Olaplex Holdings, Inc. (OLPX) shares plummeted 21.63% during intraday trading on Thursday following the release of its fourth quarter and fiscal year 2025 financial results, which revealed a significant widening of its net loss and provided guidance that disappointed investors.
The company reported a Q4 net loss of $13.1 million, a 48.9% increase from the $8.8 million loss in the same period last year. While quarterly sales of $105.1 million slightly exceeded estimates, the adjusted net income of $5.56 million missed the IBES estimate of $6.54 million. The diluted net loss per share was $(0.02), compared to the consensus estimate of $0.01.
Investors reacted negatively to the company's fiscal year 2026 guidance, which projects net sales between $414 million and $435 million. Management specifically noted that net sales performance for the first quarter of 2026 is expected to trend below the full-year outlook, with consumer demand weighted toward the second half. Additionally, adjusted EBITDA margin in Q1 is anticipated to be significantly below the full-year expectation due to front-loaded marketing spend.
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