OLAPLEX HOLDINGS, INC. Q3 FY2025 earnings call

Generate brand demand

• Invested significantly in brand, achieving 25.5% adjusted EBITDA margin YTD. Completed brand refresh in Feb and launched [Design to Defy] platform in Apr. Brand health tracker shows improved perception (more approachable, alluring while retaining core identity).
• Successful launch of 2 new hair masks with 360-degree marketing campaign, including Pro-first launch, PR/influencer coordination, and experiential activation.

Harness innovation

• Launched 6 new innovative products in 2025, including hair masks with Biomimetic Cuticle Technology. Acquired Purvala Bioscience to develop bio-inspired technologies. Masks had strong consumer response, with top 3 selling prestige hair products in Q3 2025.

Execute with excellence

• Streamlined processes and clear KPIs. Expanded Blitz program to 3 new cities, seeing higher sell-through in Blitz cities. Reorganized field sales team, optimized go-to-market strategy with 3-tiered approach (partner-led priority, direct investment, light-touch partner markets).

Net sales were $114.6 million, down 3.8% year-over-year. By channel: Professional net sales grew due to strong promotion management, with early green shoots in regions where relationships were reset. Specialty retail sales were down but sell-through was broadly consistent in Q2 and Q3 with improvement exiting Q3 led by innovation. Direct-to-consumer sales declined as expected after large events but outperformed expectations with strong momentum during tentpole events.

• Full-year 2025 guidance: Net sales range -3% to +2% vs fiscal year 2024, adjusted gross margin 70.5%-71.5%, adjusted EBITDA margin 20%-22%.
• Factors affecting guidance: Macro environment uncertainty during holiday, industry destocking pressuring DTC, and timing shifts of sales.

• Macro environment uncertainty during the critical holiday season.
• Industry destocking potentially pressuring the DTC channel.
• Fluid trade environment with minimal exposure but still a risk for tariffs.

Q: Was there any pull forward of orders into the third quarter across channels and what about Q4 guidance?

A: Catherine mentioned some earlier-than-expected shipments in Q3 that could impact Q4, along with macro environment uncertainty, industry destocking, and consumer sentiment. But inventory is healthy and focused on delivering annual guidance.

Q: Can you provide more color on the Purvala acquisition and when new products with their molecules might roll out?

A: Amanda stated Purvala's technologies will contribute to future innovation, but specifics on timing of new products with their molecules will be shared as they emerge, similar to the mask launch.

Q: How is the holiday setup and promotional environment?

A: Amanda and Catherine discussed strong marketing plans for holiday, monitoring competition, and being ready to react to market changes. Confident in promotional period but mindful of consumer sentiment.

Q: Talk about investments and pricing strategy for next year.

A: Amanda and Catherine discussed ongoing marketing investments, focus on brand building and long-term growth, with margins remaining strong despite investments. Pricing strategy will be refined based on learnings and market conditions.

Q: How does sell-out compare to the category growth and market share trends?

A: Catherine noted the prestige hair care market is growing mid-to high-single digits, but Olaplex's sell-out is in transformation. Amanda emphasized progress with brand health tracker and innovation, confident in strategy for future growth.

Q: Discuss retail channels and Amazon impact.

A: Amanda stated a 3-pronged distribution strategy, focusing on Pro-first, retail reach, and DTC growth, not about one channel but growing the pie with strong partnerships.

Q: Explain domestic vs international sales dynamics.

A: Amanda said international outperformed due to strong execution, partner enthusiasm, and better promotional management. U.S. sell-through is improving but not yet positive, with focus on transformation strategy for both.

Q: What innovation or marketing campaigns are driving new customer acquisition?

A: Amanda mentioned the mask campaign was key, with strong new customer pickup on DTC during the campaign, leveraging unique science and effective storytelling.