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Mar 31, 2025
Waldencast Q1 2025 Earnings Report
Waldencast reported a decline in revenue and profitability in Q1 2025 driven by lower sales at Milk Makeup and ongoing supply chain restructuring at Obagi Medical.
Key Takeaways
Waldencast's Q1 2025 results showed a 4.1% year-over-year revenue decline, with net loss expanding significantly to $20.7 million. Despite the revenue headwinds, the company maintained strong gross margins and continued investing in marketing to support future growth.
Q1 2025 revenue fell 4.1% year-over-year to $65.4 million
Net loss increased to $20.7 million, largely due to depreciation and financial charges
Milk Makeup revenue declined 15.1% due to tough prior-year comparisons and inventory reductions
Obagi Medical grew revenue 7.1% despite SKU shortages from supply chain restructuring
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Waldencast expects stronger performance in the rest of 2025, driven by new product launches, restocking, and improved supply chain operations.
Positive Outlook
- Successful launch of Hydro Grip Gel Tint expected to boost sales
- Milk Makeup expansion into Ulta Beauty showing strong momentum
- Improved supply chain fulfillment for Obagi Medical underway
- Strong gross margins maintained across both brands
- Expected mid-teens net revenue growth for FY2025
Challenges Ahead
- Broader prestige beauty category slowdown in the U.S.
- International sales pressure at Milk Makeup
- Ongoing SKU out-of-stocks for Obagi Medical
- Increased marketing and G&A expenses affecting margins
Historical Earnings Impact
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Avg. Return Before/After Earnings
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