OLAPLEX HOLDINGS INC (NASDAQ:OLPX) Posts Mixed Q3 2025 Results, Beats on Revenue but Misses on EPS

OLAPLEX HOLDINGS INC (NASDAQ:OLPX) has released its financial results for the third quarter of 2025, presenting a mixed performance against analyst expectations. The company's report, coupled with its reaffirmed annual guidance, has been met with a cautiously positive initial market reaction.

Quarterly Performance Versus Estimates

The company's third-quarter results revealed a slight revenue decline year-over-year but managed to surpass analyst forecasts. On the earnings front, the company fell short of consensus estimates.

• Revenue: Reported net sales of $114.6 million, which represents a 3.8% decrease compared to the third quarter of 2024. However, this figure exceeded the analyst revenue estimate of approximately $112.8 million.
• Earnings Per Share (EPS): Reported diluted EPS of $0.02, unchanged from the prior year period. This came in below the analyst estimate for Non-GAAP EPS of $0.0244.

This performance indicates that while the company's top-line sales were healthier than the market anticipated, its profitability on a per-share basis did not meet expectations.

Market Reaction

The immediate market response to the earnings release has been positive. In pre-market trading following the announcement, the stock showed a gain of approximately 1.9%. This upward move suggests that investors are focusing on the revenue beat and the company's maintained outlook, potentially viewing them as more significant than the slight miss on EPS. This positive pre-market sentiment contrasts with the stock's performance over the last month, which had seen a decline of over 15%.

Management Commentary and Financial Highlights

In the earnings release, CEO Amanda Baldwin expressed satisfaction with the quarterly results, highlighting investments in sales and marketing and progress from new product introductions. The company's performance showed distinct trends across its different sales channels and geographies.

Key financial and operational takeaways from the quarter include:

• Channel Performance:
  • Professional channel sales increased by 5.3% to $44.5 million.
  • Specialty Retail sales decreased by 13.5% to $36.9 million.
  • Direct-to-Consumer sales decreased by 2.9% to $33.3 million.
• Geographical Performance:
  • Net sales in the United States decreased by 14.6%.
  • International net sales increased by 7.1%.
• Profitability: Net income for the quarter was $11.1 million, down from $14.8 million in the same period last year. Adjusted EBITDA was $30.8 million, with a margin of 26.9%, compared to $44.6 million and a 37.5% margin in Q3 2024.

Fiscal Year 2025 Outlook

OLAPLEX reaffirmed its full-year guidance for fiscal 2025, which was initially provided in March. The company's outlook appears to be in line with, or slightly more conservative than, current analyst expectations for the full year.

The company's guidance is as follows:

• Net Sales: Projected to be in the range of $410 million to $431 million.
• Adjusted Gross Profit Margin: Expected to be between 70.5% and 71.5%.
• Adjusted EBITDA Margin: Forecasted to be between 20% and 22%.

For context, the analyst consensus estimate for full-year 2025 sales is approximately $430.3 million, sitting at the high end of the company's guided range.

Balance Sheet and Liquidity

As of September 30, 2025, OLAPLEX held a strong cash position of $286.4 million, a significant decrease from $586.0 million at the end of 2024, largely due to debt repayment. The company reduced its long-term debt, net, to $352.1 million from $643.7 million at December 31, 2024.

For a more detailed look at historical earnings, future estimates, and analyst projections, you can review the earnings and estimates data for OLPX.

Disclaimer: This article is for informational purposes only and is not intended as investment advice. All investment decisions carry risk, and individuals should conduct their own research or consult with a qualified financial advisor before making any investment decisions.