Olaplex Holdings, Inc. reported third‑quarter 2025 results that surpassed revenue expectations and confirmed its full‑year guidance. Net sales reached $114.6 million, a $4.9 million (4.4 %) beat over the consensus estimate of $109.7 million, while earnings per share matched the $0.02 consensus, delivering a $0.00 absolute beat but meeting expectations exactly.
Revenue growth was driven by a 5.3 % increase in Professional channel sales to $44.5 million, offset by a 13.5 % decline in Specialty Retail sales to $36.9 million and a 2.9 % drop in Direct‑to‑Consumer sales to $33.3 million. The net 3.8 % year‑over‑year decline in total sales reflects the stronger performance of the Professional segment, which benefits from higher‑margin salon‑level products and a growing demand for advanced hair‑care solutions.
Gross profit margin improved to 69.1 % from 68.6 % in Q3 2024, driven by the higher mix of Professional sales and modest cost controls. However, adjusted EBITDA margin contracted to 26.9 % from 37.5 % in the prior year, largely due to a 49.2 % jump in SG&A expenses as the company ramps up sales‑and‑marketing spend to support new product launches and the “Bonds and Beyond” growth strategy. The company’s net income fell 24.8 % to $10.2 million, reflecting the higher operating costs and a one‑time restructuring charge of $1.1 million.
On the balance sheet, cash and cash equivalents stood at $286.4 million, a sharp decline from $586.0 million at the end of 2024, but the company has reduced long‑term debt to $352.1 million from $643.7 million, underscoring a disciplined debt‑repayment program. Inventory decreased modestly to $73.3 million from $75.2 million, indicating tighter working‑capital management.
CEO Amanda Baldwin emphasized that the earnings beat and guidance reaffirmation are evidence of the company’s “Bonds and Beyond” strategy, which focuses on sustainable, profitable growth through strategic investments in sales, marketing, and product innovation. She noted that early results from the latest product introductions are positive and that the company remains confident in its ability to navigate a challenging consumer‑spending environment while expanding its professional channel and international presence.
Investors responded positively to the earnings, citing the revenue beat, the meeting of EPS expectations, and the reaffirmation of full‑year guidance as key drivers of confidence in Olaplex’s near‑term outlook.
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