PBH

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 8:30 a.m. ET Chairman, President and Chief Executive Officer - Ron Lombardi Chief Financial Officer and Chief Operating Officer - Christine Sacco Vice President, Investor Relations and Treasury Business Development - Philip Terpolilli Operator: Good day, and thank you for standing by. Welcome to the Quarter 1 2027 Prestige Consumer Healthcare, Inc. Earnings Conference Call. [Operator Instructions] Please be advised that today's conference call is being recorded. I would now like to hand the conference call over to your first speaker today, Phil Terpolilli, Vice President, Investor Relations and Treasury Business Development. Please go ahead. Philip Terpolilli: Thanks, operator, and thank you to everyone who's joined today. On the call with me are Ron Lombardi, our Chairman, President and CEO; and Chris Sacco, our CFO and COO. On today's call, we'll review our first quarter fiscal 2027 results, discuss our increased full year outlook and then take questions from analysts. A slide presentation accompanies today's call. It can be accessed by visiting prestigeconsumerhealthcare.com, clicking on the Investors link and then on today's webcast and presentation. Remember, some of the information contained in the presentation today includes non-GAAP financial measures. Reconciliations to the nearest GAAP financial measures are included in our earnings release and slide presentation. In today's call, management will make forward-looking statements around risks and uncertainties, which are detailed in a complete safe harbor disclosure on Page 2 of the slide presentation that accompanies the call. These are important to review and contemplate. Business environment uncertainty remains heightened due to supply chain constraints, high inflation and geopolitical events, which have numerous potential impacts. This means results could change at any time, and the forecasted impact of risk considerations is the best estimate based on the information available as of today's date. Further information concerning risk factors and cautionary statements are available in our most recent SEC filings and our most recent company 10-Q that was released this morning. I'll now hand it over to our CEO, Ron Lombardi. Ron? Ron Lombardi: Thanks, Phil, and thanks to everyone for joining us on a busy earnings day. While we are just at the start of our fiscal year, we have a lot to discuss today. Since our call in May, we've completed 2 acquisitions that are now positioned for long-term success, and we'll walk through both of them shortly. Our business exceeded sales and earnings expectations in the first quarter, a testament to our long-term brand building strategy and the strength of our diversified portfolio. We also delivered record adjusted free cash flow, providing additional flexibility for disciplined capital allocation moving forward. With that, let's begin with our first quarter highlights on Slide 4. Sales of approximately $266 million increased 6.5%, reflecting broad-based strength across the portfolio. Growth was led by GI, where Dramamine and Fleet continued to deliver long-term consumption gains as well as strong performance in skin care led by Compound W. TheraTears and Debrox also posted solid growth, helping offset Clear Eyes sales that were below our expectations. Results also benefited from retailer order timing, which Chris will discuss in more detail. The quarter also included approximately $6 million of revenue from the Breathe Right portfolio acquisition. Our strong top line performance translated into solid earnings and free cash flow. Gross margin was largely in line with expectations and adjusted EPS increased to $0.98. Adjusted free cash flow reached a quarterly record of $83.7 million, further supporting our ability to deploy capital in ways that enhance shareholder value. One of these deployment priorities is M&A. And since our May call, we've completed 2 acquisitions. The Breathe Right portfolio closed on June 12 and the acquisition of LaCorium in Australia closed on July 1. I'll discuss our integration progress and the strategic value each brings to Prestige. Our strong cash flow generation is also enabling us to invest in Pillar5, our sterile ophthalmic manufacturing facility, which will help support additional long-term eye care capacity. Now let's turn to Slide 5 and review the key principles supporting our expected long-term recovery of Clear Eyes. At a high level, we remain focused on the actions we believe will best support Clear Eyes and return the brand to its leadership position within the eye care category. There are 3 key elements to this strategy. First, we continue to invest in our recently acquired Pillar5 facility. These investments are designed to strengthen long-term supply capabilities while maintaining the high-quality standards we expect across our portfolio. Second, a key objective for the facility is to support demand while improving supply consistency versus current levels. As we discussed in May, achieving that objective requires actions during fiscal '27 that will continue to create some output variability in the first half of the year as we experienced in Q1 and expect again in Q2. Looking ahead, we believe the facility is positioned for greater stability in the second half, supporting sequential improvements in eye care shipments. Third, as the historical unit share leader in eye care, Clear Eyes has unique volume requirements where we believe in-house manufacturing provides an important strategic advantage. As a result, we expect to further expand capacity at Pillar5 to fully support these long-term demand requirements and return Clear Eyes to its leading market position. Now let's turn to Slide 7 and review our recent acquisitions. We are pleased to have closed both the Breathe Right portfolio and LaCorium Health acquisitions. Each transaction brings distinct strength that we believe will enhance our business over the long term. Starting with Breathe Right, the portfolio is expected to generate approximately $200 million in annual revenue. The majority comes from the flagship Breathe Right brand, where we see multiple opportunities for long-term growth that I'll discuss in a moment. The business also brings a strong financial profile with growth and EBITDA margins that are accretive to Prestige. In addition, it supports our long-term sales and earnings growth algorithm while generating tax benefits that enhance future free cash flow. Less than 60 days after closing, we have successfully completed all major integration milestones. As of this week, the business is largely integrated into our operations, running through our systems and our warehouse network with retailers ordering Breathe Right along with our existing brands. Turning to LaCorium Health. The business is expected to contribute approximately $40 million in annualized revenue with the majority generated in Australia. Its dermal therapy brand holds a leading position in therapeutic skin care categories, including eczema and cold soar treatments. We believe the brand is well positioned for continued growth and will support the organic growth objectives of our International segment. In July, we welcomed LaCorium's employees into our Care Pharma office, making for a seamless transition given they were already located in the same building outside Sydney, Australia. The broader integration effort will proceed methodically over the balance of the year. Over time, we also expect to realize additional synergies through distributor optimization, sales integration and other operating efficiencies that should further enhance profitability. In summary, we've added 2 highly strategic businesses to our portfolio. The Breathe Right integration is largely complete, while LaCorium will continue to be integrated over the coming quarters. In both cases, our focus is on establishing a strong foundation for long-term growth and value creation. Now let's turn to Slide 8 and discuss how these acquisitions further strengthen our portfolio. One of Prestige's core strengths is the diversity of our portfolio. The diversity helps reduce reliance on any single brand or category while allowing us to allocate resources towards the most attractive growth opportunities and to consistently execute against our long-term growth algorithm. As shown on the right side of the slide, these acquisitions further enhance that diversification. On a pro forma basis, our portfolio is now even more balanced across 8 categories. With the addition of Breathe Right, we've created a new wellness, sleep and other category, which is primarily comprised of Breathe Right and represents a low teens percentage of pro forma revenue. LaCorium's dermal Therapy brand further strengthens our skin care category, and we've also updated several category names to better reflect the consumer need states they address. Now let's turn to Slide 9 and discuss the growth opportunities we see for Breathe Right. With roots dating back to the 1990s, Breathe Right is an iconic category-defining brand with consumer awareness exceeding 90%. Given that strong foundation, we see several drivers of long-term growth. First, the brand has meaningful opportunities to further leverage its heritage and consumer