Waldencast is now a cash-rich, debt-free pure-play on Milk Makeup, but the pro forma financials show a small revenue base and persistent losses. Monitor upcoming quarterly results for Milk Makeup's standalone revenue trajectory and margin improvement. The earnout potential ($64M) and vendor notes ($30M) provide upside optionality but are contingent. Watch for strategic capital allocation decisions (M&A, reinvestment) and any further management changes.
Price Chart
Executive Summary
Waldencast completed the sale of its Obagi Medical business for up to $366M in cash plus vendor notes and earnout consideration, using a portion of proceeds to fully repay its $178.4M senior term loan. The company is now a pure-play Milk Makeup entity with ~$143M pro forma cash, but pro forma 2025 revenue drops to $110.4M (from $272.1M historical) and the company remains deeply unprofitable with a pro forma net loss of -$106.1M attributable to Class A shareholders. CEO, CFO, and CGO departed to lead Obagi; Executive Chairman Felipe Dutra assumes principal executive and financial officer roles.
Key Facts
- Sale of Obagi Medical closed July 30, 2026 for up to $366M cash consideration plus $30M vendor notes and up to $64M earnout
- Net cash proceeds of ~$334.4M; $178.4M used to fully repay existing senior term loan
- Pro forma cash and cash equivalents of $143.4M as of Dec 31, 2025
- Pro forma 2025 net revenue of $110.4M (vs. $272.1M historical) from continuing operations (Milk Makeup only)
- Pro forma 2025 net loss attributable to Class A shareholders of -$106.1M, or -$0.93 per share
- CEO Michel Brousset, CGO Hind Sebti, and CFO Manuel Manfredi transitioned to lead Obagi; Executive Chairman Felipe Dutra becomes PEO and PFO
- Company will operate as parent of Milk Makeup, a clean prestige beauty brand
Financial Impact
Total consideration up to $366M cash + $30M vendor notes + $64M earnout; net cash after debt repayment ~$143M; pro forma revenue reduced by ~60% to $110.4M; pro forma net loss -$106.1M
Risk Factors
- Milk Makeup may not achieve profitability or growth sufficient to offset lost Obagi revenue
- Earnout consideration ($64M) is contingent on revenue milestones and may not be realized
- Management transition risk with departure of CEO, CFO, and CGO; new leadership team unproven
- Pro forma net losses continue, raising questions about long-term cash burn and need for additional capital
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0001840199-26-000080 |
| Document: wald6-k_obagiproformax30ju.htm | 0001840199-26-000080 |
| Document: 0001840199-26-000080-index-headers.html | 0001840199-26-000080 |
| Document: 0001840199-26-000080-index.html | 0001840199-26-000080 |
| Document: 0001840199-26-000080.txt | 0001840199-26-000080 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 15, 2026 11d ago | Press Release | $0.7500 | awaiting T+5 | — | — |
Oct 15, 2026 11d ago | 6-K | $0.7500 | awaiting T+5 | — | — |
Oct 15, 2026 11d ago | 15-12G | $0.7500 | awaiting T+5 | — | — |
Oct 14, 2026 13d ago | EFFECT | $0.8100 | awaiting T+5 | — | — |
Oct 14, 2026 13d ago | EFFECT | $0.8100 | awaiting T+5 | — | — |
Oct 14, 2026 13d ago | EFFECT | $0.8100 | awaiting T+5 | — | — |
Sep 28, 2026 28d ago | Press Release | $0.9277 $0.8794 | ▲ +5.21% | ▲ +7.15% | — |
Sep 24, 2026 4w ago | 6-K | $1.03 $0.8794 | ▲ +14.62% | ▲ +14.40% | — |
Sep 24, 2026 4w ago | Press Release | $1.03 $0.8794 | ▲ +14.62% | ▲ +14.40% | — |
Sep 14, 2026 6w ago | Press Release | $1.18 $1.10 | ▲ +6.78% | ▲ +6.89% | — |
US Market Status
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