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Contacts: InvestorsICR Allison Malkinwaldencastir@icrinc.com MediaICRBrittney Fraser/Alecia Pulmanwaldencast@icrinc.com Appendix Comparable Net Revenue Growth Group Obagi Medical(In thousands, except for percentages) Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023Net Revenue $72,083 $55,117 $273,868 $218,138 $42,211 $32,470 $149,266 $117,651Obagi Medical China Business 735 — 2,804 5,619 735 — 2,804 5,619Comparable Net Revenue $71,348 $55,117 $271,064 $212,519 $41,476 $32,470 $146,462 $112,032Comparable Growth 29.4% 27.5% 27.7% 30.7% Adjusted Gross Profit Group(In thousands, except for percentages) Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023Net Revenue $72,083 $55,117 $273,868 $218,138 Gross Profit 49,450 37,476 191,744 141,577 Gross Profit Margin 68.6% 68.0% 70.0% 64.9%Gross Margin Adjustments: Amortization of the fair value of the related party liability(1) (750) — (2,260) (4,058)Amortization of the inventory fair value adjustment(2) — — — 1,691 Discontinued product write-off(3) 1,139 — 2,864 — Amortization impact of intangible assets(4) 2,801 2,801 11,205 11,205 Adjusted Gross Profit $52,639 $40,277 $203,553 $150,415 Adjusted Gross Margin % 73.0% 73.1% 74.3% 69.0% (1)Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.(2)Relates to the amortization of the inventory fair value step-up as a result of the Business Combination.(3)Relates to the advance purchase of specific products for the market in Vietnam sold through the SA Distributor that became obsolete when the distribution contract was terminated.(4)The Supply Agreement and Formulations intangible assets are amortized to cost of goods sold. Obagi Medical Milk Makeup(In thousands, except for percentages) Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023Net Revenue $42,211 $32,470 $149,266 $117,651 $29,872 $22,647 $124,602 $100,487 Gross Profit 30,050 23,175 106,760 76,582 19,395 14,301 84,984 64,995 Gross Profit Margin 71.2% 71.4% 71.5% 65.1% 64.9% 63.1% 68.2% 64.7%Gross Margin Adjustments: Amortization of the fair value of the related party liability (750) — (2,260) (4,058) — — — — Amortization of the inventory fair value adjustment — — — — — — — 1,691 Discontinued product write-off 1,139 — 2,864 — — — — — Amortization impact of intangible assets 2,801 2,801 11,205 11,205 — — — — Adjusted Gross Profit $33,239 $25,976 $118,569 $83,729 $19,395 $14,301 $84,984 $66,686 Adjusted Gross Margin % 78.7% 80.0% 79.4% 71.2% 64.9% 63.1% 68.2% 66.4% Adjusted EBITDA Margin by Segment Obagi Medical Milk Makeup(In thousands, except for percentages) Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023 Three months ended December 31, 2024 Three months ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023Net Loss $(12,114) $(8,305) $(31,524) $(32,214) $230 $(3,959) $8,803 $(5,655)Adjusted For: Depreciation and amortization 10,397 10,425 41,591 41,984 4,616 4,457 18,424 18,514 Interest expense, net 3,068 3,341 12,391 12,644 (3) 4 (1) 590 Income tax expense (benefit) 3,933 (990) (141) (6,997) 25 9 32 10 Stock-based compensation expense 465 (317) (328) 726 (338) 444 1,167 2,352 Legal and advisory non-recurring costs 1,061 1,119 5,054 1,702 — — — 27 Amortization and release of related party liability (4,169) — (5,678) (4,058) — — — — Loss on impairment of goodwill 5,031 — 5,031 — — — — — Other costs 2,166 2,682 4,120 7,027 285 428 639 2,566 Adjusted EBITDA $9,838 $7,956 $30,516 $20,814 $4,814 $1,383 $29,064 $18,404 Net Revenue $42,211 $32,470 $149,266 $117,651 $29,872 $22,647 $124,602 $100,487 Net Loss % of Net Revenue (28.7)% (25.6)% (21.1)% (27.4)% 0.8% (17.5)% 7.1% (5.6)%Adjusted EBITDA Margin 23.3% 24.5% 20.4% 17.7% 16.1% 6.1% 23.3% 18.
