Olaplex Reports 2.3% Increase in Net Sales but Faces $7.7 Million Net Loss in Q2 2025

Olaplex Holdings, Inc. reported a modest increase in net sales for the second quarter of 2025, reaching $106.3 million, up 2.3% from $103.9 million in the same period last year. The company's revenue for the first half of 2025 was $203.3 million, a slight increase from $202.8 million in the first half of 2024. Despite the revenue growth, Olaplex experienced a net loss of $7.7 million for the quarter, compared to a net income of $5.8 million in the prior year. For the first half of 2025, the net loss was $7.3 million, a significant decline from the $13.5 million profit reported in the same period of 2024.

The company's financial performance was impacted by a substantial increase in operating expenses, which rose to $76.8 million in the second quarter, up 36.8% from $56.2 million a year earlier. This increase was primarily driven by higher advertising and marketing costs, legal fees, and payroll expenses. Additionally, Olaplex recorded $1.7 million in inventory write-offs due to product obsolescence during the quarter. The gross profit margin improved slightly to 71.2%, up from 69.7% in the previous year, reflecting a decrease in the cost of sales.

Olaplex's sales channels showed varied performance, with direct-to-consumer (DTC) sales increasing by 12.8% to $38.5 million, and professional sales rising by 12.1% to $37.4 million. However, specialty retail sales declined by 16.7% to $30.4 million. Geographically, U.S. sales accounted for 52% of total net sales, while international sales made up 48%. The company continues to focus on expanding its market presence and enhancing its product offerings, which include over 25 haircare products designed for both professional and consumer use.

In terms of financial health, Olaplex's cash and cash equivalents decreased to $289.3 million as of June 30, 2025, down from $586.0 million at the end of 2024. The company made a significant voluntary repayment of $300 million on its 2022 Term Loan Facility in May 2025, which contributed to the reduction in cash reserves. Despite this, Olaplex maintains a liquidity position of $439.3 million, including available borrowing capacity under its revolving credit facility.

Looking ahead, Olaplex is focused on generating brand demand through enhanced marketing strategies, harnessing innovation to expand its product pipeline, and executing operational excellence to improve efficiency. The company is also monitoring macroeconomic conditions that could impact consumer spending and demand for its products. As it navigates these challenges, Olaplex aims to leverage its established brand reputation and commitment to product quality to sustain growth in the competitive beauty industry.