WALD Stock Forecast & Price Target

Waldencast PLC demonstrated strong growth potential, with sales in the second quarter rising by 5.6% year-over-year, driven by achievements across both the Milk Makeup and Obagi brands. The company's growth reaccelerated in the third quarter, achieving a 10.1% increase, bolstered by eCommerce advancements and international expansion, while Milk Makeup's presence on the Amazon Premium Beauty platform further enhanced its market reach. Additionally, Milk Makeup experienced a notable 12% increase in consumption year-to-date in the U.S., significantly outpacing the overall growth of the prestige beauty market, underscoring the brand's competitive position.

Waldencast PLC has revised its fiscal year 2025 outlook downward, projecting flat revenue and a high-single-digit adjusted EBITDA margin, indicative of ongoing financial struggles. The company's consolidated adjusted gross margin decreased by 310 basis points year-over-year to 71.9%, falling short of expectations, primarily due to significant contractions in both the Obagi and Milk Makeup segments. Overall, Waldencast reported a 3.4% year-over-year decline in total sales, driven by a substantial 20% decline in Milk Makeup sales, while the previously projected growth trajectory for both segments has shown significant deceleration.