Q4 2025 net revenue of $72.0 million, flat to Q4 2024 and Adjusted EBITDA of $6.6 million
Obagi Medical sees continued revenue acceleration as a result of transformation efforts and continued brand momentum, alongside investments supporting the recent launch of its injectables platform
Milk Makeup maintains U.S. consumption growth through distribution expansion, offset by softness in international markets
Waldencast advanced its strategic priorities in 2025, entering medical aesthetics, and strengthening its financial flexibility through the sale of the Obagi Japan trademark and the refinancing of its credit facility. As a result, the Company enters 2026 with a strong foundation for successful growth
LONDON, March 13, 2026 (GLOBE NEWSWIRE) -- Waldencast plc (NASDAQ:WALD) ("Waldencast" or the "Company"), a global multi-brand beauty and wellness platform, today reported operating results for the three months ended December 31, 2025 ("Q4 2025") and year ended December 31, 2025 ("Year Ended 2025") on Form 6-K to the U.S. Securities and Exchange Commission (the "SEC"), which are also available on our investor relations site at http://ir.waldencast.com/.
"Fiscal 2025 was a defining year of transformation for Waldencast, as we focused on strengthening our operating platform and sharpening our strategic focus to support long-term, profitable growth," said Michel Brousset, Waldencast Founder and CEO. "While our fourth-quarter performance reflected this transition with mixed results across our portfolio, we have successfully expanded our addressable market, increased the reach and effectiveness of our brand marketing, and significantly strengthened our balance sheet."
"Obagi Medical continues to demonstrate exceptional momentum, with revenue acceleration driven by robust international demand and U.S. direct-to-consumer success. While reported earnings reflect the intentional, incremental investments made to power our entry into the aesthetics category, the brand's underlying performance remains strong. The Q1 2026 launch of Obagi® saypha® MagIQ™ is a pivotal milestone that doubles our addressable market1 and cements our leadership in integrated skincare and medical aesthetics."
"At Milk Makeup, our team's disciplined execution delivered in Q4 higher year-over-year Adjusted EBITDA, even as we navigated softer international consumption. We are entering 2026 with a strengthened leadership team and a focused investment strategy for our flagship Hydro Grip franchise. Following the success of the Hydro Grip Gel Tint in 2025, we are excited to debut the Hydro Grip Gel concealer in Q1. With a reinforced financial foundation and two powerhouse brands poised for innovation, Waldencast enters 2026 with the favorable momentum necessary to win in the global beauty market."
____________________1 In preparing for the Novaestiq transaction, Waldencast engaged management consulting services from a reputed global consulting firm.
Obagi Medical
Obagi Medical delivered accelerated growth through 2025, as strong product innovation and disciplined investment underpinned U.S. e-commerce channel success, while improved fulfillment rates and new distribution partners anchored strong international momentum. The brand remains sharply focused on strategic priorities, rationalizing distribution with the exit of non-strategic channels, and in July announced the acquisition of Novaestiq and the U.S. distribution rights for Obagi® saypha® fillers, a product of Croma-Pharma GmbH. In September, Obagi Medical announced FDA approval for Obagi® saypha® MagIQ™ filler, an exciting milestone in our long-term strategy to build the world's leading dermatological megabrand at the intersection of skincare and medical aesthetics. One-time costs, related to consolidating U.S. logistics providers and other supply chain optimization, led to strengthened supply chain management and improved in-stock levels. The brand increased investment in internal capabilities to create a scalable platform and support the development and launch of its injectable products, launched in March 2026. In 2025, Obagi incurred approximately $5.3 million of launch-related expenses associated with the Obagi® saypha® MagIQ™ injectables program, primarily product, regulatory and commercial-readiness costs. Excluding these expenses, Obagi's Q4 2025 Adjusted EBITDA would have been approximately $11.0 million (vs. $5.7 million reported) and FY2025 Adjusted EBITDA approximately $24.7 million (vs. $19.4 million reported).
Milk Makeup
In 2025, Milk Makeup continued to expand its U.S. distribution, launching at Ulta Beauty in Q1 2025 and on Amazon Premium Beauty in Q2 2025. Combined with another year of award-winning innovation, including the Hydro Grip Gel Skin Tint, U.S. consumption grew ahead of market2. However, growth was impacted in the year by softer consumption, in particular internationally, resulting in a year-on-year decline in overall net revenue for the brand. In the second half of 2025, the brand focused on transformative initiatives, including restructuring the team and naming Mazdack Rassi, Co-Founder of Milk Makeup, as President to lead the brand into this new stage of growth. Going into 2026, we are further prioritizing investment in international markets and brand marketing, increasing innovation pace, and strengthening the brand's operating platform.
____________________2 Milk Makeup 2025 U.S. consumption grew 6.2%, compared to 4% growth in U.S. prestige makeup retail sales per Circana.
