Prestige Consumer Healthcare Inc. reported financial results for its third fiscal quarter and the first nine months ended December 31, 2025.

Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its third quarter and nine months ended December 31, 2025.

"We exceeded our third quarter revenue outlook and delivered solid profitability in the quarter, which reflected the benefits of our diverse business model and strong financial profile. We are pleased with these results, especially when navigating the challenging consumer backdrop we've experienced year-to-date. As expected, we continued to make progress toward improving Clear Eyes® supply, increasing sales sequentially and closing on the acquisition of Pillar5 in December. Furthermore, our superior free cash flow and low leverage allowed us to repurchase approximately 0.8 million shares in the third quarter to further enhance shareholder value," said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare.

Third Fiscal Quarter Ended December 31, 2025

Reported revenues in the third quarter of fiscal 2026 of $283.4 million decreased 2.4% from $290.3 million in the third quarter of fiscal 2025 and decreased 2.2% 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 as a result of limited ability to supply demand for Clear Eyes®.

Reported net income for the third quarter of fiscal 2026 totaled $46.7 million and non-GAAP adjusted net income totaled $54.9 million, compared to the prior year third quarter's net income of $61.0 million. Diluted earnings per share of $0.97 and non-GAAP adjusted diluted earnings per share of $1.14 for the third quarter of fiscal 2026 compared to diluted earnings per share of $1.22 in the prior year comparable period.

The adjustments to the third quarter of fiscal 2026 relate to the write off of a supplier loan, professional costs associated with the Pillar5 acquisition, and the applicable tax impact associated with these items.

Nine Months Ended December 31, 2025

Reported revenues for the first nine months of fiscal 2026 totaled $807.1 million and compared to revenues of $841.2 million for the first nine months of fiscal 2025. Revenues decreased 4.1% versus the prior year comparable period and 3.9% excluding the impact of foreign currency. The revenue performance for the first nine months reflected the 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 nine months of fiscal 2026 totaled $136.4 million versus the prior year comparable period net income of $164.5 million. Non-GAAP adjusted net income for the first nine months of fiscal 2026 totaled $154.8 million versus the prior year comparable period's adjusted net income of $160.4 million. Diluted earnings per share were $2.78 for the first nine months of fiscal 2026 compared to $3.28 per share in the prior year comparable period. Non-GAAP adjusted diluted earnings per share of $3.16 for the first nine months of fiscal 2026 compared to the prior year comparable period's adjusted diluted earnings per share of $3.20.

The adjustments to the first nine months of fiscal 2026 relate to the write off of a supplier loan, professional costs associated with the Pillar5 acquisition, and the applicable tax impact associated with these items, as well as a discrete tax item pertaining to establishing a taxable presence in a new state. The adjustment to the first nine 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 nine months of fiscal 2026 was $214.8 million, compared to $189.7 million during the prior year comparable period. Non-GAAP free cash flow in the first nine months of fiscal 2026 was $208.8 million compared to $184.9 million in the prior year comparable period.

In the third quarter fiscal 2026, the Company opportunistically repurchased approximately 0.8 million shares at a total investment of $45.8 million. For the first nine months of fiscal 2026, the total shares repurchased were approximately 2.3 million at a total cost of $155.6 million.

The Company's net debt position as of December 31, 2025 was approximately $1.0 billion, resulting in a covenant-defined leverage ratio of 2.6x.

Segment Review

North American OTC Healthcare: Segment revenues of $235.7 million for the third quarter fiscal 2026 decreased compared to the prior year comparable quarter's segment revenues of $238.9 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 nine months of the current fiscal year, reported revenues for the North American OTC segment were $679.0 million, which compared to $711.1 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 third quarter 2026 segment revenues of $47.7 million compared to $51.4 million reported in the prior year comparable period. The lower revenue performance was driven by lower Eye & Ear Care category sales.

For the first nine months of the current fiscal year, reported revenues for the International OTC Healthcare segment were $128.1 million, a decrease of 1.6% over the prior year comparable period's revenues of $130.2 million, or a decrease of 0.9% excluding the effects of foreign currency.

Updated Fiscal 2026 Outlook

"Looking ahead we continue to rebuild our supply chain capacity for Clear Eyes and expect supply improvements in coming quarters to support long-term demand.  We are narrowing our fiscal 2026 net sales outlook to approximately $1.1 billion to reflect a continued challenging consumer environment while maintaining our outlook for free cash flow of $245 million or higher in fiscal 2026 which reflects our strong and stable financial performance.  We continue to remain focused on brand-building that drives long-term organic growth, along with disciplined capital allocation that helps generate superior shareholder value creation over time." Mr. Lombardi stated.

The Company will host a conference call to review its third quarter and first nine months fiscal 2026 results today, February 5, 2026 at 8:30 a.m. ET. 

http://www.datamonitor.com
Republication or redistribution, including by framing or similar means,
is expressly prohibited without prior written consent. Datamonitor shall 
not be liable for errors or delays in the content, or for any actions 
taken in reliance thereon
COMTEX_474860849/2227/2026-03-08T01:27:32