Waldencast (WALD) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 marked a transformative period, with net revenue reaching $273.9M, up 27.5% year-over-year, and adjusted EBITDA rising 65.1% to $40.3M.

• Both Milk Makeup and Obagi Medical outperformed their markets, leveraging innovation, high brand equity, and expanded distribution to drive results.

• The company completed a successful debt refinancing, securing a $205M five-year credit facility, including a $175M term loan and $30M revolver, extending maturity to 2030.

• Obagi Medical was the fastest-growing professional skincare brand among the top 10 in the US in 2024.

Financial highlights

• FY 2024 net revenue was $273.9M (+27.5%), adjusted gross profit $203.6M (74.3% margin), and adjusted EBITDA $40.3M (14.7% margin).

• Q4 2024 net revenue was $72.1M (+30.8%), with adjusted EBITDA doubling to $11.2M and margin at 15.5%.

• FY 2024 net loss narrowed to $48.6M from $106.0M in 2023, reflecting operational growth and lower non-recurring costs.

• Adjusted free cash flow for FY 2024 was $31.7M, with a conversion ratio of 78.8%.

• Year-end cash and equivalents were $14.8M, with net debt at $154.2M and $30M available on the revolver.

Outlook and guidance

• FY 2025 net revenue growth is expected in the mid-teens, with adjusted EBITDA margin projected to expand into the mid-to-high teens.

• Q1 2025 net revenue is expected to be flat due to the anniversary of a major product launch and retail inventory adjustments, with sequential acceleration anticipated for the remainder of the year.