recognition. As shown on the left side of the slide, Breathe Right has successfully done this through campaigns such as Strip On. Looking ahead, we believe social media marketing initiatives can further strengthen brand engagement and drive household penetration. Second is innovation, shown in the center of the slide. At Prestige, we rely on consumer insights to identify opportunities that can meet evolving consumer needs while expanding categories. We expect Breathe Right to be no exception. Recent launches demonstrate this potential. Breathe Right Menthol introduced in 2025 combines improved breathing with the added benefit of an aromatic scent. Breathe Right Sport, which is launching now, expands the brand into the sports category with a sweat-resistant strip designed to help improve airflow during exercise. Finally, international expansion remains an attractive opportunity. Breathe Right is sold in more than 20 countries with a strong presence in Western Europe, Australia and Japan. We see opportunities to drive growth through the same marketing and innovation initiatives I just described, while also benefiting from geographic expansion and long-term synergies across our global portfolio. In summary, Breathe Right is a category leader with an iconic brand, a strong foundation and multiple avenues for sustained long-term growth. We look forward to updating you on our progress in the quarters ahead. With that, I'll turn the call over to Chris to review our financials. Christine Sacco: Thanks, Ron. Good morning, everyone. Let's turn to Slide 11 and review our first quarter fiscal '27 financial results. As a reminder, the information in today's presentation includes certain non-GAAP information that is reconciled to the closest GAAP measure in our earnings release. Q1 revenue of $265.7 million grew 6.5% from $249.5 million in the prior year and 3.2% excluding the effects of foreign currency and the acquisition of the Breathe Right portfolio. Adjusted EBITDA grew 5.5% versus the prior year, mostly tracking the sales growth. Adjusted diluted EPS increased approximately 3% versus the prior year as the revenue increase was partially offset by higher interest expense from the acquisition. Let's turn to Slide 12 for details around these consolidated results. As I just highlighted, our Q1 fiscal '27 revenues increased 3.2% organically versus the prior year. By segment, North America segment revenues increased 4.2%, excluding FX and the Breathe Right acquisition. As Ron highlighted, the biggest category increases were in GI, highlighted by continued strength in fleet and Dramamine and dermatologicals, thanks to strong growth in Compound W. In Ear and Eye Care, as we anticipated, Clear Eyes supply continued to be volatile and was constrained in Q1, leading to a decline in brand revenue. But this was more than offset by strength in the TheraTears and Debrox brands, which highlights the benefits of our portfolio diversity even within individual product categories. We also continue to experience strong double-digit consumption growth in e-commerce. Q1 benefited from some continued order volatility in e-commerce at the expense of Q2, and this is reflected in the Q2 sales outlook Ron will discuss later. International segment revenues decreased 2.1% versus the prior year on an organic basis. As we expected in our outlook, we continue to see positive consumption trends, but sales were affected by the timing of distributor orders. For the full year, we still expect a return to the segment organic revenue long-term growth target of 5% or more. Revenues from the Breathe Right portfolio acquisition totaled $5.9 million. Total company adjusted gross margin of approximately 55% in the first quarter was largely as anticipated, flat sequentially, but down 120 basis points versus the prior year, primarily due to higher transportation costs and mix. Following the inclusion of acquisitions, we now anticipate adjusted gross margin of just over 57% for both Q2 and the full year. Advertising and marketing came in at $34.7 million or 13% of sales in Q1, down versus the prior year due to the timing of marketing programs. For fiscal '27 as well as Q2, we now anticipate an A&M rate of approximately 14.5% of sales. Adjusted G&A expenses were 11.5% of sales in Q1. For the full year, we now anticipate adjusted G&A of approximately 10% as a percent of sales, thanks to the scale associated with additional acquisition revenue. Adjusted diluted EPS of $0.98 increased versus last year's diluted EPS of $0.95. Ron will discuss our earnings outlook shortly, and we've detailed the assumed components in other line items at the end of the slide presentation. These include higher interest and amortization expenses in the balance of the year of approximately $100 million and $33 million, respectively, as well as a similar tax rate and share count to prior assumptions. Let's turn to Slide 13 and discuss cash flow and capital allocation. In Q1, we generated $83.7 million in adjusted free cash flow, largely driven by the timing of working capital. We continue to maintain industry-leading free cash flow and now expect to generate at least $270 million of adjusted free cash flow in fiscal '27 due to the inclusion of the new acquisitions. At June 30, our net debt was approximately $2 billion. We purchased the Breathe Right portfolio on June 12, funded with a new 7-year Term Loan B. When combined with cash on hand, the new term loan also funded the LaCorium Health transaction, which closed on July 1 after quarter end. While executing these market actions, we also took the opportunity to price $400 million of new unsecured notes, replacing existing notes that were coming due. This funded on July 15. Following these actions, our earliest debt maturity is now 2031, and we have reestablished prepayable debt, which we intend to begin paying down over the balance of the fiscal year. With that, I'll turn it back to Ron. Ron Lombardi: Thanks, Chris. Let's turn to Slide 14 and wrap things up. We are encouraged by our first quarter results and remain confident in the outlook we previously provided for our legacy business. The updated guidance shown on this page reflects the addition of the Breathe Right portfolio and LaCorium acquisitions, along with the related financing impacts Chris just discussed. For fiscal '27, we now expect revenues of $1.29 billion to $1.315 billion, while maintaining our expectation for organic revenue growth of 1% to 3%, unchanged from our prior outlook. The increase in reported revenue versus our previous guidance is entirely driven by the Breathe Right and LaCorium acquisitions, which we expect will contribute approximately $190 million of revenue this year. For the second quarter, we expect revenue of $328 million to $331 million, including the contribution from both acquisitions. Given retailer order timing that benefited the first quarter, we would expect a modest organic revenue decline in the second quarter. However, we continue to expect organic revenue growth for the first half of the fiscal year. For adjusted diluted EPS, we now anticipate $4.55 to $4.65 for the full year. The increase versus our prior outlook is entirely attributable to the acquisitions, which bring attractive financial profiles, including strong gross margins and lower G&A as a percentage of sales. For our second quarter, we expect adjusted diluted EPS of approximately $1.06 to $1.08. Lastly, we expect adjusted free cash flow of $270 million or more and a year-end leverage ratio of just below 4x. We will remain disciplined in reducing debt throughout fiscal '27, which will further strengthen our balance sheet and provide additional flexibility for future capital deployment opportunities that can maximize shareholder value. So in summary, we're off to a solid start to the year. We delivered strong first quarter results, remain confident in the outlook for our legacy business and are excited about the opportunities ahead with Breathe Right and LaCorium. Together, these acquisitions are expected to add more than 20% to our annualized revenue base while providing additional scale, diversification and long-term value creation opportunities for Prestige. With that, I'll open it up for questions. Operator? Operator: [Operator Instructions] Our first question comes from Susan Anderson with Canaccord Genuity. Susan Anderson: Nice job on the quarter. I guess maybe just if you could just give us an update on the long-term growth of the 2 acquisitions. Are you still expecting 10% total growth with contribution, obviously, from those 2 over the next several years? And then also, I don't think I saw it, how much are the 2 acquisitions adding to earnings also for the year with the updated outlook? Ron Lombardi: Susan, Ron here. So let me start with the long-term outlook for the 2 acquisitions. So we're about 60 days or so, just under for the Breathe Right portfolio and 30 days or so for LaCorium. And so far, we continue to be very optimistic about the opportunity for the brands and the businesses. As we get into them, we continue to see all the opportunities that we believe were there during the diligence and continue to point you to the outlook that we gave back in May for the long-term outlook for the business. So we're in early days