Exchange: NYSE | Sector: Healthcare | Industry: Medical Distribution
Q4 2025
Published: May 9, 2025
Earnings Highlights
Revenue of $296.76M up 7.1% year-over-year
EPS of $1.00 increased by 2% from previous year
Gross margin of 59.2%
Net income of 50.13M
""We continue to execute a steady and disciplined capital allocation strategy using our strong fiscal 2025 free cash flow," - Ron Lombardi, CEO." - Ron Lombardi
In Q4 2025, Prestige Consumer Healthcare Inc (PBH) reported a robust revenue of $296.8 million, reflecting a year-over-year increase of 7.1% despite economic uncertainties. This performance was underscored by a sustained demand for key products in both the North American and International segments, particularly within gastrointestinal (GI) health and women's health categories. The strategic pivot to enhance brand investments and e-commerce capabilities has further solidified PBH's market position, enabling it to navigate challenges such as supply chain disruptions and an inflationary environment effectively.
Management reported a noteworthy adjusted diluted EPS of $1.32, a substantial increase from the $1.02 recorded in Q4 2024. This advancement is attributed to improved gross margins, lower interest expenses, and disciplined cost management. The strategic approach to targeted marketing and innovation should continue to drive revenue and profitability in fiscal 2026, as affimed by management’s guidance of expected revenues between $1.14 billion and $1.155 billion.
Key Performance Indicators
Revenue
296.76M
QoQ: 2.22% | YoY:7.14%
Gross Profit
175.71M
59.21% margin
QoQ: 9.10% | YoY:20.24%
Operating Income
88.43M
QoQ: -3.84% | YoY:7.64%
Net Income
50.13M
QoQ: -17.87% | YoY:1.35%
EPS
1.01
QoQ: -17.89% | YoY:2.02%
Revenue Trend
Margin Analysis
Key Insights
Q4 2025 Revenue: **$296.8 million**, a **7.1%** increase YoY
Fiscal 2025 Total Revenue: **$1.1 billion**, marginal YoY growth of **1%** in the face of economic headwinds.
Q4 2025 Adjusted EBITDA Margin: **29.8%**
Gross Margin: **57%** for Q4, indicating solid improvement due to effective cost-saving measures.
EPS for the quarter: **$1.32**, reflecting **29.4%** YoY growth.
Financial Highlights
Revenue Growth:
- Q4 2025 Revenue: $296.8 million, a 7.1% increase YoY
- Fiscal 2025 Total Revenue: $1.1 billion, marginal YoY growth of 1% in the face of economic headwinds.
Profitability Metrics:
- Q4 2025 Adjusted EBITDA Margin: 29.8%
- Gross Margin: 57% for Q4, indicating solid improvement due to effective cost-saving measures.
- EPS for the quarter: $1.32, reflecting 29.4% YoY growth.
Balance Sheet Health:
- Total Assets: $3.4 billion
- Total Liabilities: $1.57 billion, yielding a debt to equity ratio of 2.8%, underscoring a sound capital structure.
Cash Flow Highlights:
- Free Cash Flow for FY 2025: $243 million, enhancing liquidity and supporting capital allocation strategies without increasing leverage significantly.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
296.76M
7.14%
2.22%
Gross Profit
175.71M
20.24%
9.10%
Operating Income
88.43M
7.64%
-3.84%
Net Income
50.13M
1.35%
-17.87%
EPS
1.01
2.02%
-17.89%
Key Financial Ratios
currentRatio
4.2
grossProfitMargin
59.2%
operatingProfitMargin
29.8%
netProfitMargin
16.9%
returnOnAssets
1.47%
returnOnEquity
2.73%
debtEquityRatio
0.03
operatingCashFlowPerShare
$1.25
freeCashFlowPerShare
$1.18
priceToBookRatio
2.33
priceEarningsRatio
21.31
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Market Strategy and Performance:
- Ron Lombardi (CEO) emphasized, "We are very pleased with our record fiscal 2025 results, which delivered solid revenue and earnings growth, thanks to our diversified portfolio of brands and proven business attributes."
- Christine Sacco (CFO) stated, "Q4 was particularly strong, featuring record quarterly revenue, adjusted EBITDA and EPS, with broad-based growth in the North American segment."
Innovative approaches:
- Lombardi noted, "Innovation continues to be a key part of Prestige’s brand-building toolkit; we operate with a multi-year pipeline to ensure we generate new SKUs that match consumer needs."
Marketing and E-commerce Insights:
- The management adapted marketing strategies according to shifts in consumer purchasing channels. "We adjusted our investments swiftly to capitalize on opportunities in the eye and ear care portfolios," stated Lombardi, highlighting their agility in marketing.
"We continue to execute a steady and disciplined capital allocation strategy using our strong fiscal 2025 free cash flow," - Ron Lombardi, CEO.
— Ron Lombardi
"Our improved leverage ratio, robust free cash flow and consistent business performance gives us strategic flexibility with our capital deployment moving forward," - Christine Sacco, CFO.
— Christine Sacco
Forward Guidance
Management projects fiscal 2026 revenues of **$1.14 billion to $1.155 billion**, with expected organic growth of **1% to 2%**. Acknowledging economic challenges, they retain a cautious outlook but remain confident in maintaining momentum across core segments. Expectations include:
- **Adjusted EPS** for 2026 within **$4.70 to $4.82**, representing a growth of **4%-7%**.
- Anticipated gross margin expansion to approximately **56.5%**, aided by cost-saving measures and strategic pricing adjustments in response to inflation.
Key factors for investors to monitor include the completion of supplier expansions for Clear Eyes and the ongoing optimization of e-commerce channels, which currently represent a significant growth opportunity.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
PBH Focus
59.21%
29.80%
2.73%
21.31%
EVO
20.80%
3.07%
-4.29%
-17.45%
SUPN
74.20%
12.30%
1.48%
32.71%
COLL
54.00%
20.90%
5.48%
18.33%
DCPH
96.30%
-1.06%
-13.40%
-7.41%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Prestige Consumer Healthcare Inc presents a compelling investment thesis underpinned by its solid operational performance and proactive management strategies. With a robust free cash flow, disciplined capital allocation, and an innovative product pipeline, the company is positioned to maintain growth and profitability. However, investors should remain vigilant regarding macroeconomic factors such as inflation and tariffs that may impact results. Continued focus on market agility and strategic investments will be critical for sustaining competitive advantage in the evolving healthcare landscape.
Key Investment Factors
Growth Potential
The company’s innovative product pipeline is expected to drive consistent organic growth, with particular focus on women's health and GI segments which have shown resilience during inflationary times.
Profitability Risk
Ongoing tariff effects on $15 million are a potential headwind to profitability growth, with competitive pressures in the OTC market necessitating continuous innovation and market agility.
Financial Position
Strong balance sheet with a **debt to equity ratio** of **2.8%** allows for strategic flexibility in capital deployment and investment in growth initiatives.
SWOT Analysis
Strengths
Diverse and broad product portfolio across seven categories
Strong brand recognition and market share in OTC healthcare
Resilience to supply chain disruptions due to local sourcing strategies
Weaknesses
Limited exposure in non-North American markets affecting overall growth
Dependence on specific categories like GI health and women's health which could face cyclical challenges
Opportunities
Expanding e-commerce strategies to capture shifting consumer buying patterns
Innovative product launches set to penetrate unmet market needs
Potential M&A opportunities in a fragmented OTC market
Threats
Economic inflation impacting consumer purchasing power
Ongoing tariff headwinds and regulatory changes
Intensifying competition within the OTC healthcare space