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Prestige Consumer Healthcare Inc. Reports Fiscal 2026 First Quarter Results

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Prestige Consumer Healthcare (NYSE:PBH) reported Q1 fiscal 2026 results with revenue of $249.5 million, down 6.6% year-over-year, primarily due to Clear Eyes supply constraints. The company posted diluted EPS of $0.95, up 6% from the prior year.

In a strategic move, PBH announced the acquisition of Pillar5 Pharma, their current eye care supplier, expected to close in Q3 fiscal 2026. The company revised its fiscal 2026 outlook, lowering revenue guidance to $1,100-$1,115 million from $1,140-$1,155 million, and adjusted EPS guidance to $4.50-$4.58 from $4.70-$4.82.

Despite challenges, the company demonstrated strength in international segment growth, improved gross margins, and generated strong free cash flow of $78.2 million. The company maintains a healthy balance sheet with a covenant-defined leverage ratio of 2.4x.

Prestige Consumer Healthcare (NYSE:PBH) ha riportato i risultati del primo trimestre dell'anno fiscale 2026 con un fatturato di 249,5 milioni di dollari, in calo del 6,6% rispetto all'anno precedente, principalmente a causa di problemi di fornitura di Clear Eyes. L'azienda ha registrato un utile per azione diluito di 0,95 dollari, in aumento del 6% rispetto all'anno precedente.

In una mossa strategica, PBH ha annunciato l'acquisizione di Pillar5 Pharma, attuale fornitore di prodotti per la cura degli occhi, con chiusura prevista nel terzo trimestre dell'anno fiscale 2026. L'azienda ha rivisto le previsioni per l'anno fiscale 2026, riducendo le stime di fatturato a 1.100-1.115 milioni di dollari rispetto a 1.140-1.155 milioni, e aggiustando le previsioni di utile per azione a 4,50-4,58 dollari rispetto a 4,70-4,82.

Nonostante le difficoltà, l'azienda ha mostrato solidità nella crescita del segmento internazionale, miglioramento dei margini lordi e ha generato un forte flusso di cassa libero di 78,2 milioni di dollari. L'azienda mantiene un bilancio sano con un indice di leva finanziaria definito dai covenant pari a 2,4x.

Prestige Consumer Healthcare (NYSE:PBH) reportó los resultados del primer trimestre del año fiscal 2026 con ingresos de 249,5 millones de dólares, una disminución del 6,6% interanual, principalmente debido a limitaciones en el suministro de Clear Eyes. La compañía registró una utilidad diluida por acción de 0,95 dólares, un aumento del 6% respecto al año anterior.

En un movimiento estratégico, PBH anunció la adquisición de Pillar5 Pharma, su actual proveedor de cuidado ocular, que se espera cierre en el tercer trimestre del año fiscal 2026. La empresa revisó sus perspectivas para el año fiscal 2026, reduciendo la guía de ingresos a 1.100-1.115 millones de dólares desde 1.140-1.155 millones, y ajustando la guía de utilidad por acción a 4,50-4,58 dólares desde 4,70-4,82.

A pesar de los desafíos, la compañía mostró fortaleza en el crecimiento del segmento internacional, mejoró los márgenes brutos y generó un sólido flujo de caja libre de 78,2 millones de dólares. La empresa mantiene un balance saludable con una ratio de apalancamiento definido por convenios de 2,4x.

Prestige Consumer Healthcare (NYSE:PBH)� 2026 회계연도 1분기 실적� 발표하며 매출액이 2� 4,950� 달러� 전년 대� 6.6% 감소했다� 밝혔습니�. 이는 주로 Clear Eyes 공급 제약 때문입니�. 희석 주당순이�(EPS)은 0.95달러� 전년 대� 6% 증가했습니다.

전략� 조치� PBH� 현재 안과용품 공급업체� Pillar5 Pharma� 인수한다� 발표했으�, 인수� 2026 회계연도 3분기� 완료� 예정입니�. 회사� 2026 회계연도 전망� 수정하여 매출 가이드� 기존 11� 4천만~11� 5� 5백만 달러에서 11억~11� 1,150� 달러� 낮추�, EPS 가이드� 4.504.58달러� 조정했습니다.

어려움에도 불구하고 회사� 국제 부� 성장, 개선� 총이익률, 그리� 7,820� 달러� 강력� 자유 현금 흐름� 보여주었습니�. 회사� 계약서상 레버리지 비율 2.4배로 건전� 재무 상태� 유지하고 있습니다.

