Shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) surged 10.38% in pre-market trading on Thursday following the release of the company's third-quarter 2025 financial results, which exceeded analyst expectations on multiple fronts.
The hair care products maker reported quarterly earnings of $0.02 per share, surpassing the analyst consensus estimate of $0.01. Olaplex's Q3 sales came in at $114.579 million, outperforming the analyst consensus estimate of $110.592 million by 3.61%. While this figure represents a 3.78% decrease compared to the same quarter last year, it still managed to beat expectations. The company's adjusted EBITDA for the quarter was $30.794 million, significantly higher than the $27.8 million forecast by analysts, with an adjusted EBITDA margin of 26.9%.
Investors were particularly encouraged by Olaplex's performance in specific segments and markets. The professional channel showed growth with a 5.3% increase to $44.5 million, while international sales rose by 7.1%, helping to offset declines in the U.S. market. Additionally, the company reaffirmed its fiscal year 2025 guidance, projecting net sales between $410 million and $431 million, with an adjusted gross profit margin of 70.5% to 71.5% and an adjusted EBITDA margin of 20% to 22%. This reaffirmation of guidance, coupled with the better-than-expected Q3 results, appears to have significantly boosted investor confidence in Olaplex's near-term prospects, driving the substantial pre-market stock surge.
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