Waldencast (WALD) TD Cowen’s 8th Annual Future of the Consumer Conference summary

Leadership and platform strategy

• New CFO joined, attracted by the platform's ability to nurture and accelerate beauty brands.

• Operates as a house of brands, combining professional management with entrepreneurial independence.

• Incentive systems are brand-based, fostering autonomy and innovation.

• Focus on operational excellence and regular investor communication.

• No acquisitions included in current guidance, but future M&A remains a strategic option.

Brand performance and financial results

• Q1 comparable net sales grew 21%, with balanced growth across both brands.

• Gross margin improved to over 76%, with adjusted EBITDA at 16.6%.

• Milk reached $100M in net revenue, Obagi $112M, both with significant growth potential.

• Guidance for accelerating net sales and mid-teens EBITDA margin for the year.

• Margin improvements driven by innovation, supply chain, and channel mix.

Innovation and product development

• Milk's rapid innovation cycle includes viral launches like Jelly Tint and Kush Lip Oil.

• Obagi's innovation is physician-driven, with a slower, more scientific development process.

• Both brands leverage consumer feedback and AI to inform product development.

• New product launches and category expansions are key growth drivers.

• Packaging and visual identity updates support brand positioning.