Sign in
PC

Prestige Consumer Healthcare Inc. (PBH)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY25 delivered record sales and adjusted EPS, with revenue of $296.5M (+7.0% YoY, +7.9% organic) and adjusted diluted EPS of $1.32; both exceeded S&P Global consensus ($289.5M revenue, $1.291 EPS). Strength was broad-based across North America (Women’s Health, GI) and International (Hydralyte), aided by e-commerce; GAAP EPS was $1.00 due to a non-cash tradename impairment . Consensus figures marked with * below are from S&P Global.*
  • FY25 free cash flow reached $243.3M with leverage reduced to 2.4x; net debt was ~$0.9B, enabling $51.5M of share repurchases and elimination of variable-rate term loan .
  • Initial FY26 outlook guides organic growth of ~1%–2%, EPS of $4.70–$4.82, and FCF ≥$245M, with gross margin ~56.5%. Management flagged ~$15M tariff headwind but expects mitigation via cost savings and surgical pricing .
  • Near-term setup: Q1 FY26 revenue guided to $258–$260M (vs consensus $260.4M*) and EPS $0.98–$1.00 (vs consensus $0.992*). Management noted ~$7M e-commerce order pull-forward into Q4 that will weigh on Q1 .*

What Went Well and What Went Wrong

  • What Went Well

    • Broad-based growth and record quarter: “Record quarterly revenue and adjusted EBITDA and EPS,” driven by North America Women’s Health (Summer’s Eve), GI (Dramamine, Fleet), and International Hydralyte; adjusted EPS $1.32 vs $1.02 LY .
    • E-commerce and channel execution: E-commerce “maintain[ed] a consistent double-digit sales growth profile… now representing high teens as a percentage of sales.” Management also called out ~$7M order timing into Q4 .
    • Margin and cash discipline: Q4 gross margin ~57% with FY26 gross margin guided to ~56.5% despite tariff headwinds; free cash flow of $243.3M and leverage reduced to 2.4x support continued capital deployment .

  • What Went Wrong

    • GAAP earnings impacted by impairment: Q4 GAAP EPS of $1.00 reflects a $12.5M non-cash tradename impairment on non-strategic assets; adjusted EPS excludes this charge .
    • Cough/Cold remained a drag: Category weakness continued; management expects FY26 shipments to be flat vs FY25 given uncertainty on incidence and retailer inventory management .
    • Clear Eyes supply constraints continue near term: Recovery remains “lumpy”; two new suppliers targeted for FY26, with more pronounced recovery expected in 2H FY26 .

Financial Results

Overall metrics vs prior quarter, prior year, and consensus

MetricQ3 FY25 (12/31/24)Q4 FY25 (3/31/25)Q4 FY25 Consensus*
Revenue ($M)$290.3 $296.5 $289.53*
GAAP Diluted EPS ($)$1.22 $1.00 —
Adjusted Diluted EPS ($)$1.22 $1.32 $1.29125*
Non-GAAP EBITDA ($M)$98.48 $91.97 $102.86*
Non-GAAP Adj. EBITDA ($M)—$104.44 —
  • YoY trends: Q4 revenue +7.0% YoY; organic +7.9% . Q3 revenue +2.7% YoY .
  • GAAP to non-GAAP: Q4 adjustments include tradename impairment ($12.5M) and tax effects, adding $0.32/sh to GAAP EPS .

Segment breakdown (Q4)

Segment Revenue ($M)Q4 FY24Q4 FY25YoY
North American OTC$231.13 $248.95 +7.7%
International OTC$45.86 $47.57 +3.7% (+7.1% ex-FX)
Total$276.99 $296.52 +7.0%

KPIs and operating metrics

KPIQ4 FY25FY25Notes
Gross Margin %~57% 55.8% Q4 improvement from timing of cost savings
A&M as % of Sales—13.7% FY26 planned ~14%
Operating Cash Flow ($M)$61.85 $251.52
Free Cash Flow ($M)$58.37 $243.29
Net Debt—~$0.9B
Leverage (covenant-defined)—2.4x
E-commerce Mix—High-teens % of sales Double-digit growth in FY25

Non-GAAP adjustments (Q4 and FY)

  • Q4: Tradename impairment ($12.5M) and related tax impact; normalized tax-rate adjustment .
  • FY25: Similar tax normalization and impairment items .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
RevenueFY26$1.140–$1.155B $1.140–$1.155B Maintained
Organic Revenue GrowthFY26~2% (narrative) ~1%–2% Lowered low end
Diluted EPSFY26$4.72–$4.82 (narrative) $4.70–$4.82 Lowered low end $0.02
Free Cash FlowFY26≥$245M ≥$245M Maintained
Gross Margin %FY26—~56.5% New disclosure
A&M as % SalesFY26—~14% (FY & Q1) New disclosure
Interest ExpenseFY26—~$39M New disclosure
Tax RateFY26—~24% New disclosure
Tariff HeadwindFY26—~$15M New disclosure
RevenueQ1 FY26—$258–$260M New disclosure
Diluted EPSQ1 FY26—$0.98–$1.00 New disclosure

