Olaplex Holdings (OLPX) AI Stock Analysis

• Market Cap: $760.96M
• Dividend Yield: N/A
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -3.47%
• EPS Growth: -111.68%
• Country: US
• Employees: 231
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 0.03
• Shares Outstanding: 667,511,900
• 10 Day Avg. Volume: 905,821
• 30 Day Avg. Volume: 1,061,868
• PEG Ratio: -0.85
• Price to Book (P/B): 1.31
• Price to Sales (P/S): 2.71
• P/FCF Ratio: 8.07
• Enterprise Value/Market Cap: 1.24
• Enterprise Value/Revenue: 2.25
• Enterprise Value/Gross Profit: 3.39
• Enterprise Value/Ebitda: 10.25
• 1Y Price Target: $1.99
• Price Target Upside: 74.56% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.06
• Revenue Forecast (FY): $422.92M

• Rating: 49 Neutral
• Price Target: $1.00 ▼(-12.28% Downside)

Olaplex Holdings' overall stock score reflects a challenging financial and technical landscape. The most significant factors are the bearish technical indicators and poor valuation metrics, which weigh heavily on the score. While there are positive aspects in financial performance and earnings call highlights, they are overshadowed by profitability challenges and declining sales.

Positive Factors

Strong Gross Profit Margin

A strong gross profit margin indicates efficient production processes and cost management, which are crucial for long-term profitability and competitive pricing.

Professional Channel Growth

Growth in the professional channel suggests robust demand and effective promotion management, reinforcing Olaplex's position in the professional hair care market.

Successful Product Launches

Successful product launches demonstrate Olaplex's ability to innovate and meet consumer needs, supporting long-term revenue growth and brand loyalty.

Negative Factors

Decline in Net Sales

A decline in net sales can indicate weakening demand or competitive pressures, posing a risk to sustained revenue growth and market share.

Market Share Lagging

Lagging market share growth suggests competitive challenges and may impact Olaplex's ability to capitalize on industry trends and expand its customer base.

Uncertain Macro Environment

An uncertain macro environment can affect consumer spending and demand, potentially impacting Olaplex's sales and profitability in the near to medium term.

Olaplex Holdings Business Overview & Revenue Model

Company Description

Olaplex Holdings, Inc. manufactures and sells hair care products. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company was founded in 2014 and is based in Santa Barbara, California.

How the Company Makes Money

Olaplex generates revenue primarily through the sale of its hair care products, which are distributed through professional salons and retail channels. The company operates a dual revenue model: direct sales to professional hair salons and sales through retail partners, including e-commerce platforms. Key revenue streams include sales of its core products, particularly the Olaplex No. 1 through No. 8 line, which has gained significant traction in both the professional and consumer markets. Additionally, Olaplex collaborates with salons to provide training and support for stylists, enhancing the brand's presence and driving product adoption. The company also benefits from a strong brand reputation and customer loyalty, which contribute to repeat purchases and sustained sales growth.

Olaplex Holdings Financial Statement Overview

Summary

Olaplex Holdings shows a mixed financial performance. Strong gross margins and improved leverage are positive, but profitability challenges and declining operational margins are concerning. Positive cash flow trends provide some optimism.

Income Statement

Olaplex Holdings has shown a mixed performance in its income statement. The TTM data indicates a slight revenue growth of 0.56%, but the company is currently experiencing a negative net profit margin of -0.30%, indicating a loss. The gross profit margin remains strong at 68.90%, suggesting efficient production processes. However, the declining EBIT and EBITDA margins over the years highlight challenges in operational efficiency and cost management.

Balance Sheet

The balance sheet shows a moderate financial position with a debt-to-equity ratio of 0.40 in the TTM, indicating a decrease in leverage compared to previous years. However, the return on equity is negative at -0.15%, reflecting the recent net loss. The equity ratio stands at 57.64%, suggesting a stable capital structure with a reasonable proportion of equity financing.

