Prestige Consumer Healthcare (PBH) investor relations material

Executive summary

• Q3 revenue was $283.4 million, down 2.4% year-over-year but slightly above forecast, with net income at $46.7 million and adjusted EPS at $1.14, reflecting ongoing supply constraints in Eye & Ear Care.

• Free cash flow year-to-date rose to $208.8 million, up 12.9% versus prior year, supporting capital allocation flexibility.

• The Pillar5 Pharma acquisition for over $110 million was completed in December, enhancing internal supply for Clear Eyes.

• Significant share repurchases totaled $155.6 million for the first nine months, nearly 5% of shares outstanding.

• The company maintained confidence in its core business and expects continued free cash flow growth for the fiscal year.

Financial highlights

• Q3 revenue was $283.4 million, a 2.4% decrease year-over-year, mainly due to Clear Eyes supply constraints.

• Adjusted EBITDA margin remained in the low 30s; adjusted diluted EPS was $1.14, down from $1.22 last year.

• Gross margin for Q3 was 55.5%, nearly flat year-over-year.

• Operating income for Q3 was $82.5 million, down from $92.0 million prior year.

• Free cash flow for nine months was $208.8 million, up from $184.9 million year-over-year.

Outlook and guidance

• Fiscal 2026 revenue outlook narrowed to approximately $1.1 billion, reflecting a 3% year-over-year decrease.

• Adjusted diluted EPS for the year expected to be about $4.54; free cash flow guidance maintained at $245 million or more.

• Sequential improvement in Clear Eyes supply anticipated in Q4 and beyond.

• Q4 gross margin expected at 57%; full-year G&A just over 10% of sales.

• Management expects continued volatility due to global supply chain constraints, inflation, and changing consumer purchasing patterns.