here, but to continue to feel really good about the opportunities. Chris will talk about... Christine Sacco: Yes, Susan, it's Chris. So the acquisitions, obviously, higher sales growth projected for the year. It's about 3 points of EPS growth. The range that we provided on the sales line is in line, combined with the stub period in Q1 with what we'd expect and the long-term numbers that Ron just shared. EPS is a bit of timing. It's the timing of the stub period, right, some committed A&M from the sellers prior to our ownership, the impact of the debt paydown in the future, right, and how that will compound over time and then just the timing of sales in the near term. So a little bit of near-term noise. It's temporary, but we still feel good as we did when we made these acquisitions that will drive sales and profitability for each of the brands as we reduce debt. And so as Ron says, you put that together, you get back to the long-term algo we presented back in May for the 3-year CAGR. Susan Anderson: Okay. Great. And then maybe if you could -- I don't know if I heard you mention the Women's Health business. Just curious how that performed in the quarter with Monistat and Summer's Eve. And then are you expecting any new launches there for the rest of the year? Ron Lombardi: So our Women's Health care businesses continue to make progress. Monistat continues to be fairly steady, continues to have steady or growing share. As we talked about on past calls, the category there has seen some decline over the last few years. For Summer's Eve, we continue to look at long-term new product opportunities and launches. The ultimate odor protection franchise continues to do really well, and we'll have additional products launched over the next couple of years as well. Operator: Our next question comes from Rupesh Parikh with Oppenheimer Company. Rupesh Parikh: So just going back to the acquisitions, just from an accretion perspective, I know obviously, timing may be slightly different. But as you look at the acquisitions, like is the accretion still in the same ballpark of what you guys thought before for Breathe Right? And I think LaCorium, there was not much assumed initially. Christine Sacco: That's right, Rupesh. You're correct on the Corium. For Breathe Right, we talked about an annualized rate of about $0.25 of accretion, right? And in a normal environment, I would say we absolutely still support that. You'll be a couple of pennies as you look at the stub period below that. But again, we expect some variability during the first couple of quarters. Haven't really done an acquisition where we didn't see some initial volatility, particularly as we undo some things maybe the sellers had put in place before the closing process. I mentioned sales timing, and I mentioned A&M a bit ago and then just the timing of how quickly we'll pay down debt, which we'll be prioritizing this year. Rupesh Parikh: Okay. Great. And then on the gross margin outlook, so 57% obviously very strong. I think there's benefits from the M&A as well. Just curious, in the environment right now, what type of cost pressures are you guys seeing in the business? And then with these acquisitions, like do you expect an improvement in gross margins as we go into next year? Just overall thinking of longer-term opportunities on the margin front with the new M&A. Christine Sacco: Yes. So Rupesh, on the gross margin revised guide up, it's entirely based on the acquisitions. We're holding our base guide for gross margin. It's been in line with our expectations, primarily -- the increase is primarily year-over-year related to diesel, and we factored that in. So no change to the base. Over time, we, of course, always look to increase our gross margin. But remember, it will be no different for the acquisitions that we're managing to a low to mid-30s EBITDA margin. So to the extent we get cost saving, we have cost-saving programs in place, we'll look to put that back into the business and higher levels of A&M over time. Rupesh Parikh: Great. And maybe one last question for Ron. Commentary was positive just on consumption during the quarter. Consumer environment is still uncertain. So have you guys seen any changes out there? Just curious just overall, what you're seeing in the consumer environment, Ron. Ron Lombardi: Yes. So in our categories, we continue to see fairly stable consumption. As I mentioned in the prepared remarks, we continue to see strong growth in the GI brands, Dramamine and Fleet. Skin, we're doing well in. And again, as we've talked about for about a year now, the big thing we're seeing is that consumers are looking for value and it's impacting where they shop. So we continue to see channel shifts. We had another particularly strong growth in dot-com in mass again this quarter. So we continue to see strong growth in those value channels or where price shopping is easy. Operator: Our next question comes from Jon Anderson with William Blair. Jon Andersen: Could you quantify the order timing benefit in the first quarter, and I guess that will reverse out in the second quarter? Christine Sacco: Yes, Jon, it was just about 2 points of growth for the quarter. And again, that's why we're trying to focus folks back to the first half where we still expect organic growth in total. Jon Andersen: So first half underlying growth kind of on plan. It's just a bit of a shift from quarter-to-quarter. Christine Sacco: That's correct. Jon Andersen: Okay. Great. And then could you give us a little bit more of an update on, I guess, Clear Eyes and maybe where it sits today relative to its kind of prior peak run rate and how kind of some of the operational initiatives of Pillar5 are progressing? And what kind of ramp to kind of think about there as you think about getting Clear Eyes back to its leadership position over the next, I don't know, a couple of years? Ron Lombardi: Yes. So let me start there, Jon. So I mean, clearly, the Clear Eyes franchise is down significantly from its peak levels a few years ago, right, again, driven by product availability. We're 2 quarters in, right? At the end of June, we had owned Pillar5 for just 2 quarters. And we've got a multifaceted program in place to stabilize the facility and better position it for long-term product availability to support the brand. We've made a number of changes over the last 6 months starting with investment to better position the infrastructure, some investment in the equipment. We've also made significant changes in the management and leadership change in the team there. And clearly, that's something we're not going to talk about ahead of time. So last quarter, we weren't going to talk about management team changes publicly ahead of getting them in place. But we've transitioned out a significant amount of consultants that the previous owners had in place. We've made changes in management and recently appointed a new General Manager for the facility who's a long-term employee that we feel really good about. So it's not just one thing. It's a whole bunch of initiatives that we continue to get behind us. And I think as we said today, we expect to see improving levels of output for the second half of the year. as we continue to focus on getting the initiatives behind us. Philip Terpolilli: And Jon, it's Phil. I think you asked about kind of where Clear Eyes sits today versus the high watermark. As we talked about last quarter, because of the supply challenges we've seen, it represents less than 3% of sales today. But certainly, we expect to improve that based on the demand that we know is out there and the production changes that Ron is talking about. So a lot of runway ahead, and we think it's an opportunity. Jon Andersen: And that 3% is with the acquisition revenue? Philip Terpolilli: Yes. Jon Andersen: Okay. Do you have anything on kind of as you rebuild capacity or improve output, there are other steps, obviously, that probably need to be taken to get back to that leadership position, working with retailers, reestablishing shelf space, activating the consumer again. In your experience, how long does that aspect of this tend to take? Ron Lombardi: So we've talked about it being multiyear Jon, and that plan really is unchanged. There's kind of 4 pieces to it. First is to develop consistent and high-quality supply. The second would be to start to rebuild safety stocks for ourselves and at retailers so that as we have variability in the future from supply, we won't see a hiccup in sales or out of stock. Third would be to get back to our full SKU offering. Right now, if you get out to the shelf, you'll see that we focused on Base Red and Max Red. And then fourth would be to get back to investing in marketing and advertising campaigns to get back to connect the brand with consumers who have been out there looking for it. So a number of steps that we'll be thoughtful about executing over the next couple of years. Jon Andersen: Great. Just one more, if I could. You've done 2 kind of acquisitions here in close proximity. Are you confident that you can kind of integrate both of these and kind of hit the ground running? I just sometimes think about integration risk, the bandwidth of the team to kind of manage and brand build and kind of go after some of the opportunities around