Waldencast (WALD) AI Stock Analysis

• Market Cap: $247.90M
• Dividend Yield: N/A
• Average Volume (3M): 418.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: 25.55%
• EPS Growth: 61.22%
• Country: US
• Employees: 335
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Software - Application
• EPS (TTM): -0.09
• Shares Outstanding: 112,054,380
• 10 Day Avg. Volume: 180,824
• 30 Day Avg. Volume: 418,419
• 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: 2.76
• Enterprise Value/Revenue: 2.50
• Enterprise Value/Gross Profit: 3.57
• Enterprise Value/Ebitda: 1.13K
• 1Y Price Target: $3.30
• Price Target Upside: 64.18% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 51 Neutral
• Price Target: $2.00 ▼(-0.50% Downside)

Waldencast Acquisition's overall stock score is primarily influenced by its financial performance and technical analysis. Despite strong revenue growth and a solid balance sheet, the company faces significant challenges with profitability and cash flow. The technical indicators suggest a bearish trend, and the negative P/E ratio highlights valuation concerns. The lack of earnings call data and corporate events further limits the stock's appeal.

Positive Factors

FDA Approval for New Product

The FDA approval of a new injectable gel significantly expands Waldencast's market reach in the U.S., potentially doubling the addressable market for Obagi Medical. This strategic expansion into the dermal filler market enhances the company's competitive position and growth prospects.

Revenue Growth

The company's strong revenue growth indicates successful brand management and market expansion. Sustained revenue increases are crucial for long-term business health, supporting further investment in brand development and market penetration.

Strategic Acquisitions

Strategic acquisitions like Novaestiq Corp. enhance Waldencast's product offerings and market presence. By expanding into the U.S. dermal filler market, the company strengthens its position in the beauty and aesthetics sectors, supporting long-term growth.

Negative Factors

Profitability Challenges

Despite revenue growth, ongoing profitability challenges with negative net income and EBIT margins highlight operational inefficiencies. Addressing these issues is critical for sustainable financial performance and shareholder value.

Negative Cash Flow

Negative operating cash flow suggests difficulties in generating cash from core operations. This constraint can limit the company's ability to invest in growth opportunities and maintain financial flexibility, impacting long-term stability.

International Market Challenges

International market challenges and supply chain constraints can hinder global expansion efforts. These issues may impact the company's ability to capitalize on growth opportunities outside the U.S., affecting its overall market position.

Waldencast Business Overview & Revenue Model

Company Description

Waldencast Acquisition Corp. a skin care company, provides advanced skin care treatments. Its products are designed to help minimize the appearance of premature skin aging, skin damage, hyperpigmentation, acne, and sun damage primarily available through dermatologists, plastic surgeons, medical spas, and other skin care professionals. Its portfolio includes Obagi Medical that provides transformational skin care products formulated to minimize signs of skin aging, address dark spots, hyperpigmentation, fine lines, and wrinkles and to protect and enhance skin tone and texture; and Obagi Clinical that offers skin care products designed to prevent the early signs of skin aging. The company was founded in 1988 and is based in White Plains, New York.

How the Company Makes Money

Waldencast makes money primarily through the acquisition, development, and management of beauty and wellness brands. The company's revenue model involves purchasing promising brands and leveraging its operational expertise to enhance their market presence and profitability. Key revenue streams include the sale of beauty and personal care products through various distribution channels, including retail partnerships and e-commerce platforms. Strategic partnerships and collaborations with retailers and other industry players also contribute to its earnings, enabling Waldencast to access broader markets and optimize its brand portfolio's growth potential.

Waldencast Financial Statement Overview

Summary

Waldencast Acquisition shows promising revenue growth and a strong gross profit margin, yet struggles with profitability and cash generation. The balance sheet is strong with a favorable equity position and moderate leverage, but overall performance is hindered by negative operating cash flow and net losses.

Income Statement

Waldencast Acquisition has demonstrated revenue growth from 2023 to 2024, with a notable increase of 25.5% in total revenue. However, the company is still not profitable, as indicated by negative net income and EBIT margins. The gross profit margin shows strength at 70% for 2024, suggesting efficient production processes, but the negative EBIT margin of -21.4% highlights ongoing operational challenges.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 67.9%, indicating financial stability. The debt-to-equity ratio remains manageable at 0.27, suggesting the company is not overly reliant on debt financing. However, the return on equity is negative due to persistent losses, indicating inefficiencies in generating returns from shareholders' equity.

