Waldencast plc reported its financial results for the first quarter ended March 31, 2025, with net revenue decreasing 4.1% year-over-year to $65.4 million. Adjusted EBITDA for the quarter was $4.4 million, or 6.7% of net revenue, reflecting sustained investments in sales and marketing and G&A deleverage from lower revenue. Adjusted Gross Profit remained strong at $50.0 million, or 76.4% of net revenue, an expansion of 10 basis points.
Milk Makeup's revenue declined 15.1% in Q1 2025, primarily due to difficult comparisons against strong Q1 2024 launches and international inventory adjustments. However, its domestic performance was solid, driven by the successful launch of Hydro Grip Gel Skin Tint and its entry into Ulta Beauty, contributing to high single-digit growth in U.S. retail sales. Obagi Medical achieved a 7.1% increase in net revenue to $36.2 million, despite being tempered by out-of-stock issues in key SKUs.
The company reaffirmed its full-year 2025 outlook, targeting mid-teens net revenue growth and an Adjusted EBITDA margin in the mid-to-high teens, expecting growth to accelerate in subsequent quarters. Waldencast noted a low single-digit percentage increase in cost of goods sold for fiscal 2025 due to tariffs, which is being mitigated through supply chain optimization, selective pricing actions, and supplier collaboration.
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