Olaplex Holdings, Inc. Earnings Call: Balancing Growth and Challenges

Olaplex Holdings, Inc. ((OLPX)) has held its Q2 earnings call. Read on for the main highlights of the call.

Olaplex Holdings, Inc. Navigates Transformation with Balanced Growth and Challenges

Olaplex Holdings, Inc.’s recent earnings call highlights a company in the midst of transformation, showcasing a balanced sentiment of growth and challenges. The company reported modest overall growth, particularly in its direct-to-consumer and professional channels, while facing hurdles in specialty retail and international markets. Strategic investments have led to a decrease in EBITDA margins, painting a picture of both progress and obstacles.

Net Sales Growth

Olaplex reported net sales of $106.3 million for Q2 2025, marking a 2.3% increase year-over-year. The adjusted EBITDA was $24.6 million, reflecting a margin of 23.1%. This growth underscores the company’s ability to maintain its sales trajectory despite market challenges.

Direct-to-Consumer Success

The direct-to-consumer segment experienced a significant boost, with sales rising by 12.8% year-over-year in Q2 2025. This success is attributed to an enhanced strategy on olaplex.com and key promotional events that have effectively engaged consumers.

Professional Channel Growth

The professional channel saw a robust growth of 12.1% year-over-year in Q2 2025. This increase is largely due to the Pro FIS efforts and strong performance in the U.S., highlighting the channel’s importance to Olaplex’s overall growth strategy.

Successful Brand and Marketing Initiatives

Olaplex’s investment of $45.4 million in marketing year-to-date 2025 has paid off, resulting in a 35% increase in social mentions and a 140% increase in social impressions. These initiatives have strengthened the brand’s presence and consumer engagement.

Innovative Product Launches

In the first half of 2025, Olaplex launched three new products, including a scalp longevity treatment, which received positive market reception. These innovative launches are part of the company’s strategy to drive growth through new offerings.

Specialty Retail Decline

Despite overall growth, Olaplex faced a 16.7% decline in specialty retail sales year-over-year in Q2 2025, with net sales down approximately 3% year-to-date. This decline highlights the challenges in the retail sector that the company is working to overcome.

Continued International Sales Challenges

International sales have been a point of concern, with a low single-digit decline year-to-date 2025. This reflects ongoing challenges in the international markets as Olaplex continues its transformation efforts.

Adjusted EBITDA Margin Decrease

The adjusted EBITDA margin decreased to 24.7% year-to-date 2025 from 33.3% a year ago. This drop is due to strategic investments in marketing and personnel, which are crucial for long-term growth despite their short-term impact on margins.

Forward-Looking Guidance

Olaplex has reiterated its full-year 2025 guidance, expecting net sales growth between -3% and +2%, with adjusted EBITDA margins between 20% and 22%. The company remains focused on strategic investments and its Bonds and Beyond strategy, emphasizing brand demand generation, innovation, and operational excellence.

In summary, Olaplex Holdings, Inc.’s earnings call reflects a company balancing growth and challenges amid its transformation journey. While strong performances in direct-to-consumer and professional channels are promising, challenges in specialty retail and international markets persist. Strategic investments are impacting margins but are essential for future growth. The company’s forward-looking guidance suggests cautious optimism as it navigates the evolving market landscape.