The Adjusted EBITDA Margin reconciliation by Segment for each period is included in the Appendix.(In thousands, except for percentages) Three Months Ended December 31, 2024 Three Months Ended December 31, 2023 Year ended December 31, 2024 Year ended December 31, 2023Net Loss $(22,597) $(32,731) $(48,648) $(105,968)Adjusted For: Depreciation and amortization 15,013 14,863 60,015 60,498 Interest expense, net 4,088 4,276 17,155 18,888 Income tax expense (benefit) 4,113 (976) 110 (6,975)Stock-based compensation expense 2,993 1,677 9,392 9,235 Legal and advisory non-recurring costs(1) 3,029 12,949 21,493 32,783 Change in fair value of warrants and interest rate collar 443 2,473 (23,679) 10,443 Amortization and release of related party liability(2) (4,169) — (5,678) (4,058)Loss on impairment of goodwill 5,031 — 5,031 — Other costs(3) 3,241 3,083 5,093 9,549 Adjusted EBITDA $11,185 $5,613 $40,284 $24,395 Net Revenue $72,083 $55,117 $273,868 $218,138 Net Loss % of Net Revenue (31.3)% (59.4)% (17.8)% (48.6)%Adjusted EBITDA Margin 15.5% 10.2% 14.7% 11.2% (1)Includes mainly legal, advisory and consultant fees related to the financial restatement 2020-2022 periods and associated regulatory investigation, and the Business Combination.(2)Relates to the fair value of the related party liability for the unfavorable discount to the Obagi Medical China Business as part of the Business Combination.(3)Other costs include legal settlements, foreign currency translation losses, product discontinuation costs related to advanced purchases for the SA Distributor, the write-down and subsequent recovery of inventory from the SA Distributor, restructuring costs, amortization of the fair value step-up as a result of the business combination, lease impairments, restructuring and contract termination fees. Net Debt Position is defined as the principal outstanding for the 2022 Term Loan and 2022 Revolving Credit Facility minus the cash and cash equivalents as of December 31, 2024.(In thousands) Reconciliation ofNet CarryingAmount of debt toNet DebtCurrent portion of long-term debt $29,479 Long-term debt 137,137 Net carrying amount of debt 166,616 Adjustments: Add: Unamortized debt issuance costs 2,339 Less: Cash & cash equivalents (14,802)Net Debt $154,153 About Waldencast plc Founded by Michel Brousset and Hind Sebti, Waldencast’s ambition is to build a global best-in-class beauty and wellness operating platform by developing, acquiring, accelerating, and scaling conscious, high-growth purpose-driven brands.
These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside of our control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements, including, among others: (i) the impact of the material weaknesses in our internal control over financial reporting, including associated investigations, our efforts to remediate such material weakness and the timing of remediation and resolution of associated investigations; (ii) our ability to recognize the anticipated benefits from any acquired business, including the Business Combination; (iii) our ability to successfully implement our management’s plans and strategies; (iv) the overall economic and market conditions, sales forecasts and other information about our possible or assumed future results of operations or our performance; (v) the general impact of geopolitical events, including the impact of current wars, conflicts or other hostilities; (vi) the potential for delisting, legal proceedings or existing or new government investigation or enforcement actions, including those relating to the restatement or the subject of the Audit Committee of our Board of Directors’ review further described in our annual report filed on Form 20-F for the year ended December 31, 2022, (vii) our ability to manage expenses, our liquidity and our investments in working capital; (viii) any failure to obtain governmental and regulatory approvals related to our business and products; (ix) the impact of any international trade or foreign exchange restrictions, increased tariffs, foreign currency exchange fluctuations; (x) our ability to raise additional capital or complete desired acquisitions; (xi) our ability to comply with financial covenants imposed by the new 2025 credit agreement we entered into referenced in the section entitled "New Credit Facility" above and the impact of debt service obligations and restricted debt covenants; (xii) volatility of Waldencast’s securities due to a variety of factors, including Waldencast’s inability to implement its business plans or meet or exceed its financial projections and changes; (xiii) the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; (xiv) the ability of Waldencast to implement its strategic initiatives and continue to innovate Obagi Medical’s and Milk Makeup’s existing products and anticipate and respond to market trends and changes in consumer preferences, (xv) any shifts in the preferences of consumers as to where and how they shop; (xvi) the impact of any unfavorable publicity on our business or products; (xvii) changes in future exchange or interest rates or credit ratings; (xviii) changes in, and uncertainty with respect to, laws, regulations, and policies, including as a result of the change in the U.S.administration; and (xix) social, political and economic conditions.
