Prestige Consumer Healthcare (PBH) Q3 2025 earnings summary

Executive summary

• Achieved record Q3 revenue of $290.3 million, up 2.7% year-over-year, and record diluted EPS of $1.22, a 15% increase, with net income of $61.0 million.

• Strong international growth, especially for Hydralyte, and broad-based gains in North American categories, with notable improvements in GI, Dermatologicals, Summer's Eve, and Clear Eyes.

• Free cash flow remained robust, enabling full repayment of variable debt and $40.2 million in share repurchases in the first nine months.

• Business momentum remains strong, with expectations to exceed the initial full-year earnings outlook and raised guidance for revenue, EPS, and free cash flow.

• Supply chain constraints, inflation, and shifting consumer patterns continue to impact operations and costs.

Financial highlights

• Q3 revenue was $290.3 million, up 2.7% year-over-year; Q3 EBITDA was $98.5 million (33.9% margin); Q3 net income was $61.0 million.

• Diluted EPS for Q3 reached a record $1.22, up 15% year-over-year; nine-month adjusted EPS was $3.20.

• Free cash flow for the first nine months was $184.9 million, up 5% year-over-year.

• Gross margin for Q3 was 55.2%–55.5%; Q3 operating margin was 31.7%.

• Interest expense declined to $11.5 million in Q3, reflecting lower average indebtedness.

Outlook and guidance

• Fiscal 2025 revenue outlook raised to $1.128–$1.132 billion, with organic growth of about 1%.

• Adjusted diluted EPS now anticipated at approximately $4.50; Q4 EPS forecasted at $1.30.

• Free cash flow guidance maintained at $240 million or more.

• Profitability outlook raised due to lower interest expense and reduced shares outstanding.

• Management expects continued volatility due to supply chain, inflation, and global economic uncertainty.