Olaplex Holdings, Inc.

Q4 2025 Earnings Call — March 5, 2026

Management: Thank you, Amanda, and good morning, everyone. We are pleased with our results, which reflect the disciplined execution of our transformation plan. For the full year 2025, we delivered or exceeded the expectations we shared across net sales, adjusted gross profit margin, and adjusted EBITDA margin. Beyond the numbers, we have fundamentally strengthened our operating architecture, implementing more rigorous processes, and established what we believe is a more stabilized adjusted EBITDA margin base upon which we can build for long-term growth.

Fourth quarter net sales reached 105.1 million, a 4.3% increase year-over-year, led by strong holiday performance across professional and D2C channels. For the year, sales were $423.0 million or flat year-over-year. Perhaps most encouraging and reflective of our transformational progress is our fourth quarter ending velocity. While total fourth quarter sell-through was slightly lower compared to the prior year, we exited December with positive year-over-year sell-through trends across our key accounts. We are moving into 2026 with clear sequential momentum.

By channel, professional increased 18.9% year-over-year in the quarter to 36.8 million, with net sales increasing 5.5% for the year. In the fourth quarter, growth was driven by high-impact U.S. innovation, and strong participation in global holiday events. As we execute our three-tiered go-to-market strategy, we deliberately shifted international volume towards the professional channel as a primary growth engine. Specialty retail declined 14.5% year-over-year in the quarter to $24.7 million, with net sales decreasing 8.3% for the year. This reflects our deliberate strategic pivot in international distribution, moving volume away from retail distribution partners towards pro partners.

Additionally, sell-through remained down on an annual basis, but we saw encouraging momentum exiting the fourth quarter as our initiatives hit the market. Despite the top-line decline, retail outperformed our expectations in the fourth quarter. It is important to note that we believe inventory levels at our key partners are healthy. Direct-to-consumer increased 6.6% year-over-year to 43.6 million in the quarter, with net sales increasing 3.1% for the year. Our revamped digital strategy successfully captured demand around key shopping events.

In the fourth quarter, we delivered strong holiday performance, which led to richer replenishment activity. Over Cyber Weekend, we outperformed select retail partners' expectations with our Wash and Shine Kit ranking number one in shampoo and conditioner and our number seven ranking number one in hair oil within the premium hair care category. Additionally, we successfully launched on TikTok Chop during the fourth quarter, and while a small contributor to overall revenue, significantly outperformed our expectations.

We expect to expand the strategic channel in 2026 with a focus on recruiting new customers and boosting our overall content engine. By region, in 2025, U.S. net sales were down approximately 3%, with international sales up approximately 3%. U.S. net sales remained down while we continued to focus on sequentially improving sell-through. International benefited from the execution of our new go-to-market strategy and our increasingly disciplined promotion process.

Adjusted gross profit margin for the quarter was 70.6%, up 200 basis points year-over-year, driven by supply chain management, which offset lower margin on new products that have not yet reached full production scale or efficiency. Fiscal year 2025 adjusted gross margin was 71.8%, a 40 basis point improvement. Adjusted SG&A was 61.4 million for the quarter, and $211.4 million for the year, an increase of $40.8 million year-over-year. This increase is aligned with our strategic priorities and primarily reflects investment in sales and marketing, which increased $5.9 million year-over-year in the quarter compared to the previous year, and $26.7 million for the year.

We entered 2025 with a clear intent to invest in our brand, our people, and our core infrastructures. We believe that we have now reached right-level investment, and our focus in 2026 turns to refining and optimizing this spend. Adjusted EBITDA was $12.9 million for the quarter, representing a 12.2% margin. This compares to a 17.4% margin in the fourth quarter of 2024. For the year, adjusted EBITDA was $93.9 million, representing a 22.2% margin compared to 30.7% in the prior year. This year-over-year change reflects the strategic investments in marketing and people we are making to position our business for sustainable long-term growth.

We generated positive operating cash flow again in the fourth quarter. For the year, we generated operating cash flow of $58.7 million, reflecting strong management of our working capital and the power of our asset-light business model. We ended the quarter with cash and cash equivalents of $318.7 million and debt of $352.3 million. Inventory was $60.2 million, down $15 million from $75.2 million in the fourth quarter of fiscal year 2024, representing our improved working capital disciplines.