Prestige Consumer Healthcare (NYSE:PBH) a publié ses résultats pour le premier trimestre de l'exercice 2026 avec un chiffre d'affaires de 249,5 millions de dollars, en baisse de 6,6 % sur un an, principalement en raison de contraintes d'approvisionnement de Clear Eyes. La société a enregistré un BPA dilué de 0,95 dollar, en hausse de 6 % par rapport à l'année précédente.

Dans une démarche stratégique, PBH a annoncé l'acquisition de Pillar5 Pharma, leur fournisseur actuel de soins oculaires, dont la finalisation est prévue au troisième trimestre de l'exercice 2026. La société a révisé ses prévisions pour l'exercice 2026, abaissant son objectif de chiffre d'affaires à 1 100-1 115 millions de dollars contre 1 140-1 155 millions, et ajustant ses prévisions de BPA à 4,50-4,58 dollars contre 4,70-4,82.

Malgré les défis, l'entreprise a démontré une solidité dans la croissance du segment international, une amélioration des marges brutes, et a généré un flux de trésorerie disponible solide de 78,2 millions de dollars. La société maintient un bilan sain avec un ratio d'endettement défini par les covenants de 2,4x.

Prestige Consumer Healthcare (NYSE:PBH) meldete die Ergebnisse für das erste Quartal des Geschäftsjahres 2026 mit einem Umsatz von 249,5 Millionen US-Dollar, was einem Rückgang von 6,6 % im Jahresvergleich entspricht, hauptsächlich aufgrund von Lieferengpässen bei Clear Eyes. Das Unternehmen verzeichnete einen verwässerten Gewinn je Aktie (EPS) von 0,95 US-Dollar, was einer Steigerung von 6 % gegenüber dem Vorjahr entspricht.

In einem strategischen Schritt kündigte PBH die Übernahme von Pillar5 Pharma an, ihrem derzeitigen Lieferanten für Augenpflegeprodukte, die voraussichtlich im dritten Quartal des Geschäftsjahres 2026 abgeschlossen wird. Das Unternehmen hat seine Prognose für das Geschäftsjahr 2026 angepasst und die Umsatzprognose von 1.140-1.155 Millionen US-Dollar auf 1.100-1.115 Millionen US-Dollar gesenkt sowie die EPS-Prognose von 4,70-4,82 US-Dollar auf 4,50-4,58 US-Dollar korrigiert.

Trotz Herausforderungen zeigte das Unternehmen Stärke im internationalen Segmentwachstum, verbesserte Bruttomargen und erzielte einen starken freien Cashflow von 78,2 Millionen US-Dollar. Das Unternehmen hält eine gesunde Bilanz mit einem vertraglich definierten Verschuldungsgrad von 2,4x.

Positive
  • Strong free cash flow of $78.2 million, up significantly from $53.6 million in prior year
  • International OTC Healthcare segment grew 6.1% to $37.0 million
  • Year-over-year improvement in gross margin
  • Strategic acquisition of Pillar5 Pharma to secure long-term eye care production capacity
  • Lower interest expense contributing to improved financial profile
Negative
  • Revenue declined 6.6% to $249.5 million due to eye care supply constraints
  • Net income decreased to $47.5 million from $49.1 million year-over-year
  • Lowered fiscal 2026 revenue guidance by approximately $40 million
  • Reduced EPS guidance from $4.70-$4.82 to $4.50-$4.58
  • Expected negative organic revenue growth of -1.5% to -3.0% for fiscal 2026

Insights

PBH reports declining Q1 revenue due to eye care supply issues; acquiring supplier Pillar5 to stabilize production; lowers FY2026 guidance.

Prestige Consumer Healthcare's Q1 fiscal 2026 results reveal a challenging start to the year with revenue declining 6.6% to $249.5 million compared to the prior year, primarily due to supply constraints for their Clear Eyes product. The company managed to deliver diluted EPS of $0.95, up approximately 6% year-over-year, despite the revenue challenges.

The most strategically significant announcement is PBH's agreement to acquire Pillar5 Pharma, their current eye care supplier. This vertical integration move directly addresses their supply chain vulnerabilities, as Clear Eyes is Pillar5's largest revenue source. Management expects this acquisition to be EPS-neutral initially, with closing anticipated in Q3 fiscal 2026.

