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Prestige Consumer Healthcare Inc. Reports Second Quarter and First Half Fiscal 2026 Results

•Revenue of $274.1 million in Q2, ahead of outlook
•Diluted EPS of $0.86 in Q2 and Adjusted Diluted EPS of $1.07, versus prior year Q2 Diluted EPS of $1.09
•Repurchased approximately 1.1 million shares opportunistically in Q2
•Fiscal 2026 revenue outlook unchanged; Adjusted Diluted EPS outlook updated to $4.54 to $4.58, high end of previous range

TARRYTOWN, N.Y.--(GLOBE NEWSWIRE)-November 6, 2025-- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its second quarter and first six months ended September 30, 2025.

“Our second quarter results surpassed our sales and earnings expectations helped primarily by Clear Eyes® supply timing and the timing of certain retailer orders. We remain pleased with the performance of the remainder of our business, where we continue to focus on brand-building behind our diverse portfolio of leading brands and maintaining our leading financial profile. This proven formula continues to generate robust free cash flow, which enabled us to repurchase over one million in shares during the second quarter to further enhance shareholder value,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

Second Fiscal Quarter Ended September 30, 2025

Reported revenues in the second quarter of fiscal 2026 of $274.1 million decreased 3.4% from $283.8 million in the second quarter of fiscal 2025 and decreased 3.3% excluding the impact of foreign currency. The revenue decline versus the prior year comparable period was primarily driven by lower Ear & Eye Care category sales from limited ability to supply demand for Clear Eyes.

Reported net income for the second quarter of fiscal 2026 totaled $42.2 million and non-GAAP adjusted net income totaled $52.5 million, compared to the prior year second quarter’s net income of $54.4 million. Diluted earnings per share of $0.86 and non-GAAP adjusted diluted earnings per share of $1.07 for the second quarter of fiscal 2026 compared to $1.09 diluted earnings per share in the prior year comparable period.

The adjustment to the second quarter of fiscal 2026 relates to a discrete tax item pertaining to establishing a taxable presence in a new state.

Six Months Ended September 30, 2025

Reported revenues for the first six months of fiscal 2026 totaled $523.6 million and compared to revenues of $550.9 million for the first six months of fiscal 2025. Revenues decreased 5.0% versus the prior year comparable period and 4.8% excluding the impact of foreign currency. The revenue performance for the first six months reflected the anticipated limited ability to supply strong demand for Clear Eyes as well as the Q1 headwind associated with accelerated order timing in Q4 of the prior year.

Reported net income for the first six months of fiscal 2026 totaled $89.7 million versus the prior year comparable period net income of $103.4 million. Non-GAAP adjusted net income for the first six







months of fiscal 2026 totaled $99.9 million versus the prior year comparable period’s adjusted net income of $99.4 million. Diluted earnings per share were $1.81 for the first six months of fiscal 2026 compared to $2.06 per share in the prior year comparable period. Non-GAAP adjusted diluted earnings per share of $2.02 for the first six months of fiscal 2026 increased over the prior year comparable period’s adjusted earnings per share of $1.98.

The adjustment to the first six months of fiscal 2026 relates to a discrete tax item pertaining to establishing a taxable presence in a new state. The adjustment to the first six months of fiscal 2025 relates to a discrete tax item in the first quarter 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 six months of fiscal 2026 was $136.5 million, compared to $124.6 million during the prior year comparable period. Non-GAAP free cash flow in the first six months of fiscal 2026 was $133.6 million compared to $121.4 million in the prior year comparable period.

In the second quarter fiscal 2026, the Company opportunistically repurchased approximately 1.1 million shares at a total investment of approximately $75.0 million. For the first six months fiscal 2026, the total shares repurchased were approximately 1.6 million at a total cost of approximately $109.8 million.

The Company's net debt position as of September 30, 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 $230.8 million for the second quarter fiscal 2026 decreased compared to the prior year comparable quarter's segment revenues of $239.8 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.

