Olaplex Holdings (NASDAQ:OLPX) shares declined on Thursday after the company provided a cautious financial outlook for 2026, overshadowing a fourth quarter that saw a modest return to top-line growth.
The results reflect a transitional year for the bond-building pioneer as it attempts to stabilize its retail footprint and reinvest in brand awareness.
For the fourth quarter ended December 31, 2025, the New York-based company reported net sales of $105.1 million, a 4.3% increase over the same period in 2024.
While the professional and direct-to-consumer channels saw gains of 18.9% and 6.6% respectively, specialty retail remained a drag, declining 14.5% year-over-year.
The company recorded a GAAP net loss of $13.1 million for the quarter, compared to a $8.8 million loss in the prior-year period.
On a full-year basis, 2025 net sales were essentially flat at $423 million.
The company swung to a net loss of $9.3 million for the year, a sharp reversal from the $19.5 million net income reported in 2024.
This bottom-line pressure was largely attributed to a 33.8% surge in SG&A expenses as Olaplex ramped up marketing spend to combat increased competition in the hair-repair category.