Olaplex (OLPX) Q4 2025 earnings summary

Executive summary

• FY 2025 net sales were flat at $423.0 million, with Q4 revenue up 4.3% year-over-year to $105.1 million, stabilizing after prior declines.

• Adjusted EBITDA for FY 2025 was $93.9 million (22.2% margin), with Q4 adjusted EBITDA at $12.9 million (12.2% margin), both down year-over-year due to increased investment.

• Transformation initiatives included a brand relaunch, innovation pipeline expansion, and international realignment, resulting in improved brand awareness and sentiment.

• Four of the top five best-selling prestige hair care launches in 2025 were introduced, and the acquisition of Purvala Bioscience strengthened the innovation pipeline.

• Strategic priorities for 2026 include energizing hero products, fueling science-based innovation, and expanding a diversified go-to-market model.

Financial highlights

• Q4 2025 net sales reached $105.1 million, up 4.3% year-over-year, led by strong professional and D2C channels, while specialty retail declined 14.5%.

• FY 2025 adjusted gross margin was 71.8%, up 40 basis points; Q4 adjusted gross margin was 70.6%, up 200 bps year-over-year.

• Operating cash flow for FY 2025 was $58.7 million; cash and equivalents at year-end were $318.7 million, with debt at $352.3 million after a $300 million voluntary repayment.

• Q4 2025 net loss was $13.1 million (vs $8.8 million prior year); full-year net loss was $9.3 million versus net income of $19.5 million in 2024.

• SG&A expenses increased significantly in Q4 and for the year, reflecting higher investment in marketing and transformation.

Outlook and guidance

• FY 2026 net sales expected to range from $414 million to $435 million (-2% to +3% versus FY 2025); adjusted gross margin between 71%-72% and adjusted EBITDA margin of 21%-22%.

• Q1 2026 sales and EBITDA expected below full-year range due to phased innovation launch and front-loaded marketing spend; sequential improvement anticipated through the year.

• Guidance assumes no material tariff impact, minimal supply chain disruption, and demand weighted to the second half of 2026.