Waldencast (WALD) Q4 2024 earnings summary

Executive summary

• Achieved a transformative year in 2024 with net revenue up 27.5% to $273.9M and adjusted EBITDA up 65.1% to $40.3M, driven by strong growth and operational efficiency across both Milk Makeup and Obagi Medical, outpacing industry peers.

• Both brands outperformed their markets, with high brand equity, innovation, and expanded distribution fueling results.

• Completed successful debt refinancing, securing a $205M five-year credit facility, including a $175M term loan and $30M revolver, extending maturity to 2030.

• Beauty market remains resilient, with prestige beauty growing 7% in 2024, and the company’s brands substantially outperforming the market in their categories.

• Strategic focus on innovation, expanding distribution, and brand awareness continues to drive momentum and set the stage for long-term profitable growth.

Financial highlights

• Q4 2024 net revenue reached $72.1M, up 30.8% year-over-year, with adjusted EBITDA margin at 15.5%.

• FY 2024 adjusted gross profit was $203.6M (74.3% margin), with adjusted EBITDA margin improving to 14.7% from 11.2% in 2023.

• Adjusted free cash flow conversion was 78.8% in 2024.

• FY 2024 net loss narrowed to $48.6M from $106.0M in 2023, reflecting reduced non-recurring costs.

• Year-end cash position was $14.8M, with net debt totaling $154.2M.

Outlook and guidance

• FY 2025 net revenue growth expected in the mid-teens, with further adjusted EBITDA margin expansion into the mid-to-high teens.

• Q1 2025 net revenue expected to be flat due to the anniversary of a major product launch and inventory adjustments, with acceleration anticipated in subsequent quarters.