Prestige Consumer Healthcare Inc. Reports Fiscal 2026 Results, Announces Acquisition of LaCorium Health
Rhea-AI Summary
Prestige Consumer Healthcare (NYSE:PBH) reported fiscal 2026 revenue of $1,088.7 million and Q4 revenue of $281.6 million, both down year over year. Fiscal 2026 diluted EPS was $3.91, with adjusted diluted EPS of $4.38. Free cash flow rose to $246.4 million, and operating cash flow reached $257.6 million. The company repurchased 2.3 million shares for about $156 million.
Prestige agreed to acquire LaCorium Health for approximately $150 million in cash; LaCorium generated about $40 million in trailing-12-month revenue. Fiscal 2027 guidance targets revenue of $1.10–$1.121 billion, organic growth of 1–3%, adjusted EPS of $4.42–$4.51, and free cash flow of $250+ million.
Positive
- Fiscal 2026 free cash flow increased to $246.4 million from $243.3 million
- Operating cash flow rose to $257.6 million from $251.5 million in fiscal 2025
- Repurchased 2.3 million shares for approximately $156 million in fiscal 2026
- Agreement to acquire LaCorium Health for $150 million in cash
- LaCorium generated about $40 million TTM revenue and is expected to deliver approximately $12 million EBITDA with synergies
- Fiscal 2027 outlook: revenue $1.10–$1.121 billion, organic growth 1–3%, adjusted EPS $4.42–$4.51, free cash flow $250+ million
- Medium-term targets: approximately 10% annual revenue CAGR and 8% EPS CAGR over three years
Negative
- Fiscal 2026 revenue declined 4.3% to $1,088.7 million from $1,137.8 million
- Fiscal 2026 reported net income fell to $190.3 million from $214.6 million
- Fiscal 2026 diluted EPS decreased to $3.91 from $4.29
- Q4 2026 revenue of $281.6 million declined 5.0% year over year
- Q4 2026 adjusted diluted EPS decreased to $1.23 from $1.32 in the prior-year quarter
- Lower Eye & Ear Care sales due to limited Clear Eyes supply weighed on fiscal 2026 results
- Shipping disruptions in the Middle East reduced International OTC revenue in Q4 2026
News Market Reaction – PBH
In the May 14 session, PBH declined 11.35%, reflecting a significant negative market reaction. Argus tracked a trough of -13.2% from its starting point during tracking. Our momentum scanner triggered 10 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Acquisition Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 20 | Acquisition announcement | Positive | +1.6% | Agreed to acquire Breathe Right portfolio with sizable revenue and EBITDA. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
The last acquisition headline for PBH drew a modestly positive price reaction, suggesting investors have previously viewed bolt-on deals constructively.
In the past six months, Prestige Consumer Healthcare has used acquisitions to expand its portfolio. On Mar 20, 2026, the company announced an agreement to acquire Breathe Right and other brands, a portfolio with about $200M revenue and $95M EBITDA. That news saw PBH gain 1.55% over the next session. Today’s LaCorium announcement continues this acquisition-driven strategy alongside fiscal 2026 results and fiscal 2027 guidance.
Key Terms
non-gaap financial
ebitda financial
cagr financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Reported revenues of
$281.6 million in Q4 and$1,088.7 million in fiscal year 2026 - Diluted EPS of
$3.91 and Adjusted Diluted EPS of$4.38 in fiscal year 2026 - Announces agreement to acquire LaCorium Health, a leader in Australian therapeutic skin care
- Introducing Outlook for Fiscal 2027 Organic Revenue Growth and Adjusted Diluted EPS of
1% to3% , respectively, excluding the impact of acquisitions
TARRYTOWN, N.Y., May 13, 2026 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its fourth quarter and fiscal year ended March 31, 2026.
“Our fiscal 2026 demonstrated the resilience of our business model in a challenging consumer backdrop.
Our diversified portfolio of leading brands with deep consumer heritage supports a durable financial profile and drives strong, growing free cash flow. In fiscal 2026, this resulted in
Fourth Fiscal Quarter Ended March 31, 2026
Reported revenues in the fourth quarter of fiscal 2026 of
Reported net income for the fourth quarter of fiscal 2026 was
Adjustments to net income in the fourth quarter of fiscal 2026 included certain costs associated with Pillar5, our recently acquired sterile eye care facility, including various costs associated with improving and optimizing the facility for increases in long-term capacity, as well as costs associated with acquisitions and associated tax adjustments as well as an adjustment to normalize the tax rate to account for discrete items.
