Waldencast plc

Waldencast is a beauty/skincare holding company whose stale FY2021 metrics mask severe current distress: a $248M FY2025 net loss, $152M goodwill impairment, and a 19% effective borrowing cost.

Strengths

• Recognizable Obagi Medical and Milk Makeup brands with U.S. DTC and retail channel growth
• Liquidity ratios (current/quick ~4.6, 89th pct) on the stale balance sheet

Risks

• Massive FY2025 operating loss, repeated goodwill impairments, and a thin remaining valuation cushion
• Going-concern/liquidity strain with 19.1% effective interest rate, ongoing SEC investigation, and material weaknesses

Notable findings

• RestatementRisks Related to Internal Controls and Financial Reporting An ongoing SEC investigation regarding our financial restatement may result in litigation, regulatory penalties, and reputational harm 8-K ↗
• Net lossNet loss (net margin -84.4%)
• Cash burnNegative free cash flow (-16.2M)
• Material weaknessOur material weaknesses threaten the accuracy of our financial disclosures, and failing to remediate them or achieve the full Sarbanes-Oxley Section 404 compliance by our deadline could severely impac