Waldencast Exits Obagi Medical, Focuses on Struggling Milk Makeup…

Event summary

Waldencast completed the sale of Obagi Medical to Bridgepoint for up to $460 million, receiving $149.9 million in net cash proceeds after repaying $178.4 million in debt.
Milk Makeup's H1 2026 revenue dropped 57.1% YoY to $26.1 million, with an Adjusted EBITDA loss of $14.8 million.
Waldencast plans to delist from NASDAQ and rename itself Milk Makeup plc, focusing entirely on the struggling beauty brand.
The company recorded a $52.3 million goodwill impairment charge for Milk Makeup, reducing its goodwill balance to $62.8 million.

The big picture

Waldencast's exit from Obagi Medical marks a significant strategic shift, focusing entirely on the struggling Milk Makeup brand. The sale provides financial flexibility but comes at a time when Milk Makeup is facing substantial revenue declines and operational challenges. The beauty industry is highly competitive, and Waldencast's ability to reposition Milk Makeup as a leading clean prestige brand will be critical to its long-term success.

What we're watching

Execution Risk: Whether Milk Makeup's new leadership team can successfully turn around the brand's declining revenue and profitability.
Strategic Focus: The pace at which Waldencast can transition from a diversified holding company to a focused beauty brand.
Market Positioning: How Milk Makeup will compete in the saturated clean beauty market with its renewed focus on core franchises and retail partnerships.