Waldencast (WALD) AI Stock Analysis

• Market Cap: $321.97M
• Dividend Yield: N/A
• Average Volume (3M): 103.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: 14.22%
• EPS Growth: -141.64%
• Country: US
• Employees: 335
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Software - Application
• EPS (TTM): -0.11
• Shares Outstanding: 112,054,380
• 10 Day Avg. Volume: 219,551
• 30 Day Avg. Volume: 103,020
• PEG Ratio: 0.18
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 1.60
• P/FCF Ratio: -37.13
• Enterprise Value/Market Cap: 1.58
• Enterprise Value/Revenue: 1.85
• Enterprise Value/Gross Profit: 2.65
• Enterprise Value/Ebitda: 838.28
• 1Y Price Target: $3.50
• Price Target Upside: 33.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): -1.24
• Revenue Forecast (FY): $274.81M

• Rating: 61 Neutral
• Price Target: $2.50 ▼(-4.94% Downside)

Waldencast Acquisition's overall stock score is driven primarily by its strong technical analysis, indicating positive market momentum. However, financial performance issues, including ongoing profitability challenges and negative cash flow, weigh heavily on the score. The valuation is also a concern due to the negative P/E ratio. The earnings call provided some optimism with future growth prospects, but current financial challenges remain significant.

Positive Factors

Revenue Growth

The company's strong revenue growth indicates a successful market strategy and potential for continued expansion in the beauty and wellness sectors.

Product Innovation

Continuous product innovation, such as the new scalp serum, positions Waldencast as a leader in addressing consumer needs and expanding its market share.

Strategic Financial Moves

These strategic financial decisions enhance liquidity and provide capital for growth, improving Waldencast's ability to invest in core brands and reduce debt.

Negative Factors

Profitability Challenges

Ongoing profitability issues could hinder long-term financial health and limit reinvestment opportunities, affecting future growth potential.

Cash Flow Constraints

Negative cash flow from operations suggests difficulties in sustaining business activities without external financing, impacting financial stability.

Supply Chain Disruptions

Supply chain disruptions can lead to lost sales and customer dissatisfaction, potentially affecting brand reputation and market position.

Waldencast Business Overview & Revenue Model

Company Description

Waldencast Acquisition Corp. a skin care company, provides advanced skin care treatments. Its products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne, and sun damage primarily available through dermatologists, plastic surgeons, medical spas, and other skin care professionals. Its portfolio includes Obagi Medical that provides transformational skin care products formulated to minimize signs of skin aging, address dark spots, hyperpigmentation, fine lines, and wrinkles and to protect and enhance skin tone and texture; and Obagi Clinical that offers skin care products designed to prevent the early signs of skin aging. The company was founded in 1988 and is based in White Plains, New York.

How the Company Makes Money

Waldencast generates revenue primarily through the sale of its branded beauty and wellness products across various channels, including direct-to-consumer online sales, retail partnerships, and wholesale distribution. Key revenue streams include product sales from its proprietary brands, collaborations with other companies, and potential licensing agreements. The company may also benefit from strategic partnerships with retailers and distributors that enhance brand visibility and accessibility. Additionally, Waldencast's focus on sustainable and innovative products aligns with current consumer trends, potentially driving higher margins and repeat purchases as customers seek out ethical and eco-friendly options.

Waldencast Financial Statement Overview

Summary

Waldencast Acquisition shows promising revenue growth and a strong gross profit margin, yet struggles with profitability and cash generation. The balance sheet is strong with a favorable equity position and moderate leverage, but overall performance is hindered by negative operating cash flow and net losses. Continued focus on reducing operational losses and improving cash flow is essential for financial health.

Income Statement

Waldencast Acquisition has demonstrated revenue growth from 2023 to 2024, with a notable increase of 25.5% in total revenue. However, the company is still not profitable, as indicated by negative net income and EBIT margins. The gross profit margin shows strength at 70% for 2024, suggesting efficient production processes, but the negative EBIT margin of -21.4% highlights ongoing operational challenges.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 67.9%, indicating financial stability. The debt-to-equity ratio remains manageable at 0.27, suggesting the company is not overly reliant on debt financing. However, the return on equity is negative due to persistent losses, indicating inefficiencies in generating returns from shareholders' equity.

