Waldencast (WALD) Q3 2024 earnings summary

Executive summary

• Q3 2024 net revenue reached $70.2 million, up 30.8% year-over-year, with comparable net revenue growth of 34.6%.

• Adjusted EBITDA for Q3 2024 was $11.4 million, a 134% increase year-over-year, with margin expanding to 16.3%.

• Both Obagi Medical and Milk Makeup delivered robust growth, with Obagi Medical Q3 net revenue up 45.5% and Milk Makeup up 23.5% year-over-year.

• The company leverages an asset-light, multi-brand platform focused on operational efficiency, innovation, and global expansion.

• Net loss for Q3 2024 was $13.1 million, improved from $36.5 million in Q3 2023, aided by gross margin gains and fair value adjustments.

Financial highlights

• Q3 2024 net revenue: $70.2 million (+30.8% YoY); adjusted gross profit: $51.4 million (73.2% margin); adjusted EBITDA: $11.4 million (16.3% margin).

• Nine-month net revenue: $201.8 million (+23.8% YoY); adjusted gross profit: $150.9 million (74.8% margin); adjusted EBITDA: $29.1 million (14.4% margin).

• Net debt as of September 30, 2024: $154 million; cash and equivalents: $17.6 million; $30 million undrawn on revolving credit facility.

• Fully diluted shares outstanding as of November 15, 2024: 128.3 million.

• Net loss for Q3 YTD 2024 was $26.1 million, both periods adjusted for non-recurring items.

Outlook and guidance

• Full-year 2024 guidance reaffirmed: comparable net revenue growth expected to accelerate beyond Q2's 25.7%, with adjusted EBITDA margin in the mid-teens.

• Management remains optimistic for 2025, citing strong innovation pipelines and international expansion opportunities.