Waldencast Reports Q3 2024 Financial Results

Core Insights - Waldencast plc reported a net revenue of $70.2 million for Q3 2024, reflecting a 34.6% increase in comparable net revenue growth compared to Q3 2023 [1][4] - The company achieved an adjusted EBITDA of $11.4 million, representing a 134.0% increase year-over-year [1][6] - Both Obagi Medical and Milk Makeup brands showed strong performance, with Obagi Medical achieving a 45.5% growth and Milk Makeup a 23.5% growth compared to Q3 2023 [1][12][13] Financial Performance - Q3 2024 net revenue increased by 30.8% on a net revenue basis compared to Q3 2023 [4] - Gross profit for Q3 2024 was $48.1 million, up from $35.9 million in Q3 2023, with an adjusted gross profit margin of 73.2%, a 400-basis point increase [5][11] - The net loss improved significantly from $36.5 million in Q3 2023 to $13.1 million in Q3 2024, driven by better adjusted gross margins [5][30] Brand Performance - Obagi Medical's net revenue reached $38.7 million, with a comparable net revenue growth of 45.5% and adjusted EBITDA of $7.5 million, a 129.7% increase from Q3 2023 [12] - Milk Makeup's net revenue was $31.5 million, up 23.5%, with adjusted EBITDA doubling from Q3 2023 to $8.5 million [13] - Both brands benefited from increased consumer demand, innovation, and improved stock availability [2][12][13] Outlook - The company expects to achieve full-year comparable net revenue growth above the 25.7% growth achieved in Q2 2024, with adjusted EBITDA margins in the mid-teens [9][2] - Waldencast aims to leverage its multi-brand platform to enhance profitability and drive growth [2][35] Liquidity and Capital Structure - As of September 30, 2024, Waldencast had $17.6 million in cash and cash equivalents and $154.0 million in net debt, with $30 million remaining undrawn on its revolving credit facility [7][33] - The company maintained strong cash conversion supported by effective working capital management [7] Shareholder Information - As of November 15, 2024, Waldencast had 122,850,904 ordinary shares outstanding, with a decrease in fully diluted shares from 129,695,296 at the end of 2023 [8]