Waldencast reveals sharp Milk Makeup downturn and goodwill write-down

Waldencast ($WALD) reported a 57.1% fall in first-half continuing-operations revenue to $26.1 million. The continuing net loss widened to $94.9 million from $48.3 million, including a $52.3 million noncash goodwill impairment against Milk Makeup. Adjusted EBITDA swung to a $23.2 million loss. Softer demand, elevated retailer inventory, fewer new products and the absence of prior-year pipeline shipments weighed on performance.

The figures exclude Obagi Medical, which is presented as discontinued operations following its previously completed disposal. That sale subsequently repaid outstanding senior debt and lifted continuing-operations cash to $138.6 million at the end of August. Management is concentrating on Milk Makeup and reducing central overhead. The retained business still faces a difficult demand and inventory environment, while the noncash impairment reduces reported asset value rather than explaining the underlying sales decline.

Sources:

• Waldencast GlobeNewswire results, reproduced by StockTitan