• Net sales: $105.1 million, up 4.3% year over year

• Gross profit: $71.5 million, up 7.0%

• Gross margin: 68.0%, compared with 66.3% in the prior year quarter

Sales performance varied across distribution channels:

• Professional channel: $36.8 million, +18.9% YoY

• Direct-to-consumer: $43.6 million, +6.6% YoY

• Specialty retail: $24.7 million, –14.5% YoY

Geographically:

• U.S. sales: +0.8% YoY

• International sales: +7.6% YoY

The strong growth in the professional channel reflects renewed engagement with salon partners, a key pillar of the brand’s strategy.

Earnings and Profitability

Despite the top line growth, Olaplex reported a net loss in the quarter, primarily due to higher operating expenses and strategic investments.

GAAP results (Q4 2025)

• Net loss: $13.1 million, compared with a loss of $8.8 million a year earlier

• Diluted EPS: $(0.02) vs $(0.01) in Q4 2024

Adjusted (Non-GAAP) results

• Adjusted net income: $5.6 million

• Adjusted EPS: $0.01 per share

• Adjusted EBITDA margin: 12.2%

Operating expenses rose significantly:

• SG&A: $65.1 million, up 23% YoY, reflecting marketing investments, restructuring initiatives, and litigation related costs.

Full Year FY2025 performance

For the full fiscal year 2025, Olaplex reported relatively flat revenue growth but weaker bottom-line results.

FY2025 results

• Net sales: $423.0 million, up 0.1% year over year

• Net loss: $9.3 million, compared with $19.5 million net income in 2024

• Diluted EPS: $(0.01) vs $0.03 in the prior year

Channel performance for FY2025:

• Professional: $153.3 million, +5.5% YoY

• Direct-to-consumer: $139.3 million, +3.1% YoY

• Specialty retail: $130.4 million, –8.3% YoY

The shift toward professional and direct channels reflects the company’s effort to strengthen relationships with stylists and consumers while improving brand positioning.

Management Commentary

CEO Amanda Baldwin said the company ended 2025 with improved momentum following its strategic transformation.

Management highlighted several priorities:

• Strengthening innovation pipeline

• Improving brand marketing and execution

• Expanding engagement with professional stylists

• Building a more balanced channel mix across retail, professional, and DTC sales

The “Bonds & Beyond” strategy focuses on repositioning Olaplex as a science driven hair health brand while broadening its product portfolio.

Operational and Strategic Developments

Olaplex also made strategic investments to support long-term growth:

• Acquisition of Purvala Bioscience to strengthen R&D capabilities

• Continued product innovation leveraging its bond building hair repair technology

• Expansion of marketing and brand building initiatives globally

These investments are intended to restore growth following a period of slowing sales and competitive pressures in the prestige hair-care market.

Key Takeaways

1. Professional channel recovery is encouraging

Nearly 19% growth in salon sales indicates renewed traction among stylists, historically Olaplex’s core distribution channel.

2. Retail channel remains under pressure

Declining specialty retail sales suggest ongoing competition and shelf-space challenges.

3. Margin profile remains strong despite losses

Gross margins around 68–70% highlight the premium positioning of the brand.

4. Transformation strategy still in early stages

Higher operating expenses reflect investments needed to rebuild brand momentum and expand innovation.

Bottom line

Olaplex’s Q4 and FY2025 results show early signs of stabilization, with modest revenue growth and strong gross margins, but profitability remains pressured by higher operating costs and strategic investments. Continued recovery in the professional channel and successful execution of the Bonds & Beyond strategy will be critical for restoring sustainable growth in the coming years.

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet news channel.