PBH's financial health remains solid despite the revenue challenges, with Q1 free cash flow increasing dramatically to $78.2 million from $53.6 million in the prior year, driven by favorable working capital timing and lower interest expense. The company maintains a net debt position of approximately $0.9 billion with a leverage ratio of 2.4x.

Looking at segment performance, North American OTC Healthcare revenue fell to $212.6 million from $232.3 million, while International OTC Healthcare grew 6.1% to $37.0 million. Management has revised their fiscal 2026 outlook downward, now projecting revenue of $1,100-$1,115 million (previously $1,140-$1,155 million) and diluted EPS of $4.50-$4.58 (down from $4.70-$4.82). Free cash flow guidance remains unchanged at $245 million or more.

The temporary nature of the supply constraints, coupled with the strategic acquisition to ensure future supply stability, suggests this is a tactical setback rather than a fundamental business deterioration. Management's expectation for improved second-half performance indicates they view this as a transitional period that will strengthen their long-term competitive position in the eye care category.

  • Revenue of $249.5 million in Q1; decline driven by limited eye care supply
  • Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS of $0.95 in Q1, up approximately 6% versus prior year Adjusted Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS of $0.90
  • Announces agreement to acquire current eye care supplier Pillar5 Pharma
  • Revising fiscal 2026 revenue outlook to $1,100 to $1,115 million and Diluted EPSrticles/eps-explained-simple-example" title="Read: EPS Explained with a Simple Example: The Most Important Stock Metric" class="article-link" rel="noopener">Diluted EPS outlook to $4.50 to $4.58

TARRYTOWN, N.Y., Aug. 07, 2025 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its first quarter fiscal 2026 ended June 30, 2025.

“We experienced momentum in multiple areas of our business in the first quarter, including strong international segment growth, year-over-year improvement in gross margin, and solid quarterly free cash flow. Unfortunately, these positives were offset by Clear Eyes supply constraints, which resulted in lower-than-expected shipments. As we look forward, we continue to expect planned improvements in eye care supply in the second half, further helped by this morning’s announcement to acquire Pillar5. In addition, we believe the benefits of our diverse portfolio, financial profile and free cash flow should continue to drive long-term shareholder value,� said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

First Fiscal Quarter Ended June 30, 2025

Reported revenues in the first quarter of fiscal 2026 of $249.5 million decreased 6.6% from $267.1 million in the first quarter of fiscal 2025 and decreased 6.4% excluding the impact of foreign currency. The revenue performance versus the prior year comparable period reflected limited ability to supply demand for Clear Eyes and the expected headwind associated with accelerated order timing in Q4 of the prior year, partially offset by continued strong growth in the International OTC segment.

Reported net income for the first quarter of fiscal 2026 totaled $47.5 million, compared to the prior year first quarter’s net income of $49.1 million and adjusted net income of $45.0 million. Diluted earnings per share of $0.95 for the first quarter of fiscal 2026 compared to $0.98 diluted earnings per share in the prior year comparable period and $0.90 on a non-GAAP basis.

The adjustment to the first quarter of fiscal 2025 relates to a discrete tax item pertaining to the release of a reserve for an uncertain tax position due to the statute of limitations expiring.

Free Cash Flow and Balance Sheet

The Company's net cash provided by operating activities for the first quarter of fiscal 2026 was $79.0 million, compared to $54.8 million during the prior year comparable period. Non-GAAP free cash flow in the first quarter of fiscal 2026 of $78.2 million increased compared to $53.6 million in the prior year first quarter. The material increase in free cash flow was attributable to the timing of working capital and lower interest expense.

In fiscal 2025, the Company repurchased approximately 0.4 million shares at a total investment of approximately $34.8 million. The Company's net debt position as of June, 2025 was approximately $0.9 billion, resulting in a covenant-defined leverage ratio of 2.4x.

Segment Review

North American OTC Healthcare: Segment revenues of $212.6 million for the first quarter fiscal 2026 decreased compared to the prior year comparable quarter's segment revenues of $232.3 million. The revenue decrease was primarily attributable to lower Eye & Ear Care category sales, driven primarily by limited ability to supply demand for Clear Eyes and the expected headwind associated with accelerated order timing in Q4 of the prior year.

International OTC Healthcare: Fiscal first quarter 2026 revenues of $37.0 million increased 6.1% compared to $34.8 million reported in the prior year comparable period. The revenue performance was driven by broad-based growth across geographies.