Regarding our 2026 outlook, we expect net sales in the range of approximately minus 2% to plus 3% versus fiscal year 2025, adjusted gross profit margin between 71% and 72%, and adjusted EBITDA margin of 21% to 22%. This guidance assumes no material impact from tariffs. While the trade environment remains fluid, we believe our global supply chain is minimally exposed. Furthermore, it does not include disruption that may occur from the geopolitical environment. The full range of our outlook balances the momentum we see exiting 2025 and the confidence in our 2026 plan with a recognition that we remain in a state of transformation.

Key drivers of our net sale guidance include improved sell-through. We expect sell-through to improve sequentially and turn positive for the year. The range reflects the magnitude and the pace of this recovery. Brand evolution and supply chain. 2026 marks the rollout of new packaging following our February 2025 visual identity launch. While we have robust plans in place, managing this transition alongside a multi-year innovation pipeline adds operational complexity. Our outlook prudently accounts for these evolving supply chain processes.

Additionally, this guidance reflects a normalized impact from promotional activities in 2026 as compared to 2025. Macroeconomic context. Finally, we continue to monitor an uncertain global macroeconomic environment in shifting consumer sentiment. Our ability to hit the high end of a range is tied in large part to the speed and effectiveness with which we execute on our three core priorities: energizing our hero products, fueling high-impact innovation, and expanding our diversified go-to-market model.

As it continues through our transformation, we expect the slope of our demand to be weighted toward the second half of the year. We expect sell-through for both our heroes and our new launches to build sequentially throughout the year as our strategic initiatives take full effect. Specifically, for the first quarter, we expect sales to land below our full-year guidance range on a percentage basis compared to the prior year. We are strategically pacing the sell-in of number three plus, whereas early 2025 innovation sell-in was more concentrated to the first quarter.

Furthermore, EBITDA will be significantly pressured in the first quarter as we front-load marketing to support number three plus. For the remaining of the year, we expect to see marketing efficiency improve year over year. We will also begin to fully lap our 2025 foundational investments, which started late in the first quarter of 2025, which we believe will allow us to optimize marketing spend. We expect non-sales and marketing operating expense to increase as we analyze the 2025 investments and people and processes that we believe are integral to the success of our transformation.

Importantly, we believe our expected 2026 adjusted EBITDA margin range is a sustainable base upon which we can execute our vision, drive sustainable long-term growth, and unlock OLPLEX's true potential. We enter 2026 with stable revenue and EBITDA margins, and are squarely focused on executing our transformation to support our long-term growth. As it relates to our capital allocation, we possess an advantaged, asset-light business model that generates consistent, robust cash flow. This, along with our strong balance sheet, allows us to invest in opportunities to accelerate our strategic priorities and drive growth, explore tuck-in acquisitions similar to Bravala, and expand our long-term potential and evaluate opportunities to return value to shareholders.

In conclusion, we met or exceeded our financial expectations in 2025 while restoring brand momentum and strengthening the fundamentals of our business. We are navigating this transformation with discipline, and we enter 2026 with a more stabilized margin and clear strategic priorities designed to accelerate our bonds and beyond vision and move OLAPLEX towards consistent long-term value creation.

Operator: We are now ready to take questions.

Analyst (Susan Anderson, Canaccord Genuity): Hi, good morning. Thanks for taking my question. I guess maybe just to start out, maybe if you could talk about, I guess, just the discrepancy between the spec retail and DTC. I guess, was there retailer destocking in the quarter? Did the specialty retail channel kind of play out as you expected? And then as we look to next year, you mentioned just the first quarter being a little bit lower, but maybe also if you could talk about kind of the cadence the rest of the year and then any major launches you're expecting to impact the sales of the quarters. Thanks.

Management: Thanks for the question. So let me take the first one you were asking about is our specialty retail. And again, we run the business and encourage everybody to look at it as our flywheel, and we also run the business for the total year. Our job is to put the product in front of the customer wherever they want to buy it, and initiatives that we might put in place that appear in the pro channel may actually drive revenue into the DTC channel. So we feel very pleased with the way our flywheel is working.

