Here are 1-3 brief analogies for Waldencast (WALD):

• Like a beauty-focused LVMH, acquiring and scaling premium skincare and makeup brands.
• A mini Estée Lauder or L'Oréal, specializing in modern, high-growth beauty and wellness brands.

• Makeup Products: A range of clean, cruelty-free, and vegan cosmetics for face, eyes, and lips, primarily offered under the Milk Makeup brand.
• Professional Skincare Products: Medical-grade, science-backed skincare solutions designed to address various skin concerns, primarily offered under the Obagi Skincare brand.

Waldencast (symbol: WALD) operates a portfolio of beauty and wellness brands (including Obagi Skincare and Milk Makeup) with distribution channels that include both business-to-business (B2B) sales to other companies and direct-to-consumer (D2C) sales to individuals.

Based on Waldencast's public filings, the company derives a substantial portion of its revenue from sales to other companies. Therefore, its major customers are identified below:

Major Customer Companies:

• Sephora: A leading global retailer of beauty products. Waldencast's financial disclosures indicate that a substantial portion of its net revenue is derived from sales to Sephora for brands like Milk Makeup. Sephora is owned by LVMH Moët Hennessy Louis Vuitton SE.
  • Symbol: LVMUY (OTC Pink Sheets)
  • Symbol: MC (Euronext Paris)
• Medical Professionals and Practices: For its Obagi Skincare brand, Waldencast sells to medical professionals such as dermatologists, plastic surgeons, and medical spas. These are typically independent professional practices or small businesses rather than large public companies. No single entity or chain within this category is publicly disclosed as a major customer.

While Waldencast also sells directly to individual consumers through its brand-specific e-commerce platforms (e.g., MilkMakeup.com, Obagi.com), the explicit disclosure regarding Sephora's revenue contribution indicates the significance of its B2B customer relationships.

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Michel Brousset, Founder and Chief Executive Officer

Michel Brousset co-founded Waldencast in 2019. He has over 25 years of experience in fast-moving consumer goods (FMCG) operations, successfully building billion-dollar brands and businesses at Procter & Gamble and L'Oréal. At L'Oréal, he served as CEO of L'Oréal UK and later as President of the Consumer Product Division for North America.

Manuel Manfredi, Chief Financial Officer

Manuel Manfredi was appointed Chief Financial Officer of Waldencast, effective April 1, 2025. He brings nearly 25 years of experience leading financial organizations in the beauty and consumer sector. Most recently, he served as CFO at L'Oréal Spain and Portugal since 2022.

Hind Sebti, Co-founder and Chief Growth Officer

Hind Sebti co-founded Waldencast in 2019. She has over 20 years of experience leading and managing beauty brands across multiple categories and stages during her tenures at L'Oréal and Procter & Gamble. She is also the founder of Whind, a beauty and lifestyle brand developed as part of Waldencast Brands.

Felipe Dutra, Founder and Executive Chairman

Felipe Dutra is a founding investor and has served as Chairman of Waldencast since 2021. He previously served as the Chief Financial and Technology Officer at Anheuser-Busch InBev from 2005 to 2020, where he played a key role in building the company from a regional Brazilian brewer into the world's largest brewer and a top five global consumer goods company. Before that, he was the CFO of Cervejaria Ambev from 1999 to 2004. Dutra has also served on the board of directors for numerous companies, including AB InBev, Grupo Modelo, Budweiser APAC, AMBEV, Restaurant Brands International, Lojas Americanas SA, São Carlos Empreendimentos e Participações SA, and StoneCo Ltd. He was a founding partner of GP Investments Ltd.

Elisabeth Milan, General Counsel and Corporate Secretary

Elisabeth Milan serves as the General Counsel and Corporate Secretary of Waldencast. She has over a decade of legal experience, having held roles such as Head of Corporate and Commercial Legal at Deliveroo, and various positions at WeWork and several prominent law firms.

The key risks to Waldencast's (WALD) business include:

1. Accounting Misstatements and SEC Investigation: Waldencast has faced significant challenges due to accounting missteps, particularly concerning its Obagi Skincare business. This led to the restatement of financial statements for 2020, 2021, and parts of 2022, with the company admitting to overstating revenues and accounts receivable. The U.S. Securities and Exchange Commission (SEC) launched an investigation and subpoenaed Waldencast for documents. This issue has raised concerns about potential securities law violations and has negatively impacted the company's stock performance.
2. Slowing Revenue Growth, High Debt, and Profitability Concerns: The company is grappling with slowing revenue growth, substantial debt, and ongoing profitability issues. Despite some recent margin expansion, Waldencast has consistently reported negative EBIT and net losses, and its Debt/EBITDA ratio is exceptionally high. The stock has experienced a significant decline since 2022 due to these persistent "structural issues."
3. Risk of Nasdaq Delisting: Waldencast received a notice of non-compliance from Nasdaq because it failed to timely file interim financial statements. This puts the company at risk of being delisted from the Nasdaq Stock Market if it cannot regain compliance.

