Olaplex (US:OLPX) Globenewswire·2025-08-07 10:45Core Insights - Olaplex Holdings, Inc. reported a net sales increase of 2.3% to $106.3 million for Q2 2025 compared to Q2 2024, with notable performance in the Professional and Direct-To-Consumer channels [5][3] - The company experienced a net loss of $7.7 million in Q2 2025, a significant decline from a net income of $5.8 million in Q2 2024, resulting in a diluted EPS of ($0.01) [5][3] - The company is undergoing a transformation strategy called "Bonds and Beyond," which aims to enhance its market position and operational efficiency [1] Financial Performance - For Q2 2025, gross profit increased by 4.4% to $75.6 million, with a gross profit margin of 71.2%, up from 69.7% in Q2 2024 [3][5] - Adjusted EBITDA for Q2 2025 was $24.6 million, down 23.4% from $32.1 million in Q2 2024, with an adjusted EBITDA margin of 23.1% [3][5] - SG&A expenses rose by 45.1% to $65.9 million in Q2 2025, reflecting increased investments in marketing and operational capabilities [3][5] Balance Sheet and Cash Flow - As of June 30, 2025, the company had cash and cash equivalents of $289.3 million, a decrease from $586.0 million at the end of 2024 [7][24] - Long-term debt was reduced to $351.9 million as of June 30, 2025, down from $643.7 million at the end of 2024, following a voluntary repayment of $300 million in May 2025 [8][7] - The company reported a net cash decrease of $296.6 million for the first half of 2025, primarily due to financing activities [29] Guidance and Future Outlook - The company reiterated its fiscal year 2025 guidance, expecting net sales between $410 million and $431 million, with an adjusted gross profit margin of 70.5% to 71.5% and an adjusted EBITDA margin of 20% to 22% [10][9] - Management anticipates a high single-digit decline in net sales for Q3 2025, followed by a high single-digit increase in Q4 2025, reflecting expected timing of shipments and promotional impacts [9][10]