Adjustments to net income in the fourth quarter of fiscal 2025 included non-cash tradename impairments and an associated tax adjustment as well as an adjustment to normalize the tax rate to account for discrete items.
Fiscal Year Ended March 31, 2026
Reported revenues for fiscal year 2026 totaled
Reported net income for fiscal 2026 of
Adjustments to net income in fiscal 2026 include certain costs associated with Pillar5, our recently acquired sterile eye care facility, including various costs associated with improving and optimizing the facility for long-term capacity. Additional adjustments to net income in fiscal 2026 include a supplier loan write-off, costs associated with acquisitions, and associated tax adjustments as well as an adjustment to normalize the tax rate to account for discrete items.
Adjustments to net income in fiscal 2025 included non-cash tradename impairments associated with non-strategic indefinite-lived and finite-lived intangible assets, and an associated tax adjustment as well as an adjustment to normalize the tax rate to account for discrete items.
Segment Review
North American OTC Healthcare: Segment revenues of
For fiscal 2026, reported revenues for the North American OTC segment were
International OTC Healthcare: Fiscal fourth quarter 2026 segment revenues of
For fiscal 2026, reported revenues for the International OTC Healthcare segment were
Free Cash Flow and Balance Sheet
The Company's net cash provided by operating activities for fiscal 2026 was
In fiscal 2026, the Company opportunistically repurchased 2.3 million shares at a total investment of approximately
The Company's net debt position as of March 31, 2026 was approximately
LaCorium Acquisition
The Company today is also announcing a definitive agreement to acquire LaCorium Health (“LaCorium”), for approximately
LaCorium generated approximately
Founded in Australia and introduced in 1998, LaCorium is a leader in Australian therapeutic skin care designed to treat individual skin ailments. Products are sold under the Dermal Therapy®, Flexitol®, and Crampeze® brands in need-state categories such as lip care (cold sores), skin care (eczema & acne), foot care (heel balm, antifungal), hair & scalp (eczema), and more. Approximately
Fiscal 2027 Outlook
Ron Lombardi, Chief Executive Officer, stated, “As we begin fiscal 2027, we anticipate our proven financial model and diversified portfolio of leading, trusted brands will result in sales growth approximate to our long-term expectations. Our organic sales growth outlook range reflects strong momentum for our diversified portfolio of leading strategic brands and also accounts for variability in eye care supply as we prioritize quality and increase output of Clear Eyes® as well as an expectation for a continued volatile consumer backdrop.”
He continued, “We anticipate adjusted diluted EPS of
| Fiscal 2027 Outlook | |
| Revenue | |
| Organic Revenue Growth | + |
| Adjusted Diluted E.P.S. | |
| Free Cash Flow | |
Medium-Term Outlook
“Based on the acquisitions expected to close early in fiscal 2027, our expanded portfolio of leading brands, and the continued recovery of our eye care capacity, we expect a meaningful strengthening of our overall business profile and positioning. Combined with our continued disciplined approach to capital allocation, this positions us to deliver growth over the next three years that exceeds our long-term targets. Over this period, we expect to generate an approximately
Fiscal 2026 Conference Call, Accompanying Slide Presentation and Replay
The Company will host a conference call to review its fourth quarter and fiscal 2026 results tomorrow morning, May 14, 2026 at 8:30 a.m. ET. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at http://www.prestigeconsumerhealthcare.com/. To participate in the conference call via phone, participants may register for the call here to receive dial-in details and a unique pin. While not required, it is recommended to join 10 minutes prior to the event start. The slide presentation can be accessed from the Investor Relations page of the Company’s website by clicking on Webcasts and Presentations.
A conference call replay will be available for approximately one week following completion of the live call and can be accessed on the Company’s Investor Relations page.
Non-GAAP and Other Financial Information
In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures” section at the end of this earnings release.
