Waldencast Reports Mixed H1 2025 Results, Initiates Strategic Review

Waldencast reported mixed H1 2025 results, with Obagi Medical achieving double-digit growth in strategic channels and acquiring Novaestiq, doubling its U.S. market potential. Milk Makeup's U.S. retail sales grew in the high-20s in Q2, driven by Ulta Beauty and Amazon launches. Waldencast revised its full-year guidance to low to mid-single digit revenue growth and adjusted EBITDA margins in the low to mid-teens. The company initiated a strategic review and delayed its H1 2025 earnings release. CEO Michel Brousset emphasized the importance of strategic investments to support long-term growth and profitability.

Waldencast plc (NASDAQ: WALD), a global multi-brand beauty and wellness platform, reported mixed results for the first half of 2025. The company highlighted notable developments, including double-digit growth in core strategic channels for Obagi Medical and the acquisition of Novaestiq, which doubled its U.S. market potential. Milk Makeup's U.S. retail sales grew in the high-20s during Q2, driven by strong performances at Ulta Beauty and Amazon Premium Beauty. Waldencast revised its full-year guidance to reflect low to mid-single digit revenue growth and adjusted EBITDA margins in the low to mid-teens. The company initiated a strategic review and delayed its H1 2025 earnings release for additional analysis.

CEO Michel Brousset emphasized the importance of strategic investments to support long-term growth and profitability. He stated, "Our brands saw accelerating revenue growth in the second quarter and we delivered significant progress against our strategic priorities while making important investments to support our future, thus capping off a highly productive first half for the Company." Despite these achievements, challenges in international markets and retailer destocking continue to impact overall growth.

The strategic review, led by financial advisor Lazard, is focused on maximizing shareholder value. The company has postponed its H1 2025 earnings release and conference call to conduct a comprehensive evaluation of its operating performance, strategic choices, and long-term priorities. This review also includes an expanded analysis of goodwill valuation.

Waldencast's mixed performance and strategic review signal potential restructuring amid growth challenges in key markets. While brand-specific growth narratives highlight the company's strengths, the overall financial performance indicates structural challenges in optimizing its multi-brand platform. The company's investment year in 2025 focuses on foundational growth initiatives and business transformation, aiming to deliver sustainable, long-term value creation for all stakeholders.

References:
[1] https://www.stocktitan.net/news/WALD/waldencast-announces-strong-progress-on-business-priorities-for-h1-n39wmitl1zmn.html