Waldencast's $1.2 billion beauty empire shrinks to Milk Makeup as sales fall 57%

Fortune··US·Read original
3▲0 ▼1Impact / 5
Summary · why it matters

Waldencast, the SPAC-backed beauty platform launched by former L'Oréal executive Michel Brousset and Hind Sebti, has been reduced to a single brand after Milk Makeup's net revenue fell 57.1% to $26.1 million in the first half of 2026 from $60.9 million a year earlier. The $1.2 billion three-way combination announced in November 2021 was meant as the "first step" toward a global multibrand beauty and wellness platform, but the company agreed in June to sell Obagi Medical to private equity firm Bridgepoint for up to $460 million, a deal that closed July 30 and left Waldencast focused entirely on Milk Makeup. Brousset, Sebti and CFO Manuel Manfredi departed to lead Obagi alongside Bridgepoint, leaving executive chairman Felipe Dutra as Waldencast's principal executive and financial officer. Milk Makeup swung to an adjusted EBITDA loss of $14.8 million from a profit of $9.7 million, and Waldencast took a $52.3 million noncash goodwill impairment charge on the brand, cutting Milk-related goodwill to $62.8 million from $115.1 million. Four days before reporting results, Waldencast filed to voluntarily delist from Nasdaq, with its last trading day expected on or about Oct. 2, and plans to seek quotation over the counter under the ticker MLKM while targeting elimination of 80% to 90% of its $18.5 million in annual central headquarters costs.

Impact on assets 3

Information Technology▼ · 1 stocks
Waldencast plc
WALD
▼ NegativeCapitalrelevance

Waldencast's Milk Makeup revenue fell 57.1%, swung to an adjusted EBITDA loss, took a $52.3M goodwill impairment, and it is delisting from Nasdaq.

Digital Finance & Tokenization▲ · 1 stocks
Consumer Staples▲ · 1 stocks

Off-coverage companies 2

Milk MakeupPrivate▼ Negative
Demandrelevance

Milk Makeup's net revenue fell 57.1% to $26.1M and it swung to an adjusted EBITDA loss of $14.8M.

Obagi MedicalPrivate± Mixed
Capitalrelevance

Obagi Medical was sold to Bridgepoint for up to $460M, a divestiture that removed it from Waldencast.

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