Note Regarding Forward-Looking Statements
This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as “durable,” “growing,” "outlook," “forecast,” "may," "will," "would," "expect," “positioned,” “anticipate,” “plan,” or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the Company's future operating results including revenues, organic growth, adjusted diluted earnings per share, and free cash flow; the strength of the Company’s financial profile, improvements in eye care supply from the acquisition of Pillar5 and increased manufacturing capacity from capital investments; LaCorium’s net sales growth; the timing of the closing of acquisitions; the impact of volatile markets on consumer spending; the timing of the Company’s return to historical leverage; and the Company’s ability to manage and mitigate energy costs and enhance shareholder value. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of business and economic conditions, including as a result of evolving U.S. and international tariffs and trade actions, labor shortages, inflation and geopolitical instability, consumer trends, the impact of the Company’s advertising and marketing and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, and the ability of the Company’s manufacturing operations and third party manufacturers and logistics providers and suppliers to meet demand for its products and to avoid inflationary cost increases and disruption. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2025 and other periodic reports filed with the Securities and Exchange Commission.
About Prestige Consumer Healthcare Inc.
Prestige Consumer Healthcare is a leading consumer healthcare products company with sales throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com.
Investor Relations Contact
Phil Terpolilli, CFA, 914-524-6819
irinquiries@prestigebrands.com
| Prestige Consumer Healthcare Inc. Consolidated Statement of Income and Comprehensive Income (Unaudited) | ||||||||||||||||
| Three Months Ended March 31, | Year Ended March 31, | |||||||||||||||
| (In thousands, except per share data) | 2026 | 2025 | 2026 | 2025 | ||||||||||||
| Total Revenues | 281,617 | 296,518 | 1,088,705 | 1,137,762 | ||||||||||||
| Cost of Sales | ||||||||||||||||
| Cost of sales excluding depreciation | 132,404 | 124,318 | 482,794 | 494,416 | ||||||||||||
| Cost of sales depreciation | 2,914 | 2,190 | 10,333 | 8,883 | ||||||||||||
| Cost of sales | 135,318 | 126,508 | 493,127 | 503,299 | ||||||||||||
| Gross profit | 146,299 | 170,010 | 595,578 | 634,463 | ||||||||||||
| Operating Expenses | ||||||||||||||||
| Advertising and marketing | 35,089 | 37,004 | 148,782 | 155,723 | ||||||||||||
| General and administrative | 30,280 | 27,050 | 116,447 | 108,209 | ||||||||||||
| Depreciation and amortization | 5,438 | 5,062 | 20,940 | 21,290 | ||||||||||||
| Goodwill and tradename impairment | — | 12,466 | — | 12,466 | ||||||||||||
| Total operating expenses | 70,807 | 81,582 | 286,169 | 297,688 | ||||||||||||
| Operating income | 75,492 | 88,428 | 309,409 | 336,775 | ||||||||||||
| Other expense (income) | ||||||||||||||||
| Interest expense, net | 11,428 | 10,759 | 42,339 | 47,632 | ||||||||||||
| Other expense (income), net | (708 | ) | 3,710 | 9,574 | 4,954 | |||||||||||
| Total other expense, net | 10,720 | 14,469 | 51,913 | 52,586 | ||||||||||||
| Income before income taxes | 64,772 | 73,959 | 257,496 | 284,189 | ||||||||||||
| Provision for income taxes | 10,844 | 23,831 | 67,195 | 69,584 | ||||||||||||
| Net income | $ | 53,928 | $ | 50,128 | $ | 190,301 | $ | 214,605 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 1.14 | $ | 1.01 | $ | 3.93 | $ | 4.32 | ||||||||
| Diluted | $ | 1.13 | $ | 1.00 | $ | 3.91 | $ | 4.29 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 47,433 | 49,656 | 48,456 | 49,697 | ||||||||||||
| Diluted | 47,686 | 50,064 | 48,720 | 50,080 | ||||||||||||
| Comprehensive income, net of tax: | ||||||||||||||||
| Currency translation adjustments | 1,962 | 2,586 | 9,387 | (3,083 | ) | |||||||||||
