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Olaplex Holdings (OLPX)
NASDAQ:OLPX
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Olaplex Holdings (OLPX) AI Stock Analysis

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OLPX

Olaplex Holdings

(NASDAQ:OLPX)

Rating:57Neutral
Price Target:
$1.50
▲(3.45% Upside)
Olaplex Holdings' overall score reflects a mixed financial performance with strong gross margins but profitability challenges. Technical analysis shows a neutral trend, while valuation concerns persist due to negative earnings. Positive corporate events and strategic investments provide some optimism.
Positive Factors
Brand Reinvigoration
Olaplex has seen a brand reinvigoration and is set to return to growth as a highly profitable prestige beauty brand.
Market Position
Olaplex's recent brand refresh is showcasing positive signs, being highlighted as the #1 EMV hair brand in the quarter and generating buzz with marketing campaigns.
Sales Growth
Sales turned positive for the first time in 9 quarters, with sales up +2.3% year-over-year to $106.3M, beating the Street estimate.
Negative Factors
Macro Environment Impact
The current macro environment has been impacting their business, with consumers extending the time between visits and facing increased competition in the DTC space.
Potential Volatility
There is still a lot of work to be done to build upon early success, with potential volatility as changes are implemented and macro challenges persist.
Sales Recovery Uncertainty
There is still some near-term uncertainty in the path of sales recovery.

Olaplex Holdings (OLPX) vs. SPDR S&P 500 ETF (SPY)

Olaplex Holdings Business Overview & Revenue Model

Company DescriptionOlaplex 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 MoneyOlaplex Holdings generates revenue primarily through the sale of its high-performance haircare products. The company's revenue streams include direct-to-consumer sales via its e-commerce platform, wholesale distribution to salons and professional haircare providers, and partnerships with leading retailers both online and in physical stores. Olaplex's strong brand recognition and loyal customer base contribute significantly to its earnings, as does its strategic expansion into international markets. Furthermore, partnerships with beauty industry influencers and professionals help to drive brand awareness and product adoption, enhancing overall sales performance.

Olaplex Holdings Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Neutral
The earnings call showed signs of progress with positive net sales growth and successful product launches. However, challenges persist with declining retail sales, flat year-to-date performance, and reduced EBITDA margins. The company is heavily investing in marketing and operational strategies to drive long-term growth.
Q2-2025 Updates
Positive Updates
Positive Net Sales Growth
Net sales reached $106.3 million, marking a 2.3% increase year-over-year, driven by growth in direct-to-consumer and professional channels.
Strong Direct-to-Consumer Performance
Direct-to-consumer sales grew 12.8% year-over-year, supported by strategic marketing initiatives and website upgrades.
Innovative Product Launches
Three new products were launched in the first half of 2025, including a scalp longevity treatment, marking an entry into a fast-growing niche.
Record Marketing Investment
Investment in non-payroll sales and marketing increased by $14.6 million compared to the previous year, driving an improved brand presence.
Professional Channel Growth
The professional channel grew by 12.1% year-over-year, driven by strong U.S. performance and strategic market blitz initiatives.
Negative Updates
Decline in Specialty Retail Sales
Specialty retail sales decreased by 16.7% year-over-year in the second quarter, though there was sequential improvement in sell-through.
Flat Year-To-Date Net Sales
Year-to-date net sales remained flat, indicating ongoing challenges despite positive quarterly growth.
Lower Adjusted EBITDA Margin
Adjusted EBITDA margin decreased to 24.7% year-to-date, down from 33.3% the previous year, reflecting increased marketing and operational investments.
International Sales Decline
International sales were down low single digits year-to-date, reflecting ongoing challenges in executing the transformation strategy.
Company Guidance
During the Olaplex Holdings, Inc. second quarter 2025 earnings call, the company reported net sales of $106.3 million, marking a 2.3% increase year-over-year, and an adjusted EBITDA of $24.6 million, maintaining a 23.1% margin. The professional channel saw a 12.1% growth, driven mainly by the U.S. market, whereas specialty retail experienced a decline of 16.7%. Direct-to-consumer sales rose by 12.8%. The company's strategic focus included a $45.4 million investment in non-payroll sales and marketing, which contributed to achieving a 24.7% adjusted EBITDA margin year-to-date. The marketing strategies involved a rebranding initiative and targeted campaigns, resulting in increased social mentions by 35% and social impressions by 140%. Olaplex's guidance for the full year 2025 anticipates net sales to range from a 3% decline to a 2% increase compared to 2024, with an adjusted gross margin between 70.5% and 71.5%, and adjusted EBITDA margins of 20% to 22%. The company plans to focus on the fourth quarter for significant sales growth, driven by new product launches and strategic promotions.

