Olaplex shares slide on modest 2026 outlook and shift to annual loss

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.

Looking ahead, Olaplex issued fiscal 2026 guidance that suggests a slow recovery.

The company expects net sales between $414 million and $435 million, with the midpoint indicating roughly 1% growth.