| Unrecognized net loss on pension plans | (96 | ) | (81 | ) | (96 | ) | (81 | ) | ||||||||
| Total other comprehensive income (loss) | 1,866 | 2,505 | 9,291 | (3,164 | ) | |||||||||||
| Comprehensive income | $ | 55,794 | $ | 52,633 | $ | 199,592 | $ | 211,441 | ||||||||
| Prestige Consumer Healthcare Inc. Consolidated Balance Sheet (Unaudited) | |||||||
| (In thousands) | March 31, | ||||||
| 2026 | 2025 | ||||||
| Assets | |||||||
| Current assets | |||||||
| Cash and cash equivalents | $ | 63,868 | $ | 97,884 | |||
| Accounts receivable, net of allowance of | 191,920 | 194,293 | |||||
| Inventories | 159,132 | 147,709 | |||||
| Prepaid expenses and other current assets | 16,564 | 8,442 | |||||
| Total current assets | 431,484 | 448,328 | |||||
| Property, plant and equipment, net | 121,689 | 74,548 | |||||
| Operating lease right-of-use assets | 27,780 | 28,238 | |||||
| Finance lease right-of-use assets, net | 21,776 | 25,056 | |||||
| Goodwill | 581,109 | 527,425 | |||||
| Intangible assets, net | 2,299,605 | 2,295,350 | |||||
| Other long-term assets | 10,870 | 3,273 | |||||
| Total Assets | $ | 3,494,313 | $ | 3,402,218 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 22,791 | $ | 18,925 | |||
| Accrued interest payable | 15,578 | 15,703 | |||||
| Operating lease liabilities, current portion | 6,910 | 6,047 | |||||
| Finance lease liabilities, current portion | 2,656 | 2,490 | |||||
| Other accrued liabilities | 72,989 | 63,458 | |||||
| Total current liabilities | 120,924 | 106,623 | |||||
| Long-term debt, net | 993,953 | 992,357 | |||||
| Deferred income tax liabilities | 447,417 | 419,594 | |||||
| Long-term operating lease liabilities, net of current portion | 20,955 | 22,732 | |||||
| Long-term finance lease liabilities, net of current portion | 17,968 | 20,624 | |||||
| Other long-term liabilities | 5,580 | 5,391 | |||||
| Total Liabilities | 1,606,797 | 1,567,321 | |||||
| Stockholders' Equity | |||||||
| Preferred stock - | |||||||
| Authorized - 5,000 shares | |||||||
| Issued and outstanding - None | — | — | |||||
| Common stock - | |||||||
| Authorized - 250,000 shares | |||||||
| Issued – 56,211 shares at March 31, 2026 and 56,010 shares at March 31, 2025 | 562 | 560 | |||||
| Additional paid-in capital | 608,520 | 593,402 | |||||
| Treasury stock, at cost – 8,892 shares at March 31, 2026 and 6,501 at March 31, 2025 | (439,301 | ) | (277,208 | ) | |||
| Accumulated other comprehensive loss, net of tax | (28,368 | ) | (37,659 | ) | |||
| Retained earnings | 1,746,103 | 1,555,802 | |||||
| Total Stockholders' Equity | 1,887,516 | 1,834,897 | |||||
| Total Liabilities and Stockholders' Equity | $ | 3,494,313 | $ | 3,402,218 | |||
| Prestige Consumer Healthcare Inc. Consolidated Statement of Cash Flows (Unaudited) | |||||||
| Year Ended March 31, | |||||||
| (In thousands) | 2026 | 2025 | |||||
| Operating Activities | |||||||
| Net income | $ | 190,301 | $ | 214,605 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
| Depreciation and amortization | 31,273 | 30,173 | |||||
| Loss on sale or disposal of property and equipment | 165 | 234 | |||||
| Deferred and other income taxes | 22,697 | 14,409 | |||||
| Amortization of debt origination costs | 1,797 | 1,754 | |||||
| Stock-based compensation costs | 10,835 | 11,157 | |||||
| Non-cash operating lease cost | 7,850 | 7,247 | |||||
| Write-off of supplier loan | 10,332 | — | |||||
| Impairment loss | — | 12,466 | |||||
| Other | — | 1,411 | |||||
| Changes in operating assets and liabilities, net of effects from acquisition: | |||||||
| Accounts receivable | (3,685 | ) | (16,327 | ) | |||
| Inventories | (1,597 | ) | (9,314 | ) | |||
| Prepaid expenses and other current assets | (6,968 | ) | 4,655 | ||||
| Accounts payable | (151 | ) | (19,411 | ) | |||
| Accrued liabilities | 2,527 | 6,984 | |||||
| Operating lease liabilities | (7,781 | ) | (7,630 | ) | |||
| Other | 32 | (898 | ) | ||||
| Net cash provided by operating activities | 257,627 | 251,515 | |||||