For the first six months of the current fiscal year, reported revenues for the North American OTC segment were $443.3 million, which compared to $472.1 million in the prior year comparable period. The revenue decrease was primarily attributable to lower Eye & Ear Care category sales, driven by limited ability to supply demand for Clear Eyes as well as the expected headwind associated with accelerated order timing in Q4 of the prior year.

International OTC Healthcare: Fiscal second quarter 2026 revenues of $43.4 million compared to $44.0 million reported in the prior year comparable period. The lower revenue performance was driven by lower Eye & Ear Care category sales and the timing of distributor orders.

For the first six months of the current fiscal year, reported revenues for the International OTC Healthcare segment were $80.3 million, an increase of approximately 2% over the prior year comparable period’s revenues of $78.8 million, or an increase of approximately 3% excluding the effects of foreign currency.

Updated Fiscal 2026 Outlook








“Looking ahead, for the full-year, we remain committed to rebuilding long-term supply chain capacity in Clear Eyes and expect to close the Pillar5 transaction as planned. We are reaffirming our fiscal 2026 net sales outlook which anticipates eye care supply improvements in second half thanks to these long-term capacity efforts. For profitability, we are now expecting earnings per share at the higher end of our previous range as well as free cash flow of $245 million or more, driven by our strong financial profile and share repurchases executed in the second quarter,” he continued.

“We continue to remain focused on long-term brand-building that drives long-term organic growth, alongside disciplined capital allocation that helps generate superior shareholder value creation over time,” Mr. Lombardi concluded.
Prior Fiscal 2026 Outlook
Current Fiscal 2026 Outlook
Revenue
$1,100 to $1,115 million$1,100 to $1,115 million
Organic Revenue Growth
Approximate 1.5% to 3.0% decreaseApproximate 1.5% to 3.0% decrease
Adjusted Diluted E.P.S.
$4.50 to $4.58$4.54 to $4.58
Free Cash Flow
$245 million or more$245 million or more


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

The Company will host a conference call to review its second quarter and first half fiscal 2026 results today, November 6, 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 http://www.prestigeconsumerhealthcare.com/. To participate in the conference call via phone, participants may register for the call here 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 “on track,” "outlook," "may," "will," "would," “believe,” "expect," “look forward,” "anticipate,” “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 Company’s ability to maintain its financial profile; improvements in eye care supply and the impact of acquiring Pillar5 on the supply of eye care products; and the Company’s ability to enhance shareholder value through its brand-building focus and disciplined 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 and trade actions, 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. 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 September 30, Six Months Ended September 30,
(In thousands, except per share data)2025 20242025 2024
Total Revenues$274,114  $283,785 $523,644 $550,927 
Cost of Sales   
Cost of sales excluding depreciation120,043  124,041 226,758  242,738 
Cost of sales depreciation2,492 2,362 4,976 4,785 
Cost of sales122,535 126,403 231,734 247,523 
Gross profit151,579  157,382 291,910  303,404 
Operating Expenses   
Advertising and marketing38,701  41,409 73,638  80,774 
General and administrative28,037  26,067 56,493  54,977 
Depreciation and amortization5,171  5,567 10,353  11,268 
Total operating expenses71,909  73,043 140,484  147,019 
Operating income79,670  84,339 151,426  156,385 
Other expense   
Interest expense, net10,036 12,281 20,239 25,418 
Other expense, net501 395 277 891 
Total other expense, net10,537  12,676 20,516  26,309 
Income before income taxes69,133 71,663 130,910 130,076 
Provision for income taxes26,922  17,286 41,233  26,631 
          Net income $42,211  $54,377 $89,677  $103,445 
Earnings per share:   
Basic$0.86  $1.10 $1.82  $2.08 
Diluted$0.86  $1.09 $1.81  $2.06 
Weighted average shares outstanding:   
Basic49,025  49,652 49,249  49,768 
Diluted49,264  49,998 49,547  50,132 
Comprehensive income, net of tax:
Currency translation adjustments655 4,799 6,059 7,959 
Total other comprehensive income655 4,799 6,059 7,959 
Comprehensive income$42,866 $59,176 $95,736 $111,404 








