Waldencast Faces Profitability Pressure: Q2 EBITDA Slumps 47% Despite Revenue Growth

GasGuru · 2025-12-26T05:26:02+00:00

Waldencast plc faces weakening profitability in 2025, with a significant EBITDA decline despite a slight revenue increase. Mixed revenue signals and a modest cash position raise concerns about demand sustainability and operational pressures ahead.

GasGuru

2025-12-26 05:26:02

Abstract generation in progress

Waldencast plc (WALD) is grappling with weakening profitability in 2025. The company’s second-quarter adjusted EBITDA tumbled to $3.3 million, a stark 47.3% decline year-over-year, signaling margin compression despite modest revenue gains.

Revenue Picture: Mixed Signals Ahead

On the positive side, Q2 net revenue climbed 5.6% to $66.8 million, suggesting some top-line resilience. However, momentum stalled in Q3, where net revenue dipped 3.4% year-over-year to $67.8 million. This sequential deceleration raises concerns about demand sustainability heading into the final quarter.

Cash Position and Forward Outlook

As of September 30, 2025, Waldencast maintains $14.2 million in cash and cash equivalents—a relatively modest buffer for a revenue-generating business. Looking ahead, management has tempered expectations considerably. The company now projects fiscal 2025 net revenue will track broadly in line with 2024 levels, while adjusted EBITDA margins are expected to remain in the high single digits.

The sharp EBITDA compression despite flat-to-modest revenue growth underscores rising operational pressures, likely stemming from inflation, supply chain costs, or competitive headwinds. Investors will be watching closely whether the company can stabilize margins in coming quarters or if further restructuring becomes necessary.

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.