Prestige Consumer Healthcare Inc. — Fiscal 2027 Second Quarter Earnings Summary

Financial Performance:

• Q2 2027 revenue was $336.3 million, a 22.7% increase from $274.1 million in Q2 2026; organic revenue decreased 1.6% excluding foreign currency and acquisition impacts.
• First six months 2027 revenue totaled $602.0 million, up 15.0% from $523.6 million in the prior year period; organic revenue increased 0.7%.
• Q2 2027 reported net income was $25.3 million ($0.53 diluted EPS) compared to $42.2 million ($0.86 diluted EPS) in Q2 2026.
• Q2 2027 adjusted net income was $53.8 million ($1.13 adjusted diluted EPS) versus $52.5 million ($1.07 adjusted diluted EPS) in the prior year.
• First six months 2027 reported net income was $54.5 million ($1.14 diluted EPS) compared to $89.7 million ($1.81 diluted EPS) in the prior year.
• First six months 2027 adjusted net income was $100.3 million ($2.11 adjusted diluted EPS) versus $99.9 million ($2.02 adjusted diluted EPS) in the prior year.
• Net cash provided by operating activities for the first six months was $108.7 million, down from $136.5 million in the prior year comparable period.
• Non-GAAP adjusted free cash flow for the first six months was $123.0 million, compared to $133.6 million in the prior year.
• Net debt position as of September 30, 2026, was approximately $2 billion.

Guidance and Future Outlook:

• Updated full-year fiscal 2027 revenue guidance to $1,280 million to $1,290 million (previously $1,290 million to $1,315 million).
• Updated full-year fiscal 2027 adjusted diluted EPS guidance to $4.48 to $4.55 (previously $4.55 to $4.65).
• Updated full-year fiscal 2027 adjusted free cash flow guidance to $265 million or more (previously $270 million or more).
• Revenue guidance reduction reflects expected variability in Clear Eyes® production at the Pillar5 facility, anticipated to reduce product availability and revenue in the second half.
• Management maintains a long-term medium-term outlook for approximately 10% annual revenue growth, approximately 8% annual EPS growth, and nearly $900 million of aggregate free cash flow over the next three years.
• Base business growth and recent acquisitions remain on track to deliver sales and profit consistent with prior guidance.

Business Segments and Product Lines:

• North American OTC Healthcare segment revenue for Q2 was $271.8 million, up 17.8% from $230.8 million, driven by a $47.5 million contribution from acquisitions, partially offset by lower base sales due to Q1 order timing.
• North American OTC Healthcare segment revenue for the first six months was $498.0 million, up from $443.3 million, driven by acquisitions and higher sales of Compound W® and TheraTears®.
• International OTC Healthcare segment revenue for Q2 was $64.5 million, up 48.7% from $43.4 million, driven by a $17.6 million contribution from acquisitions and double-digit growth in Hydralyte®.
• International OTC Healthcare segment revenue for the first six months was $104.0 million, up approximately 30% from $80.3 million, driven by a $19.0 million contribution from acquisitions and continued Hydralyte® growth.
• Acquisitions of the Breathe Right® portfolio (closed June) and LaCorium Health (closed July) performed as expected in their first full quarter of ownership.
• Clear Eyes® experienced a decline in sales in Q2 and organic revenue headwinds in the first six months, though demand across the broad portfolio offset this decline in the first half.
• The Pillar5 facility acquisition provides vertical integration for the eye care supply chain and is undergoing optimization to increase long-term capacity.

Market and Competitive Landscape:

• Strong consumption growth was observed across channels including eCommerce.
• The company operates in a challenging consumer environment but attributes performance to trusted brands and a diversified business model.
• The portfolio includes iconic brands such as Breathe Right®, Monistat®, Summer's Eve®, BC®, Goody's®, Dramamine®, Fleet®, Hydralyte®, Gaviscon®, DenTek®, TheraTears®, Clear Eyes®, Compound W®, Dermal Therapy®, Chloraseptic®, Luden's®, Little Remedies®, Boudreaux's Butt Paste®, Nix®, and Debrox®.

Risks and Challenges:

• Supply remains limited for Clear Eyes® due to production variability at the Pillar5 facility.
• Forward-looking statements are subject to risks including evolving U.S. and international tariffs, labor shortages, inflation, geopolitical instability, consumer trends, advertising effectiveness, customer inventory management, fluctuating foreign exchange rates, competitive pressures, and manufacturing or supply chain disruptions.
• Acquisition-related adjustments include integration, transition, purchase accounting, legal costs, and costs associated with optimizing the Pillar5 facility.
• A loss on extinguishment of debt was recorded in the current period.

Management Commentary and Tone:

• CEO Ron Lombardi expressed pleasure with Q2 and first-half revenue and EPS performance, citing strength in leading brands and early contributions from acquisitions.
• Management stated the portfolio performed in line with expectations with strong mid-single-digit earnings growth.
• Management remains confident in the business, strategic investments made over the past twelve months, and the medium-term outlook.
• The acquisition of Pillar5 is viewed as an important platform for continued investment in capacity, reliability, and long-term growth.

Other Key Points:

• On July 15, 2026, the Company issued $400 million of new 6.25% senior notes due July 2034, replacing the same principal of senior notes previously due in fiscal 2028.
• The Company incurred a loss on extinguishment of debt of $1.36 million in the first six months of 2027.
• Acquisitions of the Breathe Right® portfolio and LaCorium Health contributed $65.1 million to Q2 revenue and $71.0 million to the first six months revenue.
• Acquisition and other costs paid were $21.664 million for the first six months of 2027.
• The Company hosts a conference call and provides a slide presentation available on its Investor Relations website.