Olaplex (NASDAQ:OLPX) Shares Gap Down on Disappointing Earnings

Olaplex Holdings, Inc. (NASDAQ:OLPX) gapped down before the market opened on Thursday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $1.78, but opened at $1.4550. Olaplex shares last traded at $1.3950, with a volume of 3,273,418 shares.

The company reported ($0.02) earnings per share for the quarter, missing the consensus estimate of $0.01 by ($0.03). Olaplex had a negative net margin of 1.18% and a positive return on equity of 1.31%. The company had revenue of $105.12 million for the quarter, compared to the consensus estimate of $104.21 million. During the same quarter in the prior year, the company earned $0.01 earnings per share. The company’s quarterly revenue was up 4.4% on a year-over-year basis.

Olaplex News Summary

Here are the key news stories impacting Olaplex this week:

• Positive Sentiment: Q4 results: Revenue of $105.1M beat street estimates and EPS was roughly in line with last year, showing modest top-line growth (up ~4.4% YoY). This confirms the business is growing, albeit slowly. OLAPLEX Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Solid liquidity: the company shows strong short-term liquidity (high quick and current ratios), which reduces near-term solvency risk while it executes its plan. (Background financials)
• Neutral Sentiment: Analyst stance remains cautious: Telsey Advisory Group reiterated a Market Perform rating, signaling limited near-term upside from the analyst community. Telsey Advisory Group Reiterates Market Perform Rating for Olaplex (NASDAQ:OLPX)
• Neutral Sentiment: Pre-earnings coverage and earnings previews highlighted a narrow range of outcomes, so the beat was not wide enough to materially change sentiment. Olaplex Holdings Inc (OLPX) Q4 2025: Everything You Need To Know Ahead Of Earnings
• Negative Sentiment: Cautious FY2026 guidance: management issued revenue guidance of $414M–$435M versus a consensus near $430.3M and did not provide clear EPS guidance, leaving the market to question near-term profitability growth — a primary driver of the selloff. Here’s What Key Metrics Tell Us About Olaplex (OLPX) Q4 Earnings
• Negative Sentiment: Profitability concerns: despite the revenue beat, net margin remained negative (≈ -1.2%) and return on equity is modest, suggesting incremental top-line gains are not yet translating into healthy profits. That weak margin profile contributes to investor pessimism. NASDAQ OLPX Market Data and Coverage

Analysts Set New Price Targets

Several research analysts have commented on OLPX shares. Zacks Research raised shares of Olaplex from a “strong sell” rating to a “hold” rating in a report on Thursday, February 19th. Northland Securities started coverage on Olaplex in a research note on Thursday, November 20th. They set an “outperform” rating and a $2.00 price objective for the company. Wall Street Zen cut Olaplex from a “hold” rating to a “sell” rating in a research report on Sunday, February 15th. Jefferies Financial Group reaffirmed a “buy” rating on shares of Olaplex in a report on Wednesday. Finally, Barclays set a $1.75 price target on Olaplex in a research report on Friday, January 16th. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus target price of $1.85.

Hedge Funds Weigh In On Olaplex

Several institutional investors have recently modified their holdings of the company. Headlands Technologies LLC purchased a new position in shares of Olaplex during the 4th quarter valued at about $25,000. Abel Hall LLC purchased a new stake in Olaplex in the fourth quarter worth approximately $27,000. Chilton Capital Management LLC bought a new position in Olaplex during the third quarter valued at approximately $26,000. Schonfeld Strategic Advisors LLC bought a new position in Olaplex during the third quarter valued at approximately $30,000. Finally, Wealth Enhancement Advisory Services LLC purchased a new position in shares of Olaplex during the third quarter worth approximately $32,000. 87.37% of the stock is currently owned by institutional investors.

Olaplex Trading Down 19.7%

The stock has a market capitalization of $954.54 million, a P/E ratio of 75.00 and a beta of 2.24. The stock’s fifty day moving average price is $1.55 and its two-hundred day moving average price is $1.36. The company has a current ratio of 4.16, a quick ratio of 3.52 and a debt-to-equity ratio of 0.40.

Olaplex Company Profile

Olaplex, Inc (NASDAQ: OLPX) is a specialty haircare company known for its patented bond-building technology designed to repair and strengthen hair from within. The company’s core offerings encompass a range of professional salon treatments and at-home maintenance products that target chemical damage, breakage and split ends. Olaplex formulations are built around a proprietary active ingredient that works at the molecular level to rebuild disulfide bonds broken during bleaching, coloring and heat styling processes.

Founded in 2014 and headquartered in Irvine, California, Olaplex initially gained traction among high-end salons before expanding into broader retail channels.