| Investing Activities | |||||||
| Purchases of property, plant and equipment | (11,178 | ) | (8,224 | ) | |||
| Acquisitions, net of cash acquired | (123,736 | ) | (8,250 | ) | |||
| Other | (1,927 | ) | (978 | ) | |||
| Net cash used in investing activities | (136,841 | ) | (17,452 | ) | |||
| Financing Activities | |||||||
| Term Loan repayments | — | (135,000 | ) | ||||
| Borrowings under revolving credit agreement | 40,000 | — | |||||
| Repayments under revolving credit agreement | (40,000 | ) | — | ||||
| Net increase in line of credit | 2,986 | — | |||||
| Payments of finance leases | (2,482 | ) | (4,536 | ) | |||
| Proceeds from exercise of stock options | 4,285 | 14,802 | |||||
| Fair value of shares surrendered as payment of tax withholding | (4,322 | ) | (5,832 | ) | |||
| Repurchase of common stock | (156,283 | ) | (51,509 | ) | |||
| Other | (246 | ) | — | ||||
| Net cash used in financing activities | (156,062 | ) | (182,075 | ) | |||
| Effects of exchange rate changes on cash and cash equivalents | 1,260 | (573 | ) | ||||
| (Decrease) increase in cash and cash equivalents | (34,016 | ) | 51,415 | ||||
| Cash and cash equivalents - beginning of year | 97,884 | 46,469 | |||||
| Cash and cash equivalents - end of year | $ | 63,868 | $ | 97,884 | |||
| Interest paid | $ | 43,843 | $ | 47,804 | |||
| Income taxes paid | $ | 45,944 | $ | 52,117 | |||
| Prestige Consumer Healthcare Inc. Consolidated Statement of Income Business Segments (Unaudited) | ||||||||
| Three Months Ended March 31, 2026 | ||||||||
| (In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
| Total segment revenues* | $ | 234,545 | $ | 47,072 | $ | 281,617 | ||
| Cost of sales | 113,171 | 22,147 | 135,318 | |||||
| Gross profit | 121,374 | 24,925 | 146,299 | |||||
| Advertising and marketing | 27,174 | 7,915 | 35,089 | |||||
| Contribution margin | $ | 94,200 | $ | 17,010 | 111,210 | |||
| Other operating expenses | 35,718 | |||||||
| Operating income | 75,492 | |||||||
| *Intersegment revenues of | ||||||||
| Year Ended March 31, 2026 | ||||||||
| (In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
| Total segment revenues* | $ | 913,576 | $ | 175,129 | $ | 1,088,705 | ||
| Cost of sales | 412,699 | 80,428 | 493,127 | |||||
| Gross profit | 500,877 | 94,701 | 595,578 | |||||
| Advertising and marketing | 120,847 | 27,935 | 148,782 | |||||
| Contribution margin | $ | 380,030 | $ | 66,766 | 446,796 | |||
| Other operating expenses | 137,387 | |||||||
| Operating income | $ | 309,409 | ||||||
| *Intersegment revenues of | ||||||||
| Three Months Ended March 31, 2025 | ||||||||
| (In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
| Total segment revenues* | $ | 248,949 | $ | 47,569 | $ | 296,518 | ||
| Cost of sales | 107,463 | 19,045 | 126,508 | |||||
| Gross profit | 141,486 | 28,524 | 170,010 | |||||
| Advertising and marketing | 29,794 | 7,210 | 37,004 | |||||
| Contribution margin | $ | 111,692 | $ | 21,314 | 133,006 | |||
| Other operating expenses** | 44,578 | |||||||
| Operating income | $ | 88,428 | ||||||
| *Intersegment revenues of **Other operating expenses for the three months ended March 31, 2025 includes a tradename impairment charge of | ||||||||
| Year Ended March 31, 2025 | ||||||||
| (In thousands) | North American OTC Healthcare | International OTC Healthcare | Consolidated | |||||
| Total segment revenues* | $ | 960,010 | $ | 177,752 | $ | 1,137,762 | ||
| Cost of sales | 428,871 | 74,428 | 503,299 | |||||
| Gross profit | 531,139 | 103,324 | 634,463 | |||||
| Advertising and marketing | 129,431 | 26,292 | 155,723 | |||||
| Contribution margin | $ | 401,708 | $ | 77,032 | 478,740 | |||
| Other operating expenses** | 141,965 | |||||||
| Operating income | $ | 336,775 | ||||||
| * Intersegment revenues of **Other operating expenses for the year ended March 31, 2025 includes a tradename impairment charge of | ||||||||
About Non-GAAP Financial Measures
In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.