Strategic Review
As previously announced, Waldencast's Board of Directors is conducting a comprehensive review of a broad range of strategic alternatives focused on maximizing shareholder value. To support the evaluation of all potential pathways, the Board has retained Lazard as financial advisor.
As part of this review and aligned with our objective to strengthen our balance sheet and sharpen our strategic focus, in November 2025, the Company announced the sale of the Obagi Japan trademark rights to our longstanding commercial partner, Rohto Pharmaceutical Co. Ltd., for $82.5 million, of which $77.5 million was used for debt repayment. Combined with the refinancing of our credit facilities, this transaction significantly reduced our leverage and further strengthened our balance sheet.
The Company does not intend to comment further on the status or timing of this process unless and until the Board approves a definitive course of action or determines that additional disclosure is appropriate. Given the broad scope of the review, there can be no assurance that it will result in a transaction or any other specific outcome.
Fiscal 2026 Outlook
Due to the ongoing Strategic Review, the Company will not be providing an outlook for 2026 at this time.
Q4 2025 Results Overview
Please refer to the definitions and reconciliations set out further in this release with respect to certain adjusted non-GAAP measures discussed below which are included to provide an easier understanding of the underlying performance of the business, but should not be seen as a substitute for the U.S. GAAP numbers presented in this release.
For the three months ended December 31, 2025 compared to the three months ended December 31, 2024:
Net Revenue decreased 0.1% year-over-year to $72.0 million, as strong growth in Obagi Medical's direct-to-consumer and international channels was offset by softening consumption impacting Milk Makeup, most notably in international markets.
Gross Profit was $48.2 million, while Adjusted Gross Profit totaled $51.2 million, or 71.2% of net revenue, a contraction of 180 basis points compared to the prior year, driven by certain inventory-related adjustments at Obagi Medical, and increased holiday promotions at Milk Makeup offset by favorable channel mix.
Net Loss for Q4 2025 was $33.5 million primarily driven by financing costs related to the refinancing of credit facilities.
Adjusted EBITDA was $6.6 million, or 9.1% of net revenue, 640 basis points lower versus Q4 2024, due to a lower Adjusted Gross Margin, and investment related to 2026 launches, including Obagi Medical's expansion into medical aesthetics.
(In $ millions, except for percentages)
Q4 2025
% Sales
% Growth
Q4 2024
% Sales
Waldencast
Net Revenue
72.0
100.0%
(0.1)%
72.1
100.0%
Adjusted Gross Profit
51.2
71.2%
(2.7)%
52.6
73.0%
Adjusted EBITDA
6.6
9.1%
(41.4)%
11.2
15.5%
Obagi Medical
Net Revenue
47.6
100.0%
12.8%
42.2
100.0%
Adjusted Gross Profit
34.7
72.9%
4.4%
33.2
78.7%
Adjusted EBITDA
5.7
11.9%
(42.4)%
9.8
23.3%
Milk Makeup
Net Revenue
24.4
100.0%
(18.3)%
29.9
100.0%
Adjusted Gross Profit
16.5
67.7%
(14.8)%
19.4
64.9%
Adjusted EBITDA
5.2
21.3%
7.9%
4.8
16.1%
Year Ended 2025 Results Overview
For Year Ended 2025 compared to Year Ended 2024:
Net Revenue decreased 0.7% year-over-year to $272.1 million, as strong growth in Obagi Medical's direct-to-consumer and international channels was offset by softening consumption impacting Milk Makeup, most notably in international markets.
Gross Profit was $183.0 million, while Adjusted Gross Profit totaled $194.7 million, or 71.6% of Net Revenue, a contraction of 270 basis points compared to the prior year, primarily due to Milk Makeup as the brand transitioned away from an exclusive relationship with Sephora, and launch related costs associated with Obagi injectables products.
Net Loss for Year Ended 2025 was $248.1 million, primarily driven by impairment charges on Obagi Medical and Milk Makeup, depreciation and amortization, and financing costs including those incurred as a result of the refinancing of credit facilities.
Adjusted EBITDA was $16.1 million, or 5.9% of Net Revenue, 880 basis points lower than Year Ended 2024, due to a lower Adjusted Gross Margin, and investment related to supply chain rationalization and 2026 launches, including Obagi Medical's expansion into medical aesthetics.
Liquidity: As of December 31, 2025, the Company held $30.4 million in cash and cash equivalents. Net debt totaled $121.7 million. As of December 31, 2024, the Company had $14.8 million in cash and cash equivalents. Net Debt totaled $154.2 million.
New Credit Facility: On 14 November 2025, Waldencast entered into a new $225 million three-year credit facility, replacing its existing facility. The Company has utilized the majority of proceeds from the sale of the Obagi Japan trademark to pay down this debt.
