OLAPLEX Reports Third Quarter 2025 Results

Financial Performance - For Q3 2025, net sales decreased by 3.8% to $114.6 million compared to Q3 2024, with gross profit down 3.1% to $79.2 million [3][5] - The adjusted EBITDA for Q3 2025 was $30.8 million, a decline of 31.0% from $44.6 million in Q3 2024, resulting in an adjusted EBITDA margin of 26.9% [3][6] - Net income for Q3 2025 was $11.1 million, down 24.8% from $14.8 million in Q3 2024, with diluted EPS remaining unchanged at $0.02 [3][5] Sales Channel Performance - Specialty Retail sales decreased by 13.5% to $36.9 million, while Professional sales increased by 5.3% to $44.5 million, and Direct-To-Consumer sales decreased by 2.9% to $33.3 million [5] - Domestic sales fell by 14.6%, whereas international sales grew by 7.1% [5] Year-to-Date Results - For the nine months ended September 30, 2025, net sales were $317.8 million, a decrease of 1.3% from $321.9 million in the same period of 2024 [4] - Gross profit for the nine months was $222.2 million, down 1.5% from $225.5 million in 2024 [4] Cost and Expenses - Selling, General and Administrative (SG&A) expenses increased by 49.2% to $64.1 million in Q3 2025 compared to $43.0 million in Q3 2024 [3][5] - Adjusted SG&A for Q3 2025 was $51.3 million, up 26.8% from $40.4 million in Q3 2024 [3][6] Balance Sheet Highlights - As of September 30, 2025, cash and cash equivalents were $286.4 million, down from $586.0 million at the end of 2024 [7] - Long-term debt decreased to $352.1 million from $643.7 million at the end of 2024 [7] Fiscal Year 2025 Guidance - The company is reiterating its guidance for fiscal year 2025, projecting 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% [8][9]