These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.
NGFMs Defined
We define our NGFMs presented herein as follows:
- Non-GAAP Organic Revenues: GAAP Total Revenues excluding the impact of foreign currency exchange rates in the periods presented.
- Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
- Non-GAAP Adjusted Gross Margin: GAAP Gross Profit minus amortization of inventory fair value step-up, depreciation of idle manufacturing assets during remediation period and acquired facility remediation, period overhead and idle capacity costs.
- Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues.
- Non-GAAP Adjusted General and Administrative Expense: GAAP General and Administrative expenses minus costs associated with acquisition and depreciation of idle assets recorded in General and Administrative expenses during remediation period.
- Non-GAAP Adjusted General and Administrative Expense Percentage: Calculated as Non-GAAP Adjusted General and Administrative expense divided by GAAP Total Revenues.
- Non-GAAP EBITDA: GAAP Net Income before interest expense, net, provision for income taxes, and depreciation and amortization.
- Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
- Non-GAAP Adjusted EBITDA: Non-GAAP EBITDA less amortization of inventory fair value step-up, acquired facility remediation, period overhead and idle capacity costs, costs associated with acquisition in General and Administrative expenses, supplier loan write-off and tradename impairment.
- Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP adjusted EBITDA divided by GAAP Total Revenues.
- Non-GAAP Adjusted Net Income: GAAP Net Income before amortization of inventory fair value step-up, depreciation of idle manufacturing assets during remediation period, acquired facility remediation, period overhead and idle capacity costs, supplier loan write-off, costs associated with acquisition in General and Administrative expenses, acquired facility depreciation, tradename impairment, tax impact of adjustments and normalized tax rate adjustment.
- Non-GAAP Adjusted Diluted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the diluted weighted average number of shares outstanding during the period.
- Non-GAAP Free Cash Flow: Calculated as GAAP Net cash provided by operating activities less cash paid for capital expenditures.
- Net Debt: Calculated as total principal amount of debt outstanding (
$1,000,000 at March 31, 2026 and$1,000,000 at March 31, 2025) less cash and cash equivalents ($63,868 at March 31, 2026 and$97,884 at March 31, 2025). Amounts in thousands.
The following tables set forth the reconciliations of each of our NGFMs to their most directly comparable financial measures presented in accordance with GAAP.
Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP Total Revenues | $ | 281,617 | $ | 296,518 | $ | 1,088,705 | $ | 1,137,762 | |||||||
| Revenue Change | (5.0 | )% | (4.3 | )% | |||||||||||
| Adjustment: | |||||||||||||||
| Impact of foreign currency exchange rates | — | 4,292 | — | 2,718 | |||||||||||
| Total adjustment | — | 4,292 | — | 2,718 | |||||||||||
| Non-GAAP Organic Revenues | $ | 281,617 | $ | 300,810 | $ | 1,088,705 | $ | 1,140,480 | |||||||
| Non-GAAP Organic Revenue Change | (6.4 | )% | (4.5 | )% | |||||||||||
Reconciliation of GAAP Gross Profit to Non-GAAP Adjusted Gross Margin and related Non-GAAP Adjusted Gross Margin percentage:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP Total Revenues | $ | 281,617 | $ | 296,518 | $ | 1,088,705 | $ | 1,137,762 | |||||||
| GAAP Gross Profit | 146,299 | 170,010 | 595,578 | 634,463 | |||||||||||
| GAAP Gross Profit as a Percentage of GAAP Total Revenue | 51.9 | % | 57.3 | % | 54.7 | % | 55.8 | % | |||||||
| Adjustments: | |||||||||||||||
| Amortization of inventory fair value step‑up | 700 | — | 700 | — | |||||||||||
| Depreciation of idle manufacturing assets during remediation period (a) | 475 | — | 475 | — | |||||||||||
| Acquired facility remediation, period overhead and idle capacity costs (b) | 8,402 | — | 8,402 | — | |||||||||||
| Total adjustments | 9,577 | — | 9,577 | — | |||||||||||
| Non-GAAP Adjusted Gross Margin | $ | 155,876 | $ | 170,010 | $ | 605,155 | $ | 634,463 | |||||||
| Non-GAAP Adjusted Gross Margin as a Percentage of GAAP Total Revenues | 55.4 | % | 57.3 | % | 55.6 | % | 55.8 | % | |||||||
(a) Represents depreciation expense recorded during the remediation period following the acquisition of Pillar5, during which certain production lines were not operating. Management believes this depreciation is not reflective of expected ongoing depreciation levels once the facility is fully remediated and operating at normal production levels.
