Olaplex Holdings, Inc. (NASDAQ: OLPX) shares surged 5.49% in pre-market trading on Thursday following the release of its third-quarter 2025 financial results, which exceeded analyst expectations despite a year-over-year decline in sales.
The hair care products company reported Q3 net sales of $114.58 million, down 3.8% from the same period last year but beating the consensus estimate of $110.59 million. Adjusted EBITDA came in at $30.79 million, surpassing analyst projections of $27.93 million. Earnings per share remained steady at $0.02, in line with the previous year and beating the $0.01 estimate.
Olaplex's CEO Amanda Baldwin commented on the results, stating, "We are pleased with our third quarter results that reflect investments in sales and marketing, continued progress in our executional capabilities and the early results of our latest new product introductions." The company also reaffirmed its fiscal year 2025 guidance, projecting net sales between $410 million and $431 million, with an adjusted EBITDA margin of 20% to 22%.
While the company faced challenges in its U.S. market with a 14.6% sales decline, it reported a 7.1% increase in international sales. The professional channel showed growth with a 5.3% increase to $44.5 million, partially offsetting declines in specialty retail and direct-to-consumer segments. Investors appear encouraged by Olaplex's ability to navigate a challenging market environment and its commitment to its "Bonds and Beyond" strategy for sustainable, profitable long-term growth.
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