Revenue growth has stalled to -1.7% in 2025Q4, while gross margins have compressed to 43.9%, reflecting significant challenges in maintaining profitability within the competitive beauty sector.
| Sales/Revenue | 272.07M | 273.87M | 218.14M | 166.13M | 142.47M | 94.43M |
| Revenue Growth % | -0.66% | 25.55% | 31.3% | 16.61% | 50.88% | - |
| Cost of Goods Sold | 148.24M | 82.12M | 76.56M | 126.7M | 55.04M | 29.1M |
| COGS % of Revenue | 54.48% | 29.99% | 35.1% | 76.26% | 38.63% | 30.81% |
| Gross Profit | 123.83M | 131.73M | 141.58M | 39.44M | 87.44M | 65.33M |
| Gross Margin % | 45.52% | 48.1% | 64.9% | 23.74% | 61.37% | 69.19% |
| Gross Profit Growth % | -5.99% | -6.96% | 259% | -54.9% | 33.83% | - |
| Operating Expenses | 185.51M | 185.28M | 223.51M | 113.7M | 89.06M | 64.8M |
| OpEx % of Revenue | 68.18% | 67.65% | 102.46% | 68.44% | 62.51% | 68.63% |
| Selling, General & Admin | 185.51M | 245.3M | 220.31M | 109.3M | 71.62M | 60.42M |
| SG&A % of Revenue | 68.18% | 89.57% | 101% | 65.79% | 50.27% | 63.99% |
| Research & Development | 0 | 0 | 3.19M | 4.4M | 6.09M | 4.38M |
| R&D % of Revenue | - | - | 1.46% | 2.65% | 4.28% | 4.64% |
| Other Operating Expenses | 0 | -60.02M | 0 | 0 | 11.35M | 0 |
| Operating Income | -61.67M | -58.58M | -81.93M | -74.27M | -1.63M | 528K |
| Operating Margin % | -22.67% | -21.39% | -37.56% | -44.7% | -1.14% | 0.56% |
| Operating Income Growth % | -5.28% | 28.5% | -10.32% | -4470.4% | -407.77% | - |
| EBITDA | -2.49M | 1.43M | -21.43M | -39.1M | 12.28M | 13.95M |
| EBITDA Margin % | -0.92% | 0.52% | -9.83% | -23.53% | 8.62% | 14.77% |
| EBITDA Growth % | -274.07% | 106.68% | 45.18% | -418.41% | -11.97% | - |
| D&A (Non-Cash Add-back) | 59.18M | 60.02M | 60.5M | 35.17M | 13.9M | 13.42M |
| EBIT | -61.67M | -31.38M | -94.04M | -134.42M | 1.14M | 517K |
| Net Interest Income | -25.09M | -17.16M | -18.91M | -12.87M | -11.12M | -6.28M |
| Interest Income | 0 | 0 | 0 | 12.88K | 0 | 0 |
| Interest Expense | 25.09M | 17.16M | 18.91M | 12.88M | 11.12M | 6.28M |
| Other Income/Expense | -200.57M | 5.01M | -31.01M | -73.03M | -8.35M | -6.29M |
| Pretax Income | -262.25M | -48.54M | -112.94M | -147.3M | -9.97M | -5.76M |
| Pretax Margin % | -96.39% | -17.72% | -51.78% | -88.67% | -7% | -6.1% |
| Income Tax | -14.19M | 110K | -6.97M | -5.69M | 9.6M | -3.39M |
| Effective Tax Rate % | 5.41% | -0.23% | 6.18% | 3.86% | -96.27% | 58.88% |
| Net Income | -229.75M | -42.44M | -89.98M | -116.62M | -19.58M | -2.37M |
| Net Margin % | -84.44% | -15.5% | -41.25% | -70.2% | -13.74% | -2.51% |
| Net Income Growth % | -441.31% | 52.83% | 22.85% | -495.75% | -725.99% | - |
| Net Income (Continuing) | -248.06M | -48.65M | -105.97M | -141.61M | -19.58M | -2.37M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 38.22M | 67.62M | 144.65M | 160.66M | 0 | 0 |
| EPS (Diluted) | -2.01 | -0.39 | -0.89 | -1.08 | -0.45 | -0.20 |
| EPS Growth % | -415.38% | 56.18% | 17.59% | -140% | -125% | - |
| EPS (Basic) | -2.01 | -0.39 | -0.89 | -1.08 | -0.45 | -0.20 |
| Diluted Shares Outstanding | 114.07M | 109.3M | 101.23M | 107.56M | 43.71M | 11.68M |
| Basic Shares Outstanding | 114.07M | 109.3M | 101.23M | 107.56M | 43.71M | 11.68M |
| Dividend Payout Ratio | - | - | - | - | - | - |
Persistent Operating Margin Deficit
According to recent financial filings, Waldencast's revenue growth has decelerated to -1.7% in 2025Q4, marking a significant reversal from the double-digit expansion observed in previous periods and suggesting that the company's core brand portfolio is struggling to maintain market share in a competitive beauty landscape.
The transition from 30.8% growth in 2024Q4 to negative territory indicates that the initial post-acquisition momentum has dissipated. Investors should monitor whether this contraction reflects broader channel saturation or a failure of recent product launches to resonate with the target consumer base.
As reported in quarterly statements, the company's gross margin compressed to 43.9% in 2025Q4, a notable decline from the 60-70% range typically expected in prestige beauty, which may indicate persistent inventory inefficiencies or an over-reliance on promotional discounting to drive sell-through at major retail partners.
This margin profile appears structurally inferior to peers like e.l.f. Beauty, suggesting that Waldencast lacks the pricing power necessary to offset rising input costs. The inability to sustain higher gross margins implies that the current business model may be fundamentally misaligned with the cost structure of the prestige skincare market.
Based on the provided income statement data, Waldencast continues to report significant operating losses, with SG&A expenses of $91.7M in 2025Q4 consistently outpacing gross profit, demonstrating a failure to achieve the necessary scale to cover the fixed overhead of its corporate platform and professional sales infrastructure.
The persistent negative operating margin of -21.7% suggests that the company is not yet benefiting from operational synergies between its Obagi and Milk Makeup segments. Without a clear path to rationalizing SG&A, the company remains highly vulnerable to further earnings dilution.
Data from recent filings reveals a net margin of -43.1% in 2025Q4, which highlights the severe risk that the company's current cost structure is unsustainable, potentially forcing management to choose between aggressive capital raises or significant asset divestitures to preserve liquidity in the coming fiscal year.
Short-sellers would likely focus on the widening gap between revenue and operating expenses, which suggests that the platform's value proposition is not translating into bottom-line results. The lack of R&D investment in recent quarters may also indicate a short-term focus on survival at the expense of long-term brand innovation.
Quick answers to the most common questions about buying WALD stock.
For fiscal year 2025, Waldencast plc (WALD) reported total revenue of $272.1M. This represents a 188.1% increase compared to $94.4M in 2020.
Waldencast plc (WALD) reported a net loss of $229.7M for the fiscal year ending 2025.
Waldencast plc (WALD) reported an operating income of $-61.7M, resulting in an operating profit margin of -22.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Waldencast plc (WALD) generated $123.8M in gross profit for the year, representing a gross profit margin of 45.5%. This demonstrates the company's core pricing power and production efficiency.