Outstanding Shares: As of February 27, 2026, we had 128,259,872 ordinary shares outstanding, consisting of 118,239,889 Class A shares and 10,019,983 Class B shares.
Year Ended 2025 Highlights
(In $ millions, except for percentages)
Year Ended 2025
% Sales
% Growth
Year Ended 2024
% Sales
Waldencast
Net Revenue
272.1
100.0%
(0.7)%
273.9
100.0%
Adjusted Gross Profit
194.7
71.6%
(4.3)%
203.6
74.3%
Adjusted EBITDA
16.1
5.9%
(60.1)%
40.3
14.7%
Obagi Medical
Net Revenue
161.6
100.0%
8.3%
149.3
100.0%
Adjusted Gross Profit
123.2
76.2%
3.9%
118.6
79.4%
Adjusted EBITDA
19.4
12.0%
(36.3)%
30.5
20.4%
Milk Makeup
Net Revenue
110.4
100.0%
(11.4)%
124.6
100.0%
Adjusted Gross Profit
71.5
64.7%
(15.9)%
85.0
68.2%
Adjusted EBITDA
15.2
13.7%
(47.8)%
29.1
23.3%
Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with U.S. GAAP, Waldencast separately reports financial results on the basis of the measures set out and defined below which are non-GAAP financial measures. Waldencast believes the non-GAAP measures used in this release provide useful information to management and investors regarding certain financial and business trends relating to its financial condition and results of operations. Waldencast believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends. These non-GAAP measures also provide perspective on how Waldencast's management evaluates and monitors the performance of the business.
There are limitations to non-GAAP financial measures because they exclude charges and credits that are required to be included in GAAP financial presentation. The items excluded from GAAP financial measures such as net income/loss to arrive at non-GAAP financial measures are significant components for understanding and assessing our financial performance. Non-GAAP financial measures should be considered together with, and not alternatives to, financial measures prepared in accordance with GAAP.
Please refer to definitions set out in the release and the tables included in this release for a reconciliation of these metrics to the most directly comparable GAAP financial measures.
Adjusted Gross Profit is defined as GAAP gross profit excluding the impact of amortization of the supply agreement and formulation intangible assets, and the amortization of the fair value of the related party liability from the Obagi Medical China Business, which was not acquired by Waldencast at the time of the business combination with Obagi Medical and Milk Makeup (the "Business Combination"). The Adjusted Gross Profit reconciliation by Segment for each period is included in the Appendix.
Adjusted Gross Margin is defined as Adjusted Gross Profit divided by GAAP Net Revenue.
Adjusted EBITDA is defined as GAAP net income (loss) before interest income or expense, income tax (benefit) expense, depreciation and amortization, and further adjusted for the items as described in the reconciliation below. We believe this information will be useful for investors to facilitate comparisons of our operating performance and better identify trends in our business. Adjusted EBITDA excludes certain expenses that are required to be presented in accordance with GAAP because management believes they are non-core to our regular business. These include non-cash expenses, such as depreciation and amortization, stock-based compensation, the amortization and release of fair value of the related party liability to the Obagi Medical China Business, change in fair value of assets and liabilities, loss on impairment of goodwill, loss on extinguishment of debt, strategic review, and foreign currency translation loss (gain). In addition, adjustments include expenses that are not related to our underlying business performance including (1) legal, advisory and consultant fees related to the financial restatement of previously issued financial statements and associated regulatory investigation and acquisitions, and (2) other non-recurring costs, primarily tax restructuring costs. The Adjusted EBITDA by Segment for each period is included in the Appendix.
Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of net revenue. The Adjusted EBITDA Margin reconciliation by Segment for each period is included in the Appendix.
(In thousands, except for percentages)
Three Months EndedDecember 31, 2025
Three Months EndedDecember 31, 2024
Year endedDecember 31, 2025
Year endedDecember 31, 2024
Net Loss
$
(33,507
)
$
(22,597
)
$
(248,056
)
$
(48,648
)
Adjusted For:
Depreciation and amortization
14,145
15,013
59,184
60,015
Interest expense, net
5,363
4,088
25,094
17,155
Income tax expense (benefit)
(8,925
)
4,113
(14,189
)
110
Loss on extinguishment of debt
24,398
—
24,398
—
Stock-based compensation expense
2,962
2,993
11,796
9,392
Restatement and related costs(1)
130
3,029
1,694
20,424
Merger and acquisition related costs(2)
184
—
3,291
—
Change in fair value of assets and liabilities
(1,461
)
443
(4,510
)
(23,679
)
Amortization and release of related party liability(3)
—
(4,169
)
—
(5,678
)
Loss on impairment of goodwill
—
5,031
152,018
5,031
Gain on sale of trademark
(5,679
)
—
(5,679
)
—
Loss on acquisition
6,233
—
6,233
—
Strategic review costs
1,121
—
1,891
—
Foreign currency translation (gain) loss
