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• Net Revenue: $72.1 million in Q4, a 29.4% increase; $273.9 million for fiscal year 2024, a 27.5% increase.

• Milk Makeup Revenue: $29.9 million in Q4, a 31.9% increase; $124.6 million for fiscal year 2024, a 24% increase.

• Obagi Medical Revenue: $42.2 million in Q4, a 27.7% increase; $149.3 million for fiscal year 2024, a 30.7% increase.

• Adjusted Gross Profit: $52.6 million in Q4, a 30.7% increase; $203.6 million for fiscal year 2024, a 35.3% increase.

• Adjusted Gross Margin: 73% in Q4; 74.3% for fiscal year 2024, a 530 basis point improvement.

• Adjusted EBITDA: $11.2 million in Q4, doubling from the previous year; $40.3 million for fiscal year 2024, a 65.1% increase.

• Adjusted EBITDA Margin: 15.5% in Q4, a 530 basis point expansion; 14.7% for fiscal year 2024, a 350 basis point increase.

• Cash Position: $14.8 million at the end of 2024.

• Net Debt: $154.2 million at the end of 2024.

• New Credit Facility: $205 million five-year facility, including a $175 million term loan and a $30 million revolving credit facility.

• Warning! GuruFocus has detected 3 Warning Signs with WALD.

Release Date: March 19, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Waldencast PLC (NASDAQ:WALD) reported a robust 29.4% increase in net revenue for the fourth quarter, driven by strong performance across its brands.

• Milk Makeup experienced a significant growth of 31.9% in the quarter, supported by channel expansion and a successful launch into 600 Ulta Beauty locations.

• Obagi Medical delivered a 27.7% increase in comparable net revenue, fueled by accelerated performance in the US physician-dispensed and e-commerce channels.

• The company's adjusted EBITDA doubled to $11.2 million in the fourth quarter, with a notable margin expansion of 530 basis points year over year.

• Waldencast PLC (NASDAQ:WALD) secured a new $205 million five-year credit facility, providing greater financial flexibility and extending its debt maturity profile through 2030.

Negative Points

• The first quarter of 2025 is expected to be relatively flat due to the anniversary of a successful product launch and inventory adjustments by retail partners.

• The company is currently using a significant portion of its cash to cover non-recurring expenses associated with an ongoing regulatory investigation.

• Adjusted gross margin for Obagi Medical contracted by 130 basis points in the fourth quarter due to planned reductions to drive future operational efficiency.

• There is a natural level of cannibalization expected between Ulta and Sephora as Milk Makeup expands its distribution, which may impact short-term sales.

• The macroeconomic environment remains challenging, with normalization in the beauty market affecting retail inventory levels and consumer spending patterns.