Earnings Call Themes & Trends

TopicQ2 FY25 (11/7)Q3 FY25 (2/6)Q4 FY25 (5/8)Trend
Supply chain – Clear EyesSequential improvement expected; retail inventories near lows; long-term supplier upgrades Gradual recovery with bigger 2H FY26 improvement as capacity added “Lumpy” shipments; two new suppliers in FY26; better in 2H FY26 Improving supply through FY26
Tariffs / macroPricing/cost saves to offset inflation; no specifics Planning for tariff scenarios; diversified, mostly U.S. manufacturing ~$15M FY26 headwind; levers: cost savings, surgical pricing Headwind identified; mitigation plan
E-commerce~15% of sales; largely N. America Double-digit growth continues High-teens % of sales; ~$7M pull-forward into Q4 Structurally growing
Women’s Health (Summer’s Eve)Flat in Q2; share gains beginning Second consecutive quarter of YoY growth in Q4; stabilization “Best launch in a long time”; positioned to grow LT Improving
International (Hydralyte)Strong growth; category leadership in AU Solid growth >5%; broader brand/geography contributions Growth led by Hydralyte; AU strength Consistent growth
Capital allocationLeverage 2.7x; buybacks; debt paydown Leverage 2.5x; more buybacks/M&A optionality Leverage 2.4x; ~ $1B FCF over 4 years; M&A priority Increasing flexibility
Gross marginFY25 ~56% guide Q4 ~57% expected Q4 ~57%; FY26 ~56.5% guide Improving then steady
Innovation—GI brand innovation (Dramamine Advanced, Fleet oral) Multiple FY26 launches across brands (Hydralyte flavors, Summer’s Eve whole body deodorant, Fleet oral) Healthy pipeline

Management Commentary

  • Strategic positioning: “We are very pleased with our record fiscal ’25 results… diversified portfolio… proven business attributes… adjusted EPS of $4.52, up approximately 7%” .
  • Marketing agility and portfolio pivots: “We faced supply challenges for Clear Eyes… refocus[ed] marketing… TheraTears… Debrox… Stye… outperformed their combined category growth by over 3 percentage points” .
  • E-commerce execution: “We continue to see consumers shift… most prominently towards e-commerce… maintain a consistent double-digit sales growth profile… high teens as a percentage of sales” .
  • FY26 framework: “We anticipate revenues of $1.140B to $1.155B… organic revenue growth ~1% to 2%… diluted EPS of ~$4.70 to $4.82… gross margin ~56.5%... tariff impacts of approximately $15M” .
  • Cost levers: “Working closely with all of our suppliers to identify and close exposures… dual/alternative sourcing… surgical pricing if need be” .

Q&A Highlights

  • Guide conservatism and Q1 dynamics: Management cited macro volatility, FX, and ~$7M e-commerce pull-forward; tone characterized as prudence rather than weakening demand .
  • Clear Eyes recovery: Capacity expansions at existing suppliers and two new suppliers in FY26; recovery weighted to 2H FY26; promotional stance unchanged due to brand strength .
  • Women’s Health momentum: Summer’s Eve returned to growth in 2H FY25 with strong innovation (Ultimate Odor Protection; whole body deodorant), positioned for sustained growth .
  • Tariff plan: ~$15M FY26 impact contemplated; primary levers are cost savings and sourcing; surgical pricing as needed; reciprocal tariffs immaterial .
  • Capital allocation: With leverage at 2.4x, focus remains M&A plus opportunistic buybacks and cash build to support pipeline .

Estimates Context

Q4 FY25 vs S&P Global consensus

MetricActualConsensus*Surprise
Revenue ($M)$296.52 $289.53*+$6.99M (beat)
Adjusted Diluted EPS ($)$1.32 $1.29125*+$0.03 (beat)
Non-GAAP EBITDA ($M)$91.97 $102.86*−$10.89M (below cons.)

Prior quarter (Q3 FY25) for context

MetricActualConsensus*Surprise
Revenue ($M)$290.32 $287.13*+$3.19M (beat)
Adjusted Diluted EPS ($)$1.22 $1.15714*+$0.06 (beat)
Non-GAAP EBITDA ($M)$98.48 $96.06*+$2.42M (beat)

Company Q1 FY26 guidance vs consensus

MetricCompany GuidanceConsensus*
Revenue ($M)$258–$260 $260.36*
Diluted EPS ($)$0.98–$1.00 $0.992*

*Values retrieved from S&P Global.

Key Takeaways for Investors

  • Clean top-line beat with strong adjusted EPS; mix driven by North America GI, Women’s Health, and International Hydralyte; GAAP EPS impacted by non-cash impairment .
  • FY26 setup is conservative but credible: modest organic growth (1%–2%) and EPS growth with gross margin expansion despite ~$15M tariff headwind; cost savings and pricing levers in place .
  • Clear Eyes supply recovery is a 2H FY26 story as new suppliers come online; expect quarterly lumpiness until then .
  • E-commerce is a structural tailwind (high-teens mix, double-digit growth), but Q1 will absorb ~$7M order pull-forward from Q4 .
  • Balance sheet and cash flow provide dry powder: leverage 2.4x, ~$243M FY25 FCF and ≥$245M FY26 target support continued M&A and buybacks .
  • Watch Q1 print vs guide and consensus: revenue guidance slightly below/inline; EPS in-line; sets the stage for more normalized cadence as Clear Eyes and tariffs evolve .
  • Monitor Women’s Health momentum and GI pipeline execution; Summer’s Eve innovation and brand messaging are showing tangible traction .