Prestige Consumer Healthcare Inc. Q2 FY2026 earnings call

• Q2 results exceeded expectations due to timing factors; sales were $274 million, down y-o-y but better than forecast. Base business performed well with double-digit e-commerce consumption growth. • DenTek brand focuses on dental guards (over half of revenue), with Fantasy Guards marketing campaign launched in Q2 showing solid success. • First half revenues down 4.8% organically; International segment expected 5% annual revenue growth. Gross margin expected 56.5% for full year. • Supply chain improvements: 2 new suppliers for Clear Eyes, Pillar5 making progress with new high-speed line, expecting Clear Eyes supply to improve in second half.

Q2 revenue was $274.1 million, down 3.4% from the prior year. North America segment revenues decreased 6.1% excluding FX, while International segment revenues increased 2.7% due to higher Hydralyte sales. First half gross margin was 55.7%, up 60 basis points versus the prior year. Adjusted EPS for the first half was $2.02, compared to $1.98 in the prior year. First half free cash flow was $133.6 million, up approximately 10% versus the prior year, with full year outlook for free cash flow at $245 million or more.

• Fiscal '26 revenue expected $1.1 billion to $1.115 billion, Q3 revenue ~$282 million. • Full year adjusted EPS anticipated $4.54 to $4.58, Q3 EPS ~$1.14. • Full year free cash flow outlook $245 million or more. • Full year gross margin expected 56.5%, Q3 gross margin ~56%.

• Business environment uncertainty due to supply chain constraints, high inflation, geopolitical events. • Clear Eyes supply chain issues impacting revenue and shelf space. • Fluctuations in e-commerce retailer order patterns affecting revenue.

Q: Follow-up on Clear Eyes supply and shelf space loss A: Chris Sacco and Ron Lombardi discussed new suppliers for Clear Eyes, sequential improvement in Q3, and plans to reclaim shelf space as supply improves.

Q: Retailer inventories and cold/cough season A: Ron Lombardi mentioned steady inventory in non-e-commerce channels, cold/cough season too early to predict.

Q: Capital allocation and deal environment A: Ron Lombardi stated M&A priorities, consistent capital allocation, and disciplined approach to M&A.

Q: Clear Eyes inventory and A&M spend A: Christine Sacco explained inventory trends and A&M spend driven by brand initiatives and seasonality.

Q: A&M ratio and private label competition A: Ron Lombardi discussed reallocating A&M and no meaningful change from private label competition.