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Jun 30
Prestige Consumer Q1 2026 Earnings Report
Prestige Consumer Healthcare Inc. reported its first quarter fiscal 2026 results, with revenue decline primarily due to eye care supply constraints, partially offset by strong international segment growth. The company announced the acquisition of Pillar5 Pharma to address supply issues and revised its fiscal 2026 outlook.
Key Takeaways
Prestige Consumer Healthcare Inc. reported a revenue of $249.5 million for the first quarter of fiscal 2026, a decrease of 6.6% year-over-year, mainly due to limited supply of Clear Eyes. Despite this, diluted EPS increased by approximately 6% to $0.95, and non-GAAP free cash flow saw a significant increase to $78.2 million. The company also announced the acquisition of Pillar5 Pharma to secure eye care production capacity and revised its full-year fiscal 2026 revenue and EPS outlook.
Revenue for Q1 fiscal 2026 was $249.5 million, a 6.6% decrease from the prior year, primarily due to Clear Eyes supply constraints.
Diluted EPS for Q1 fiscal 2026 was $0.95, an increase of approximately 6% compared to the prior year's adjusted diluted EPS of $0.90.
Net cash provided by operating activities increased to $79.0 million, and non-GAAP free cash flow rose to $78.2 million, driven by working capital timing and lower interest expense.
Prestige Consumer Healthcare announced the acquisition of Pillar5 Pharma, a key eye care supplier, to expand production capacity and address supply chain shortfalls.
Prestige Consumer
Prestige Consumer
Prestige Consumer Revenue by Segment
Revenue by Segment
North American OTC Healthcare Revenue
CapyFin.comInternational OTC Healthcare Revenue
CapyFin.com Forward Guidance
For fiscal year 2026, Prestige Consumer Healthcare now anticipates revenue between $1,100 million and $1,115 million, reflecting expected supply chain shortfalls in eye care during the first half. Diluted EPS is projected to be between $4.50 and $4.58, driven by gross margin expansion and lower interest expense. The free cash flow forecast remains unchanged at $245 million or more.
Positive Outlook
- Anticipated year-over-year growth in the second half of fiscal 2026 due to acceleration of eye care supply.
- Expected gross margin expansion contributing to profitability.
- Lower interest expense contributing to profitability.
- Unchanged free cash flow forecast of $245 million or more.
- Commitment to a strong balance sheet and disciplined capital allocation.
Challenges Ahead
- Revenue outlook revised downwards to $1,100 to $1,115 million from $1,140 to $1,155 million.
- Organic revenue growth outlook revised to an approximate 1.5% to 3.0% decrease from approximately 1% to 2% increase.
- Diluted EPS outlook revised downwards to $4.50 to $4.58 from $4.70 to $4.82.
- Supply chain shortfalls in eye care are expected to persist in the first half of fiscal 2026.
- Disappointment with the start to fiscal 2026 due to eye care category performance.
Revenue & Expenses
Visualization of income flow from segment revenue to net income