The clear emerging threat to Waldencast, particularly impacting its Obagi Skincare brand, is the rapid advancement and increasing consumer adoption of **AI-driven personalized skincare platforms and sophisticated at-home beauty devices**. These innovations offer consumers highly customized skincare routines based on individual data (AI platforms like Proven Skincare, Curology) and professional-grade treatment results in a home setting (devices such as NuFace, Foreo, LED masks, microcurrent tools). This trend directly challenges the traditional model of dermatological consultation and the reliance on professional channels for high-efficacy skincare products, potentially eroding the market share for brands like Obagi that have historically thrived within expert-recommended ecosystems. Similar to how Netflix provided an at-home alternative to Blockbuster's physical stores, these emerging technologies offer a convenient, personalized, and often direct-to-consumer alternative to traditional professional skincare services and product recommendations.

Waldencast (NASDAQ: WALD) anticipates several key drivers for future revenue growth over the next 2-3 years, focusing on its Obagi Medical and Milk Makeup brands:

1. Acceleration of Innovation and New Product Launches: The company expects to drive revenue growth through the continued introduction of new "blockbuster innovation" across both its Milk Makeup and Obagi Medical brands. Successful launches, such as the Hydro Grip Gel Tint for Milk Makeup, demonstrate the potential impact of new products on consumer demand.
2. Expansion of Distribution Channels: Waldencast is strategically expanding the reach of both Milk Makeup and Obagi Medical domestically and internationally. This includes growth in higher-margin digital channels and significant expansion into brick-and-mortar retail, notably Milk Makeup's presence in over 1,400 Ulta Beauty stores and more than 500 Ulta Beauty @Target locations.
3. Strengthening Brand Equity and Increased Consumer Demand: A core driver is the focus on strengthening the brand equity of both Milk Makeup and Obagi Medical, which in turn is expected to lead to increased consumer demand.
4. Improved Supply Chain and Product Availability: For Obagi Medical particularly, improvements in fulfillment rates and resolving out-of-stock issues for key products are crucial. Enhanced supply chain efficiency is expected to support both domestic and international expansion, addressing previous constraints that tempered growth.
5. Increased Marketing Investments: Waldencast plans to continue investing in marketing to fuel brand awareness, encourage product trial, and build long-term customer loyalty, thereby contributing to sustained revenue growth.

Share Issuance

• Waldencast's business combination with Obagi and Milk Makeup, which closed around July 27, 2022, was partly funded by a $105 million Private Investment in Public Equity (PIPE) at $10.00 per share.
• The SPAC merger also included a $333 million Forward Purchase Agreement and $345 million in IPO cash proceeds, though approximately $301 million was removed due to shareholder redemptions.
• Existing shareholders of Obagi and Milk Makeup rolled over $475 million in equity into Waldencast as part of the merger.

Inbound Investments

• A fully committed $333 million Forward Purchase Agreement was secured, with sponsors Waldencast Long-Term Capital LLC and Dynamo Master Fund contributing $160 million.
• The company received a fully committed $105 million PIPE priced at $10.00 per share.
• In March 2025, Waldencast secured a new $205 million five-year credit facility, consisting of a $175 million Term Loan and a $30 million Revolving Credit Facility (RCF), replacing its prior facility.

Outbound Investments

• Waldencast completed a three-way business combination valued at approximately $1.2 billion with Obagi and Milk Makeup around July 27, 2022, initiating its strategy to form a global multi-brand beauty and wellness platform.
• In the first half of 2025, Waldencast completed the acquisition of Novaestiq, which significantly expanded Obagi Medical's addressable market in the U.S.

Capital Expenditures

• Waldencast reported capital expenditures of -$2.71 million in the last 12 months (prior to late 2025) and stated "minimal capital expenditure" for fiscal year 2024 due to its asset-light business model.
• Historical capital expenditures were $3.01 million in 2024, $2.05 million in 2023, and $1.71 million in 2021.
• The company anticipates increased capital and operating expenditures over the next several years, focusing on expanding infrastructure, distribution channels, commercialization, research and development, and manufacturing for its Obagi and Milk businesses.