Prestige Consumer Healthcare Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands)
September 30, 2025March 31, 2025
Assets
Current assets
Cash and cash equivalents$119,106 $97,884 
     Accounts receivable, net of allowance of $19,003 and $16,314, respectively
199,000 194,293 
Inventories158,996 147,709 
Prepaid expenses and other current assets20,309 8,442 
Total current assets497,411 448,328 
Property, plant and equipment, net73,100 74,548 
Operating lease right-of-use assets25,427 28,238 
Finance lease right-of-use assets, net23,416 25,056 
Goodwill528,411 527,425 
Intangible assets, net2,291,073 2,295,350 
Other long-term assets3,442 3,273 
Total Assets$3,442,280 $3,402,218 
Liabilities and Stockholders' Equity  
Current liabilities  
Accounts payable41,924 18,925 
Accrued interest payable15,578 15,703 
Operating lease liabilities, current portion6,048 6,047 
Finance lease liabilities, current portion2,572 2,490 
Other accrued liabilities68,482 63,458 
Total current liabilities134,604 106,623 
Long-term debt, net993,146 992,357 
Deferred income tax liabilities444,924 419,594 
Long-term operating lease liabilities, net of current portion19,939 22,732 
Long-term finance lease liabilities, net of current portion19,319 20,624 
Other long-term liabilities5,379 5,391 
Total Liabilities1,617,311 1,567,321 
Total Stockholders' Equity1,824,969 1,834,897 
Total Liabilities and Stockholders' Equity$3,442,280 $3,402,218 























Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 Six Months Ended September 30,
(In thousands)2025 2024
Operating Activities 
Net income $89,677 $103,445 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization15,329 16,053 
Loss on disposal of property and equipment131 83 
Deferred and other income taxes23,211 4,364 
Amortization of debt origination costs889 882 
Stock-based compensation costs5,449 5,559 
Non-cash operating lease cost3,879 3,430 
Changes in operating assets and liabilities:
Accounts receivable(2,580)15,191 
Inventories(10,277)(16,471)
Prepaid expenses and other current assets(11,767)3,787 
Accounts payable22,545 (7,596)
Accrued liabilities3,923 584 
Operating lease liabilities(3,839)(3,771)
Other(71)(964)
Net cash provided by operating activities136,499  124,576 
Investing Activities   
Purchases of property, plant and equipment(2,940)(3,179)
Other(1,927)(978)
Net cash (used in) investing activities(4,867) (4,157)
Financing Activities   
Term loan repayments— (75,000)
Payments of finance leases(1,147)(1,688)
Proceeds from exercise of stock options3,907 3,592 
Fair value of shares surrendered as payment of tax withholding(4,216)(5,832)
Repurchase of common stock(109,775)(37,794)
Net cash (used in) financing activities(111,231) (116,722)
Effects of exchange rate changes on cash and cash equivalents821 1,374 
Increase in cash and cash equivalents21,222  5,071 
Cash and cash equivalents - beginning of period97,884 46,469 
Cash and cash equivalents - end of period$119,106  $51,540 
Interest paid$21,879 $25,551 
Income taxes paid$25,088 $18,691 







Prestige Consumer Healthcare Inc.
Condensed Consolidated Statements of Income
Business Segments
(Unaudited)

 Three Months Ended September 30, 2025
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$230,756 $43,358 $274,114 
Cost of sales102,348 20,187 122,535 
Gross profit128,408 23,171 151,579 
Advertising and marketing32,033 6,668 38,701 
Contribution margin$96,375 $16,503 $112,878 
Other operating expenses 33,208 
Operating income $79,670 
*Intersegment revenues of $0.6 million were eliminated from the North American OTC Healthcare segment.

 Six Months Ended September 30, 2025
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$443,334 $80,310 $523,644 
Cost of sales194,526 37,208 231,734 
Gross profit 248,808 43,102 291,910 
Advertising and marketing60,987 12,651 73,638 
Contribution margin$187,821 $30,451 $218,272 
Other operating expenses 66,846 
Operating income $151,426 
*Intersegment revenues of $1.2 million were eliminated from the North American OTC Healthcare segment.

























