Company plans to host an investor conference call and webcast to review second quarter 2025 financial results at 9:00am ET/6:00am PT on August 7, 2025. The webcast can be accessed at https://ir.olaplex.com. The conference call can be accessed by calling (201) 689-8521 or (877) 407-8813 for a toll-free number. A replay of the webcast will remain available on the website for 90 days.
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 Company’s financial position, operating results, growth, sales and profitability; the Company's financial guidance for fiscal year 2025, including net sales, adjusted gross profit margin and adjusted EBITDA margin; the Company’s third and fourth quarter 2025 net sales, including management’s expectations regarding the timing of shipments and the impact of promotional events on consumer demand; demand for the Company’s products; the Company’s innovation strategy and pipeline, including the timing of product launches; the Company's international operations, including its distribution partners; the Company’s business transformation plans, strategies, investments, priorities and objectives, including the impact and timing thereof; the Company’s sales, marketing and education initiatives and related investments, and the impact, focus and timing thereof; general economic and industry trends, including tariffs; the Company's infrastructure and operational and business processes; inventory levels; 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: 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 accurately forecast customer and consumer demand for its products; 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 dependence on a limited number of customers for a large portion of its net sales; 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 performance of its suppliers, manufacturers, distributors and retailers and the Company’s ability to manage its supply chain; impacts on the Company’s business from political, regulatory, economic, trade and other risks associated with operating internationally; the Company’s ability to manage its executive leadership changes and 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, including the One Big Beautiful Bill Act, 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; 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 and adjusted SG&A. 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, adjusted to exclude: (1) interest expense, net; (2) income tax provision; (3) depreciation and amortization; (4) share-based compensation expense; (5) non-ordinary inventory adjustments; (6) certain litigation related expenses; (7) executive reorganization costs and (8) Tax Receivable Agreement liability adjustments. 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: (1) non-ordinary inventory adjustments and (2) 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) executive reorganization costs. 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.
This release includes forward-looking guidance for adjusted EBITDA margin and adjusted gross profit margin. The Company is not able to provide, without unreasonable effort, a reconciliation of the guidance for adjusted EBITDA margin and adjusted gross profit margin to the most directly comparable GAAP measure because the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments included in the most directly comparable GAAP measure that would be necessary for such reconciliations, including (a) costs related to potential debt or equity transactions and (b) other non-recurring expenses that cannot reasonably be estimated in advance. These adjustments are inherently variable and uncertain and depend on various factors that are beyond the Company's control and as a result it is also unable to predict their probable significance. Therefore, because management cannot estimate on a forward-looking basis without unreasonable effort the impact these variables and individual adjustments will have on its reported results in accordance with GAAP, it is unable to provide a reconciliation of the non-GAAP financial measures included in its fiscal year 2025 guidance.
| CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands, except per share and share data) (Unaudited) | |||||||
| June 30, 2025 | December 31, 2024 | ||||||
| Assets | |||||||
| Current Assets: | |||||||
| Cash and cash equivalents | $ | 289,339 | $ | 585,967 | |||
| Accounts receivable, net of allowances of | 32,643 | 14,934 | |||||
| Inventory | 78,323 | 75,165 | |||||
| Prepaid expenses and other current assets | 62,364 | 13,647 | |||||
| Total current assets | 462,669 | 689,713 | |||||
| Property and equipment, net | 1,408 | 1,442 | |||||
