Total Assets

+10.5%

Total Assets rose from USD 1,129,247K to USD 1,248,175K, reflecting continued growth driven by higher operating activity (e.g., increases in accounts receivable and inventory that built on earlier acquisitions) and integration effects from past transactions such as Naturium’s addition, which boosted both current and noncurrent asset balances. " " " "

Total Liabilities

≈ +0.1%

Total Liabilities remained nearly flat, moving from USD 486,675K to USD 487,320K, as incremental increases (such as modest growth in working capital obligations) were offset by reductions in other short-term liabilities, a pattern consistent with earlier periods where offsetting changes maintained overall liability stability. " " " "

Stockholders’ Equity

+18.4%

Stockholders’ Equity increased from USD 642,572K to USD 760,855K due to strong net income generation, continued benefits from stock-based compensation and option exercises, and equity issuances related to acquisitions that built upon prior period performance, thereby strengthening the overall capital base. " " " "

Long-Term Debt

+58.7%

Long-Term Debt surged from USD 161,819K to USD 256,676K. This marked increase is largely attributable to additional borrowing to finance capital expenditures and strategic initiatives, a continuation and expansion of the debt funding activity seen in earlier periods (e.g., funding the Naturium acquisition). " " " "

Cash and Cash Equivalents

+37.5%

Cash and cash equivalents grew significantly from USD 108,183K to USD 148,692K, reflecting improved operating cash flow generation and stronger financing inflows, even as previous period challenges such as heavy investment outflows were partially mitigated by enhanced liquidity management. " " " "

Property and Equipment, Net

+106%

Property and Equipment, Net more than doubled from USD 13,974K to USD 28,787K, driven by substantial capital expenditures and new asset additions that outweighed depreciation impacts—continuing the trend seen in previous periods where significant investments bolstered the asset base. " " " "

Intangible Assets, Net

–7.7%

Intangible Assets, Net declined from USD 225,094K to USD 207,698K, primarily as a result of amortization of finite-lived intangible assets acquired in earlier transactions (such as the Naturium acquisition), which reduced the net carrying value despite the initial recognition of substantial intangible assets. " " " "

Prepaid Expenses and Other Current Assets

+46.8%

Prepaid Expenses and Other Current Assets increased from USD 53,608K to USD 78,688K. This rise reflects higher working capital requirements and additional prepaid items—rooted in integration activities and operational growth following earlier acquisitions—that have increased current asset balances. " " " "

Common Stock

Dramatic change

Common Stock experienced a dramatic jump from USD 555K to USD 556,555K, likely due to the issuance of additional shares to fund acquisitions and potential reclassifications or adjustments in the capital structure; this mirrors prior period patterns where acquisition-related equity transactions were a key driver. " " " "

Net Sales Growth

FY 2025

28% to 30% "

27% to 29% "

lowered

Gross Margin

FY 2025

30 basis points "

40 basis points " "

raised

Net Sales Growth

Q4 2025

no prior guidance

-1% to +2% "

no prior guidance

Marketing and Digital Investment

FY 2025

no prior guidance

24% to 26% of net sales "

no prior guidance

Adjusted EBITDA

FY 2025

$304 million to $308 million "

$289 million to $293 million "

lowered

Adjusted EBITDA Growth

FY 2025

no prior guidance

23% to 25% "

no prior guidance

Tariff Impact

FY 2025

no prior guidance

No impact expected from 10% incremental tariffs "

no prior guidance

International Expansion & Global Market Penetration

Q1–Q3 discussions detailed rapid international sales growth, new market entries (e.g., Germany, Italy, Mexico), and strong performance in key markets. " " "

Q4 emphasized robust international net sales growth (60% growth, nearly 20% of total sales), additional market entries (e.g., Kruidvat, Poland, Boots expansion) and future expansion plans. " " " "

Recurring; sentiment remains strongly positive with continuous expansion efforts.