Olaplex Holdings Financial Statement Overview

Summary
Olaplex Holdings demonstrates a solid financial foundation with strong margins and manageable leverage. However, recent declines in revenue and profitability margins, alongside decreasing cash flow metrics, suggest potential challenges. The company must focus on reversing the revenue decline and improving operational efficiency to strengthen overall financial health.
Income Statement
64
Positive
Olaplex Holdings shows a mixed income statement performance. The gross profit margin for TTM is approximately 66%, indicating strong cost management. However, revenue has decreased compared to previous years, with a notable decline from 2022 to 2025. The net profit margin has also declined, reflecting reduced profitability. EBIT and EBITDA margins remain positive but have decreased over recent periods, indicating challenges in maintaining operational efficiency.
Balance Sheet
70
Positive
The balance sheet reflects moderate stability with a debt-to-equity ratio around 0.74 for TTM, indicating a manageable level of leverage. The equity ratio is about 49.6%, showing a stable financial structure. Return on equity (ROE) has decreased over time, signaling reduced profitability relative to equity. The company maintains a strong cash position, providing liquidity to manage obligations.
Cash Flow
68
Positive
Olaplex’s cash flow statement shows a decline in free cash flow growth and operating cash flow. The free cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. Operating cash flow to net income ratio also remains positive, although declining, highlighting operational cash efficiency but also pointing to potential cash flow challenges if the trend continues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue423.08M422.67M458.30M704.27M598.37M282.25M
Gross Profit291.50M292.29M318.63M519.55M481.81M179.59M
EBITDA113.24M143.39M186.77M398.96M385.70M131.78M
Net Income-1.28M19.52M61.59M244.07M220.78M39.28M
Balance Sheet
Total Assets1.52B1.77B1.74B1.70B1.56B1.33B
Cash, Cash Equivalents and Short-Term Investments289.34M585.97M466.40M322.81M186.39M10.96M
Total Debt351.90M650.46M655.77M662.77M758.20M775.48M
Total Liabilities642.75M893.32M895.37M916.72M1.04B802.16M
Stockholders Equity874.17M874.40M844.97M780.96M524.30M530.67M
Cash Flow
Free Cash Flow99.75M141.94M173.92M254.67M198.26M128.95M
Operating Cash Flow101.11M143.07M177.53M255.32M200.03M128.97M
Investing Cash Flow-4.04M-4.89M-3.61M-2.68M-6.26M-1.38B
Financing Cash Flow-315.65M-18.61M-30.33M-116.22M-18.34M1.26B

Olaplex Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.45
Price Trends
50DMA
1.45
Positive
100DMA
1.36
Positive
200DMA
1.50
Negative
Market Momentum
MACD
<0.01
Negative
RSI
52.24
Neutral
STOCH
43.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLPX, the sentiment is Positive. The current price of 1.45 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.45, and below the 200-day MA of 1.50, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OLPX.

Olaplex Holdings Risk Analysis

Olaplex Holdings disclosed 50 risk factors in its most recent earnings report. Olaplex Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Olaplex Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$23.64B20.8550.44%1.06%-0.29%
72
Outperform
$1.34B7.6028.94%-0.38%35.78%
63
Neutral
$1.43B-58.93%-10.39%14.92%
61
Neutral
$17.78B13.97-5.40%3.03%1.50%-15.71%
61
Neutral
$6.63B8.38-52.83%2.72%-0.18%
57
Neutral
$973.94M77.05-0.15%-3.43%-102.60%
51
Neutral
$896.37M-15.44%11.67%31.55%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OLPX
Olaplex Holdings
1.45
-0.73
-33.49%
BBWI
Bath & Body Works
29.36
-0.85
-2.81%
SBH
Sally Beauty
13.42
0.43
3.31%
ULTA
Ulta Beauty
530.63
163.05
44.36%
YSG
Yatsen Holding
9.66
6.52
207.64%
TDUP
thredUP
11.20
10.29
1130.77%

Olaplex Holdings Corporate Events

M&A TransactionsBusiness Operations and Strategy
Olaplex Holdings Acquires Purvala Bioscience for Innovation
Positive
Aug 26, 2025

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.

Executive/Board Changes
Olaplex Holdings Appoints Jerome Griffith to Board
Positive
Jul 22, 2025

On July 20, 2025, Olaplex Holdings, Inc. announced the election of Jerome Griffith as a Class I director of its Board, with his term set to expire at the 2028 Annual Meeting of Stockholders. Griffith brings a wealth of experience from the retail and consumer goods sectors, having held prominent leadership roles at companies such as Brown Jordan Inc., Lands’ End, Inc., and Tumi Holdings, Inc. This strategic appointment is expected to strengthen Olaplex’s board with Griffith’s extensive industry expertise and leadership background.

Executive/Board ChangesShareholder Meetings
Olaplex Holdings Announces Board Changes at Annual Meeting
Neutral
Jun 12, 2025

On June 10, 2025, Olaplex Holdings, Inc. held its Annual Meeting of Stockholders, where it was announced that Paula Zusi would not be re-elected to the Board of Directors, marking the end of her term. During the meeting, stockholders elected three Class I directors for a three-year term, approved executive compensation for the fiscal year 2024, and ratified Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year 2025.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 27, 2025