Our specialty retail, as we mentioned, outperformed expectation in the fourth quarter, and sell-through did improve sequentially in the fourth quarter versus the third quarter levels. We had strong exit rate sell-through velocity, and our top customers turned positive. Additionally, when you look at consolidated retail performance, there continues to be noise with our international realignment, which served as a headwind to that channel. So in conclusion, in retail, we're pleased with the momentum we're seeing and sell-through turning positive, we believe sets up for a nice 2026.

The second part of your question was about just the first quarter and going through the year?

Analyst: Yeah, correct. Right, okay. So let me just think back, take us on the journey of where we are as a company. 2025 was really our year of transformation. We went from planning in 2024 to our initial implementation in 2025. We introduced our Bonds and Beyond vision. We had our first three priorities against that vision, generate brand demand, harness innovation, execute with excellence. We're pleased, as Amanda just went through, with the progress we've made.

We successfully relaunched our brand. We launched a full 360 marketing campaign. We accelerated our innovation. We built people and processes and tools we need to actually execute. We executed our international alignment. And the progress was measurable. Sales were flat after an 8% decline in 24, 35% decline in 23. Sales improved sequentially throughout the year. Awareness, sentiment, purchase intent all increased. We had four of the top five prestige hair care launches. So we are in a much healthier place.

As we enter 2026, we were in 2025. The first quarter is revenue is going to be below the range, and EBITDA significantly below the range. As we introduce number three, first quarter of last year, 2025, had a very significant hype for our 4-5 launch. And the price for the sell-in for the number three this year is more balanced throughout the year. However, we are putting a lot of marketing spend against the launch of number three, which we expect to benefit all the rest of this year and well into the future.

And that lasts the first quarter of 2025, where we had not yet started to invest in marketing. We think we started at the end of the first quarter. So those two factors combined really drive our EBITDA margin outside of the range for the first quarter. As you think about the second and third and the fourth quarter, we expect sell-through to sequentially improve as we go through the year, as we launch our innovations and our initiatives take effect.

And our marketing outside of the first quarter, you'll start to see leverage. We put in place our foundational investments in 2025, and we get to benefit from those in 2026. That benefit will be partially offset by the people costs from the hiring that we did in the back half of 2025 level loading throughout 2026. So for the year, our SG&A costs will be relatively flat, and we're confident in the EBITDA margins that that implies. And we plan to hit our guidance just like we did in 2020.

Analyst (Sydney Wagner, Jefferies): Hi, thanks for taking our question. Can you share more on those additional verticals across beauties? Just curious, maybe any sense on timing of those? And then where do you see the most opportunity or consumer permission? And then one more, just on the kind of where are the easy wins in share gain opportunity? You mentioned that you were seeing premiumization in hair. We've certainly seen that as well. How do you think about the TAM in terms of maybe a mass shopper who's trading up to Prestige for the first time? Anything strategically or from a marketing perspective that you need to do to capture those consumers. Thank you.

Management: Hi, Sydney. It's Amanda. I'll talk about that. And obviously, innovation is the lifeblood of Olaplex and certainly something that we've been focused on for over two years ago when I joined the organization. Job number one was to get this innovation engine going because there is so much opportunity. I'd really focus us on things that we see as opportunity within hair care and the fact that we are a 30 skew-ish business, which if you look in comparison to other competitors in the market, that's significantly under what you might see.

And as we talked about innovation and our strategy going forward this year, I think there's two different buckets. One that we're highlighting is the impact of Hero SKUs, number three plus being obviously the most important of that and a real core launch for us this year. I think that there's a lot of opportunity to your point about bringing people into this industry, into the premiumization. Through hero skews is often how one is able to do that.

We have done research, and we alluded to this in the call today, that there are a significant number of consumers who experience daily damage. This is everything that is going on in our launch around number three plus today that don't yet understand the power of a treatment to fix that. And one of the things that I've seen in the hair care category, and we've spent a lot of time, you know, again, very research driven, very data driven, a lot of social listening.

And I've concluded that this is the highest passion, highest confusion category that exists in beauty, which I think is an extraordinary opportunity for us as a brand, given that we're very fact-based and science-led. And so we'll really be focusing. And I think we've talked over the last couple of years about the opportunity to put the marketing and the education behind our hero SKUs. We're now ready for it. We haven't been ready for it yet. And so I think that's a really, really important moment for us.