both at the same time. Ron Lombardi: Yes. As we said in the prepared remarks today, the Breathe Right portfolio, that business is essentially integrated into Prestige. So just this Monday, we flipped the switch and the whole business is in our system. So purchase orders to the supply base to receiving product to orders from our customers and making shipments to the retailers is happening, right? The marketing folks that we took on from the seller are here with our marketing team. We've got salespeople that we've taken on that are out in the field working with the customer. So Breathe Right is integrated, and we're into continuing to focus on growth plans. for that business. For LaCorium, we've made sure we've given ourselves enough of a runway so that we're not competing for resources internally as we were dealing with a bigger Breathe Right. So we've got a bit of a longer runway that will work on the integration of that business over the rest of the fiscal year. But again, we've emphasized this a number of times. We have the huge advantage of LaCorium being in the same office building that care is, literally just a couple of floors up and those people have moved down to the care floor. So the organization is integrated, and we're making progress on that. So this is something that Prestige actually does very well. And our integration planning begins during diligence. So it's not just what are you getting, but how are you going to integrate it so you hit the ground running to use your words. So Breathe Right is in a great place, and we're continuing to move forward on Lord. Operator: [Operator Instructions] Our next question comes from second, Keith Devas with Jefferies. Keith Devas: Maybe just going back higher level to the retailer inventories. I'm curious where you guys think there are now. We've heard from some peers that there's been some volatility or choppiness in the quarter, but maybe higher level also just how you're thinking about adjusting your operations and spend to account for this ongoing volatility or choppiness. Ron Lombardi: Yes. So in terms of retailer inventory levels for our categories, we haven't seen kind of the builds and the destock that you're hearing others talk about in other categories. So that hasn't been the driver in some of the order pattern volatility that we've seen. We talked a little bit about it in Q4, and we talked about it in Q1. That just seems to be planning and resource driven by really one main customer. But again, we're able to deal with whatever the flow is and the peaks and valleys of that. But consumption is good. Inventory levels are stable, and we're just managing around the timing impact of that from quarter-to-quarter. Keith Devas: Okay. Great. And then I think you commented one of the acquisitions is pretty much integrated and another will soon be. But you also mentioned some synergies that are coming down the road. Maybe if you could just give us some context on what those synergies are, where they're coming from, how we should think about them? And maybe it's a longer-term question, but just kind of how you see that materializing over time. Ron Lombardi: Yes. It's more of a year to 2 runway for the synergies that we've talked about associated with LaCorium. There's opportunities and benefits to synergize the sales forces between the 2 organizations. We think we can adopt some resources from both of the businesses to be in a better place. We think there'll be some marketing opportunities for some synergies that will give us some pools to reinvest and then the supply chain as well. So no one big area like we've seen in other acquisitions that we've primarily done in the U.S. where we essentially just bolt on a brand into our existing infrastructure. This one is nuanced with a number of different areas that we'll get at over the next year or 2. First order of business is to get it integrated into our systems and processes. Operator: Our next call comes from Anthony Lebiedzinski with Sidoti. Anthony Lebiedzinski: Nice start to the fiscal year. Just wondering if there was any notable pricing benefit in the quarter. And given the pressures as it relates to higher diesel costs and other costs, are you looking to perhaps raise prices? How should we think about those things? Christine Sacco: Anthony, it's Chris. So minimal price in the quarter. But as we look to our fiscal '27 outlook, I would say about 1/4 of the growth is projected to be price. Inflationary pressures, including diesel. Anthony Lebiedzinski: Okay. Okay. And then as it relates to Breathe Right, you talked about focusing longer term on brand building. From my understanding, that brand does more advertising marketing compared to the core business. So are you looking to spend even more than that? Or like when you talk about brand building, can you give us some examples as to what you think you'll be doing here going forward after you get past the near-term programs that already are in place? Ron Lombardi: Yes. So for the Breathe Right business, it's got higher gross margins and higher A&M and slightly higher contribution margin or EBITDA margins in our base business. So plenty of room for advertising and marketing spend. The brand has been on a path to move and expand from kind of illness occasions, think of congestions and cold and allergies to that better breathing, better sleep, better wellness positioning. So the spending and the programs have kind of been in the base business. So we wouldn't anticipate a need to increase the spending levels from historic levels, Anthony. Operator: I am showing no further questions at this time. I would now like to turn the call back over to Ron Lombardi for closing remarks. Please go ahead, Ron. Ron Lombardi: Thank you, operator, and thanks, everyone, for joining us today and your continued interest in Prestige. We are pleased with our strong start to fiscal '27 and remain focused on executing our strategy, integrating our recent acquisitions and creating long-term value for our shareholders. We appreciate your time today and look forward to updating you next quarter. Have a great day. Operator: Thank you for your participation in today's conference. This does conclude the program. You may now disconnect the call. Before you buy stock in Prestige Consumer Healthcare, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Prestige Consumer Healthcare wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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Interested in Prestige Consumer Healthcare Inc.? Here are five stocks we like better. First-quarter results exceeded expectations: Revenue rose 6.5% to $265.7 million, organic revenue increased 3.2%, adjusted EPS reached $0.98, and adjusted EBITDA grew 5.5%. Record adjusted free cash flow totaled $83.7 million. Acquisitions lifted fiscal 2027 guidance: Breathe Right and LaCorium are expected to contribute about $190 million in revenue, prompting Prestige to raise its full-year revenue outlook to $1.290 billion-$1.315 billion while maintaining 1%-3% organic growth guidance. Clear Eyes supply constraints remain a near-term headwind: Output variability is expected through the first half of fiscal 2027, with improvement anticipated in the second half. Management plans to invest in manufacturing capacity, rebuild inventory and restore the brand’s full product range. Prestige Consumer Healthcare (NYSE:PBH) reported first-quarter fiscal 2027 revenue growth of 6.5%, supported by broad-based category strength, the initial contribution from its Breathe Right acquisition and retailer order timing. The company raised its reported full-year outlook to incorporate Breathe Right and LaCorium Health while maintaining its prior outlook for organic revenue growth. First-quarter revenue rose to $265.7 million from $249.5 million a year earlier. Organic revenue, excluding foreign exchange effects and the Breathe Right acquisition, increased 3.2%. Adjusted diluted earnings per share increased to $0.98 from $0.95, while adjusted EBITDA rose 5.5%. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling “Our business exceeded sales and earning expectations in the first quarter,” Chairman, President and CEO Ron Lombardi said. “We also delivered record adjusted free cash flow, providing additional flexibility for disciplined capital allocation moving forward.” North America organic revenue increased 4.2%, led by gastrointestinal brands Fleet and Dramamine and dermatological growth driven by Compound W. The company also cited solid growth for TheraTears and Debrox, which helped offset weaker Clear Eyes sales amid continued supply constraints. