Olaplex (OLPX) investor relations material

Executive summary

• Third quarter 2025 net sales declined 3.8% year-over-year to $114.6 million, with net income dropping 24.8% to $11.1 million; nine-month net sales were $317.8 million, down 1.3% year-over-year, and net income fell 86.4% to $3.9 million.

• Q3 results exceeded internal expectations, driven by improved sell-through trends, new product launches, and integrated marketing campaigns.

• Management reaffirmed annual guidance and highlighted ongoing investments in sales, marketing, and innovation, including the acquisition of Purvala/Provalus Bioscience.

• Operating income for Q3 was $4.2 million, down from $28.0 million in Q3 2024, mainly due to higher SG&A and acquisition-related costs.

• Gross margin for Q3 improved to 69.1% from 68.6% year-over-year; adjusted gross profit margin was 71.5%.

Financial highlights

• Net sales for Q3 were $114.6 million, down 3.8% year-over-year, with professional channel sales up 5.3% and specialty retail and DTC down 13.5% and 2.9%, respectively.

• Adjusted EBITDA for Q3 was $30.8 million (26.9% margin), down 31% year-over-year.

• Cash and cash equivalents at quarter-end were $286.4 million, with long-term debt reduced to $352.1 million.

• Adjusted SG&A for Q3 was $51.3 million, reflecting increased investment in sales and marketing.

• Interest expense fell 50.7% in Q3 due to a $300 million voluntary debt repayment in May 2025.

Outlook and guidance

• Full-year 2025 guidance reaffirmed: net sales expected at $410–$431 million, adjusted gross margin between 70.5%-71.5%, and adjusted EBITDA margin of 20%-22%.

• Guidance assumes minimal tariff impact, continued investment in R&D, marketing, and talent, and a fluid macro environment.

• Management expects continued pressure from competitive discounting, inflation, and macroeconomic uncertainty.

• Anticipates continued revenue shifts benefiting professional channels and headwinds for retail and D2C, with proactive management of industry destocking.