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Waldencast PLC

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Waldencast PLC AI Insights

Informational only. Not investment advice.
As of 2025-12-12

Snapshot

  • Intangibles are 85% of assets (676M/798M) with negative tangible book value (-177M) - acquisition-heavy model with impairment risk[Goodwill and Other Intangible Assets]
  • Gross margin 69% TTM vs industry median 46% shows premium brand pricing power despite -22% operating margin[Gross Margin TTM]
  • Cash of 9M with 193M debt and -14M FCF TTM creates 6-month runway crisis without capital raise[Cash and Equivalents]

Watch Triggers

  • Cash and Equivalents: Falls below 5M or capital raise announcedAt current burn, sub-5M cash means weeks of runway - forces dilutive action
  • Operating Margin TTM: Improves to -10% or betterWould signal path to breakeven and reduce capital raise urgency
  • Goodwill: Any impairment charge announcedWould erode equity cushion and potentially trigger debt covenants

Bull Case

Revenue growth 14% TTM (3x industry median 5%) with 69% gross margins suggests brand momentum that could reach profitability at scale

Total Revenue 1Yr Growth TTMGross Margin TTM

Trading at 0.75x P/S vs industry 1.0x despite superior growth - deep value if turnaround succeeds

P/S RatioTotal Revenue 1Yr Growth TTM

Bear Case

Operating loss of -60M on 275M revenue (-22% margin) with 9M cash and -14M FCF signals imminent dilution or restructuring

Operating Income TTMFree Cash Flow TTMCash and Equivalents

Goodwill 177M is 36% of equity - any brand impairment could trigger covenant issues on 193M debt

GoodwillTotal DebtCommon Stockholders Equity

Bull vs Bear Balance

AI-generated sentiment analysis based on fundamental metrics and market conditions.

BearBull
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Forward Thesis

Liquidity crisis likely within 12 months without equity raise or asset sale

3-12mhigh
  • Cash burn of ~14M/year with only 9M cash
  • 193M debt vs 207M market cap limits debt capacity
  • Negative operating cash flow (-9M TTM)
FCF TTM: -13.8MCash: 9M, Total Debt: 193MOperating CF: -9M TTM

Valuation Context

Caveats

Data Partners
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Fundamental company data provided by Morningstar, updated daily.

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