| Intangible assets, net | 873,840 | 899,549 | |||||
| Goodwill | 168,300 | 168,300 | |||||
| Other assets | 10,706 | 8,719 | |||||
| Total assets | $ | 1,516,923 | $ | 1,767,723 | |||
| Liabilities and stockholders’ equity | |||||||
| Current Liabilities: | |||||||
| Accounts payable | $ | 25,061 | $ | 10,423 | |||
| Accrued expenses and other current liabilities | 82,944 | 35,639 | |||||
| Current portion of long-term debt | — | 6,750 | |||||
| Current portion of Related Party payable pursuant to Tax Receivable Agreement | 11,940 | 11,842 | |||||
| Total current liabilities | 119,945 | 64,654 | |||||
| Long-term debt | 351,902 | 643,712 | |||||
| Deferred tax liabilities | 3,361 | 5,164 | |||||
| Related Party payable pursuant to Tax Receivable Agreement | 165,242 | 177,469 | |||||
| Other liabilities | 2,302 | 2,322 | |||||
| Total liabilities | 642,752 | 893,321 | |||||
| Commitments and Contingencies | |||||||
| Stockholders’ equity: | |||||||
| Common stock, | 666 | 664 | |||||
| Preferred stock, | — | — | |||||
| Additional paid-in capital | 335,444 | 328,538 | |||||
| Accumulated other comprehensive loss | (627 | ) | (765 | ) | |||
| Retained earnings | 538,688 | 545,965 | |||||
| Total stockholders’ equity | 874,171 | 874,402 | |||||
| Total liabilities and stockholders’ equity | $ | 1,516,923 | $ | 1,767,723 | |||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (amounts in thousands, except per share and share data) (Unaudited) | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Net sales | $ | 106,284 | $ | 103,943 | $ | 203,262 | $ | 202,849 | |||||||
| Cost of sales: | |||||||||||||||
| Cost of product (excluding amortization) | 28,465 | 29,204 | 55,695 | 54,580 | |||||||||||
| Amortization of patented formulations | 2,184 | 2,302 | 4,576 | 4,489 | |||||||||||
| Total cost of sales | 30,649 | 31,506 | 60,271 | 59,069 | |||||||||||
| Gross profit | 75,635 | 72,437 | 142,991 | 143,780 | |||||||||||
| Operating expenses: | |||||||||||||||
| Selling, general, and administrative | 65,909 | 45,423 | 113,896 | 85,860 | |||||||||||
| Amortization of other intangible assets | 10,930 | 10,736 | 21,823 | 22,025 | |||||||||||
| Total operating expenses | 76,839 | 56,159 | 135,719 | 107,885 | |||||||||||
| Operating (loss) income | (1,204 | ) | 16,278 | 7,272 | 35,895 | ||||||||||
| Interest expense | 12,375 | 14,594 | 26,100 | 29,098 | |||||||||||
| Interest income | (3,527 | ) | (6,259 | ) | (9,479 | ) | (12,462 | ) | |||||||
| Other (income) expense, net | (987 | ) | 264 | (1,165 | ) | 1,211 | |||||||||
| (Loss) income before provision for income taxes | (9,065 | ) | 7,679 | (8,184 | ) | 18,048 | |||||||||
| Income tax provision | (1,323 | ) | 1,900 | (907 | ) | 4,523 | |||||||||
| Net (loss) income | $ | (7,742 | ) | $ | 5,779 | $ | (7,277 | ) | $ | 13,525 | |||||
| Net (loss) income per share: | |||||||||||||||
| Basic | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | |||||
| Diluted | $ | (0.01 | ) | $ | 0.01 | $ | (0.01 | ) | $ | 0.02 | |||||
| Weighted average common shares outstanding: | |||||||||||||||
| Basic | 665,953,788 | 661,734,667 | 665,323,129 | 661,278,793 | |||||||||||
| Diluted | 665,953,788 | 663,545,258 | 665,323,129 | 663,516,699 | |||||||||||
| Other comprehensive income (loss): | |||||||||||||||
| Unrealized gain (loss) on derivatives, net of income tax effect | $ | 121 | $ | (1,083 | ) | $ | 138 | $ | (1,444 | ) | |||||
| Total other comprehensive income (loss) | 121 | (1,083 | ) | 138 | (1,444 | ) | |||||||||
| Comprehensive income (loss) | $ | (7,621 | ) | $ | 4,696 | $ | (7,139 | ) | $ | 12,081 | |||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (amounts in thousands) (Unaudited) | |||||||
| Six Months Ended June 30, | |||||||
| 2025 | 2024 | ||||||
| Cash flows from operating activities | |||||||
| Net (loss) income | $ | (7,277 | ) | $ | 13,525 | ||
| Adjustments to reconcile net (loss) income to net cash provided by operating activities | 25,264 | 46,424 | |||||
| Net cash provided by operating activities | 17,987 | 59,949 | |||||
| Net cash used in investing activities | (1,325 | ) | (2,178 | ) | |||
| Net cash used in financing activities | (313,290 | ) | (16,246 | ) | |||
| Net (decrease) increase in cash and cash equivalents | (296,628 | ) | 41,525 | ||||
| Cash and cash equivalents - beginning of year | 585,967 | 466,400 | |||||
| Cash and cash equivalents - end of period | $ | 289,339 | $ | 507,925 | |||
| Reconciliation of Non-GAAP Financial Measures to GAAP Equivalents (amounts in thousands) (Unaudited) |
The following tables present a reconciliation of net 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 and adjusted SG&A for each of the periods presented.
