Prestige Consumer Healthcare (PBH) Q2 2025 earnings summary

Executive summary

• Q2 FY25 revenue was $283.8 million, down 0.9% year-over-year but slightly ahead of expectations, driven by strong international growth and stable gross margin performance.

• Adjusted diluted EPS increased 1.7% year-over-year to $1.09, while net income for Q2 was $54.4 million, up 1.5%.

• Free cash flow for Q2 was $67.8 million, up double digits year-over-year, with first half free cash flow totaling $121.4 million.

• Leverage ratio at 2.7x enabled further debt reduction and opportunistic share repurchases.

• EBITDA for Q2 was $91.9 million, down 4.0% year-over-year due to timing of costs.

Financial highlights

• Q2 revenue was $283.8 million, down 0.9% year-over-year; 1H revenue was $550.9 million, down 2.6%.

• Q2 gross margin was 55.5%, stable year-over-year; 1H gross margin was 55.1%.

• Q2 operating income was $84.3 million, margin of 29.7%.

• Adjusted EPS for the first half was $1.98, down from $2.13 last year due to lower Q1 revenue and higher costs.

• Free cash flow in Q2 was $67.8 million; first half free cash flow totaled $121.4 million.

Outlook and guidance

• FY25 revenue guidance remains $1,125–$1,140 million, with organic growth of ~1% ex-FX.

• Adjusted diluted EPS expected at $4.40–$4.46 for FY25, with expectations to reach the higher end.

• Free cash flow outlook maintained at $240 million or more for the full year.

• Q3 revenue projected at $286 million, returning to year-over-year growth.

• Gross margin for the year anticipated at ~56%, with Q3 at ~55%.