Prestige Consumer Healthcare (PBH) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $283.4 million, down 2.4% year-over-year but slightly above forecast, supported by a diverse business model and broad distribution.

• Net income for Q3 was $46.7 million, with adjusted net income at $54.9 million; adjusted diluted EPS was $1.14, down from $1.22 last year.

• Free cash flow year-to-date rose 13% to $209 million, supporting capital allocation flexibility and enabling the Pillar5 acquisition and significant share repurchases.

• Acquisition of Pillar5 Pharma for over $110 million was completed in December, enhancing internal supply for Clear Eyes and improving supply chain stability.

• Navigated challenges including supply chain constraints, inflation, tariffs, and public announcements affecting key categories.

Financial highlights

• Q3 revenue was $283.4 million, a 2.4% decrease year-over-year, mainly due to lower Eye & Ear Care sales from Clear Eyes supply constraints.

• Adjusted EBITDA was $90.9 million (32.1% margin), down 7.7% from the prior year; operating income was $83.0 million, a 9.8% decrease.

• Gross margin for Q3 was 55.5%, and 55.7% for the first nine months, up 50 basis points year-over-year.

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

• Excluded from results: $10 million supplier loan write-off and acquisition-related professional costs.

Outlook and guidance

• Fiscal 2026 revenue outlook narrowed to approximately $1.1 billion, reflecting a 3.0% decrease year-over-year, with continued growth in mass and e-commerce channels but offset by headwinds in other channels.

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

• Anticipates sequential improvement in Clear Eyes supply in Q4, marking three consecutive quarters of progress.

• Q4 adjusted gross margin anticipated at 57%.

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