(b) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
Reconciliation of GAAP General and Administrative Expense and related GAAP General and Administrative Expense percentage to Non-GAAP Adjusted General and Administrative expense and related Non-GAAP Adjusted General and Administrative Expense percentage:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP General and Administrative Expense | 30,280 | 27,050 | 116,447 | 108,209 | |||||||||||
| GAAP General and Administrative Expense as a Percentage of GAAP Total Revenue | 10.8 | % | 9.1 | % | 10.7 | % | 9.5 | % | |||||||
| Adjustments: | |||||||||||||||
| Costs associated with acquisitions (a) | 2,756 | — | 3,228 | — | |||||||||||
| Depreciation of idle assets recorded in G&A during remediation period (b) | 135 | — | 135 | — | |||||||||||
| Total adjustments | 2,891 | — | 3,363 | — | |||||||||||
| Non-GAAP Adjusted General and Administrative Expense | $ | 27,389 | $ | 27,050 | $ | 113,084 | $ | 108,209 | |||||||
| Non-GAAP Adjusted General and Administrative Expense Percentage as a Percentage of GAAP Total Revenues | 9.7 | % | 9.1 | % | 10.4 | % | 9.5 | % | |||||||
(a) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
(b) Represents depreciation expense recorded during the remediation period following the acquisition of Pillar5, during which certain production lines were not operating. Management believes this depreciation is not reflective of expected ongoing depreciation levels once the facility is fully remediated and operating at normal production levels.
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP Net Income | $ | 53,928 | $ | 50,128 | $ | 190,301 | $ | 214,605 | |||||||
| Interest expense, net | 11,428 | 10,759 | 42,339 | 47,632 | |||||||||||
| Provision for income taxes | 10,844 | 23,831 | 67,195 | 69,584 | |||||||||||
| Depreciation and amortization | 8,352 | 7,252 | 31,273 | 30,173 | |||||||||||
| Non-GAAP EBITDA | 84,552 | 91,970 | 331,108 | 361,994 | |||||||||||
| Non-GAAP EBITDA Margin | 30.0 | % | 31.0 | % | 30.4 | % | 31.8 | % | |||||||
| Adjustments: | |||||||||||||||
| Amortization of inventory fair value step‑up | 700 | — | 700 | — | |||||||||||
| Acquired facility remediation, period overhead and idle capacity costs (a) | 8,402 | — | 8,402 | — | |||||||||||
| Costs associated with acquisitions in G&A (b) | 2,756 | — | 3,228 | — | |||||||||||
| Supplier loan write-off | — | — | 10,332 | — | |||||||||||
| Tradename impairment | — | 12,466 | — | 12,466 | |||||||||||
| Total adjustments | 11,858 | 12,466 | 22,662 | 12,466 | |||||||||||
| Non-GAAP Adjusted EBITDA | $ | 96,410 | $ | 104,436 | $ | 353,770 | $ | 374,460 | |||||||
| Non-GAAP Adjusted EBITDA Margin | 34.2 | % | 35.2 | % | 32.5 | % | 32.9 | % | |||||||
(a) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
(b) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
Reconciliation of GAAP Net Income and GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Diluted Earnings Per Share:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||||||||||||||
| 2026 | 2026 Adjusted EPS | 2025 | 2025 Adjusted EPS | 2026 | 2026 Adjusted EPS | 2025 | 2025 Adjusted EPS | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||||||
| GAAP Net Income and Diluted EPS | $ | 53,928 | $ | 1.13 | $ | 50,128 | $ | 1.00 | $ | 190,301 | $ | 3.91 | $ | 214,605 | $ | 4.29 | |||||||||||
| Adjustments: | |||||||||||||||||||||||||||
| Amortization of inventory fair value step‑up | 700 | 0.01 | — | — | 700 | 0.01 | — | — | |||||||||||||||||||