The second that we highlighted was this idea of science-based innovation and finding other areas where we can compete. I won't share yet the future innovation pipeline in this organization, but I will say that it is quite robust. And as Taffin spoke to, we expect to have more innovation coming this year than we have in the past and just getting that engine going. We see a lot of white space in areas where we just simply do not compete.

And lastly, that Parvala acquisition allows us to do these things with forward-thinking science and efficacy-driven positioning.

Management: I would just add on that, you know, as Amanda said, one of the first things she did when she came was to restart that innovation engine. We worked throughout 2025 to put in place the robust operating processes that allow us to focus innovation and to market as quickly as we can. We look out not just in 26, but we have a multi-year innovation calendar where we have competing priorities. For every slot that there is, we have more products that could fill that. So it's a nice place to be when you think about the strength of our innovation pipeline at Centro.

Analyst (Owen Rickert, Northland Capital Markets): Hi. Thank you for taking my question here. Can you just walk us through and provide maybe a little more color on, you know, the strong performance in the professional channel? You know, with the distributor restocking, new salon wins, stronger sell-through per door, the Blitz program, just any more color there would be great.

Management: I can speak to that. Nice to hear your voice, Owen. So really look at the, there's again, two things that were job number one and job number two. Job number one was innovation. Job number two was get back to supporting the pro. This is the heritage of the brand. And so we really have been focused on this as the center of our flywheel from day one.

It's a lot of different moving pieces as you spoke about that really come to being in contact with the pros, supporting the channels in which they purchase. The Blitz program was a very important piece of this. And I would also highlight our education program. That's something that is really brand new overhaul over the course of approximately the last year when we put leadership in place into our education team, built out that team, built out the assets.

And this is, I think of pro as something that does operate slightly differently than the consumer business. It's much more human to human and education focused than you might see in what I'll call classic marketing in a consumer business. So we're just starting to see the benefits of that. We also have benefits of how we're handling promotions in that channel across the organization. We're just being a lot more thoughtful and disciplined in that approach.

So there's a combination of a lot of things. And lastly, the international realignment that you also spoke about is the other key driver of this. And that was really about making sure, and this has been a story also over the course of the last two years, making sure that we have the right partners who are invested in supporting the pro is a really important piece of how we're thinking about our international business.

Analyst: Got it. Super helpful. And then secondly, for me, you know, focusing on that international front, you know, strong year-over-year growth there. What markets drove that performance? And does 2026 guide assume that international continues to grow faster than domestic?

Management: Thanks for the question. We really manage our business as a global business, as a global flywheel. And so we don't typically break out in the regional performance. We are pleased with our international strategy. We believe that that's what you're seeing in the numbers. And we're optimistic about our global guidance for 2026.

Analyst (Olivia Tong, Raymond James): Great. Thanks. Good morning. First question is just around the top line progression, better understanding the Q1 expectation on sales. You mentioned, obviously, the base period comparison is a driver of a tougher start to the year. But I'm a bit confused by that. You saw a lot of destocking last year, and it sounds like that's less of a factor this year.

So, you know, when I look at the comps, on a one-year basis, you've got a negative. On a two-year basis, you have the least demanding comp on a two-year stack. So just wondering if you could provide a little bit more color on sort of the cadence of as the year progresses. And then what gets you on a full year basis from the high end to the low end of the year, given it's plus or minus a few points around flat is just trying to understand, you know, what's embedded in that expectation. Thank you so much.

Management: Thanks for the question. So let's talk about the first quarter. As we've consistently said, we manage the business annually, especially as we're moving through a transformation. Revenue performance at first quarter is largely driven by the tiny difference in the innovation shipments. The first quarter of 2025, we had a large concentration of shipments of 4 and 5.

This year, we are strategically phasing in our 3-plus innovation. So that's what you're seeing in the numbers. I can talk about the adjusted EBITDA margins again. You know, we will be significantly pressured in the first quarter as we're investing to support that launch. And you're going to see that return through the entire year.

I just build on that also to say that it was a very deliberate and strategic choice to launch 3 Plus at this moment in time. And so I think we had the opportunity to focus on our hero and really think about how that can support and build throughout the entire year. So it was just a very strategic choice to make sure that we're coming out of the gate strong.

Analyst (Kate Grafstein, Barclays): Thanks. When you think about the development of the prestige hair care category over time, why do you think it's been less developed than the other prestige beauty categories? And is there a benefit of being a scaled player in this category, just as you think about the importance of the pro channel? Thank you.