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Lombardi said Prestige is investing in its Pillar5 sterile ophthalmic manufacturing facility to improve supply consistency and expand long-term capacity for Clear Eyes. The company expects output variability to continue during the first half of fiscal 2027, including the second quarter, before greater stability supports sequential improvement in eye-care shipments during the second half. Clear Eyes represents less than 3% of sales today, according to Senior Vice President, General Counsel and Corporate Secretary Bill P’Pool. Lombardi described the effort to restore the brand as a multiyear process involving consistent supply, rebuilding safety stocks, restoring the full SKU offering and eventually increasing advertising and marketing support. → No Hangover: Revisiting Microsoft One Week After Earnings International organic revenue declined 2.1% in the quarter, reflecting the timing of distributor orders despite positive consumption trends. Prestige continues to expect the segment to return to its long-term organic growth target of at least 5% for the full year. Chief Financial Officer and Chief Operating Officer Chris Sacco said e-commerce consumption continued to grow at a double-digit rate. However, some e-commerce order timing benefited the first quarter at the expense of the second quarter. Retailer order timing contributed roughly two percentage points of first-quarter growth, Sacco said. Prestige completed the acquisition of the Breathe Right portfolio on June 12 and acquired Australia-based LaCorium Health on July 1. The Breathe Right portfolio contributed $5.9 million of first-quarter revenue. Breathe Right is expected to generate approximately $200 million in annual revenue, with the flagship nasal strip brand accounting for most of that total. The company said the portfolio has been largely integrated into its operations, systems and warehouse network less than 60 days after the transaction closed. Lombardi said Prestige sees growth opportunities for Breathe Right through social-media marketing, innovation and international expansion. Recent product introductions include Breathe Right Menthol and Breathe Right Sport, a sweat-resistant strip intended to improve airflow during exercise. LaCorium is expected to contribute about $40 million in annualized revenue, primarily in Australia. Its Dermal Therapy brand holds positions in therapeutic skincare categories including eczema and cold sore treatments. Prestige said LaCorium employees have joined its Care Pharma office outside Sydney, while broader integration will continue over the rest of the fiscal year. Management expects additional LaCorium synergies over the next one to two years through sales-force integration, marketing opportunities, distributor optimization and supply-chain efficiencies. The acquisitions are expected to contribute approximately $190 million in fiscal 2027 revenue. Sacco said Breathe Right remains expected to provide about $0.25 of annualized earnings-per-share accretion in a normal environment, although the initial stub period and timing factors could reduce that contribution by a few cents in the near term. Adjusted gross margin was approximately 55% in the first quarter, flat sequentially but down 120 basis points from the prior year due mainly to higher transportation costs and sales mix. Prestige now expects adjusted gross margin of slightly more than 57% in both the second quarter and full fiscal year, with the increase in outlook attributed entirely to the acquired businesses. Advertising and marketing spending totaled $34.7 million, or 13% of sales, in the first quarter, reflecting the timing of marketing programs. The company expects advertising and marketing expense to be approximately 14.5% of sales for the full year and second quarter. Adjusted general and administrative expenses are expected to be about 10% of sales for the year, aided by acquisition-related scale. Adjusted free cash flow reached a quarterly record of $83.7 million, driven largely by working-capital timing. Prestige raised its full-year adjusted free-cash-flow expectation to at least $270 million. At June 30, net debt was approximately $2 billion. The company funded the Breathe Right acquisition through a new seven-year Term Loan B and cash on hand, with those resources also funding the LaCorium transaction. Prestige also issued $400 million of new unsecured notes to replace notes that were approaching maturity. Its earliest debt maturity is now 2031, and management said it intends to begin paying down prepayable debt during the remainder of fiscal 2027. Prestige raised its fiscal 2027 revenue outlook to a range of $1.290 billion to $1.315 billion. The company maintained its expectation for organic revenue growth of 1% to 3%, saying the higher reported revenue outlook is entirely due to Breathe Right and LaCorium. Second-quarter revenue is projected at $328 million to $331 million, including both acquisitions. Second-quarter adjusted diluted EPS is expected to be approximately $1.06 to $1.08. Full-year adjusted diluted EPS is forecast at $4.55 to $4.65. Year-end leverage is expected to be just below 4 times. Management expects a modest organic revenue decline in the second quarter because of order timing that benefited the first quarter, while still projecting organic revenue growth for the first half of the fiscal year. Lombardi said consumer consumption trends remain stable in Prestige’s categories, though shoppers are increasingly focused on value. He cited continued growth in e-commerce and mass retail channels, where consumers can more readily compare prices. Prestige Consumer Healthcare, Inc is a leading manufacturer and marketer of branded over-the-counter (OTC) healthcare products. The company focuses on developing, acquiring and commercializing a diverse portfolio of non-prescription remedies designed to address common consumer health needs, including pain relief, cold and cough, digestive health, eye care, skin care and women's health. Key brands in Prestige's portfolio include Clear Eyes (eye health), Carmex (lip care), Chloraseptic (sore throat relief), Dramamine (motion sickness), Rolaids (antacid), Monistat (women's health), BC Powder (pain relief), Little Remedies (pediatric cold and gas relief) and TheraTears (dry eye therapy). This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Prestige Consumer Healthcare Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Prestige Consumer Healthcare Inc. PBH posted first-quarter fiscal 2027 adjusted earnings per share (EPS) of 98 cents, which jumped 3.2% year over year and topped the Zacks Consensus Estimate by 10.11%. Revenues of $265.71 million improved 6.5% and beat the consensus mark by 6.18%. Following the announcement yesterday, PBH shares rose 0.5% in the after-market session. North American OTC Healthcare revenues increased 6.4% year over year to $226.2 million. The gain reflected strong organic sales growth in Gastrointestinal, Dermatological and Cough, Cold & Allergy, along with contribution from the newly created Wellness, Sleep & Other category. Management highlighted continued strength in Dramamine and Fleet, while Compound W drove Dermatological growth. Prestige Consumer Healthcare Inc. price-consensus-eps-surprise-chart | Prestige Consumer Healthcare Inc. Quote International OTC Healthcare revenues increased 6.9% to $39.5 million, aided by a $1.4 million contribution from the acquired Breathe Right brand. On an organic basis, International revenues declined 2.1%. Management said positive consumption trends were offset by distributor order timing and continues to expect the segment to return to its long-term organic revenue growth target of 5% or more for fiscal 2027. Adjusted gross margin was 55%, down 120 basis points (bps) year over year. Management attributed the year-over-year pressure mainly to higher transportation costs and mix, while noting that the margin was roughly flat sequentially and in line with expectations. During the quarter, advertising and marketing expenses declined 0.8% to $34.7 million, while general and administrative expenses increased 52.2% to $43.3 million. Adjusted operating income totaled approximately $81.0 million, up 5.3% year over year. The adjusted operating margin contracted about 30 bps to 30.5% from 30.8% a year ago. Prestige Consumer exited the fiscal first quarter of 2027 with cash and cash equivalents of $89.1 million compared with $63.9 million at the end of fiscal 2026. Net cash provided by operating activities totaled $70.8 million, down from $79.0 million in the prior-year period. Prestige raised fiscal 2027 revenue guidance to $1.290-$1.315 million (previously $1.100-$1.121 million). The increase entirely reflects the Breathe Right and LaCorium acquisitions, while organic revenue growth guidance remains unchanged at 1%-3%. The Zacks Consensus Estimate for revenues is currently pegged at $1.10 billion. Adjusted earnings guidance increased to $4.55-$4.65 from the earlier $4.42-$4.51 range. The Zacks Consensus Estimate was pegged at $4.45 for the metric. For the fiscal second quarter, management expects revenues of $328-$331 million and adjusted earnings of $1.06-$1.08 per share. The consensus mark for second-quarter top and bottom lines stands at $276.41 million and $1.06, respectively. The Breathe Right portfolio acquisition closed in June and is expected to generate about $200 million in annual revenues. Management said the major integration milestones are largely complete, with the business operating through Prestige’s systems and warehouse network. LaCorium Health closed in July and is expected to contribute about $40 million in annualized revenues. Prestige plans to integrate the Australian therapeutic skin care business over the balance of fiscal 2027 and expects future opportunities from distributor optimization, sales integration and other operating efficiencies. Prestige Consumer exited the fiscal first quarter with both earnings and revenues beating estimates. Performance reflected broad-based strength across the portfolio, wherein Gastrointestinal and Dermatological brands led growth, while TheraTears and Debrox helped offset continued Clear Eyes supply variability. The newly closed acquisitions of LaCorium Health and the Breathe Right portfolio bring distinct advantages that are expected to help enhance its business for the long term. Prestige Consumer is also investing in its Pillar5 sterile ophthalmic facility to strengthen supply quality and expand capacity. However, the contraction of adjusted gross and operating margins in the quarter is discouraging. Prestige Consumer currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP. Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%. Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%. DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%. Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%. MEDP has an historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report Labcorp Holdings Inc. (LH) : Free Stock Analysis Report Quest Diagnostics Incorporated (DGX) : Free Stock Analysis Report Medpace Holdings, Inc. (MEDP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Prestige Consumer Healthcare (PBH) came out with quarterly earnings of $0.98 per share, beating the Zacks Consensus Estimate of $0.89 per share. This compares to earnings of $0.95 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +10.11%. A quarter ago, it was expected that this medicine distributor would post earnings of $1.39 per share when it actually produced earnings of $1.23, delivering a surprise of -11.51%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Prestige Consumer Healthcare, which belongs to the Zacks Medical - Products industry, posted revenues of $265.71 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 6.18%. This compares to year-ago revenues of $249.53 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Prestige Consumer Healthcare shares have lost about 14.1% since the beginning of the year versus the S&P 500's gain of 12.8%. While Prestige Consumer Healthcare has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Prestige Consumer Healthcare was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.06 on $276.41 million in revenues for the coming quarter and $4.45 on $1.1 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. VAREX IMAGING (VREX), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly earnings of $0.22 per share in its upcoming report, which represents a year-over-year change of +22.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. VAREX IMAGING's revenues are expected to be $216.57 million, up 6.7% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report VAREX IMAGING (VREX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: August 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Prestige Consumer Healthcare Inc (NYSE:PBH) exceeded sales and earnings expectations in Q1 fiscal 2027, with total sales increasing 6.5% to approximately $266 million. The company delivered a record quarterly adjusted free cash flow of $83.7 million, providing additional flexibility for disciplined capital allocation. The Breathe Right portfolio acquisition is largely integrated, with all major milestones completed less than 60 days after closing, and is expected to contribute approximately $200 million in annual revenue. The company completed two strategic acquisitions (Breathe Right and Lacorium Health) that are expected to add more than 20% to the annualized revenue base and enhance portfolio diversification across eight categories. Management raised its full-year fiscal 2027 adjusted diluted EPS guidance to $4.55-$4.65 and adjusted free cash flow guidance to $270 million or more, driven by the accretive acquisitions. The company continues to see strong consumption growth in key categories like GI (Dramamine and Fleet) and skin care (Compound W), as well as robust double-digit growth in e-commerce. ClearEyes sales were below expectations due to ongoing supply constraints and output variability at the Pillar 5 facility, which is expected to continue into the second quarter. The company anticipates a modest organic revenue decline in the second quarter due to retailer order timing that benefited Q1, creating quarter-to-quarter volatility. Adjusted gross margin declined 120 basis points year-over-year in Q1, primarily due to higher transportation costs (diesel) and product mix. International segment organic revenues decreased 2.1% in Q1 due to the timing of distributor orders, despite positive consumption trends. Higher interest expense from the recent acquisitions partially offset revenue growth, limiting adjusted diluted EPS growth to approximately 3% in Q1. The company expects near-term EPS accretion from the Breathe Right acquisition to be a couple of pennies below the annualized rate of $0.25 due to timing of sales, A&M commitments, and debt paydown. Warning! GuruFocus has detected 4 Warning Sign with PBH. Is PBH fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide an update on the long-term growth outlook for the Breathe Right and Lacorium acquisitions, and how much are they adding to earnings this year? A: Ron Lombardi (CEO) stated that they remain optimistic about the opportunities for both brands, which are in line with the long-term outlook provided in May. Chris Sacco (CFO) added that the acquisitions are projected to add about 3 points of EPS growth for the year. He noted that near-term EPS is impacted by timing factors like the stub period, committed A&M from sellers, and the timing of debt paydown, but the long-term sales and profitability algorithm remains intact. Q: Could you quantify the order timing benefit in Q1 that will reverse in Q2? A: Chris Sacco (CFO) confirmed that the order timing benefit was approximately two points of growth for the quarter. He emphasized that the company still expects organic growth for the first half of the fiscal year, with the benefit shifting from Q1 to Q2. Q: Can you give an update on ClearEyes and the progress of the operational initiatives at the Pillar 5 facility? A: Ron Lombardi (CEO) explained that ClearEyes is down significantly from its peak due to product availability. They are two quarters into owning Pillar 5 and have implemented a multifaceted program, including infrastructure and equipment investments, management changes, and appointing a new general manager. They expect improved output in the second half of the year. Phil Turpolilli (VP, IR) added that ClearEyes represents less than 3% of sales today, but there is significant runway for improvement. Q: What is the timeline for getting ClearEyes back to its leadership position, including rebuilding shelf space and reconnecting with consumers? A: Ron Lombardi (CEO) outlined a multi-year plan with four key steps: developing consistent, high-quality supply; rebuilding safety stocks for the company and retailers; returning to a full SKU offering (currently focused on base red and max red); and reinvesting in marketing and advertising to reconnect with consumers. He reiterated that this plan remains unchanged. Q: Are you confident you can integrate both acquisitions simultaneously without straining the team's bandwidth? A: Ron Lombardi (CEO) confirmed that Breathe Right is essentially fully integrated into Prestige's systems and operations as of this week. For Lacorium, they have allowed a longer runway to avoid competing for internal resources. He highlighted the advantage of Lacorium being in the same building as their Care Pharma office, which has facilitated a seamless organizational integration. He emphasized that integration planning begins during diligence, which is a core strength of Prestige. Q: Where do you think retailer inventory levels are currently, and how are you managing ongoing order volatility? A: Ron Lombardi (CEO) stated that retailer inventory levels for their categories are stable and they haven't seen the builds and destocking that peers have reported in other categories. The order pattern volatility is driven by planning and resource issues at one main customer. Consumption remains good, and they are managing around the timing impact from quarter to quarter. Q: Can you provide more detail on the synergies expected from the Lacorium acquisition and how they will materialize? A: Ron Lombardi (CEO) explained that synergies will develop over a one-to-two-year runway and include opportunities in sales force integration, resource optimization, marketing synergies for reinvestment, and supply chain efficiencies. Unlike typical US bolt-on acquisitions, this one is more nuanced, with the first priority being integration into their systems and processes. Q: Was there any notable pricing benefit in the quarter, and are you looking to raise prices given cost pressures like higher diesel costs? A: Chris Sacco (CFO) noted that there was minimal price in the quarter, but for the full fiscal '27 outlook, about a quarter of the growth is projected to come from pricing. Ron Lombardi (CEO) added that this is in response to inflationary pressures, including diesel costs. Q: For Breathe Right, are you planning to increase advertising and marketing spend