What happened
Waldencast plc (NASDAQ: WALD) said on September 28, 2026 that it completed the sale of Obagi Medical to Bridgepoint on July 30, 2026. The company said Obagi met held-for-sale criteria and that the sale was a strategic shift with a major effect on operations and financial results.
For the first half of 2026, net revenue from continuing operations was $26.1 million, down 57.1% from $60.9 million a year earlier. Net loss from continuing operations was $94.9 million, up 96.5% from $48.3 million. Net loss from discontinued operations was $18.7 million. That loss included $13.5 million of net interest expense and compared with $136.9 million in the first half of 2025.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Net revenue from continuing operations | $26.1 million | from $60.9 million, -57.1% | SEC 6-K |
| Net loss from continuing operations | $94.9 million | from $48.3 million, +96.5% | SEC 6-K |
| Net loss from discontinued operations, net of income taxes | $18.7 million | from $136.9 million, -86.3% | SEC 6-K |
| Net cash proceeds from Obagi sale | $149.9 million | SEC 6-K | |
| Cash and cash equivalents from continuing operations | $138.6 million | SEC 6-K |
Why it matters
The filing said the company now plans to focus on Milk Makeup. The board is reviewing the remaining proceeds, and management wants to cut central headquarters costs. Waldencast said 80% to 90% of $18.5 million in 2025 recurring central headquarters costs can be eliminated on an annual run-rate basis over the next eight to twelve months.
The key point is that continuing revenue fell by $34.8 million, from $60.9 million to $26.1 million. The continuing business still needs to stabilize growth after the sale and debt repayment.
The company also recorded a non-cash goodwill impairment charge of $52.3 million against the Milk Makeup reporting unit. Gross margin was 53.7% versus 67.3% a year ago. Excluding $4.2 million of Sticks costs, $3.6 million of allowances and returns, and $0.6 million of inventory write-offs, gross margin would have been 61.3%.
What's next
Following the delisting, Waldencast said it intends to seek quotation of its Class A ordinary shares and warrants in an over-the-counter market under the ticker MLKM. It also said it intends to disclose financial performance on a semi-annual basis.
Subject to shareholder approval, the company also will be renamed Milk Makeup plc. The next test is whether the simpler setup lines up with higher revenue and lower costs, or whether the turnaround stays early stage.
Sources
- SEC 6-K Exhibit 99.1 — Waldencast plc Announces First Half 2026 Financial Results
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.