Cash Flow

Cash flow analysis reveals negative free cash flow, although there is an improvement from 2023 to 2024. The operating cash flow remains negative, indicating challenges in generating cash from core operations. The free cash flow to net income ratio is not meaningful due to negative values, highlighting cash constraints.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	273.87M	273.87M	218.14M	166.13M	142.47M	94.43M
Gross Profit	191.74M	191.74M	141.58M	39.44M	87.44M	65.33M
EBITDA	606.00K	28.63M	-33.54M	-99.25M	15.05M	13.94M
Net Income	-42.44M	-42.44M	-89.98M	-116.62M	-19.58M	-2.37M
Balance Sheet
Total Assets	975.86M	975.86M	1.04B	1.09B	184.59M	166.79K
Cash, Cash Equivalents and Short-Term Investments	14.80M	14.80M	22.58M	8.69M	12.79M	0.00
Total Debt	182.11M	182.11M	177.72M	199.25M	118.86M	0.00
Total Liabilities	245.92M	245.92M	273.44M	290.18M	145.35M	177.74K
Stockholders Equity	662.32M	662.32M	624.63M	639.24M	39.24M	-10.95K
Cash Flow
Free Cash Flow	-11.53M	-11.83M	-31.82M	-87.51M	2.24M	-9.14M
Operating Cash Flow	-8.82M	-8.82M	-29.77M	-85.01M	3.53M	-7.43M
Investing Cash Flow	-2.92M	-2.92M	-1.99M	-545.28M	-3.79M	-1.71M
Financing Cash Flow	5.58M	5.58M	44.33M	633.35M	5.16M	14.32M

Waldencast Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.01
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WALD, the sentiment is Neutral. The current price of 2.01 is above the 20-day moving average (MA) of 1.79, above the 50-day MA of 1.88, and below the 200-day MA of 2.69, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 58.60 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WALD.

Waldencast Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PERF	64 Neutral	195.55M	31.68	3.42%	―	13.19%	9.39%
ONTF	56 Neutral	251.72M	-6.90	-24.17%	―	-6.88%	15.83%
MKTW	53 Neutral	270.30M	1.54	-2.66%	10.37%	-17.17%	497.89%
WALD	51 Neutral	$247.90M	―	-6.60%	―	25.55%	61.22%
FRGE	49 Neutral	218.44M	-3.08	-34.05%	―	14.78%	21.87%
NRDY	48 Neutral	250.83M	-3.45	―	―	-10.85%	-15.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Waldencast Corporate Events

Waldencast Gains FDA Approval for Obagi Injectable Gel, Expanding U.S. Market Reach

On September 10, 2025, Waldencast plc announced that the FDA approved its Obagi® saypha® MagIQ™ injectable hyaluronic acid gel, marking the company’s entry into the U.S. HA dermal filler market under the Obagi Medical brand. This approval is a significant step in Waldencast’s strategy to become a leading dermatological megabrand, doubling Obagi Medical’s addressable market to $4.2 billion by 2029. The product, developed by Croma-Pharma GmbH, utilizes MACRO Core Technology for natural-looking results and is expected to launch in the U.S. in 2026, enhancing Waldencast’s market position and offering new opportunities for aesthetic professionals.

Waldencast Reports Strong H1 2025 Growth and Strategic Initiatives

On August 18, 2025, Waldencast plc announced strong progress on its business priorities for the first half of 2025, highlighting significant revenue growth and strategic initiatives. Obagi Medical achieved double-digit growth in core channels and expanded its market through the acquisition of Novaestiq Corp., while Milk Makeup saw robust retail sales in the U.S. Despite challenges in international markets and supply chain constraints, the company remains optimistic about future growth. Waldencast also initiated a strategic review to explore alternatives for enhancing shareholder value and postponed its H1 2025 earnings release to finalize this review.

Waldencast Acquires Novaestiq and U.S. Rights to Saypha®

On July 22, 2025, Waldencast plc announced the acquisition of Novaestiq Corp., along with the U.S. rights to the Saypha® line of hyaluronic acid injectable gels. This strategic move expands Obagi Medical’s offerings into the U.S. dermal filler market, effectively doubling its addressable market. The acquisition positions Obagi Medical as a leader in integrated skincare and aesthetic solutions, with the potential for significant growth in the health, beauty, and aesthetics sectors. The transaction involves cash payments and contingent issuance of Waldencast class A shares based on FDA approval and sales milestones, reflecting long-term commercial targets.