Waldencast plc (WALD) H1 2026 Financial Results
QuoteReporter
Waldencast plc (WALD) H1 2026: Significant Revenue Decline, Losses Widen — Disappointing
Waldencast plc reported a challenging first half of 2026, with net revenue from continuing operations falling to $26.1 million, a decrease of $34.8 million or 57.1% compared to $60.9 million in H1 2025. This significant drop in revenue, coupled with a net loss from continuing operations of $94.9 million, a 96.5% increase from the previous year's loss of $48.3 million, indicates a disappointing quarter for shareholders.
The primary reason for this disappointing performance is the drastic decline in Milk Makeup's sales, which reflects ongoing challenges in consumer demand and operational execution. The company is undergoing a strategic transition following the sale of its Obagi Medical business, which has led to a focus solely on Milk Makeup.
Key Financial Metrics:
- Net Revenue from Continuing Operations: $26.1 million, down 57.1% YoY from $60.9 million.
- Net Loss from Continuing Operations: $94.9 million, up 96.5% YoY from $48.3 million.
- Adjusted EBITDA: $(23.2) million, compared to $0.02 million in H1 2025.
- Gross Margin: 53.7%, down from 67.3% YoY.
- Cash and Cash Equivalents: $7.0 million as of June 30, 2026, up from $5.0 million as of December 31, 2025.
- Outstanding Shares: 127,206,117 as of August 31, 2026.
The company also recorded a non-cash goodwill impairment charge of $52.3 million against the Milk Makeup reporting unit, further highlighting the financial strain. The gross margin decline was attributed to increased costs associated with legacy products and a lack of new product launches, which has negatively impacted sales.
Strategic Developments:
Waldencast completed the sale of its Obagi Medical business on July 30, 2026, for net cash proceeds of $149.9 million after repaying $178.4 million of outstanding debt. This sale is expected to provide the company with a stronger balance sheet and the flexibility to invest in Milk Makeup's growth. The Board has also approved a voluntary delisting from Nasdaq, with plans to seek over-the-counter market quotation under the ticker "MLKM."
Future Outlook:
Looking ahead, the most critical catalyst to watch is the upcoming relaunch of the next generation of Milk Makeup's Sticks product line, which is expected to occur in August 2026. This relaunch aims to restore the brand's innovation cadence and reconnect with consumers, which is essential for driving future revenue growth.
In summary, while the first half of 2026 was marked by significant challenges and disappointing financial results, the strategic focus on Milk Makeup and upcoming product launches could provide a pathway to recovery. However, the company must effectively execute its plans to regain consumer interest and improve operational performance.
| Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 |
|---|---|
| $26,102 | $60,858 |
| 12,094 | 19,886 |
| 14,008 | 40,972 |
| 54,969 | 60,408 |
| 52,265 | 19,960 |
| 107,234 | 80,368 |
| (93,226) | (39,396) |
| 5 | 10,579 |
| — | 2,116 |
| 204 | (2,587) |
| 1,350 | (1,253) |
| 1,559 | 8,855 |
| (94,785) | (48,251) |
| 67 | 45 |
| (94,852) | (48,296) |
| (18,688) | (136,930) |
| $(113,540) | $(185,226) |
| (6,022) | (4,116) |
| (1,186) | (11,671) |
| (88,830) | (44,180) |
| (17,502) | (125,259) |
| $(0.75) | $(0.39) |
| $(0.15) | $(1.11) |
| $(0.90) | $(1.51) |
| 118,696,278 | 112,475,039 |
| $(113,540) | $(185,226) |
| 168 | (1,155) |
| (113,372) | (186,381) |
| (7,208) | (15,885) |
| $(106,164) | $(170,496) |
| June 30, 2026 | December 31, 2025 |
|---|---|
| $7,818 | $5,835 |
| 5,265 | 18,395 |
| 27,100 | 31,167 |
| 1,859 | 6,966 |
| 436,414 | 64,580 |
| 478,456 | 126,943 |
| 95,813 | 103,688 |
| 62,847 | 115,112 |
| 9,614 | 10,477 |
| — | 389,941 |
| $646,730 | $746,161 |
| $14,049 | $12,396 |
| 30,197 | 30,352 |
| 55,483 | 31,798 |
| 99,729 | 74,546 |
| 149,305 | 135,752 |
| 6,480 | 6,895 |
| — | 28,870 |
| 255,514 | 246,063 |
| $391,216 | $500,098 |
Disclaimer
The content on MarketsFN.com is provided for educational and informational purposes only. It does not constitute financial advice, investment recommendations, or trading guidance. All investments carry risk and past performance does not guarantee future results. You are solely responsible for your investment decisions and should conduct independent research and consult a qualified financial advisor before acting. MarketsFN.com and its authors are not liable for any losses or damages arising from the use of this information.