Management: Yeah, thanks for the question. I think there's a couple of different things at play. I think that historically in prestige hair, the channels were much more tightly defined than they exist today. So the flywheel that we're talking about is relatively new in the history of premium hair. If you rewind, I'm going to go with probably 10 years ago, there was a very strong line between products that were available in the pro channel for sales things that were available elsewhere so you really did not see premium or pro hair available outside of the salon.

So just the size opportunity and scale opportunity of the channel has changed dramatically as we're able to access retail channels and direct to consumer, which is obviously where much of the business and the beauty industry is happening. I think the other thing is actually intention of the consumer like I said, there's a lot of passion around hair. I think that there is a growing interest in hair and how it actually works.

It's something that I think we've actually seen happen in the skincare industry before. I think it's an interesting model and comparison to look at where there was a lot of probably an earlier stage prestige skincare business, and we've seen that grow significantly over time as people have learned to understand, I would say, the impact of a more premium product and the impact of science on the efficacy and the results that we see.

I think that's why Olaplex is so well positioned at this moment in time. And I would venture as to say that Olaplex really started the conversation around scientific and prestige-led hair care. And we're really excited to kind of get back to leading that conversation. So I think it's a lot around consumer behavior. There's channel behavior.

And what we're seeing from our partners around the globe is that they're very excited about what the potential is in this category, which I think bodes well for our future.

Analyst (Andrea Teixeira, JPMorgan): Hi. Good morning, Amanda and Katherine. Thanks for the question. I was hoping if you can please talk about your distribution and shelf into this innovation and is the outlook that you're embedding in 2026 for distribution to be flattish or any movement up or down?

And then when you think about selling and sell-out, I was just hopeful to see how you exit. And you talked about sell-through getting better in December, which is encouraging. But I was hoping to see, as you launched 3+, did you have any initial pull forward for the retailers? And that's what is indicating for you kind of more soft first quarter. I just want to see how those dynamics have been playing out. And the same with the pro. Anything that you've talked about, the back bar and then the way they've been encouraged with the relaunches.

So just to feel like how the sell-through, the sell-in and sell-out have been placing and consumption in general. If you can talk about consumption into the first few months of the year, that would be wonderful. Thank you.

Management: I think what we can say is that there's no pull forward of anything in this launch. And we don't talk about specifics of exact distribution. But I think if you go in and you look at our product on shelf, you'll see the number three plus and it really looks great in stores.

And so we're very pleased that we're starting to really hit our stride around all the investments that were made in visual merchandising and the opportunity around the brand.

This concludes the question and answer session. I would like to turn the floor back over to Amanda Baldwin, Chief Executive Officer, for closing comments.

Management: I just wanted to say thank you to everyone for being with us here today, and we hope you have a great day.

Operator: This concludes today's teleconference. You may disconnect your lines

at this time.

Thank you for your participation.

Q3 2025 Earnings Call — November 6, 2025

Analyst Susan Anderson (Canaccord Genuity): Hi. Good morning. Thanks for taking my questions. Nice job on the quarter. I wanted to maybe ask about, I think you guys mentioned some orders were pulled in the third quarter. Was that across both spec retail and professional? And then I think the reiteration of the guide implies a pretty wide range for fourth quarter. I think previously you expected fourth quarter to be up high single, but I guess with that pull forward now. Should we expect anything different for fourth quarter? Thanks, and I have a quick follow-up.

Executive Catherine (Title): Hi, Susan. Thank you for the call and the question. We are pleased to be able to reaffirm our guidance for the third consecutive quarter. As you know, we really plan our business on an annual basis and we're laser focused on delivering our commitments as we enter the fourth quarter. And we think we're in a strong position to do exactly that. The thing with the fourth quarter, you know, we feel great about what we can control. We have strong plans for the holiday season and we did see encouraging sell-through trends and positive consumer and partner response to our marketing activations there and innovations. Our improved execution, as we talked about, particularly in masks, allows us to harness our innovation. And, again, we feel really great about the things that we can control.