Cash Flow

Cash flow analysis reveals a positive trajectory with a free cash flow growth rate of 5.75% in the TTM. The operating cash flow to net income ratio is 0.84, indicating that the company generates sufficient cash from operations relative to its net income. The free cash flow to net income ratio is nearly 1, suggesting efficient cash conversion from profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	418.58M	422.67M	458.30M	704.27M	598.37M	282.25M
Gross Profit	278.06M	292.29M	318.63M	519.55M	473.82M	179.59M
EBITDA	91.91M	143.39M	186.77M	398.34M	385.70M	131.78M
Net Income	-4.95M	19.52M	61.59M	244.07M	220.78M	39.28M
Balance Sheet
Total Assets	1.51B	1.77B	1.74B	1.70B	1.56B	1.33B
Cash, Cash Equivalents and Short-Term Investments	286.38M	585.97M	466.40M	322.81M	186.39M	10.96M
Total Debt	352.10M	650.46M	655.77M	662.77M	758.20M	775.48M
Total Liabilities	625.47M	893.32M	895.37M	916.72M	1.04B	802.16M
Stockholders Equity	888.75M	874.40M	844.97M	780.96M	524.30M	530.67M
Cash Flow
Free Cash Flow	64.80M	141.94M	173.92M	254.67M	198.26M	128.95M
Operating Cash Flow	67.64M	143.07M	177.53M	255.32M	200.03M	128.97M
Investing Cash Flow	-2.85M	-4.89M	-3.61M	-2.68M	-6.26M	-1.38B
Financing Cash Flow	-314.29M	-18.61M	-30.33M	-116.22M	-18.34M	1.26B

Olaplex Holdings Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLPX, the sentiment is Neutral. The current price of 1.14 is above the 20-day moving average (MA) of 1.08, below the 50-day MA of 1.17, and below the 200-day MA of 1.33, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 54.90 is Neutral, neither overbought nor oversold. The STOCH value of 89.42 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OLPX.

Olaplex Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBH	73 Outperform	$1.58B	8.59	27.54%	―	-0.42%	31.64%
ULTA	72 Outperform	$24.16B	20.65	48.52%	―	2.94%	4.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BBWI	59 Neutral	$3.56B	5.35	―	4.21%	-1.04%	-20.88%
ETSY	55 Neutral	$5.35B	37.91	―	―	1.98%	-20.98%
CHWY	54 Neutral	$14.42B	98.11	34.48%	―	9.04%	-56.79%
OLPX	49 Neutral	$760.96M	―	-0.56%	―	-3.47%	-111.68%

Olaplex Holdings Corporate Events

Olaplex Holdings Reports Mixed Q3 2025 Results

Olaplex Holdings, Inc. is a health and beauty company known for its innovative hair care products, primarily serving the professional hairstylist industry with its Complete Bond Technology™. In its third quarter of 2025 financial report, Olaplex Holdings, Inc. announced a slight decline in net sales by 3.8% to $114.6 million compared to the same quarter last year. Despite this, the company maintained its diluted earnings per share at $0.02, reflecting stable profitability amidst fluctuating sales channels. The report highlighted a mixed performance across different sales channels, with a notable increase in the professional channel by 5.3% while specialty retail and direct-to-consumer channels saw declines. International sales showed growth, increasing by 7.1%, contrasting with a 14.6% decrease in the United States. The company’s net income fell to $11.1 million from $14.8 million in the previous year, and adjusted EBITDA also saw a significant decrease. Despite these challenges, Olaplex remains committed to its Bonds and Beyond strategy, aiming for sustainable, profitable growth. The company reiterated its annual guidance, focusing on investments in innovation, marketing, and execution capabilities to drive future demand and strengthen its market position.

Olaplex Holdings Acquires Purvala Bioscience for Innovation

On August 20, 2025, Olaplex Holdings, Inc. acquired Purvala Bioscience, a Boston-based biotech company, for $10.5 million. This acquisition marks OLAPLEX’s first since its inception over a decade ago, underscoring its commitment to innovation in the haircare industry. The integration of Purvala’s bioinspired technologies is expected to enhance OLAPLEX’s product offerings, potentially leading to the development of next-generation, science-backed products. This strategic move is anticipated to strengthen OLAPLEX’s position in the market and benefit its stylist community and consumers.

The most recent analyst rating on (OLPX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Olaplex Holdings stock, see the OLPX Stock Forecast page.

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

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

Olaplex Reports Mixed Q2 2025 Financial Results

Olaplex Holdings, Inc., a prominent player in the health and beauty sector, is known for its innovative hair care solutions, particularly its Complete Bond Technology™ that enhances hair strength and health. In its latest earnings report for the second quarter of 2025, Olaplex reported a modest increase in net sales by 2.3% to $106.3 million, despite a net loss of $7.7 million compared to a net income of $5.8 million in the same period last year. The company’s performance across different sales channels varied, with professional and direct-to-consumer channels showing growth, while specialty retail saw a decline.