Brand owner Waldencast has delayed its second-quarter and half-year 2025 earnings results and cut its financial outlook for the year.
The owner of Milk Makeup and Obagi has postponed its financial update as it undertakes a strategic review of its business.
“In consideration of this, management is conducting an expanded evaluation of its operating performance, strategic choices, long-term priorities, and goodwill valuation,” Waldencast said in a statement.
“This review, which reflects the company’s commitment to disciplined financial stewardship and value creation, requires additional analysis of the H1 2025 financials.”
Waldencast added that it is working “diligently” to finalise this review and to complete and file its financial results within the regulatory deadline.
This follows the company’s acquisition of Novaestiq, a private company focused on the aesthetics market, in July.
Despite the results delay, Waldencast said Milk Makeup had a sell-out performance in the US, reporting estimated sales growth within the high-20 percents.
This was supported by the make-up brand’s launch into Ulta Beauty and on Amazon’s Premium Beauty storefront.
Consistent sales of Milk Makeup’s Hydro Grip Gel Skin Tint and Balmade Electrolyte Lip Balm also supported growth.
This strong performance domestically was dampened by challenges in international markets, however, where consumption was soft.
Obagi Medical’s revenue growth also accelerated to mid-teens percent with continued performance in US strategic distribution channels, according to Waldencast.
“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.
“In Q2, we resumed revenue growth, as we cycled the anniversary of last year’s exceptionally strong launches that weighed on Q1 comparisons.
Waldencast has updated its full-year outlook for 2025, in the context of a “year of purposeful investment for the future and against a backdrop of fluid market conditions”.
The company now expects net revenue growth in the low to mid-single digits, reflecting first-half performance and a more moderate industry environment.
Adjusted EBITDA margins are now anticipated in the low to mid-teens.
Brousset added: “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 maximising shareholder value.”