A few factors that are impacting our fourth quarter thinking is, one, the macro environment. Consumer sentiment is increasingly uncertain as we head into the critical holiday season. Consumers seem to be shopping around big events but are more discerning at other times. Timing shifts, as I mentioned, we did see some earlier than expected shipments in the third quarter, which we think could impact the fourth quarter. It's not like we saw one big order that said this is the holiday shipment and it was a pull-in. We didn't. It was that these orders came in in September that we thought might come in in October. To the extent that it's timing depends on how our sell-through goes throughout the quarter, in particular holiday. And then, as I mentioned, we're also navigating some industry destocking that we expect to pressure fourth quarter, particularly on a DHC channel. However, it's important to note that inventory is in a very healthy position, we believe. And with our sell-through trends, we're in a great position to deliver the year. So year-to-date sales are down about 1% for the year, right in line with the midpoint of our annual guidance range. And again, we're focused on delivering the guidance that we've happily reaffirmed.

Analyst Susan Anderson (Canaccord Genuity): Okay, great. Thanks for the details there. Very helpful. And then I just want to follow up maybe on the Provala acquisition. I'm not sure if you could give more color just kind of about how you're thinking about their molecules and how they fit with Olaplex, whether that's in hair or another area of beauty. I believe you already utilize some of them. So I guess just curious kind of when you think in terms of timing, you will start to see some new products with these molecules roll out. Thanks.

Executive Amanda (Title): Sure. Hi, Susan. It's Amanda. Thank you for the question. I'll try to give a little bit of color, but I'm sure you can appreciate kind of where our future innovation is going is something that we'll share as it emerges, as we did with masks in this quarter. But, you know, look, I think the thing to understand about us is that we are really focused on how do we continue to deliver science-backed breakthrough products. Bisamino is an incredible technology. It's one that still stands on its own and is certainly above the pack in terms of what it can do in terms of relinking disulfide bonds. But there are other things that we hope to be able to do that require different technologies. So there'll probably be a balance, I would say, and there'll be certain things in every formula that's unique that we'll be able to scramble and bring to the market as fast as humanly possible. Missing innovation means moving quickly. And there's some things that will take longer. And I've spent a lot of time personally with our chief scientist. I've met the folks that are working on these technologies. They spend a lot of time just really understanding what we can do.

And I think that a strong innovation platform has both immediacy to it as well as things that are sort of bigger bets that take time away. So you'll see, you know, I think both from us going forward, and we'll continue to report out on that and certainly highlight as we're using the technology where it's coming through so that people understand.

Analyst Lillian (Raymond James): Good morning. This is Lillian. I'm for Olivia. I just wanted to ask a bit about the holiday setup. What are you hearing from retailers? And then just any color on what you can share on sell-in or sell-through expectations would be helpful. And then just how are you approaching holiday marketing this year? Are there any changes from prior years?

Executive Amanda (Title): What I would say is that our marketing organization is ready. And as we highlighted and we were talking about the masks that we really have started to hit our stride in terms of our ability to deliver the right content at the right place at the right time. So we're excited about those pieces of our marketing strategy starting to hit the market really as we speak. So it's too soon to say anything more than that. But it is an important part of the Olaplex brand is selling during holiday. It's always something that I've thought of as a real sign of our strength as a brand is our giftability and the desirability during this time of year. It's quite unique, I think, for a hair care product. You usually see a lot of momentum in other categories. So, you know, look, I think that this is one that we'll all be watching. And I think that's why we kept our guidance as it is, and as Catherine said, left ourselves flexibility for what we do expect to be an important promotional period in the category.

Analyst Lillian (Raymond James): Okay, great. Thank you. And then just as a follow-up, I'm wondering if you could add any color on the overall promotional environment across key channels right now. Are you seeing any more aggressive discounting from peers or retailers and just how you're positioning yourself within that backdrop?

Executive Amanda (Title): I mean, we're obviously watching everything that folks can see. And there's a lot that comes in Black Friday, Cyber Monday that we're several weeks away for it. But we're certainly ready to take things as we see them unfold in the market. And it was a position that we took last year as well

at this time was to make sure that we were ready to read and react to what's happening.

Analyst Jonna Kim (TD Talent): Thank you for taking my question. Just first one around investments. Obviously, you've made nice progress there, but as you think about next year, how much more investment do you need to make and what are some of the areas that's left? And I would love to hear just more about your pricing strategy as you think about next year, how you're thinking about the pricing structure across your product portfolio.

