Core Insights - Waldencast reported FY 2025 net revenue of $272.1 million, flat compared to FY 2024, with an Adjusted EBITDA of $16.1 million, reflecting a significant decline of 60.1% year-over-year [1][22][19] - The company experienced mixed results across its portfolio in Q4 2025, with net revenue of $72.0 million, also flat compared to Q4 2024, and an Adjusted EBITDA of $6.6 million, down 41.4% year-over-year [1][11][13] - Obagi Medical showed revenue acceleration due to transformation efforts and brand momentum, while Milk Makeup maintained U.S. consumption growth despite international market softness [1][2][5] Financial Performance - For Q4 2025, Waldencast's net revenue decreased by 0.1% year-over-year to $72.0 million, with a gross profit of $48.2 million and an Adjusted Gross Profit of $51.2 million, representing a gross margin of 71.2% [11][12][14] - The net loss for Q4 2025 was $33.5 million, primarily due to financing costs related to credit facility refinancing [12][31] - For the year ended 2025, net revenue decreased by 0.7% to $272.1 million, with a gross profit of $183.0 million and an Adjusted Gross Profit margin of 71.6% [16][17][22] Brand Performance - Obagi Medical achieved a net revenue of $161.6 million in FY 2025, an increase of 8.3% from FY 2024, driven by strong international demand and U.S. direct-to-consumer success [22][15] - Milk Makeup's net revenue for FY 2025 was $110.4 million, down 11.4% year-over-year, impacted by softer international consumption despite a 6.2% growth in U.S. consumption [22][6][5] Strategic Initiatives - Waldencast advanced its strategic priorities in 2025 by entering the medical aesthetics market and enhancing financial flexibility through the sale of the Obagi Japan trademark for $82.5 million [1][8] - The company is focusing on strengthening its balance sheet and strategic focus, with a comprehensive review of strategic alternatives underway [7][8] - Obagi Medical's upcoming launch of Obagi saypha MagIQ injectables in Q1 2026 is expected to double its addressable market and solidify its leadership in integrated skincare and medical aesthetics [2][3] Liquidity and Debt Management - As of December 31, 2025, Waldencast held $30.4 million in cash and cash equivalents, with net debt totaling $121.7 million, a reduction from $154.2 million in the previous year [20][21] - The company entered into a new $225 million three-year credit facility in November 2025, utilizing proceeds from the sale of the Obagi Japan trademark to reduce debt [20][8]