Acquisition of Supplier Pillar5 Pharma

As part of a long-term strategy to expand eye care production capacity, the Company has entered into a definitive agreement to acquire Pillar5 Pharma Inc. (“Pillar5�), a leading sterile ophthalmic manufacturer and current Clear Eyes supplier from ANJAC SAS, a French family-owned industrial group with production sites across health, beauty, personal care and food supplements. Clear Eyes is the largest revenue source for Pillar5. The transaction is expected to be approximately neutral to EPS and is expected to close in the third quarter fiscal 2026 based on fulfillment of certain closing conditions.

Based in Ontario, Canada, Pillar5 is a well-established key manufacturer of multi-dose sterile OTC ophthalmic products, which represents the majority of revenue, as well as a producer of certain solid dose products.

Updated Fiscal 2026 Initial Outlook

“Although we are disappointed with our start to fiscal 2026 due to our eye care category performance, we are pleased to announce the acquisition of Pillar5 from ANJAC, who has been a valued partner in producing Clear Eyes since 2016. The acquisition of a sterile eye care manufacturing site is a strategic component to our objective of securing near-term supply and building long-term supply chain capacity to meet the robust demand we anticipate for Clear Eyes. While we expect third party partner manufacturing to remain complementary to our production at Pillar5, we believe securing an internal source of reliable sterile eye manufacturing best supports our eye care business and further enables our long-term growth opportunities,� said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

He continued, “Primarily to reflect the supply chain shortfalls in eye care that are expected to persist in the first half of fiscal 2026, we now anticipate revenue of $1,100 to $1,115 million. For the second half, we still anticipate year-over-year growth from an acceleration of supply in eye care thanks to our multi-year strategy to enhance long-term capacity. For profitability, we now anticipate EPS of $4.50 to $4.58 driven by our strong financial profile that includes gross margin expansion and lower interest expense. Our free cash flow forecast of $245 million or more is unchanged, along with our commitment to a strong balance sheet and disciplined capital allocation. We believe the benefits of our robust free cash flow and the attributes of our diverse portfolio of needs-based products leaves us well positioned to continue generating consistent financial results and cash flow, which should generate superior shareholder value creation over time,� Mr. Lombardi concluded.

Initial Fiscal 2026 Outlook
Current Fiscal 2026 Outlook
Revenue
$1,140 to $1,155 million
$1,100 to $1,115 million
Organic Revenue Growth
Approximately 1% to 2%
Approximate 1.5% to 3.0% decrease
Diluted E.P.S.
$4.70 to $4.82
$4.50 to $4.58
Free Cash Flow
$245 million or more
$245 million or more

First Quarter Fiscal 2026 Conference Call, Accompanying Slide Presentation and Replay

The Company will host a conference call to review its first quarter fiscal 2026 results today, August 7, 2025 at 8:30 a.m. ET. The Company provides a live Internet webcast, a slide presentation to accompany the call, as well as an archived replay, all of which can be accessed from the Investor Relations page of the Company's website at . To participate in the conference call via phone, participants may register for the call to receive dial-in details and a unique pin. While not required, it is recommended to join 10 minutes prior to the event start. The slide presentation can be accessed from the Investor Relations page of the Company’s website by clicking on Webcasts and Presentations.

A conference call replay will be available for approximately one week following completion of the live call and can be accessed on the Company’s Investor Relations page.

Non-GAAP and Other Financial Information

In addition to financial results reported in accordance with generally accepted accounting principles (GAAP), we have provided certain non-GAAP financial information in this release to aid investors in understanding the Company's performance. Each non-GAAP financial measure is defined and reconciled to its most closely related GAAP financial measure in the “About Non-GAAP Financial Measures� section at the end of this earnings release.