Executive Amanda (Title): As we talked about a couple of things with respect to the investments, we continue to have incredibly strong margins despite the fact that we have invested significantly behind our brand this year. There's a couple of things that came through in the quarter this morning that we're talking about that I think are important to reflect upon versus what we were just talking about, which is really our own executional ability to actually get out there with what we call a big bang approach to a launch. And we really saw that we were able to do that in mass and we were able to deliver against the sales for a product like that. So as we see those three critical pieces of a brand come into place, it really entered into this year and I'm excited to be at the place where we're exiting it with all the pieces of the puzzle in place where we have the right brand baseline, we have our brand platform, we have our content engine. Now we're going to get into the place where it's test, learn, iterate, refine, maximize, accelerate, and every situation will be unique.

The other thing that is worth highlighting is the brand health tracker results. Those were something that we've been eagerly awaiting. Because there are marketing investments that are immediate and there are marketing investments that are, as we've always guided to in this transformation, that we're spending and investing and building for the long run. Brands aren't built overnight. Olaplex had an extraordinary foundation of science. We needed to build a brand around it. And so we've made those long-term decisions and those long-term investments. The best indicators on those and folks along the way have said, what are you going to look for, Amanda, to know if you've pointed out the ship in the right direction and seeing those brand health tracker results was really exciting and rewarding for us as an organization to see that we knew we needed to move the needle on, that we needed to move off of a brand that had extraordinary efficacy, but wasn't necessarily connecting in an emotional way, that we really moved the needle there, that we moved our needle across the brand funnel. We continue to be number one in EMV. We have these things that really point to a very strong, and resilient brand that's being built here. So as we get into 2026, a lot is going to be focused on how we build on the successes that we've seen thus far.

Executive Catherine (Title): Yeah, I'll just add a couple of things to that. You know, in 2025, we've made significant strategic investments to establish the foundation for the business long-term success. And these investments combined with our enhanced executional excellence, allows us to better harness both our marketing spend and the power of our science-based innovation. And as Amanda just said, we have clear positive signs of traction. So while we're pleased with these signals that our investments are working, I do want to emphasize that we're still in the midst of a multi-year transformation. We continue to rigorously collect data and the learnings to inform our paths forward. And we're gaining a much clearer perspective on the appropriate organization and the investment base for future years, but we're not yet prepared to define that base. But as we've consistently stated, our focus remains on building for the long term, committed to achieving our 2025 guidance of 20% to 22% adjusted EBITDA, generating strong cash flow and executing the transformation that positions the company for really long-term sustainable profitable growth.

Analyst Javier Escalante (Evercore ISI): Hey, good morning, everyone, and thank you for taking my question. I do appreciate a deliberate approach that you are taking to improve fundamentals and also that you exceeded internal expectations, but can you please provide a sense of your sellout, ideally in the U.S. and internationally? How do retail sales compare sequentially versus Q2? And the broader healthcare market, if you can help us understand market share dynamics in a bigger picture way. And then I have a follow-up for Amanda. Thank you.

Executive Catherine (Title): Sure. You know, I think what we indicated this morning is that second and third quarter, you know, had relatively consistent sell-through trends and that the launch of the rich hydration and weightless nourishing masks were ahead of our expectations. And so we're very pleased with that and how they can lead for the future. But prestige hair care market is a very strong market. This is a market that continues to grow in the low single digit, or sorry, the high single digits. And I think it's really poised for a lot of future momentum. So we're really excited about the category that we're playing in and kind of our future and ability to continue to harness the growth that the consumer is seeing in that category.

Analyst Javier Escalante (Evercore ISI): So basically, if the category is growing mid to high single digits, your sellout is lagging that, right?

Executive Catherine (Title): That's correct.

Analyst Javier Escalante (Evercore ISI): Okay. Yeah, I mean, you know... And relative to, say, the market share trends that you saw, say, in Q2, how all these initiatives and the new products and increased marketing, how does it look in Q3 relative to Q2? Because it feels that there is a disconnect, and I understand that there is a lot of things that are happening and they will take time to play out. But it's just trying to understand what gives you confidence that your market share, when you're going to grow in line with the category then.