Cash Flow

Cash flow analysis reveals negative free cash flow, although there is an improvement from 2023 to 2024. The operating cash flow remains negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is not meaningful due to negative values, highlighting cash constraints.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	273.87M	218.14M	166.13M	142.47M	94.43M
Gross Profit	131.73M	141.58M	39.44M	87.44M	65.33M
EBITDA	28.63M	-33.54M	-99.25M	15.05M	13.94M
Net Income	-42.44M	-89.98M	-116.62M	-19.58M	-2.37M
Balance Sheet
Total Assets	975.86M	1.04B	1.09B	184.59M	166.79K
Cash, Cash Equivalents and Short-Term Investments	14.80M	22.58M	8.69M	12.79M	0.00
Total Debt	182.11M	177.72M	199.25M	118.86M	0.00
Total Liabilities	245.92M	273.44M	290.18M	145.35M	177.74K
Stockholders Equity	662.32M	624.63M	639.24M	39.24M	-10.95K
Cash Flow
Free Cash Flow	-11.83M	-31.82M	-87.51M	2.24M	-9.14M
Operating Cash Flow	-8.82M	-29.77M	-85.01M	3.53M	-7.43M
Investing Cash Flow	-2.92M	-1.99M	-545.28M	-3.79M	-1.71M
Financing Cash Flow	5.58M	44.33M	633.35M	5.16M	14.32M

Waldencast Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WALD, the sentiment is Positive. The current price of 2.63 is above the 20-day moving average (MA) of 2.09, above the 50-day MA of 2.01, and above the 200-day MA of 2.36, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 63.96 is Neutral, neither overbought nor oversold. The STOCH value of 64.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WALD.

Waldencast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKTW	66 Neutral	$256.63M	1.54	―	13.12%	-19.17%	308.81%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
WALD	61 Neutral	$321.97M	―	-36.11%	―	14.22%	-141.64%
FRGE	57 Neutral	$609.56M	―	-28.65%	―	16.40%	22.80%
PERF	56 Neutral	$176.20M	30.78	3.80%	―	14.47%	11.29%
ONTF	54 Neutral	$235.94M	―	-20.20%	―	-6.23%	28.57%
NRDY	48 Neutral	$234.17M	―	-120.79%	―	-9.86%	0.87%

Waldencast Corporate Events

Waldencast Expands U.S. Market Presence with Novaestiq Acquisition

On July 22, 2025, Waldencast plc acquired Novaestiq Corp., gaining exclusive U.S. rights to commercialize Saypha® dermal fillers, pending FDA approval. This strategic acquisition aligns with Waldencast’s expansion into the high-growth injectable dermal filler market. Following FDA approval of Saypha® MagIQ™ on September 10, 2025, Waldencast issued 3,273,000 class A shares as part of the acquisition agreement. Additionally, Waldencast amended its TCW Credit Agreement, increasing financial flexibility to support its growth initiatives.

Waldencast Reports Q2 2025 Results and Strategic Updates

On November 24, 2025, Waldencast plc announced its Q2 2025 financial results and provided a Q3 2025 trading update. The company reported a 5.6% year-over-year net revenue growth in Q2, driven by strong performance in the U.S. for Milk Makeup and international growth for Obagi Medical. However, Milk Makeup faced challenges in international markets during Q3. Waldencast advanced strategic initiatives, including acquiring Novaestiq and selling the Obagi Japan trademark, to strengthen its balance sheet and focus on long-term growth. The company updated its full-year guidance to reflect these trends and investments.

Waldencast Enhances Financial Position with Trademark Sale and New Credit Facility

On November 14, 2025, Waldencast plc announced the sale of its rights to the ‘Obagi’ trademark in Japan to Rohto Pharmaceutical Co., Ltd. for $82.5 million. This transaction, along with a new $225 million credit agreement with Lumina Capital Management, strengthens Waldencast’s balance sheet and liquidity position, allowing the company to invest in its Obagi Medical and Milk Makeup brands. These strategic moves are part of Waldencast’s ongoing review to maximize shareholder value and improve its capital structure.

Waldencast Gains FDA Approval for Obagi Injectable Gel, Expanding U.S. Market Reach

On September 10, 2025, Waldencast plc announced that the FDA approved its Obagi® saypha® MagIQ™ injectable hyaluronic acid gel, marking the company’s entry into the U.S. HA dermal filler market under the Obagi Medical brand. This approval is a significant step in Waldencast’s strategy to become a leading dermatological megabrand, doubling Obagi Medical’s addressable market to $4.2 billion by 2029. The product, developed by Croma-Pharma GmbH, utilizes MACRO Core Technology for natural-looking results and is expected to launch in the U.S. in 2026, enhancing Waldencast’s market position and offering new opportunities for aesthetic professionals.