Shares of Olaplex Holdings, Inc. (NASDAQ: OLPX) surged 5.49% 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. While this represents a 50% decrease from the $0.04 per share earned in the same period last year, it still managed to beat expectations. Olaplex's Q3 sales came in at $114.579 million, outperforming the analyst consensus estimate of $110.592 million by 3.61%. However, this figure represents a 3.78% decrease compared to the $119.080 million in sales reported for the same quarter in the previous year.
Despite the year-over-year declines, investors were encouraged by the company's performance relative to expectations. Olaplex's adjusted EBITDA for the quarter was $30.794 million, significantly higher than the $27.8 million forecast by analysts. The adjusted EBITDA margin stood at a healthy 26.9%. Furthermore, 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 boosted investor confidence in Olaplex's near-term prospects, driving the pre-market stock surge.
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