| Depreciation of idle manufacturing assets during remediation period (a) | 610 | 0.01 | — | — | 610 | 0.01 | — | — | |||||||||||||||||||
| Acquired facility remediation, period overhead and idle capacity costs (b) | 8,402 | 0.18 | — | — | 8,402 | 0.17 | — | — | |||||||||||||||||||
| Supplier loan write-off | — | — | — | — | 10,332 | 0.21 | — | — | |||||||||||||||||||
| Costs associated with acquisition in General and administrative expense (c) | 2,756 | 0.06 | — | — | 3,228 | 0.07 | — | — | |||||||||||||||||||
| Tradename impairment | — | — | 12,466 | 0.25 | — | — | 12,466 | 0.25 | |||||||||||||||||||
| Tax impact of adjustments (d) | (3,017 | ) | (0.06 | ) | (2,961 | ) | (0.06 | ) | (5,659 | ) | (0.12 | ) | (2,961 | ) | (0.06 | ) | |||||||||||
| Normalized tax rate adjustment (e ) | (4,831 | ) | (0.10 | ) | 6,266 | 0.13 | 5,430 | 0.11 | 2,236 | 0.04 | |||||||||||||||||
| Total adjustments | 4,620 | 0.10 | 15,771 | 0.32 | 23,043 | 0.46 | 11,741 | 0.23 | |||||||||||||||||||
| Non-GAAP Adjusted Net Income and Adjusted Diluted EPS | $ | 58,548 | $ | 1.23 | $ | 65,899 | $ | 1.32 | $ | 213,344 | $ | 4.38 | $ | 226,346 | $ | 4.52 | |||||||||||
(a) Represents depreciation expense recorded during the remediation period following the acquisition of Pillar5, during which certain production lines were not operating. Management believes this depreciation is not reflective of expected ongoing depreciation levels once the facility is fully remediated and operating at normal production levels.
(b) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.
(c) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.
(d) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of specific Non-GAAP performance measure.
(e) Income tax adjustment to adjust for discrete income tax items.
Note: Amounts may not add due to rounding.
Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow:
| Three Months Ended March 31, | Year Ended March 31, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands) | |||||||||||||||
| GAAP Net Income | $ | 53,928 | $ | 50,128 | $ | 190,301 | $ | 214,605 | |||||||
| Adjustments: | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows | 9,405 | 33,507 | 84,949 | 78,851 | |||||||||||
| Changes in operating assets and liabilities as shown in the Statement of Cash Flows | (20,492 | ) | (21,787 | ) | (17,623 | ) | (41,941 | ) | |||||||
| Total adjustments | (11,087 | ) | 11,720 | 67,326 | 36,910 | ||||||||||
| GAAP Net cash provided by operating activities | 42,841 | 61,848 | 257,627 | 251,515 | |||||||||||
| Purchases of property and equipment | (5,210 | ) | (3,479 | ) | (11,178 | ) | (8,224 | ) | |||||||
| Non-GAAP Free Cash Flow | $ | 37,631 | $ | 58,369 | $ | 246,449 | $ | 243,291 | |||||||
Outlook for Fiscal Year 2027:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow and Projected Non-GAAP Adjusted Free Cash Flow:
| (In millions) | |||
| Projected FY'27 GAAP Net cash provided by operating activities | $ | 268 | |
| Additions to property and equipment for cash | (26 | ) | |
| Projected FY'27 Non-GAAP Free Cash Flow | 242 | ||
| Costs associated with Pillar5 manufacturing optimization and integration | 8 | ||
| Projected FY'27 Non-GAAP Adjusted Free Cash Flow | $ | 250 | |
Reconciliation of Projected GAAP Diluted EPS to Projected Non-GAAP Diluted Adjusted EPS:
| Low | High | |||
| Projected FY'27 GAAP Diluted EPS | $ | 4.31 | $ | 4.40 |
| Costs associated with Pillar5 manufacturing optimization and integration | 0.11 | 0.11 | ||
| Projected FY'27 Non-GAAP Adjusted Diluted EPS | $ | 4.42 | $ | 4.51 |
