Olaplex Holdings (OLPX) AI Stock Analysis

• Market Cap: $813.84M
• Dividend Yield: N/A
• Average Volume (3M): 885.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.41
• Revenue Growth: -3.43%
• EPS Growth: -102.60%
• Country: US
• Employees: 231
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): <0.01
• Shares Outstanding: 667,081,100
• 10 Day Avg. Volume: 838,961
• 30 Day Avg. Volume: 885,018
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.22
• Enterprise Value/Revenue: 2.35
• Enterprise Value/Gross Profit: 3.41
• Enterprise Value/Ebitda: 8.79
• 1Y Price Target: $2.14
• Price Target Upside: 82.91% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8

• Rating: 52 Neutral
• Price Target: $1.00 ▼(-14.53% Downside)

Olaplex Holdings faces significant challenges with profitability and operational efficiency, reflected in a low valuation score. While technical indicators suggest bearish momentum, positive cash flow trends and strategic marketing investments provide some optimism for future growth.

Positive Factors

Innovative Product Launches

The launch of new products, especially in fast-growing niches, can drive revenue growth and strengthen market position, enhancing long-term competitiveness.

Professional Channel Growth

Growth in the professional channel indicates strong demand and brand loyalty among salons, supporting sustained revenue and market leadership.

Strong Direct-to-Consumer Performance

Robust direct-to-consumer sales growth reflects effective marketing and customer engagement, which can lead to higher margins and brand loyalty.

Negative Factors

Decline in Specialty Retail Sales

A decline in specialty retail sales suggests challenges in retail distribution and consumer reach, potentially impacting overall revenue growth.

Lower Adjusted EBITDA Margin

Decreasing EBITDA margins indicate rising costs and operational inefficiencies, which could affect profitability and cash flow if not addressed.

International Sales Decline

A decline in international sales highlights challenges in global market expansion, which could limit growth opportunities and diversification.

Olaplex Holdings Business Overview & Revenue Model

Company Description

Olaplex Holdings, Inc. manufactures and sells hair care products. The company offers hair care shampoos and conditioners for use in treatment, maintenance, and protection of hair. It provides hair care products to professional hair salons, retailers, and everyday consumers. The company was founded in 2014 and is based in Santa Barbara, California.

How the Company Makes Money

Olaplex generates revenue primarily through the sale of its hair care products, which are distributed through professional salons and retail channels. The company operates a dual revenue model: direct sales to professional hair salons and sales through retail partners, including e-commerce platforms. Key revenue streams include sales of its core products, particularly the Olaplex No. 1 through No. 8 line, which has gained significant traction in both the professional and consumer markets. Additionally, Olaplex collaborates with salons to provide training and support for stylists, enhancing the brand's presence and driving product adoption. The company also benefits from a strong brand reputation and customer loyalty, which contribute to repeat purchases and sustained sales growth.

Olaplex Holdings Financial Statement Overview

Summary

Olaplex Holdings demonstrates a solid financial foundation with strong margins and manageable leverage. However, recent declines in revenue and profitability margins, alongside decreasing cash flow metrics, suggest potential challenges. The company must focus on reversing the revenue decline and improving operational efficiency to strengthen overall financial health.

Income Statement

Olaplex Holdings shows a mixed income statement performance. The gross profit margin for TTM is approximately 66%, indicating strong cost management. However, revenue has decreased compared to previous years, with a notable decline from 2022 to 2025. The net profit margin has also declined, reflecting reduced profitability. EBIT and EBITDA margins remain positive but have decreased over recent periods, indicating challenges in maintaining operational efficiency.

Balance Sheet

The balance sheet reflects moderate stability with a debt-to-equity ratio around 0.74 for TTM, indicating a manageable level of leverage. The equity ratio is about 49.6%, showing a stable financial structure. Return on equity (ROE) has decreased over time, signaling reduced profitability relative to equity. The company maintains a strong cash position, providing liquidity to manage obligations.