Note Regarding Forward-Looking Statements

This news release contains "forward-looking statements" within the meaning of the federal securities laws that are intended to qualify for the Safe Harbor from liability established by the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" generally can be identified by the use of forward-looking terminology such as "guidance," "outlook," "may," "will," "would," “believe,� "expect," “look forward,� "anticipate,� “planned,� “positioned,� or "continue" (or the negative or other derivatives of each of these terms) or similar terminology. The "forward-looking statements" include, without limitation, statements regarding the Company's future operating results including revenues, organic growth, diluted earnings per share, and free cash flow; the expected impact of Pillar5 on the Company’s revenue and EPS; the timing of the closing of Pillar5; the continued reliance on third-party manufacturing and the impact of acquiring Pillar5 on the supply of eye care products; and the Company’s ability to enhance shareholder value through its business strategy, diverse product portfolio, solid balance sheet, generation of free cash flow, and efficient capital allocation. These statements are based on management's estimates and assumptions with respect to future events and financial performance and are believed to be reasonable, though are inherently uncertain and difficult to predict. Actual results could differ materially from those expected as a result of a variety of factors, including the impact of business and economic conditions, including as a result of evolving U.S. and international tariffs, labor shortages, inflation and geopolitical instability, consumer trends, the impact of the Company’s advertising and marketing and new product development initiatives, customer inventory management initiatives, fluctuating foreign exchange rates, competitive pressures, the ability to meet Pillar5 closing conditions, and the ability of the Company’s manufacturing operations and third party manufacturers and logistics providers and suppliers to meet demand for its products and to avoid inflationary cost increases and disruption as a result of labor shortages. A discussion of other factors that could cause results to vary is included in the Company's Annual Report on Form 10-K for the year ended March 31, 2025 and other periodic reports filed with the Securities and Exchange Commission.

About Prestige Consumer Healthcare Inc.

Prestige Consumer Healthcare is a leading consumer healthcare products company with sales throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Monistat® and Summer’s Eve® women's health products, BC® and Goody's® pain relievers, Clear Eyes® and TheraTears® eye care products, DenTek® specialty oral care products, Dramamine® motion sickness treatments, Fleet® enemas and glycerin suppositories, Chloraseptic® and Luden's® sore throat treatments and drops, Compound W® wart treatments, Little Remedies® pediatric over-the-counter products, Boudreaux’s Butt Paste® diaper rash ointments, Nix® lice treatment, Debrox® earwax remover, Gaviscon® antacid in Canada, and Hydralyte® rehydration products and the Fess® line of nasal and sinus care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com


Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income and Comprehensive Income
(Unaudited)
Three Months Ended June
30,
(In thousands, except per share data)20252024
Total Revenues$249,530$267,142
Cost of Sales
Cost of sales excluding depreciation106,715118,697
Cost of sales depreciation2,4842,423
Cost of sales109,199121,120
Gross profit140,331146,022
Operating Expenses
Advertising and marketing34,93739,365
General and administrative28,45628,910
Depreciation and amortization5,1825,701
Total operating expenses68,57573,976
Operating income71,75672,046
Other expense
Interest expense, net10,20313,137
Other (income) expense, net(224)496
Total other expense, net9,97913,633
Income before income taxes61,77758,413
Provision for income taxes14,3119,345
Net income$47,466$49,068
Earnings per share:
Basic$0.96$0.98
Diluted$0.95$0.98
Weighted average shares outstanding:
Basic49,47549,886
Diluted49,83350,267
Comprehensive income, net of tax:
Currency translation adjustments5,4043,160
Total other comprehensive income5,4043,160
Comprehensive income$52,870$52,228



Prestige Consumer Healthcare Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)June 30, 2025March 31, 2025
Assets
Current assets
Cash and cash equivalents$139,502$97,884
Accounts receivable, net of allowance of $14,065 and $16,314, respectively168,405194,293
Inventories153,126147,709
Prepaid expenses and other current assets19,4858,442
Total current assets480,518448,328
Property, plant and equipment, net73,78674,548
Operating lease right-of-use assets26,91828,238
Finance lease right-of-use assets, net24,23625,056
Goodwill528,314527,425
Intangible assets, net2,294,8292,295,350
Other long-term assets3,0243,273
Total Assets$3,431,625$3,402,218
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable22,20618,925
Accrued interest payable15,07815,703
Operating lease liabilities, current portion6,0726,047
Finance lease liabilities, current portion2,5302,490
Other accrued liabilities63,78263,458
Total current liabilities109,668106,623
Long-term debt, net992,749992,357
Deferred income tax liabilities426,947419,594
Long-term operating lease liabilities, net of current portion21,39722,732
Long-term finance lease liabilities, net of current portion19,97620,624
Other long-term liabilities5,4065,391
Total Liabilities1,576,1431,567,321
Total Stockholders' Equity1,855,4821,834,897
Total Liabilities and Stockholders' Equity$3,431,625$3,402,218



Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended June 30,
(In thousands)20252024
Operating Activities
Net income$47,466$49,068
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization7,6668,124
Loss on disposal of property and equipment5
Deferred and other income taxes5,827612
Amortization of debt origination costs442454
Stock-based compensation costs3,6823,425
Non-cash operating lease cost1,9471,706
Changes in operating assets and liabilities:
Accounts receivable27,3436,368
Inventories(4,441)(13,048)
Prepaid expenses and other current assets(10,946)2,359
Accounts payable2,756591
Accrued liabilities(813)(2,061)
Operating lease liabilities(1,916)(1,883)
Other(944)
Net cash provided by operating activities79,01354,776
Investing Activities
Purchases of property, plant and equipment(838)(1,152)
Other(1,100)(978)
Net cash used in investing activities(1,938)(2,130)
Financing Activities
Term loan repayments(35,000)
Payments of finance leases(608)(720)
Proceeds from exercise of stock options3,1551,975
Fair value of shares surrendered as payment of tax withholding(4,054)(5,801)
Repurchase of common stock(34,775)(25,976)
Net cash used in financing activities(36,282)(65,522)
Effects of exchange rate changes on cash and cash equivalents825663
Increase in cash and cash equivalents41,618(12,213)
Cash and cash equivalents - beginning of period97,88446,469
Cash and cash equivalents - end of period$139,502$34,256
Interest paid$11,501$13,670
Income taxes paid$3,253$3,661


Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income
Business Segments
(Unaudited)
Three Months Ended June 30, 2025
(In thousands)North American
OTC Healthcare
International
OTC Healthcare
Consolidated
Total segment revenues*$212,578$36,952$249,530
Cost of sales92,17817,021109,199
Gross profit120,40019,931140,331
Advertising and marketing28,9545,98334,937
Contribution margin$91,446$13,948$105,394
Other operating expenses33,638
Operating income$71,756

*Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment.

Three Months Ended June 30, 2024
(In thousands)North American
OTC Healthcare
International
OTC Healthcare
Consolidated
Total segment revenues*$232,316$34,826$267,142
Cost of sales105,55915,561121,120
Gross profit126,75719,265146,022
Advertising and marketing33,7535,61239,365
Contribution margin$93,004$13,653$106,657
Other operating expenses34,611
Operating income$72,046

* Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment.

About Non-GAAP Financial Measures

In addition to financial results reported in accordance with GAAP, we disclose certain Non-GAAP financial measures ("NGFMs"), including, but not limited to, Non-GAAP Organic Revenues, Non-GAAP Organic Revenue Change Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, and Net Debt. We use these NGFMs internally, along with GAAP information, in evaluating our operating performance and in making financial and operational decisions. We believe that the presentation of these NGFMs provides investors with greater transparency, and provides a more complete understanding of our business than could be obtained absent these disclosures, because the supplemental data relating to our financial condition and results of operations provides additional ways to view our operation when considered with both our GAAP results and the reconciliations below. In addition, we believe that the presentation of each of these NGFMs is useful to investors for period-to-period comparisons of results in assessing shareholder value, and we use these NGFMs internally to evaluate the performance of our personnel and also to evaluate our operating performance and compare our performance to that of our competitors.

These NGFMs are not in accordance with GAAP, should not be considered as a measure of profitability or liquidity, and may not be directly comparable to similarly titled NGFMs reported by other companies. These NGFMs have limitations and they should not be considered in isolation from or as an alternative to their most closely related GAAP measures reconciled below. Investors should not rely on any single financial measure when evaluating our business. We recommend investors review the GAAP financial measures included in this earnings release. When viewed in conjunction with our GAAP results and the reconciliations below, we believe these NGFMs provide greater transparency and a more complete understanding of factors affecting our business than GAAP measures alone.

NGFMs Defined

We define our NGFMs presented herein as follows:

  • Non-GAAP Organic Revenues: GAAP Total Revenues excluding the impact of foreign currency exchange rates in the periods presented.
  • Non-GAAP Organic Revenue Change Percentage: Calculated as the change in Non-GAAP Organic Revenues from prior year divided by prior year Non-GAAP Organic Revenues.
  • Non-GAAP EBITDA: GAAP Net Income before interest expense, net, provision for income taxes, and depreciation and amortization.
  • Non-GAAP EBITDA Margin: Calculated as Non-GAAP EBITDA divided by GAAP Total Revenues.
  • Non-GAAP Adjusted Net Income: GAAP Net Income adjusted for a normalized tax rate.
  • Non-GAAP Adjusted Diluted EPS: Calculated as Non-GAAP Adjusted Net Income, divided by the diluted weighted average number of shares outstanding during the period.
  • Non-GAAP Free Cash Flow: Calculated as GAAP Net cash provided by operating activities less cash paid for capital expenditures.
  • Net Debt: Calculated as total principal amount of debt outstanding ($1,000,000 at June30, 2025) less cash and cash equivalents ($139,502 at June30, 2025). Amounts in thousands.