beyond its historic levels for brand building? A: Ron Lombardi (CEO) clarified that Breathe Right has higher gross margins and A&M rates than the base business. The brand is already on a path to expand from illness occasions to a broader "better breathing, better sleep, better wellness" positioning. He stated they would not anticipate a need to increase spending levels from historic levels. Q: How did the Women's Health business perform in the quarter, and are there any new launches planned? A: Ron Lombardi (CEO) said the Women's Health business continues to make progress. Monistat remains steady with growing share, despite category declines. For Summer's Eve, the Ultimate Odor Protection franchise is performing well, and additional new products are planned for launch over the next couple of years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q1 Revenue of $265.7 million up 6.5% versus prior year Q1 Organic sales growth of 3.2%, exceeding expectations Q1 Diluted EPS of $0.61; Adjusted Diluted EPS of $0.98, up versus prior year $0.95 Q1 Cash from Operating Activities $70.8 million; Q1 Adjusted Non-GAAP Free Cash Flow of $83.7 million Closed the Breathe Right® and LaCorium acquisitions in June and July, respectively Raising fiscal 2027 outlook to include acquisitions; anticipate revenue of $1,290 to $1,315 million and Adjusted Diluted EPS outlook to $4.55 to $4.65 TARRYTOWN, N.Y., Aug. 06, 2026 (GLOBE NEWSWIRE) -- Prestige Consumer Healthcare Inc. (NYSE:PBH) today reported financial results for its first quarter fiscal 2027 ended June 30, 2026. “First quarter performance exceeded our sales and earnings expectations, helped by strength across multiple categories that more than offset a challenging consumer backdrop and Clear Eyes® variability. We were also pleased to close the Breathe Right® acquisition late in the quarter, which added an incremental $6 million in revenue and is positioned well for long-term growth. These strong business results generated robust record adjusted free cash flow in the first quarter, leaving us well positioned to rapidly deleverage in the quarters ahead,” said Ron Lombardi, Chief Executive Officer of Prestige Consumer Healthcare. First Fiscal Quarter Ended June 30, 2026 Reported revenues in the first quarter of fiscal 2027 of $265.7 million increased 6.5% from $249.5 million in the first quarter of fiscal 2026 and increased 3.2% excluding the impacts of foreign currency and a $5.9 million contribution from the acquisition of Breathe Right® and its associated portfolio of brands. The revenue performance versus the prior year comparable period reflected strong organic growth in the Gastrointestinal and Dermatological categories as well as an increase in revenues associated with the acquisition of the Breathe Right® brand and its associated portfolio. Reported net income for the first quarter of fiscal 2027 totaled $29.2 million, or $0.61 in earnings per diluted share, compared to $47.5 million, or $0.95 in diluted earnings per share, for the comparable period. On an adjusted non-GAAP basis first quarter fiscal 2027 net income totaled $46.5 million, or $0.98 in diluted earnings per share. Adjustments to net income in the first quarter of fiscal 2027 included certain costs associated with acquisitions including integration, transition, purchase accounting, legal and various other costs, such as costs associated with improving and optimizing the acquired Pillar5 facility for increases in long-term capacity, and associated tax adjustments. Free Cash Flow and Balance Sheet The Company's net cash provided by operating activities for the first quarter of fiscal 2027 was $70.8 million, compared to $79.0 million during the prior year comparable period. Non-GAAP adjusted free cash flow in the first quarter of fiscal 2027 of $83.7 million increased compared to $78.2 million in the prior year first quarter. The material increase in free cash flow was attributable to the timing of working capital. The Company's net debt position as of June 30, 2026 was approximately $2 billion. Subsequent to the quarter, on July 15, 2026 the Company issued $400 million of new 6.25% senior notes due 2034 which replaced the same principal of senior notes previously due in fiscal 2028. The new notes extend the maturity of the amount to July 15, 2034 moving the Company’s closest debt maturity to 2031. Segment Review In the fiscal first quarter 2027, the Company established a new product category, Wellness, Sleep & Other, and renamed certain existing product categories to help best incorporate the brands acquired in the Breathe Right® transaction. North American OTC Healthcare: Segment revenues of $226.2 million for the first quarter fiscal 2027 increased 6.4% compared to the prior year comparable quarter's segment revenues of $212.6 million. The revenue increase was broad-based and included strong organic sales growth in the Gastrointestinal, Dermatological, and Cough, Cold & Allergy categories, as well as an increase in the newly created Wellness, Sleep & Other category from the acquisition of the Breathe Right® brand. International OTC Healthcare: Fiscal first quarter 2027 segment revenues of $39.5 million increased 6.9% compared to $37.0 million reported in the prior year comparable period. The revenue performance was primarily driven by a $1.4 million contribution from the acquisition of the Breathe Right® brand. Updated Fiscal 2027 Outlook Ron Lombardi, Chief Executive Officer, stated, “Our strong initial first quarter performance gives us momentum in both revenue and earnings for full-year fiscal 2027. Our consumption remains healthy for our leading, trusted brands, and we continue to emphasize our proven marketing tactics to succeed in a challenging consumer environment. In addition, our portfolio diversity and business attributes leave us well positioned to manage the continued volatile supply for Clear Eyes®.” “We are very excited about our recently closed Breathe Right portfolio and LaCorium Health acquisitions in mid-June and July, respectively, and both bring strong long-term growth prospects. Breathe Right® is a category-defining, global brand in the attractive better-breathing space, where we expect to grow the category domestically while expanding the brand's international presence. LaCorium's Dermal Therapy® brand is a leader in therapeutic skin care in Australia, and we anticipate strong sales growth under the Prestige Consumer Healthcare business model, driven by category growth, innovation, and continued geographic expansion." “We are raising our fiscal 2027 financial outlook for both revenue and EPS, entirely to account for the addition of these two businesses. These acquisitions add nearly 20% to our revenue base and we expect the acquisitions to become increasingly accretive to profitability and cash flow as we move past the near-term and begin to realize business synergies and our brand growth objectives,” Mr. Lombardi concluded. First Quarter Fiscal 2027 Conference Call, Accompanying Slide Presentation and Replay The Company will host a conference call to review its first quarter fiscal 2027 results today, August 6, 2026 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 "guidance," "outlook," "may," "will," "would," “believe,” “momentum,” "expect," “look forward,” "anticipate,” “increasingly,” “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 adjusted free cash flow; consumption trends; the expected impact of Breathe Right® and LaCorium Health acquisitions on the Company’s revenue and cash flow; and the Company’s ability to manage through the current environment through its business strategy and diverse product portfolio. 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, 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, 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 as a result of labor shortages. 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, 2026 and other periodic reports filed with the Securities and Exchange Commission. About Prestige Consumer Healthcare Inc. Prestige Consumer Healthcare markets, sells, manufactures and distributes consumer healthcare products to retail outlets throughout the U.S. and Canada, Australia, and in certain other international markets. The Company’s diverse portfolio of brands include Breathe Right® nasal strips, 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, as well as Hydralyte® rehydration products and the Dermal Therapy® line of therapeutic skin care products in Australia. Visit the Company's website at www.prestigeconsumerhealthcare.com. *Intersegment revenues of $0.7 million were eliminated from the North American OTC Healthcare segment. * Intersegment revenues of $0.6 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 Adjusted Gross Margin, Non-GAAP Adjusted Gross Margin Percentage, Non-GAAP Adjusted General and Administrative Expense, Non-GAAP Adjusted General and Administrative Expense Percentage, Non-GAAP EBITDA, Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA, Non-GAAP Adjusted EBITDA Margin, Non-GAAP Adjusted Net Income, Non-GAAP Adjusted Diluted EPS, Non-GAAP Free Cash Flow, Non-GAAP Adjusted 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 revenues associated with acquisition and 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 Adjusted Gross Margin: GAAP Gross Profit minus amortization of inventory fair value step-up, acquired facility remediation, period overhead and idle capacity costs. Non-GAAP Adjusted Gross Margin Percentage: Calculated as Non-GAAP Adjusted Gross Margin divided by GAAP Total Revenues. Non-GAAP Adjusted General and Administrative Expense: GAAP General and Administrative expenses minus costs associated with acquisition. Non-GAAP Adjusted General and Administrative Expense Percentage: Calculated as Non-GAAP Adjusted General and Administrative expense divided by GAAP Total 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 EBITDA: Non-GAAP EBITDA before amortization of inventory fair value step‑up, acquired facility remediation, period overhead and idle capacity costs and costs associated with acquisitions. Non-GAAP Adjusted EBITDA Margin: Calculated as Non-GAAP adjusted EBITDA divided by GAAP Total Revenues. Non-GAAP Adjusted Net Income: GAAP Net Income before amortization of inventory fair value step-up, depreciation of idle assets during remediation period, acquired facility remediation, period overhead and idle capacity costs, costs associated with acquisitions in General and Administrative Expense, and applicable tax impact associated with these items. 