Waldencast, the parent company of Milk Makeup and Obagi, has delayed releasing its second-quarter earnings. The news comes right off the heels of the strategic acquisition of Austrian filler company Novaestiq, marking a pivotal step in positioning Obagi Medical as an industry leader in integrated skincare and aesthetic solutions.
Waldencast’s Board of Directors has resolved to undertake a review of a broad range of strategic alternatives available, focused on maximizing shareholder value, and has retained Lazard to serve as financial advisor. The review is broad with no assurance that this strategic review will result in a transaction or any other particular outcome.
“Our brands saw accelerating revenue growth in the second quarter and we delivered significant progress against our strategic priorities while making important investments to support our future, thus capping off a highly productive first half for the Company,” said Michel Brousset, co-founder and CEO of Waldencast plc, in a press release. “In Q2, we resumed revenue growth, as we cycled the anniversary of last year’s exceptionally strong launches that weighed on Q1 comparisons.”
Milk Makeup sell-out performance in the US accelerated to the high 20s, through the rollout at Ulta Beauty and the launch on Amazon Premium Beauty. The strong domestic performance, however, was dampened by challenges in international markets.
Obagi Medical’s revenue growth in core strategic channels accelerated to the mid-teens with continued performance in the US strategic distribution channels, and even faster growth in international markets.
While these achievements demonstrate the strength of the brands and growth strategy, the dynamic global environment limited overall growth. Challenges included ongoing, though improving, out-of-stocks across both brands, as well as the deliberate decision to exit select Obagi Medical distribution points that did not align with the brand ethos.
The company had previously announced its intention to publish results detailing its financial performance for H1 and the second quarter ended June 30, 2025. In preparation for the strategic review and in light of the recent acquisition of Novaestiq, Waldencast has developed a new long-range business plan, which the board approved in August.
Brousset stated further, “We are excited to start the third quarter with improved in-stock levels on both brands. On Milk Makeup, our best-selling Hydro Grip Gel Skin Tint is now back in stock and we continue to make notable progress through the expansion at Ulta Beauty and Amazon Premium Beauty. Tempering our excitement, at the beginning of the quarter, international markets remain challenging highlighting the need for in-market incremental investment to restore growth.”
The management is conducting an expanded evaluation of its operating performance, strategic choices, long-term priorities, and goodwill valuation. This review, which reflects the company’s commitment to disciplined financial stewardship and value creation, requires additional analysis of the H1 2025 financials. As a result, the company will reschedule the publication of the H1 2025 financials and planned earnings call.
In the context of a year of purposeful investment for the future, and against a backdrop of fluid market conditions, the company is updating its full-year outlook. Net revenue growth is expected to be in the low to mid-single digits, reflecting first-half performance and a more moderated industry environment. Adjusted EBITDA margins are anticipated in the low to mid-teens.
Brousset concluded, “We believe the actions we are taking will set us up to strengthen our foundation for delivering our long-term ambitions and accelerated future growth and profitability. In light of a growing number of opportunities presented to Waldencast and its shareholders, we have decided to undertake a review of a broad range of strategic alternatives focused on maximizing shareholder value. During this process, the Company remains fully focused on executing its business strategy and delivering on the evolving needs of the dynamic beauty market.”