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Reconciliation of Net (Loss) Income to Adjusted EBITDA | |||||||||||||||
| Net (loss) income | $ | (7,742 | ) | $ | 5,779 | $ | (7,277 | ) | $ | 13,525 | |||||
| Depreciation and amortization of intangible assets | 13,206 | 13,172 | 26,578 | 26,798 | |||||||||||
| Interest expense, net | 8,848 | 8,335 | 16,621 | 16,636 | |||||||||||
| Income tax provision | (1,323 | ) | 1,900 | (907 | ) | 4,523 | |||||||||
| Share-based compensation | 3,463 | 2,861 | 6,381 | 6,044 | |||||||||||
| Certain litigation related expenses(1) | 8,098 | — | 8,818 | — | |||||||||||
| Executive reorganization cost(2) | — | 7 | — | 12 | |||||||||||
| Adjusted EBITDA | $ | 24,550 | $ | 32,054 | $ | 50,214 | $ | 67,538 | |||||||
| Adjusted EBITDA margin | 23.1 | % | 30.8 | % | 24.7 | % | 33.3 | % | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||
| Reconciliation of Gross Profit to Adjusted Gross Profit | |||||||||||||||
| Gross profit | $ | 75,635 | $ | 72,437 | $ | 142,991 | $ | 143,780 | |||||||
| Amortization of patented formulations | 2,184 | 2,302 | 4,576 | 4,489 | |||||||||||
| Adjusted gross profit | $ | 77,819 | $ | 74,739 | $ | 147,567 | $ | 148,269 | |||||||
| Adjusted gross profit margin | 73.2 | % | 71.9 | % | 72.6 | % | 73.1 | % | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| Reconciliation of SG&A to Adjusted SG&A | ||||||||||||||||
| SG&A | $ | 65,909 | $ | 45,423 | $ | 113,896 | $ | 85,860 | ||||||||
| Share-based compensation | (3,463 | ) | (2,861 | ) | (6,381 | ) | (6,044 | ) | ||||||||
| Certain litigation related expenses(1) | (8,098 | ) | — | (8,818 | ) | — | ||||||||||
| Executive reorganization cost(3) | — | (7 | ) | — | (12 | ) | ||||||||||
| Adjusted SG&A | $ | 54,348 | $ | 42,555 | $ | 98,697 | $ | 79,804 | ||||||||
(1) Represents 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 June 30, 2025, to be non-recurring and non-ordinary. While the Company did not adjust for these costs during the year ended December 31, 2024 because the amounts incurred in 2024 were not material, commencing with the three months ended March 31, 2025, the Company has included an adjustment for these costs as a result of the court's denial of the Company's motion to dismiss in February 2025. The Company believes adjusting for such costs in the presentation of its adjusted EBITDA, adjusted EBITDA margin and adjusted SG&A provides investors with meaningful information regarding the Company’s core operating performance.
(2) Represented benefit payments associated with the departure of the Company's Chief Executive Officer that occurred in fiscal year 2023 and Chief Operating Officer that occurred in fiscal year 2022.
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
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