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. Non-GAAP Adjusted Free Cash Flow: Non-GAAP free cash flow plus acquisition costs paid. Net Debt: Calculated as total principal amount of debt outstanding ($2,045,000 at June 30, 2026) less cash and cash equivalents ($89,127 at June 30, 2026). 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. (a) Revenues of our OTC Wellness Business acquisition are excluded for purposes of calculating Non-GAAP organic revenues. These revenue adjustments relate to our North America and International OTC Healthcare segments. (a) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels. (a) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees. Reconciliation of GAAP Net Income to Non-GAAP EBITDA and related Non-GAAP EBITDA Margin, Non-GAAP Adjusted EBITDA and related Non-GAAP Adjusted EBITDA Margin: (a) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.(b) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees. (a) Represents depreciation expense recorded during the remediation period following the acquisition of Pillar5, during which certain production lines were not operating. Management believes this depreciation is not reflective of expected ongoing depreciation levels once the facility is fully remediated and operating at normal production levels.(b) Represents manufacturing and administrative overhead incurred during a remediation period following the acquisition of Pillar5, during which production was significantly constrained. As a result, normal overhead absorption levels were not achieved, leading to elevated unit costs. Management believes these costs are not indicative of the Company’s expected ongoing operating cost structure once the facility is fully remediated and operating at normal production levels.(c) Costs related to the consummation of the acquisition process such as legal and other acquisition-related professional fees.(d) The income tax adjustments are determined using applicable rates in the taxing jurisdictions in which the above adjustments relate and includes both current and deferred income tax expense (benefit) based on the specific nature of specific Non-GAAP performance measure.Note: Amounts may not add due to rounding. Outlook for Fiscal Year 2027: (a) The above reconciliation of this forward-looking non-GAAP financial measure only includes adjustments for Q1 2027 and does not include additional adjustments for the remainder of fiscal 2027. These future adjustments are highly uncertain, given the significant variability and difficulty in making accurate projections of the adjustments related to the Breathe Right portfolio and LaCorium Health acquisitions and the costs associated with Pillar5 manufacturing optimization and integration. As a result, the Company is unable to quantify those future adjustments, which are likely significant, without unreasonable efforts. Investor Relations ContactPhil Terpolilli, CFA, [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Organic revenue growth of 3.2% was driven by broad-based strength in GI and skin care categories, specifically the Dramamine, Fleet, and Compound W brands. The company completed two strategic acquisitions, Breathe Right and LaCorium, which are expected to add approximately $190 million in revenue for the current fiscal year. Clear Eyes performance remained below expectations due to ongoing supply constraints and output variability at the recently acquired Pillar5 manufacturing facility. Management is executing a multi-year recovery plan for Clear Eyes focused on stabilizing the Pillar5 facility, rebuilding safety stocks, and restoring the full SKU offering. Portfolio diversification has been enhanced by the acquisitions, reducing reliance on any single brand and creating a new 'wellness, sleep and other' category. Strong adjusted free cash flow of $83.7 million in Q1 provides the flexibility to prioritize debt paydown and future disciplined capital allocation. Consumption trends remain stable across core categories, though management noted a continued consumer shift toward value channels and e-commerce. Full-year revenue guidance was raised to $1.29 billion to $1.315 billion, entirely reflecting the inclusion of the Breathe Right and LaCorium acquisitions. Organic revenue growth for the full year is maintained at 1% to 3%, with approximately one-quarter of that growth expected to come from pricing actions. The Pillar5 facility is expected to achieve greater stability in the second half of the year, supporting sequential improvements in eye care shipments. Management expects to generate at least $270 million in adjusted free cash flow for fiscal 2027, with a target year-end leverage ratio just below 4x. Q2 guidance assumes a modest organic revenue decline due to retailer order timing that pulled approximately 2 points of growth into the first quarter. The Breathe Right integration is largely complete, with the business fully transitioned to Prestige's systems and warehouse network as of early August. LaCorium integration will proceed methodically over the balance of the year, leveraging its co-location with the existing Care Pharma office in Australia. Gross margin guidance was increased to over 57% for the full year, driven by the higher-margin profiles of the newly acquired businesses. Interest expense for the remainder of the year is projected at approximately $100 million following the financing of recent acquisitions and debt refinancing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed that Breathe Right is expected to deliver an annualized accretion rate of approximately $0.25 per share. The current fiscal year will see slightly lower accretion due to the stub period timing, committed marketing spend from previous owners, and debt paydown sequencing. Management has replaced previous consultants with a new internal leadership team at the Pillar5 facility, including a new General Manager. The recovery is a multi-year process involving stabilizing supply, rebuilding retailer safety stocks, and eventually re-engaging consumers through marketing. Management clarified that recent order volatility is driven by planning and resource shifts at one major customer rather than broad-based destocking. Underlying consumption remains healthy, and inventory levels at retail are considered stable across the company's core categories.

InfuSystems Holdings, Inc. (INFU) came out with quarterly earnings of $0.15 per share, beating the Zacks Consensus Estimate of $0.12 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.00%. A quarter ago, it was expected that this company would post earnings of $0.04 per share when it actually produced earnings of $0.05, delivering a surprise of +25%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. InfuSystems Holdings, which belongs to the Zacks Medical - Products industry, posted revenues of $36.93 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.19%. This compares to year-ago revenues of $36 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. InfuSystems Holdings shares have added about 2.8% since the beginning of the year versus the S&P 500's gain of 11%. While InfuSystems Holdings has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for InfuSystems Holdings was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.14 on $37.7 million in revenues for the coming quarter and $0.46 on $145.7 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Prestige Consumer Healthcare (PBH), has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This medicine distributor is expected to post quarterly earnings of $0.89 per share in its upcoming report, which represents a year-over-year change of -6.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Prestige Consumer Healthcare's revenues are expected to be $250.25 million, up 0.3% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report InfuSystems Holdings, Inc. (INFU) : Free Stock Analysis Report Prestige Consumer Healthcare Inc. (PBH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research