Executive Catherine (Title): I think at this point, what I'd really again highlight is what we talked about with performance around the mask, that we were very pleased that those are ahead of expectations on both sell-in and sell-through, that we have very strong indicators in our brand health tracker that we're making investments that will pay off over the long run, that our innovation and plans for the future continue to be strong. We're in the middle of a transformation, as I've indicated from the very beginning. These things are not linear and they're not overnight. But again, I want to really reiterate today that we're really pleased with the progress that we've made. We feel really good about where we're going, that we've got the right strategy in place, and we're just going to keep at it and keep chipping away at all the things that need to get done.

Analyst Javier Escalante (Evercore ISI): And Amanda, if you can expand on the strategy by looking into retail channels, right? Amazon continued gaining market share. You have a big business there. And at the same time, there has been a lot of entries in premium beauty, premium Amazon beauty by Estelothers and the likes. So how that alters your equation, right? Because it feels as if you have been focused on retailers that are losing market share. Thank you.

Executive Amanda (Title): So we have a three-pronged distribution strategy that I think is very strong. And one of the things that I was excited to be able to, when I came to Olaplex, I thought that we had the right distribution strategy and a really strong portfolio of different places where the product is available. What we've done as an organization is really pivot to focus on the pro at the start of that flywheel. And you're seeing evidence of the strength in that strategy and where we're really pro first and pro early and focused on how the pro gives us credibility that other brands wouldn't necessarily have when they're in retail or DTC is really, really important and something that sets us apart. We think that there is a real exciting role for retail. It gives us reach. It gives us credibility in a different kind of way when your product is on those shelves. And obviously DTC is a huge global and growing platform for the category as a whole. It isn't about one or the other. It's really about where we want to get over time is growing the pie and growing the visibility of our brand. And I think we have incredibly strong partnerships that allow us to do that.

Analyst Ashley Helgens (Jefferies): Hi, good morning. This is Brian on for Ashley. Thank you for taking our question. On the sales guide, I know you reiterated, but was curious if you could unpack any more dynamics that might be evolving under the hood in terms of your expectations for domestic and international or any other color there. Thank you.

Executive Catherine (Title): Sure. Thanks for the question. We primarily think about our business on a consolidated basis. Our sales are down just 1% year to date. That's the best measure of our transformation progress, giving all the numerous revenue dynamics. There's a bit of a divergence in the third quarter between our US and our international sales, and I can share a little bit more about that with you. International outperformed our expectations due to strong execution. Our partners showed up with significant enthusiasm, I think, in the third quarter, driving, again, outperformed expectations. This, we think, could have been some timing of the orders that I mentioned earlier, that we saw some October orders shift into September. But the extent will be based on how the sell-through plays out through the rest of the fourth quarter. Targeted investments that we've made internationally started to pay off. Though much of our transformation is focused on the U.S., we are seeing early signs of success of a focused international investment.

We've established closer, more direct partnerships, including increased joint business planning, and we're really seeing some positive green shoots and early results there. And I've mentioned this before, improved promotional management. We have implemented better promotional discipline across the board. And this is across the board, but some of that impacted the international channels a bit more in this period. And in the U.S., we are seeing sell-through that is improving, but it is not yet positive. And so that is some of the dynamics between U.S. and international channels. In short, international reflects strong channel execution, and timing of partner orders in the U.S. is primarily a function of the timing of us changing our sell-through trends. It just takes time. We're confident in our strategy, both U.S. and international.

Analyst Brian (Jefferies): And just one quick follow-up. Could you talk a little bit more about what innovation or marketing campaigns are driving the most new customer acquisition and engagement for you?

Executive Amanda (Title): So the marketing campaign that was really the focus of the third quarter was the campaign on our two masks that launched at the end of August. As we indicated this morning, we did see some nice new customer pickup on our DTC channel where we get that information directly. And I think that every innovation, like I said before, has different pieces of the strategy. This is certainly one where we're delivering unique science into a category that is a one, where there is competition, we're really out-competing in terms of the efficacy of our product, as well as the marketing strategy that is talking about that efficacy, right? So you have to have a product that works, but also an ability to storytell around it. And that's really where we're seeing a nice balance in how we've come to market on these products in particular this quarter. That was really the focus for our marketing efforts.

Executive Amanda (Title): Again, thank you, everybody, for your questions this morning. We always appreciate it, and wishing everyone a great close to the year. Thank you.

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