 
Three Months Ended September 30, 2024
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$239,811 $43,974 $283,785 
Cost of sales107,782 18,621 126,403 
Gross profit 132,029 25,353 157,382 
Advertising and marketing34,889 6,520 41,409 
Contribution margin$97,140 $18,833 $115,973 
Other operating expenses 31,634 
Operating income $84,339 
* Intersegment revenues of $0.9 million were eliminated from the North American OTC Healthcare segment.

 
Six Months Ended September 30, 2024
(In thousands)North American OTC HealthcareInternational OTC HealthcareConsolidated
Total segment revenues*$472,127 $78,800 $550,927 
Cost of sales213,341 34,182 247,523 
Gross profit 258,786 44,618 303,404 
Advertising and marketing68,642 12,132 80,774 
Contribution margin$190,144 $32,486 $222,630 
Other operating expenses 66,245 
Operating income $156,385 
* Intersegment revenues of $1.6 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 September 30, 2025) less cash and cash equivalents ($119,106 at September 30, 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 September 30, Six Months Ended September 30,
2025202420252024
(In thousands)
GAAP Total Revenues$274,114 $283,785 $523,644 $550,927 
Revenue Change(3.4)%(5.0)%
Adjustments:
Impact of foreign currency exchange rates— (370)— (1,040)
Total adjustments— (370)— (1,040)
Non-GAAP Organic Revenues$274,114 $283,415 $523,644 $549,887 
Non-GAAP Organic Revenue Change(3.3)%(4.8)%
Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin:
Three Months Ended September 30, Six Months Ended September 30,
2025202420252024
(In thousands)
GAAP Net Income $42,211  $54,377 $89,677  $103,445 
Interest expense, net10,036 12,281 20,239 25,418 
Provision for income taxes26,922  17,286 41,233  26,631 
Depreciation and amortization7,663 7,929 15,329 16,053 
Non-GAAP EBITDA$86,832 $91,873 $166,478 $171,547 
Non-GAAP EBITDA Margin31.7 %32.4 %31.8 %31.1 %

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 September 30, Six Months Ended September 30,
20252025 Diluted EPS20242024 Diluted EPS20252025 Diluted EPS20242024 Diluted EPS
(In thousands, except per share data)
GAAP Net Income and Diluted EPS$42,211 $0.86 $54,377 $1.09 $89,677 $1.81 $103,445 $2.06 
Adjustments:
Normalized tax rate adjustment (1)
10,261 0.21 — — 10,261 0.21 (4,030)$(0.08)
Total adjustments10,261 0.21 — — 10,261 0.21 (4,030)(0.08)
Non-GAAP Adjusted Net Income and Adjusted Diluted EPS$52,472 $1.07 $54,377 $1.09 $99,938 $2.02 $99,415 $1.98 
(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 September 30, Six Months Ended September 30,
2025202420252024
(In thousands)
GAAP Net Income $42,211  $54,377 $89,677  $103,445 
Adjustments:
Adjustments to reconcile net income to net cash provided by operating activities as shown in the Statement of Cash Flows29,324 16,045 48,888 30,371 
Changes in operating assets and liabilities as shown in the Statement of Cash Flows(14,049)(622)(2,066)(9,240)
Total adjustments15,275 15,423 46,822 21,131 
GAAP Net cash provided by operating activities57,486 69,800 136,499 124,576 
Purchases of property and equipment(2,102)(2,027)(2,940)(3,179)
Non-GAAP Free Cash Flow$55,384 $67,773 $133,559 $121,397 

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 


Reconciliation of Projected GAAP Diluted EPS to Projected Non-GAAP Adjusted Diluted EPS:
LowHigh
Projected FY'26 GAAP Diluted EPS$4.33 $4.37 
Adjustments:
Normalized tax rate adjustment (1)
0.210.21
Projected FY'26 Non-GAAP Adjusted Diluted EPS$4.54 $4.58 
(1) Income tax adjustment to adjust for discrete income tax items.