Domestic Channel Expansion & Distribution Strategy

Across Q1–Q3, significant focus on shelf space gains, retail ranking improvements (e.g., at Walmart, Target, Dollar General), and multi-channel expansion—including drug channels and digital growth. " " "

Q4 highlighted continued shelf space gains (notably 50% at Walmart, Target expansion, Dollar General strength) and reiterated the strategy to broaden domestic reach. " "

Recurring; steady positive sentiment with incremental improvements.

Product Innovation, Pricing Strategies & Marketing ROI

Q1–Q3 emphasized the “Holy Grail” innovation approach, successful new product launches (e.g., Power Grip Primer, Soft Glam Satin Foundation) and disruptive, value-based pricing coupled with strong marketing ROI. " " "

Q4 showcased successful new launches like Glow Reviver products, announced a modest $1 price increase (only the third in 21 years) to offset tariffs, and reported robust marketing ROI with continued franchise support. " " " "

Recurring; consistent innovation and pricing focus with slight adjustments.

Consistent Market Share Growth in Beauty Categories

Q1–Q3 detailed sustained market share gains in both color cosmetics and skin care (leading positions at Target, Walmart; expansion via Naturium), beating category declines via strong unit and dollar growth. " " "

Q4 reiterated the brand’s dominant positions (e.g., #1 in U.S. unit share, increased market share by 190 basis points) and maintained strong growth in both color cosmetics and skin care. " " "

Recurring; strong, persistent market share momentum continues.

Tariff Exposure & Margin Pressure

Q1 mentioned potential tariff impacts with historical measures in place; Q2 and Q3 focused on incremental tariffs (e.g., 10% in Q3) and diversified sourcing leading to limited immediate impact. " "

Q4 focused on a significant tariff exposure (55% effective tariff rate) necessitating a $1 price increase and forecasting margin pressure in upcoming quarters, with uncertainty on full fiscal impact. " " "

Recurring; concerns are increasing with sharper focus on future margin impacts.

ERP Implementation & Operational/Integration Risks

Q1 detailed an ERP transition with an extended timeline; Q2 emphasized thorough testing and risk mitigation; Q3 highlighted the ERP transition as a key investment without major risk warnings. " " "

Q4 mentioned ongoing investments in the SAP rollout via non-marketing SG&A figures, with less emphasis on risk discussion, suggesting smoother integration progress. "

Recurring; risk discussion is less prominent in Q4, implying improved readiness.

Strategic Acquisition (rhode) & Integration Challenges

Not mentioned in earlier quarters.

Q4 introduced the strategic acquisition of rhode (with a $1B headline price) and discussed integration challenges including leveraging retail expertise, ramping up the team, and executing a major Sephora rollout. " " "

New; emerged as a significant future growth catalyst with integration challenges.

Softening Consumer Demand & New Product Launch Challenges

Q2 and Q3 noted softer consumption trends (e.g., a category 5% decline in January) and early-stage challenges for new product launches amid tough prior-year comparisons. " " "

Q4 did not explicitly dwell on these issues beyond acknowledging an early slowdown (attributed to lapping prior successes), suggesting that the focus has shifted as trends improved. "

Recurring but less emphasized; sentiment appears to be stabilizing.

Retailer Destocking & Track Channel Performance Issues

Q2 discussed steady reordering with no destocking, and Q3 highlighted robust track channel growth and no retailer destocking despite mild slowdown in January. " "

Q4 did not report any new challenges, maintaining the narrative of strong retail performance and minimal issues in tracked channels. " "

Recurring; concerns remain minimal and stable over time.

Lack of Clear Forward Guidance Due to Uncertainty

Q1 adopted a cautious quarter-by-quarter approach; Q2 focused on consistency in delivery despite smaller beats; Q3 adjusted Q4 guidance due to soft trends and external factors. " " "

Q4 refrained from providing fiscal 2026 guidance due to significant tariff uncertainties, emphasizing a cautious stance until more clarity is obtained. " " "

Recurring; uncertainty persists, prompting conservative forward guidance.