Waldencast (WALD) Q4 2024 earnings summary

Executive summary

• Fiscal year 2024 saw transformative growth, with net revenue reaching $273.9M and adjusted EBITDA up 65.1% to $40.3M, driven by strong performance from both Milk Makeup and Obagi Medical, which outpaced their markets through innovation and expanded distribution.

• The company grew 3.5 times faster than its peer group and leveraged an operational flywheel model for profitability.

• Major debt refinancing secured a new $205M five-year credit facility, extending debt maturity to 2030 and enhancing financial flexibility.

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

• Milk Makeup expanded into 600+ Ulta Beauty stores in March 2025, complementing Sephora distribution.

Financial highlights

• FY 2024 net revenue was $273.9M, up 27.5% year-over-year; adjusted gross profit rose to $203.6M (74.3% margin); adjusted EBITDA increased 65.1% to $40.3M (14.7% margin).

• Q4 2024 net revenue was $72.1M, up 30.8% year-over-year; adjusted EBITDA doubled to $11.2M (15.5% margin).

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

• Adjusted EBITDA-to-cash conversion ratio was 78.8% in 2024, with adjusted free cash flow of $31.7M.

• Year-end cash and equivalents were $14.8M, with net debt at $154.2M.

Outlook and guidance

• Fiscal 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 prior year blockbuster launch and inventory adjustments, with growth accelerating in subsequent quarters.