The following tables set forth the reconciliations of each of our NGFMs (other than Net Debt, which is reconciled above) to their most directly comparable financial measures presented in accordance with GAAP.

Reconciliation of GAAP Total Revenues to Non-GAAP Organic Revenues and related Non-GAAP Organic Revenue Change percentage:

Three Months Ended June 30,
20252024
(In thousands)
GAAP Total Revenues$249,530$267,142
Revenue Change(6.6)%
Adjustments:
Impact of foreign currency exchange rates(670)
Total adjustments(670)
Non-GAAP Organic Revenues$249,530$266,472
Non-GAAP Organic Revenue Change(6.4)%


Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin:

Three Months Ended June 30,
20252024
(In thousands)
GAAP Net Income$47,466$49,068
Interest expense, net10,20313,137
Provision for income taxes14,3119,345
Depreciation and amortization7,6668,124
Non-GAAP EBITDA$79,646$79,674
Non-GAAP EBITDA Margin31.9%29.8%

Reconciliation of GAAP Net Income and GAAP Diluted Earnings Per Share to Non-GAAP Adjusted Net Income and related Non-GAAP Adjusted Diluted Earnings Per Share:

Three Months Ended June 30,
20252025
Diluted
EPS
20242024
Diluted
EPS
(In thousands, except per share data)
GAAP Net Income and Diluted EPS$47,466$0.95$49,068$0.98
Adjustments:
Normalized tax rate adjustment (1)(4,030)$(0.08)
Total adjustments(4,030)(0.08)
Non-GAAP Adjusted Net Income and Adjusted Diluted EPS$47,466$0.95$45,038$0.90

(1) Income tax adjustment to adjust for discrete income tax items.

Reconciliation of GAAP Net Income to Non-GAAP Free Cash Flow:

Three Months Ended June 30,
20252024
(In thousands)
GAAP Net Income$47,466$49,068
Adjustments:
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows19,56414,326
Changes in operating assets and liabilities as shown in the Statement of Cash Flows11,983(8,618)
Total adjustments31,5475,708
GAAP Net cash provided by operating activities79,01354,776
Purchases of property and equipment(838)(1,152)
Non-GAAP Free Cash Flow$78,175$53,624

Outlook for Fiscal Year 2026:
Reconciliation of Projected GAAP Net cash provided by operating activities to Projected Non-GAAP Free Cash Flow:

(In millions)
Projected FY'26 GAAP Net cash provided by operating activities$255
Additions to property and equipment for cash(10)
Projected FY'26 Non-GAAP Free Cash Flow$245


Investor Relations Contact
Phil Terpolilli, CFA, 914-524-6819



FAQ

What were Prestige Consumer Healthcare's (PBH) Q1 2026 earnings results?

PBH reported Q1 2026 revenue of $249.5 million (down 6.6% YoY) and diluted EPS of $0.95 (up 6% YoY). The decline was primarily due to Clear Eyes supply constraints.

Why did PBH acquire Pillar5 Pharma and when will the deal close?

PBH acquired Pillar5 to secure long-term eye care production capacity and improve supply chain reliability for Clear Eyes products. The deal is expected to close in Q3 fiscal 2026 and be approximately neutral to EPS.

What is PBH's revised revenue guidance for fiscal 2026?

PBH revised its fiscal 2026 revenue guidance down to $1,100-$1,115 million from the previous $1,140-$1,155 million, primarily due to eye care supply chain shortfalls expected to persist in the first half of fiscal 2026.

How much free cash flow did PBH generate in Q1 2026?

PBH generated $78.2 million in free cash flow during Q1 2026, a significant increase from $53.6 million in the prior year, driven by improved working capital timing and lower interest expense.

What was PBH's performance in the International OTC Healthcare segment?

The International OTC Healthcare segment revenue increased 6.1% to $37.0 million in Q1 2026, driven by broad-based growth across geographies.
Prestige Consmr Healthcare Inc

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Drug Manufacturers - Specialty & Generic
Pharmaceutical Preparations
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