Cash Flow

Olaplex’s cash flow statement shows a decline in free cash flow growth and operating cash flow. The free cash flow to net income ratio is strong, indicating efficient cash generation relative to earnings. Operating cash flow to net income ratio also remains positive, although declining, highlighting operational cash efficiency but also pointing to potential cash flow challenges if the trend continues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	423.08M	422.67M	458.30M	704.27M	598.37M	282.25M
Gross Profit	291.50M	292.29M	318.63M	519.55M	481.81M	179.59M
EBITDA	113.24M	143.39M	186.77M	398.96M	385.70M	131.78M
Net Income	-1.28M	19.52M	61.59M	244.07M	220.78M	39.28M
Balance Sheet
Total Assets	1.52B	1.77B	1.74B	1.70B	1.56B	1.33B
Cash, Cash Equivalents and Short-Term Investments	289.34M	585.97M	466.40M	322.81M	186.39M	10.96M
Total Debt	351.90M	650.46M	655.77M	662.77M	758.20M	775.48M
Total Liabilities	642.75M	893.32M	895.37M	916.72M	1.04B	802.16M
Stockholders Equity	874.17M	874.40M	844.97M	780.96M	524.30M	530.67M
Cash Flow
Free Cash Flow	99.75M	141.94M	173.92M	254.67M	198.26M	128.95M
Operating Cash Flow	101.11M	143.07M	177.53M	255.32M	200.03M	128.97M
Investing Cash Flow	-4.04M	-4.89M	-3.61M	-2.68M	-6.26M	-1.38B
Financing Cash Flow	-315.65M	-18.61M	-30.33M	-116.22M	-18.34M	1.26B

Olaplex Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.17
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OLPX, the sentiment is Negative. The current price of 1.17 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.36, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 34.30 is Neutral, neither overbought nor oversold. The STOCH value of 18.06 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OLPX.

Olaplex Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ULTA	80 Outperform	$23.48B	20.16	48.52%	―	2.94%	4.57%
SBH	73 Outperform	$1.48B	8.08	28.94%	―	-0.38%	35.78%
CHWY	66 Neutral	$15.54B	104.35	34.48%	―	9.04%	-56.79%
ETSY	66 Neutral	$7.07B	57.53	―	―	2.38%	-38.88%
BBWI	63 Neutral	$5.44B	7.84	―	3.07%	-0.18%	-18.95%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
OLPX	52 Neutral	$813.84M	―	-0.15%	―	-3.43%	-102.60%

Olaplex Holdings Corporate Events

Olaplex Holdings Acquires Purvala Bioscience for Innovation

On August 20, 2025, Olaplex Holdings, Inc. acquired Purvala Bioscience, a Boston-based biotech company, for $10.5 million. This acquisition marks OLAPLEX’s first since its inception over a decade ago, underscoring its commitment to innovation in the haircare industry. The integration of Purvala’s bioinspired technologies is expected to enhance OLAPLEX’s product offerings, potentially leading to the development of next-generation, science-backed products. This strategic move is anticipated to strengthen OLAPLEX’s position in the market and benefit its stylist community and consumers.

The most recent analyst rating on (OLPX) stock is a Hold with a $1.50 price target. To see the full list of analyst forecasts on Olaplex Holdings stock, see the OLPX Stock Forecast page.

Olaplex Holdings, Inc. Earnings Call: Balancing Growth and Challenges

Olaplex Holdings, Inc. Navigates Transformation with Balanced Growth and Challenges

Olaplex Reports Mixed Q2 2025 Financial Results

Olaplex Holdings, Inc., a prominent player in the health and beauty sector, is known for its innovative hair care solutions, particularly its Complete Bond Technology™ that enhances hair strength and health. In its latest earnings report for the second quarter of 2025, Olaplex reported a modest increase in net sales by 2.3% to $106.3 million, despite a net loss of $7.7 million compared to a net income of $5.8 million in the same period last year. The company’s performance across different sales channels varied, with professional and direct-to-consumer channels showing growth, while specialty retail saw a decline.